Saudi Arabia Autonomous Vehicle Market, By Vehicle Type (Passenger Car, Commercial Vehicle), By Level of Autonomy (L1, L2, L3, L4, L5), By Vehicle Autonomy (Semi-Autonomous, Fully Autonomous), By Propulsion (ICE, Electric), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

Saudi Arabia Autonomous Vehicle market was valued at USD 1.03 billion in 2024 and is anticipated to grow USD 2.70 billion by 2030 with a CAGR of 17.47% during the forecast period. Saudi Arabia's autonomous vehicle market is witnessing steady growth, driven by the country’s Vision 2030 initiative, which emphasizes smart mobility, innovation, and sustainable transportation solutions. The government is actively investing in infrastructure, 5G connectivity, and artificial intelligence to support autonomous driving technologies. Strategic collaborations between global automotive manufacturers, technology firms, and local stakeholders are accelerating development and deployment. Smart city projects like NEOM and The Line are key catalysts, offering testbeds for autonomous mobility solutions. Additionally, regulatory reforms and pilot programs are paving the way for broader adoption, positioning Saudi Arabia as a regional hub for autonomous vehicle innovation.

Key Market Drivers

Technological Advancements and AI Integration

The rapid evolution of artificial intelligence (AI), machine learning (ML), and sensor technologies is another critical driver for Saudi Arabia’s autonomous vehicle market. These technologies enable core AV functions such as object detection, path planning, real-time navigation, and obstacle avoidance. The Saudi government is actively investing in AI research and development as part of its National Strategy for Data and Artificial Intelligence (NSDAI), which aims to position the Kingdom among the top 15 AI nations by 2030.

According to the Saudi Data and AI Authority (SDAIA), over USD 20 billion in investments have been allocated to data and AI initiatives through 2030, demonstrating the country’s long-term commitment to AI-driven transformation. With strong backing from institutions like SDAIA, the Kingdom is promoting the integration of AVs into urban planning. In addition, increased deployment of 5G and IoT infrastructure provides the high-speed, low-latency connectivity essential for autonomous operations. Collaborations with leading technology firms are further accelerating the deployment of AV-related hardware and software systems in the country.

Strategic Partnerships and Industry Collaborations

Saudi Arabia’s AV market is also being propelled by strategic partnerships with leading global automakers, technology providers, and mobility solution companies. These collaborations are enabling the transfer of knowledge, technological expertise, and production capabilities to the local ecosystem. For example, NEOM has entered into joint ventures with major players such as Volocopter for autonomous air taxis and Oxagon for smart industrial manufacturing. Such partnerships are driving localized testing and implementation of AV technology.

Automotive giants and global start-ups alike are finding opportunities in the Kingdom’s investment-friendly environment. The establishment of research centers, pilot test zones, and AV-friendly regulations are making it attractive for international stakeholders to enter the market. Local companies are also exploring home-grown innovations in sensor technology, fleet management, and ride-hailing platforms. These partnerships are not only advancing AV deployment but also supporting job creation and the development of a domestic AV ecosystem.

Urbanization and Demand for Efficient Transportation

Rapid urbanization and the demand for safer, more efficient transportation options are further fueling the growth of autonomous vehicles in Saudi Arabia. As cities like Riyadh, Jeddah, and Dammam continue to expand, the strain on traditional transport infrastructure is becoming more apparent. According to the World Bank, Saudi Arabia’s urban population increased from 83% in 2010 to over 85.6% in 2022, intensifying the need for innovative mobility solutions. Congestion, pollution, and traffic-related fatalities are prompting authorities to explore autonomous mobility as a sustainable alternative.

Autonomous vehicles offer numerous advantages, including reduced traffic accidents (by eliminating human error), enhanced fuel efficiency, optimized traffic flow, and greater accessibility for the elderly and disabled. In high-density urban areas, AVs can play a key role in improving first- and last-mile connectivity through self-driving taxis, shuttles, and delivery vehicles. Moreover, with growing public interest in digital transformation and smart services, the adoption of autonomous vehicles aligns well with changing consumer expectations. 

Download Free Sample Report

Key Market Challenges

Regulatory and Legal Uncertainty

One of the primary challenges hindering the adoption of autonomous vehicles in Saudi Arabia is the lack of comprehensive and clear regulatory frameworks. While the government has expressed strong support for AVs through Vision 2030 and related smart mobility initiatives, the legal landscape for autonomous driving is still evolving. There are currently no standardized laws specifically addressing liability in the event of accidents involving autonomous vehicles, nor are there established frameworks for data privacy, cybersecurity, and insurance related to AV operations.

Without clear regulations, both local and international companies face uncertainty when deploying and testing AV technologies. Autonomous vehicles depend heavily on the collection, transmission, and analysis of real-time data from multiple sources, including cameras, radar, LiDAR, and GPS. This raises significant concerns regarding user privacy, data ownership, and cross-border data transfer regulations. Until these issues are resolved with formal legislation and international alignment, companies may remain hesitant to fully invest in large-scale AV deployment in the Kingdom.

Infrastructure Readiness and Integration Challenges

Despite ambitious smart city projects like NEOM and The Line, much of Saudi Arabia’s existing road and urban infrastructure is not yet fully prepared to support autonomous vehicles. AVs rely on high-definition maps, smart traffic signals, connected roadways, and a dense network of sensors and communication systems to operate safely and efficiently. Outside of a few advanced urban zones and special development projects, much of the Kingdom still lacks the digital and physical infrastructure needed to support widespread AV use.

Additionally, the integration of AVs into mixed-traffic environments—where both autonomous and human-driven vehicles share the road—presents major logistical and safety challenges. Adapting legacy infrastructure to include dedicated AV lanes, real-time communication networks (like V2X: vehicle-to-everything), and emergency override systems requires significant investment and time. Ensuring seamless coordination between municipal planning departments, telecom providers, transport authorities, and private companies is essential, but remains a complex and resource-intensive task.

Key Market Trends

Smart City Integration and Urban Planning Alignment

One of the most significant trends driving the autonomous vehicle market in Saudi Arabia is its alignment with smart city development. Projects like NEOM, The Line, and Red Sea Global are being designed from the ground up with autonomous mobility as a core element. These cities aim to integrate AVs into every aspect of daily life, from public transit to logistics and emergency services. With no traditional roads or traffic systems in some zones (like The Line), autonomous vehicles will play a dominant role in future urban mobility. These developments are setting a global benchmark for how AVs can be embedded into futuristic city planning.

Rise of Autonomous Public Transport Solutions

Saudi Arabia is increasingly exploring the use of autonomous vehicles in public transportation. The goal is to reduce traffic congestion, lower emissions, and improve first- and last-mile connectivity in growing urban areas. Autonomous shuttles and pods are being tested and piloted in selected zones, particularly within NEOM and other special economic areas. These driverless public transport systems aim to offer efficient and sustainable mobility solutions, especially in high-density zones where conventional buses or taxis may not be as effective. In the long term, integrating AVs into metro feeder services and campus transport is expected to become more common.

Growth in Autonomous Logistics and Delivery Services

The logistics sector in Saudi Arabia is also witnessing increasing interest in autonomous technologies. With the rise of e-commerce, there is a growing demand for faster, safer, and more cost-effective last-mile delivery solutions. Autonomous delivery robots, self-driving vans, and drones are being explored to streamline operations and reduce dependence on human drivers. The government and private sector are investing in pilot projects to test AV-based logistics in closed or semi-controlled environments, such as industrial zones and gated communities. As the Kingdom builds its position as a logistics hub connecting three continents, autonomous freight transport will gain greater traction.

Segmental Insights

Vehicle Type Insights

The passenger car segment dominates the autonomous vehicle market in Saudi Arabia due to increasing demand for personal mobility, rising consumer interest in advanced driver-assistance systems, and supportive government initiatives. As urban populations grow and smart city projects advance, the focus on safer, more convenient travel options is boosting the adoption of autonomous passenger vehicles. Luxury car manufacturers and tech companies are actively launching semi-autonomous and fully autonomous models tailored to Saudi consumers. Additionally, affluent consumers in the Kingdom are more inclined to adopt high-tech vehicles, reinforcing the leadership of the passenger car segment in the evolving AV landscape.

Propulsion Insights

The internal combustion engine (ICE) segment remains the dominating segment in Saudi Arabia’s autonomous vehicle market, primarily due to the country’s well-established fuel infrastructure and ongoing reliance on petroleum-based transportation. While electric and hybrid vehicles are gradually gaining attention, ICE vehicles continue to lead because of their affordability, widespread availability, and consumer familiarity. Most autonomous vehicle developments and pilot programs in the Kingdom are currently being integrated into existing ICE platforms. Additionally, the longer driving range and quicker refueling times of ICE vehicles make them more practical for autonomous applications in vast and varied terrains across the country.

Download Free Sample Report

Regional Insights

The Northern and Central regions dominate Saudi Arabia’s autonomous vehicle market due to the presence of major urban centers like Riyadh, advanced infrastructure, and strong government support. Riyadh, the capital located in the Central region, is a key hub for smart city initiatives, including autonomous mobility integration under Vision 2030. These regions also host major pilot projects, regulatory developments, and partnerships with global AV technology providers. Furthermore, higher population density, greater economic activity, and strong demand for advanced transportation solutions contribute to the dominance of these regions in driving the adoption and growth of autonomous vehicles across the Kingdom.

Recent Developments

• In May 2025, WeRide has expanded into Saudi Arabia by launching Level‑4 Robotaxi and Robobus services in Riyadh and AlUla, with trials via Uber planned in the coming months and full commercial deployment expected by late 2025. Additionally, its Robosweeper sanitation vehicle debuted at King Fahad Medical City.

• In May 2025, Uber plans to launch self-driving vehicles in Saudi Arabia this year, leveraging local partnerships with AV stakeholders and government ministries. With over 4 million riders and 140,000 drivers in 20 cities, the move aims to enhance safety, logistics, and integration with public transit

Key Market Players

• Local Motors
• General Motor Company
• Ford Motor Company
• Renault SA
• Bayerische Motoren Werke AG
• Mercedes-Benz Group AG
• Hyundai Motor Co
• Tesla Inc.
• Nissan Motor Co., Ltd.
• Kia Corporation

Report Scope:

In this report, the Saudi Arabia Autonomous Vehicle Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Saudi Arabia Autonomous Vehicle Market, By Vehicle Type:

o   Passenger Car

o   Commercial Vehicle

• Saudi Arabia Autonomous Vehicle Market, By Level of Autonomy:

o   L1

o   L2

o   L3

o   L4

o   L5

• Saudi Arabia Autonomous Vehicle Market, By Vehicle Autonomy:

o   Semi-Autonomous

o   Fully Autonomous

• Saudi Arabia Autonomous Vehicle Market, By Propulsion:

o   ICE

o   Electric

• Saudi Arabia Autonomous Vehicle Market, By Region:

o   Northern & Central

o   Western

o   Eastern

o   Southern

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the SAUDI ARABIA Autonomous Vehicle Market.

Available Customizations:

Saudi Arabia Autonomous Vehicle Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).