Saudi Arabia Bus Market was
valued at USD 666.31 million in 2022 and forecasted to grow at a CAGR of 7.38%
to reach USD 1,029.32 million in the year 2028.
A bus is a form of motorized
vehicle with large motor and long length compared to other vehicles. The bus
has seats and benches for the passengers, usually operates as part of a scheduled
services for intercity and intracity travels. The government of Saudi Arabia is
constantly investing in expanding the nation's bus network, which will enable
citizens to travel readily throughout the country using public transportation
options. The country's public transportation facility supplier, Saptco, is
expanding its bus fleet each year, and demand for buses is rising because of
the expansion of the institutional sector of the economy. Additionally, SAPTCO
runs intercity bus services across the nation, offering a wider network than
train travels. Buses typically cost less and have frequent run periods. As a
result, the Saudi Arabian Bus Market is further boosted by the usage of buses.
Increase in Tourism
in the Country
Every year around 20 million
tourists visit Saudi Arabia, generating around USD 5.96 billion revenue. Also, Saudi
Arabia is a religious place which has two main cities, Mecca and Medina, where
people come in larger number for worshipping, buses are better option for
tourist who travel intercity and intracity. The government of Saudi Arabia has provided
government bus services for the devotees which come to visit these cities to
help bus service tourist and making it easy to travel around the different
cities in the country. There has been a surge in sales of buses in the past few
years due to growth in the tourism sector, the corporate sector has high demand
for the buses as many companies offer transportation facilities to their
employees. Owing to the ease of transmission and riding comforts, numerous people
have started relying on buses for transportation in the country. Such buses are
found to be convenient for use by women and old age people employed in corporate
sector since they are occupied into continuously variable transmission (CVT),
have additional space, comfort of foot resting area, etc. In addition to that, bus
manufacturing brands like Mercedes-Benz
AG, TATA Motors Limited, Zhongtong
Bus Holding Co., Ltd, AB Volvo, etc.
are launching their models in this segment and hence this is expected to fuel
the growth of bus market in Saudi Arabia.
Increase in Electric and
Hybrid Technology in Bus
Increase in electric and
hybrid technology is driving the demand for zero-emission buses gradually. With
changing technology advancements, global automotive manufacturers are providing
better features and specifications available for the passengers, such as
electric and hybrid bus vehicles. Bus manufacturers, such as Mercedes-Benz AG and Anhui Ankai Automobile Co., Ltd., Scania
AB, etc. are investing in electric engines to make them future ready for
daily passengers who travel by bus. Bus owners have started preferring
zero-emission buses gradually over the ICE (Internal Combustion Engine) buses
due to better functioning and less maintenance cost. Bus fleet owners are
expelling out their older buses with IC engines and are purchasing new
zero-emission vehicles generously, this trend is expected to increase the
demand of buses in the forthcoming years.
Growing Penetration of
Chinese Brands
In Saudi Arabia the buses
offered by the Chinese brands are at a comparatively cheaper price with all the
same features compared to other bus brands in Saudi Arabia. Nowadays, Chinese
brands offer better quality and features that a bus needs, such as steering
adjustment, sun visor, mobile charging points, and stability at high speeds,
etc., which are mandatory for safe driving on the roads. Companies like Zhongtong Bus Holding Co.,
Ltd, MAN SE, etc. provide buses which are equipped with the latest technology and
many school and corporates offices interestingly order for these buses in high
numbers. Moreover, Chinese buses manufacturers have their prominent
dealers in the country, they have a strong client base which has increased the
demand for the Chinese brand buses in the country, such brands are gaining
penetration and popularity in the country and hence, are aiding the growth of Saudi
Arabia Bus Market throughout the country.