Report Description

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.