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Forecast Period
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2026-2030
|
|
Market Size (2024)
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USD 253.22 Million
|
|
CAGR (2025-2030)
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13.26%
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Fastest Growing Segment
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Tethered
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Largest Market
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Northern & Central
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Market Size (2030)
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USD 533.02 Million
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Market Overview
Saudi Arabia Connected Car market was
valued at USD 253.22 million in 2024 and
is anticipated to grow USD 533.02 million by 2030 with a CAGR of 13.26% during
the forecast period. The connected car market in Saudi Arabia is witnessing
significant growth, fueled by rapid advancements in telecommunications
infrastructure, particularly 5G deployment, and increasing adoption of smart
mobility solutions. These vehicles offer enhanced safety, navigation,
entertainment, and real-time vehicle diagnostics, aligning with the Kingdom’s
Vision 2030 goals of technological modernization and reduced reliance on oil.
Government support for smart transportation, rising consumer demand for in-car connectivity,
and growing investments by global automotive manufacturers and tech firms are
further accelerating market expansion. Moreover, the increasing focus on
autonomous driving and data-driven services is reshaping the future of the
automotive ecosystem in Saudi Arabia.
Key Market Drivers
Rapid
Deployment of 5G and Smart Infrastructure
A key trend fueling the growth of Saudi Arabia’s
connected car market is the swift expansion of 5G networks alongside the
development of smart infrastructure. As a regional leader in 5G deployment, the
Kingdom offers high-speed, low-latency connectivity essential for real-time
communication between vehicles, infrastructure, and cloud-based platforms. This
advanced digital framework enables critical connected car features such as live
navigation, over-the-air (OTA) software updates, real-time traffic alerts, and
vehicle-to-everything (V2X) communication. Aligned with Vision 2030, major
smart city projects like NEOM and The Line are receiving focused investments in
intelligent transportation systems, creating a fertile environment for testing
and deploying future mobility technologies. According to the Communications,
Space and Technology Commission (CST), approximately 98% of the population is
covered by 4G, with 5G coverage rapidly expanding across key urban centers.
This robust network infrastructure underpins the seamless functioning of
connected vehicle services, driving market adoption and innovation across the
automotive sector.
Integration
of Advanced Safety and Driver Assistance Features
Safety remains a top priority for
connected car adoption, and Saudi Arabia is increasingly embracing advanced
driver assistance systems (ADAS) and safety technologies. Features such as lane
departure warnings, adaptive cruise control, automatic emergency braking, and
blind-spot detection are becoming more prevalent in both luxury and mid-range
vehicles. These innovations not only enhance road safety but also pave the way
for semi-autonomous and autonomous driving capabilities. With the Saudi
government enforcing stricter vehicle safety standards and encouraging the
adoption of modern transport technologies, consumers are gravitating towards
vehicles that offer smarter, safer driving experiences. Additionally, the high
rate of road accidents in the country has spurred public and private interest
in using connected car technologies to reduce fatalities and injuries. According
to the World Health Organization (WHO), Saudi Arabia records one of the highest
road traffic fatality rates globally, estimated at around 28 deaths per 100,000
people as of recent data, reinforcing the urgency for deploying ADAS and
connected safety features. As more vehicles on Saudi roads become equipped with
these intelligent systems, the foundation for autonomous mobility continues to
solidify.
Rising
Demand for Infotainment and In-Car Connectivity
Saudi consumers, particularly younger demographics,
are showing growing interest in seamless digital experiences inside their
vehicles. This has led to a surge in demand for advanced infotainment systems
that integrate with smartphones, cloud services, and digital assistants.
Features such as Apple CarPlay, Android Auto, integrated navigation, streaming
services, and voice-controlled systems are becoming standard in new vehicle
models. Automakers and tech firms are investing in connected car ecosystems that
personalize user experiences, enhance convenience, and support entertainment
during commutes. Moreover, the extended travel times in urban centers like
Riyadh and Jeddah, combined with the tech-savvy nature of Saudi consumers, have
made digital cabin experiences a key differentiator for vehicle sales. According
to the General Authority for Statistics (2024), approximately 63% of the
Kingdom's population is under the age of 35, a digitally native demographic
that heavily influences consumer preferences in the automotive market. This
trend is expected to accelerate as 5G and IoT technologies enable faster and
more reliable content delivery within the vehicle.
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Key Market Challenges
Cybersecurity
and Data Privacy Concerns
One of the most critical challenges facing the
connected car ecosystem is cybersecurity. As vehicles become increasingly
integrated with the internet and cloud services, they are exposed to potential
cyber threats. Hackers can target vulnerabilities in software or communication
systems, posing risks not only to user data but also to passenger safety. The
lack of unified cybersecurity standards for automotive systems in Saudi Arabia
further complicates the issue. Moreover, concerns around data privacy, especially
regarding how driving behavior, location, and personal information are
collected and used, remain high. Addressing these issues requires the
development of strong regulatory frameworks, partnerships with cybersecurity
firms, and consumer education to build trust in connected car technology.
Lack
of Standardization and Interoperability
The absence of standardized communication protocols
and technologies among different vehicle manufacturers, software developers,
and telecom providers is another major barrier. Without standardization,
interoperability between connected car systems and public infrastructure
becomes limited, leading to fragmented user experiences and higher
implementation costs. Saudi Arabia currently lacks a unified national framework
to harmonize these systems, which slows down the deployment of large-scale
Vehicle-to-Everything (V2X) networks. To overcome this challenge, industry
stakeholders need to collaborate and align on open standards that ensure
compatibility across different platforms and ecosystems.
High
Costs and Limited Availability
The initial cost of connected vehicles remains
relatively high, especially for mid-range and budget-conscious consumers.
Advanced features like ADAS, real-time diagnostics, and infotainment systems
are often available only in premium models. In addition, subscription-based
services and hardware upgrades can further increase long-term ownership costs.
Although the Kingdom has a strong appetite for luxury vehicles, the broader
market penetration of connected cars is hindered by affordability concerns. Furthermore,
the limited availability of connected car models in the local market restricts
consumer choice, especially in rural and less-developed areas.
Key Market Trends
Data-Driven
Services and Emerging Business Models
Another notable trend in Saudi Arabia’s
connected car market is the growing emphasis on data-driven services and
emerging business models. As vehicles become increasingly digitized, they
generate vast amounts of data related to driving behavior, location,
diagnostics, and system usage. This data can be leveraged by automakers,
insurance companies, fleet operators, and mobility service providers to deliver
more tailored, efficient, and predictive offerings. For example, insurers are
exploring usage-based insurance (UBI) models that adjust premiums based on
driving patterns. Similarly, fleet management companies are using telematics
solutions to optimize operations, reduce fuel consumption, and improve driver
performance. OEMs are also offering subscription-based services and
pay-as-you-go models for connected features, allowing consumers to customize
their in-car experiences. According to the Saudi Data and Artificial
Intelligence Authority (SDAIA), over 100 terabytes of data are now being
processed through the National Data Bank (NDB), supporting advanced analytics
across sectors including mobility and transportation. These data-driven
innovations align with Saudi Arabia’s digital transformation objectives and
offer new revenue streams for industry stakeholders.
Emergence
of Data-Driven and Subscription-Based Business Models
As connected cars generate enormous amounts of data ranging
from vehicle health and driving behavior to location history and infotainment
usage OEMs and service providers are increasingly focusing on monetizing this
data through new business models. Subscription-based services are becoming more
common, allowing users to unlock premium features such as enhanced navigation,
additional entertainment packages, or predictive maintenance alerts on a
monthly or yearly basis.
Insurance companies are also starting to explore
usage-based insurance (UBI) models, where premiums are tailored to the driver's
behavior as tracked by vehicle telematics. Fleet operators and logistics
companies in Saudi Arabia are adopting connected fleet management platforms
that provide real-time tracking, route optimization, fuel monitoring, and
driver performance analytics.
These developments are creating a shift from
traditional one-time vehicle sales to ongoing revenue streams based on digital
services and user engagement. This evolution is not only reshaping the
automotive value chain but also aligning with Saudi Arabia’s broader digital
economy goals under Vision 2030.
Segmental Insights
Vehicle
Type Insights
The passenger car segment dominated the
connected car market in Saudi Arabia, driven by rising consumer demand for
advanced safety, infotainment, and navigation features. Increasing
urbanization, growing middle-class income, and tech-savvy young population have
accelerated the adoption of connected technologies in personal vehicles.
Automakers are increasingly equipping passenger cars with features such as
real-time traffic updates, wireless connectivity, and advanced driver
assistance systems to enhance comfort and safety. Moreover, government
initiatives promoting smart mobility and digital transformation under Vision
2030 are further supporting the expansion of connected technologies in the
passenger vehicle segment across major cities in the Kingdom.
Connectivity
Type Insights
The embedded segment was dominating the connected car
market in Saudi Arabia due to its seamless integration, reliability, and
growing demand for real-time connectivity. Embedded systems come pre-installed
by automakers, offering built-in telematics, navigation, and safety features
without relying on external devices. These systems enable continuous
connectivity for vehicle diagnostics, emergency assistance, and over-the-air
(OTA) updates, which are increasingly valued by consumers and fleet operators.
The widespread rollout of 5G and intelligent transport infrastructure in line
with Vision 2030 further enhances the performance of embedded solutions, making
them the preferred choice over tethered or integrated smartphone-based
connectivity options.
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Regional Insights
The Northern & Central regions of
Saudi Arabia dominate the Connected Car market due to the presence of major
urban centers such as Riyadh, the capital city, and key government institutions
driving public transport modernization. These regions are at the forefront of
implementing Vision 2030 initiatives, including sustainable mobility and smart
city development. High population density, increasing urbanization, and greater
investment in public infrastructure further support the adoption of Connected
Cares. Additionally, projects like the Riyadh Metro and integrated bus networks
are being developed with electrification in mind, positioning the Northern and
Central regions as leaders in the country’s e-mobility transition.
Recent Developments
- In Jan 2024, General Motors launched its
pioneering OnStar Connected Services in Saudi Arabia, in partnership with CST,
stc, and the Ministry of Interior. The subscription-based service offers
real-time safety, diagnostics, navigation, emergency response, and entertainment
features across Chevrolet, GMC, and Cadillac models
- In May 2025, Uber and Saudi Arabia’s Transport General
Authority signed a memorandum in May 2025 to launch autonomous vehicles in the
Kingdom by the end of 2025. Initially, self-driving cars will feature on-board
safety monitors, with fully driverless operations phased in later
- In Sep 2024, Nissan introduced its next‑generation NissanConnect 2.0 in Saudi Arabia for the
All‑New Patrol, featuring Google-built services including
Maps, Play Store, Assistant, and remote controls offering smartphone
integration, voice commands, live navigation, and remote vehicle access
- In Aug 2024, Salesforce unveiled its Connected Vehicle
app built on Automotive Cloud enabling automakers to quickly create
connected-car experiences. It centralizes telematics, IoT, and vehicle data to
monitor vehicle health, deliver over-the-air updates, trigger remote actions,
and offer in-car purchasing and personalized services
Key Market Players
- Apple Inc.
- AT&T Inc.
- Ford Motor Company
- General Motors Company
- BMW Group
- Google Inc
- Audi AG
- Delphi Automotive PLC
- NXP Semiconductors N.V
- Car Force
|
By Vehicle Type
|
By Connectivity Type
|
By Communication
|
By Service
|
By Region
|
- Passenger Car
- Commercial Vehicle
|
- Embedded
- Tethered
- Integrated
|
- Vehicle To Vehicle
- Vehicle to Infrastructure
- Vehicle to cloud
- Vehicle to Pedestrian
- Vehicle to Everything
|
- Driving Assistance
- Connected Safety
- Well Being
- Vehicle Management
- Intersection Assistance
- Emergency Braking
- Others
|
- Northern & Central Western
- Eastern
- Southern
|
Report Scope:
In this
report, the Saudi Arabia Connected Car Market has been segmented into the
following categories, in addition to the industry trends which have also been
detailed below:
- Saudi Arabia Connected Car Market,
By Vehicle Type:
o Passenger Car
o Commercial Vehicle
- Saudi Arabia Connected Car Market,
By Connectivity Type:
o Embedded
o Tethered
o Integrated
- Saudi Arabia Connected Car Market,
By Communication:
o Vehicle To Vehicle
o Vehicle to Infrastructure
o Vehicle to cloud
o Vehicle to Pedestrian
o Vehicle to Everything
- Saudi Arabia Connected Car Market,
By Service:
o Driving Assistance
o Connected Safety
o Well Being
o Vehicle Management
o Intersection Assistance
o Emergency Braking
o Others
- Saudi Arabia Connected Car 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 Connected Car Market.
Available Customizations:
Saudi Arabia Connected Car Market report with the
given market data, Tech ci 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).
Saudi Arabia Connected
Car Market is an upcoming report to be released soon. If you wish an early
delivery of this report or want to confirm the date of release, please contact
us at [email protected]