|
Forecast Period
|
2026-2030
|
|
Market Size (2024)
|
USD 1.69 Billion
|
|
CAGR (2025-2030)
|
6.07%
|
|
Fastest Growing Segment
|
Fuel Cell Electric Vehicle
|
|
Largest Market
|
Northern & Central
|
|
Market Size (2030)
|
USD 2.40 Billion
|
Market Overview
Saudi Arabia Electric Commercial Vehicle
market was valued at USD 1.69
billion in 2024 and
is anticipated to grow USD 2.40 billion by 2030 with a CAGR of 6.07% during
the forecast period. Saudi Arabia's electric commercial vehicle market is
gaining strong momentum, driven by the Kingdom’s Vision 2030 goals aimed at
reducing carbon emissions and diversifying the economy. Government support,
including incentives and infrastructure development, is encouraging the
adoption of electric buses, vans, and trucks across logistics, public
transportation, and industrial sectors. Major cities like Riyadh and Jeddah are
witnessing pilot projects and public-private partnerships to promote fleet
electrification. International manufacturers and local players are also
investing in assembling and distributing electric commercial vehicles. With
sustainability becoming a national priority, the market is expected to grow
steadily over the coming years.
Key Market Drivers
Fleet
Electrification in Logistics and Public Transport
Saudi Arabia is witnessing a growing trend of fleet
electrification in both logistics and public transportation sectors. Logistics
providers, courier companies, and last-mile delivery firms are increasingly
integrating electric vans and light commercial vehicles into their fleets to
reduce operational costs and comply with new sustainability mandates.
According to a report by the International Energy Agency (IEA), electric light
commercial vehicle (e-LCV) registrations in the MENA region, including Saudi Arabia,
grew by over 80% in 2023, reflecting rising adoption across logistics fleets.
Electric vehicles offer significant savings in fuel and maintenance costs,
making them an attractive long-term investment for fleet managers.
In parallel, the public transport sector is undergoing
a transformation with pilot programs deploying electric buses in cities such as
Riyadh and Jeddah. For instance, the Royal Commission for Riyadh City announced
in 2023 the inclusion of electric buses in its public transit expansion plan.
Additionally, Lucid Motors’ AMP-2 facility is expected to support public fleet
electrification efforts by producing thousands of EVs annually in King Abdullah
Economic City. The government and municipalities are actively collaborating
with electric bus manufacturers to modernize their fleets. These initiatives
are part of broader urban mobility plans aimed at reducing congestion and
improving air quality. As demand for e-commerce and urban mobility rises evidenced
by a 25% annual growth in online retail deliveries reported by the Saudi
Communications and Information Technology Commission (CITC) the demand for
electric commercial vehicles is expected to grow substantially in the
coming years.
Infrastructure
Development and Charging Ecosystem Expansion
The expansion of electric vehicle charging
infrastructure is a crucial driver supporting the ECV market in Saudi Arabia.
Recognizing the importance of reliable charging networks, the Saudi government
and private sector stakeholders have made significant investments in deploying
EV charging stations across key commercial and industrial zones, transportation
hubs, and highways. According to the Saudi Electric Vehicle Infrastructure
Company (SEVIC), more than 1,000 EV charging stations are planned to be installed
by 2025 across major cities.
Urban centers like Riyadh and Dammam are witnessing
the emergence of dedicated EV charging corridors and smart charging hubs that
cater specifically to commercial fleets. As per the Ministry of Energy,
high-power fast-charging stations capable of 150–350 kW are being prioritized
to support trucks and buses, reducing charging times from hours to under 45
minutes. Additionally, advancements in fast-charging technologies and the
integration of energy management systems are improving turnaround times for electric
commercial vehicles, making them more viable for high-utilization operations
such as logistics and public transport.
Technological
Advancements and OEM Collaborations
Continuous innovation in battery technology, electric
drivetrains, and vehicle design is significantly boosting the performance and
efficiency of electric commercial vehicles. These advancements are increasing
vehicle range, reducing charging time, and enhancing payload capacity all of
which are critical factors for commercial use.
Original Equipment Manufacturers (OEMs), both global
and regional, are entering strategic partnerships with local players to tap
into the growing market potential in Saudi Arabia. Companies like Ceer, a newly
launched EV brand supported by the Public Investment Fund (PIF), and
partnerships with international ECV manufacturers are expected to bring
localized production and tailored solutions for the Saudi market.
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Key Market Challenges
High
Initial Costs and Limited Financing Options
The high upfront cost of electric commercial vehicles
compared to conventional internal combustion engine (ICE) vehicles remains a
significant barrier in Saudi Arabia. Although ECVs offer long-term savings in
fuel and maintenance, the initial purchase price of electric trucks, vans, or
buses is still considerably higher due to the cost of lithium-ion batteries and
advanced components.
For small- and medium-sized fleet operators,
especially in the logistics and transportation sectors, these high capital
requirements can be prohibitive. Additionally, the local financial ecosystem is
still evolving to support EV financing. Currently, there are limited leasing
programs, subsidies, or green financing schemes dedicated specifically to
commercial electric vehicles. Without robust government-backed incentives or
tax benefits, many businesses remain hesitant to make the transition.
Lack
of Technical Expertise and After-Sales Support
Another critical challenge is the limited availability
of technical expertise, service infrastructure, and skilled labor to support
electric commercial vehicles. ECVs require specialized maintenance,
diagnostics, and parts, which differ significantly from traditional ICE
vehicles. However, most local service centers, workshops, and technicians are
not yet equipped or trained to handle the needs of electric commercial fleets.
This shortage of qualified personnel creates concerns
for fleet managers regarding vehicle uptime, reliability, and long-term
maintenance. In commercial applications where operational efficiency is
paramount, delays in service or parts availability can directly impact
profitability. Moreover, the scarcity of certified EV technicians hinders the
expansion of after-sales service networks.
Key Market Trends
Rising
Government-Backed Pilot Programs and Public-Private Partnerships
A prominent trend in Saudi Arabia's electric
commercial vehicle (ECV) market is the increasing number of government-led
pilot programs and public-private partnerships aimed at accelerating EV
deployment. The Saudi Ministry of Transport and Logistic Services, in
collaboration with key stakeholders, is actively working to integrate electric
buses and trucks into public fleets. For instance, in 2023, the Royal
Commission for Riyadh City launched pilot projects deploying electric buses
along key routes, contributing to the city’s goal of a 25% shift to clean
transport by 2030.
Electric buses have also been introduced in Jeddah as
part of the Saudi Public Transport Company (SAPTCO) and Jeddah Bus Project,
which began trial operations of zero-emission buses in early 2024. These
efforts are part of broader urban mobility initiatives designed to reduce
emissions and traffic congestion, in line with the National Transport and
Logistics Strategy, which targets reducing transport emissions by 18% by 2030.
Localization
of Manufacturing and Assembly
To reduce reliance on imports and promote domestic
capabilities, there is a growing trend toward localizing the manufacturing and
assembly of electric commercial vehicles. With strong support from the Public
Investment Fund (PIF) and national industrialization strategies, Saudi Arabia
is working to develop a homegrown EV industry.
For example, the launch of Ceer, Saudi Arabia’s first
electric vehicle brand, is a significant milestone. Although initially focused
on passenger cars, the long-term roadmap includes expansion into light
commercial vehicles and vans. Additionally, partnerships between local
industrial firms and global OEMs are being formed to assemble electric buses
and trucks within the Kingdom.
This localization trend is expected to lower vehicle
costs, boost local employment, and attract further investment in R&D,
component manufacturing, and battery technology. As domestic production scales,
it will provide a more secure and customized supply of electric commercial
vehicles tailored to regional needs.
Focus
on Sustainable Last-Mile and Urban Delivery Solutions
As urban populations expand and e-commerce continues
to grow in Saudi Arabia, there is a significant push toward sustainable
last-mile delivery solutions. Electric light commercial vehicles, such as
delivery vans and compact cargo trucks, are increasingly being adopted by
logistics and courier companies to meet environmental targets and reduce
operating costs.
Retailers, especially those involved in food delivery,
parcel services, and urban logistics, are experimenting with small electric
vans and scooters for intra-city transport. Companies are recognizing the value
of quieter, emission-free vehicles in improving customer satisfaction and
aligning with the country’s green mobility goals.
Segmental Insights
Vehicle
Type Insights
Buses represent the dominating segment
in Saudi Arabia's electric commercial vehicle market, primarily driven by
government initiatives to modernize public transportation and reduce emissions.
Major cities like Riyadh and Jeddah are witnessing the deployment of electric
buses as part of sustainable urban mobility plans. These vehicles are ideal for
mass transit, offering cost-effective and environmentally friendly alternatives
to diesel fleets. Public-private partnerships and pilot programs are accelerating
adoption, while infrastructure developments, including dedicated bus charging
depots, further support this trend. The focus on eco-friendly mass transport is
positioning electric buses at the forefront of the commercial electrification
movement in the Kingdom.
Propulsion
Insights
Battery Electric Vehicles (BEVs) was the dominating
segment in Saudi Arabia's electric commercial vehicle market, driven by their
zero-emission performance, lower operational costs, and alignment with the
Kingdom’s Vision 2030 sustainability goals. BEVs are increasingly favored for
public transport, logistics, and last-mile delivery due to advancements in
battery technology and expanding charging infrastructure. Unlike hybrid models,
BEVs rely entirely on electricity, making them a cleaner and more efficient
choice for fleet operators. Government incentives, along with rising fuel
prices and emission regulations, are encouraging businesses to transition to
BEV fleets, reinforcing their dominance in the evolving commercial vehicle
landscape.
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Regional Insights
The Northern and Central regions of
Saudi Arabia are the dominating areas in the electric commercial vehicle
market, driven by strong infrastructure development, urbanization, and
government-led initiatives in key cities such as Riyadh and Al-Qassim. These
regions benefit from better access to EV charging stations, logistics hubs, and
commercial centers, making them ideal for early adoption of electric buses,
vans, and trucks. Riyadh, the capital, is at the forefront of sustainable
mobility under Vision 2030, serving as a model for electric public
transportation. Strategic investments and pilot programs concentrated in these
areas are accelerating the transition to electric commercial fleets.
Recent Developments
- In Oct 2023, Mercedes-Benz Trucks,
through Juffali Commercial Vehicles, debuted the eActros 300 L 4×2 its first
battery-electric heavy-duty truck in Saudi Arabia at Riyadh's EV Auto Show. The
model features advanced safety systems, a 336 kWh battery enabling ~300 km
range, fast charging, and aligns with Vision 2030 clean transport goals.
- In Oct 2023, Quantron, in partnership
with Electromin, delivered 50 QUANTRON QARGO 4 EV light electric trucks to
Saudi Arabia, marking the Kingdom’s largest-ever deployment of battery-electric
trucks. Designed for urban logistics, they feature an 81 kWh CATL battery with
a 250 km range and 1‑hour recharge time.
- In Feb 2025, Al-Futtaim Industrial
Equipment has partnered with BYD Commercial Vehicles to introduce four new
electric commercial vehicles in the UAE: the ETM6 urban truck (126 kWh
battery), EV Light Truck T5 (132 kWh), EV Medium Truck ETH8 (255 kWh), and the
B12 bus (425 kWh, 550 km range).
Key Market Players
- Higer Bus Company Ltd.
- Anhui Ankai Automotive Co, Ltd.
- Yuchai International Ltd.
- Daimler AG
- AB Volvo
- Tesla Inc.
- Mercedes-Benz Group AG
- Toyota Motor Corporation
- BMW AG
- Quantron AG
|
By Vehicle Type
|
By Propulsion Type
|
By Battery Type
|
By Region
|
|
|
- Battery Electric Vehicle
- Plug-In Hybrid Vehicle
- Fuel Cell Electric Vehicle
|
- Less Than 50 kwh
- 50 to 250 kwh
- Above 250 kwh
|
- Western
- Eastern
- Southern
- Northern & Central
|
Report Scope:
In this report, the Saudi Arabia Electric
Commercial Vehicle Market has been segmented into the following categories, in
addition to the industry trends which have also been detailed below:
- Saudi Arabia Electric
Commercial Vehicle Market, By Vehicle Type:
o Truck
o Bus
- Saudi Arabia Electric
Commercial Vehicle Market, By Propulsion Type:
o Battery Electric Vehicle
o Plug-In Hybrid Vehicle
o Fuel Cell Electric Vehicle
- Saudi Arabia Electric
Commercial Vehicle Market, By Battery Type:
o Less Than 50 kwh
o 50 to 250 kwh
o Above 250 kwh
- Saudi Arabia Electric
Commercial Vehicle Market, By Region:
o Western
o Eastern
o Southern
o Northern & Central
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents
in the Saudi Arabia Electric Commercial Vehicle Market.
Available Customizations:
Saudi Arabia Electric Commercial Vehicle Market report
with the given market data, TechSci 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 Electric Commercial Vehicle Market is
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report or want to confirm the date of release, please contact us at [email protected]