Saudi Arabia OTR Vehicle Market, By Vehicle Type (Tractor, Excavator, Loader, Dozer, Dump Trucks, Forklift, Others), By Application (Mining, Construction, Agriculture, Others), By Propulsion (ICE, Electric), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

Saudi Arabia OTR vehicle market was valued at USD 6.55 Billion in 2024 and is expected to reach USD 9.20 Billion by 2030 with a CAGR of 5.8% during the forecast period. The Saudi Arabia Off-the-Road (OTR) vehicle market is witnessing robust growth driven by expansive infrastructure development, increased mining activities, and the nation’s strategic economic diversification under Vision 2030. The government's push to reduce dependence on oil revenues has spurred large-scale projects such as NEOM, the Red Sea Project, and the Qiddiya entertainment city, creating significant demand for heavy-duty machinery in construction and allied industries.

Moreover, the ongoing growth in mining, particularly in untapped mineral reserves including gold, phosphate, and bauxite, is further accelerating the adoption of OTR vehicles. Agriculture modernization efforts and increased investments in logistics and warehousing have also contributed to market expansion. Technological advancements, such as automation and telematics integration, are reshaping fleet management, increasing operational efficiency, and encouraging the adoption of intelligent OTR solutions. While internal combustion engine (ICE) vehicles currently dominate, there is a growing inclination toward electric OTR vehicles, supported by global sustainability trends and Saudi Arabia’s environmental targets.

Additionally, the influx of international construction and mining companies into the Saudi market is driving demand for advanced and efficient OTR equipment. A favorable regulatory environment, coupled with increased public-private partnerships and rising foreign direct investments, is fostering a competitive and innovation-driven ecosystem. Despite challenges such as high initial investment and limited local manufacturing capabilities, the market continues to benefit from strong government support, rising urbanization, and the expansion of economic and industrial zones. These factors collectively make Saudi Arabia a lucrative destination for OTR vehicle manufacturers and suppliers aiming to tap into the Middle East's evolving heavy equipment market.

Key Market Drivers

Mega Infrastructure and Construction Projects Under Vision 2030

One of the most significant drivers of the OTR vehicle market in Saudi Arabia is the surge in mega infrastructure and construction projects aligned with the country's ambitious Vision 2030 strategy. This national blueprint aims to diversify the economy away from oil dependency and boost sectors like tourism, entertainment, housing, and transport. As a result, Saudi Arabia is undertaking several large-scale developments such as NEOM—a $500 billion smart city project; The Line—a 170-km linear city with zero cars and zero emissions; the Qiddiya entertainment city; the Red Sea Project; and numerous residential and industrial zones. These initiatives require extensive groundwork, earthmoving, logistics, and construction, demanding a high volume of tractors, excavators, loaders, and dump trucks. Government-backed investments into roads, bridges, railways (like the Riyadh Metro), airports, and seaports are further stimulating the need for specialized OTR vehicles. As these projects continue to evolve in phases over the next decade, they ensure sustained demand for construction equipment. Moreover, the shift towards public-private partnerships (PPPs) and the involvement of international construction giants is introducing global operational standards, pushing for high-performance and technologically advanced OTR vehicles. The scale and continuity of these infrastructure projects make this factor a core pillar driving long-term OTR vehicle market growth in the Kingdom.

Expansion of the Mining and Mineral Extraction Industry

Another major growth driver for the Saudi Arabia OTR vehicle market is the rapid expansion of the Kingdom’s mining and mineral extraction industry. Saudi Arabia’s Ministry of Industry and Mineral Resources estimates the Kingdom’s total mineral wealth to be SR 9.4 trillion (USD 2.5 trillion) as of April 2024. The mining sector’s GDP contribution surged from USD 17 billion in 2024 to an expected USD 75 billion by 2030, reflecting aggressive growth driven by Vision 2030. Saudi Arabia is actively working to develop its mining sector as part of Vision 2030’s goal to transform mining into a key pillar of the economy. The country is richly endowed with vast reserves of gold, phosphate, bauxite, copper, zinc, and rare earth minerals, many of which remain underexplored. The government has introduced the “Mining Investment Law” to attract foreign investments, streamline licensing processes, and provide incentives for private sector participation. The launch of the Saudi Arabian Mining Company (Ma'aden) and the development of the King Abdullah Economic City (KAEC) and other industrial hubs have spurred significant investments in mining infrastructure. These activities require robust and durable OTR vehicles, including dozers, haul trucks, and loaders, capable of operating under extreme conditions. Additionally, increased exploration activities and the establishment of new mining zones in regions like Al-Ula and the Arabian Shield are expanding the demand for mining-grade equipment. The push to make Saudi Arabia a regional mining hub by 2030—backed by over $170 billion in projected investments—ensures that the demand for heavy-duty off-road vehicles remains on an upward trajectory.

Technological Advancement and Shift Toward Electrification

Technological transformation is rapidly reshaping the Saudi Arabia OTR vehicle landscape, marking it as a pivotal driver of market growth. With digitalization and smart technologies being central to Vision 2030, industries across construction, mining, and logistics are increasingly adopting advanced OTR equipment integrated with telematics, automation, GPS, and predictive maintenance systems. These innovations help fleet operators reduce downtime, improve fuel efficiency, and monitor machine health remotely—factors that are crucial in large-scale, time-sensitive projects. Moreover, the shift toward sustainable and green technologies is giving rise to the emergence of electric OTR vehicles in the Saudi market. While internal combustion engines (ICE) still dominate, there is growing interest in battery-electric alternatives due to rising environmental awareness, the government’s commitment to reducing carbon emissions, and global trends pushing for cleaner technologies. The installation of renewable energy projects like solar and wind farms further supports the use of electric or hybrid construction machinery on-site. Global OEMs are also entering the Saudi market with next-generation OTR vehicles that offer energy efficiency, lower total cost of ownership, and compliance with future environmental regulations. As the regulatory framework matures and the required charging and support infrastructure expands, electrification is likely to play an increasingly critical role in shaping the market’s future. This ongoing technological shift not only enhances operational efficiency but also opens new opportunities for innovation, partnerships, and aftermarket services in the Saudi OTR vehicle ecosystem.

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Key Market Challenges

High Capital Investment and Total Cost of Ownership

One of the most pressing challenges in the Saudi Arabia OTR vehicle market is the high capital investment required for the procurement and operation of heavy-duty machinery. OTR vehicles such as excavators, bulldozers, dump trucks, and specialized mining equipment entail substantial upfront costs, often running into hundreds of thousands of dollars per unit. Beyond the initial purchase, the total cost of ownership (TCO)—which includes fuel consumption, regular maintenance, parts replacement, insurance, and skilled labor—can be prohibitively expensive, especially for small and medium-sized contractors and agricultural players. Given the cyclical nature of construction and mining projects, equipment idle time can further erode return on investment. This cost barrier limits market participation to only large firms or those with strong financial backing, thus restraining market expansion across the broader ecosystem. Moreover, the volatility in global raw material prices and supply chain disruptions can increase equipment and parts costs, adding further financial pressure. Leasing and rental options have partially offset the burden, but ownership is still seen as essential for firms with long-term or large-scale projects, keeping the financial barrier high. The lack of robust financing schemes or government-backed subsidies for equipment acquisition also exacerbates the problem, particularly for companies looking to shift toward electric or technologically advanced equipment, which typically costs more than conventional ICE-based models.

Shortage of Skilled Workforce and Technical Know-How

Another significant hurdle for the Saudi OTR vehicle market is the shortage of adequately trained operators, technicians, and maintenance personnel to handle modern and often complex machinery. The increasing integration of automation, telematics, remote diagnostics, and electric powertrains in OTR vehicles demands a highly skilled and specialized workforce capable of managing both mechanical and digital systems. However, the existing labor pool in Saudi Arabia—especially in construction and mining—is still largely reliant on traditional equipment handling skills, leading to inefficiencies, safety concerns, and increased equipment downtime. While the government has been pushing for workforce localization through programs like Saudization, there remains a considerable gap in vocational training and certification systems specifically designed for heavy-duty equipment operation and maintenance. Additionally, language barriers, limited hands-on training opportunities, and the lack of industry-academia collaboration further hamper workforce readiness. This skills gap not only affects productivity but also reduces the adoption rate of advanced and electric OTR vehicles, as operators are often hesitant or ill-equipped to manage new technologies. As projects grow in scale and complexity, the need for a technically proficient workforce becomes even more critical, posing a persistent bottleneck to industry growth unless comprehensive training and development initiatives are implemented at scale.

Limited Local Manufacturing and Heavy Dependence on Imports

A major structural challenge for the Saudi Arabia OTR vehicle market is the limited presence of local manufacturing capabilities, resulting in heavy dependence on imports for vehicles, spare parts, and advanced components. The National Industrial Development and Logistics Program (NIDLP) aims to localize only ~50% of its machinery & equipment sector by 2030, Most OTR equipment used in Saudi Arabia is imported from countries such as the United States, Japan, China, Germany, and South Korea. This reliance creates several vulnerabilities, including long lead times, elevated logistics costs, foreign exchange risks, and exposure to global supply chain disruptions—as experienced during the COVID-19 pandemic and recent geopolitical tensions. Import dependency also limits customization opportunities based on local terrain, weather conditions, and application-specific needs, since foreign OEMs may not fully adapt their products to Saudi requirements. The lack of a mature local supplier ecosystem further increases maintenance and repair costs due to the scarcity of parts and the need for importing replacements, often causing operational delays. While the Saudi government has initiated industrial localization programs under Vision 2030 and the National Industrial Development and Logistics Program (NIDLP), progress in heavy equipment manufacturing remains slow due to high capital requirements, lack of technological expertise, and limited joint ventures with international OEMs. Until significant strides are made in localizing the value chain—from assembly and parts manufacturing to after-sales support—the OTR vehicle market will remain constrained by import dependency, cost inefficiencies, and supply-side vulnerabilities.

Key Market Trends

Growing Adoption of Rental and Equipment Leasing Models

One of the most notable trends reshaping the OTR vehicle market in Saudi Arabia is the growing preference for rental and leasing over outright equipment ownership. Amid rising costs of heavy machinery, long project timelines, and economic uncertainty, many construction, mining, and agricultural businesses are increasingly opting for flexible equipment usage models. Renting or leasing OTR vehicles significantly reduces upfront capital expenditure, enables quicker access to advanced machinery, and allows companies to scale their fleets according to project requirements without long-term financial commitments. This model also helps firms manage seasonal demand fluctuations, particularly in the agriculture and construction sectors, and provides the opportunity to test newer technologies like electric or semi-autonomous vehicles before full-scale adoption. Additionally, maintenance and servicing responsibilities often lie with rental providers, reducing operational headaches for end users. Several international and regional rental companies are expanding their fleet presence in the Kingdom, especially in urban hubs like Riyadh, Jeddah, and Dammam, to capitalize on this trend. This shift is also fueling the growth of the equipment-as-a-service (EaaS) model, where machinery comes bundled with performance guarantees, software, and uptime commitments. As the market matures, leasing and rental models are expected to grow further, supported by government mega-projects that prefer asset-light and cost-optimized solutions, and the increasing demand from SMEs that cannot afford to invest heavily in machinery.

Digitization of Fleet Operations and Predictive Maintenance

Digitization is another major trend transforming the operational landscape of the Saudi OTR vehicle market. End users are increasingly embracing digital technologies such as GPS tracking, telematics, AI-driven analytics, and Internet of Things (IoT) to monitor and manage their equipment fleets more efficiently. Telematics-enabled OTR vehicles allow for real-time tracking of location, fuel consumption, usage patterns, and machine health, enabling data-driven decision-making and reducing downtime. Predictive maintenance, in particular, is gaining popularity as a way to extend equipment life and reduce costly unplanned outages. Sensors embedded in vehicles can monitor vital parameters—like hydraulic pressure, engine temperature, and vibration—allowing for early detection of potential failures. This not only lowers maintenance costs but also enhances safety and operational reliability. Cloud-based platforms and mobile apps now offer centralized dashboards where managers can schedule maintenance, assign tasks, and optimize machine usage across multiple sites. Major OEMs and third-party software providers are offering integrated solutions to cater to this growing demand for digital transformation. This trend aligns well with the broader national push toward smart infrastructure and Industry 4.0 under Saudi Arabia’s Vision 2030. As digital literacy improves across industries and connectivity infrastructure is further strengthened, digitization is expected to become a standard feature of fleet management in the country’s OTR vehicle ecosystem.

Rise of Green and Electric Off-the-Road Equipment

Environmental sustainability is becoming an increasingly influential factor in the Saudi Arabia OTR vehicle market, giving rise to the gradual introduction of electric and low-emission machinery. While the market is still dominated by internal combustion engine (ICE) vehicles, growing awareness of carbon emissions, government-led environmental reforms, and global pressure to reduce the carbon footprint of industrial operations are driving interest in electric OTR vehicles. In late 2024, NEOM deployed 42 hybrid ISUZU FVZ-based sprinkler trucks featuring electric drive for silent nightly operations, achieving a remarkable 95% reduction in water waste testament to the efficiency gains from hybrid OTR machinery. Green building certification programs and environmental compliance norms for large-scale public and private projects are encouraging contractors to explore cleaner alternatives. OEMs are now showcasing battery-powered excavators, loaders, and forklifts suited for urban or indoor operations, where noise and air quality are critical concerns. Although electric equipment currently comes at a premium and faces challenges related to charging infrastructure and energy density, advancements in lithium-ion battery technology, charging efficiency, and range are addressing these issues gradually. Some pilot projects and industrial zones are already integrating electric construction machinery to support net-zero targets. In parallel, hybrid and hydrogen-powered OTR vehicles are being explored for heavy-duty applications in mining and long-hour operations. This trend is further supported by the Kingdom’s investment in renewable energy, such as solar and wind farms, which can be coupled with electric construction equipment to create low-emission job sites. As sustainability becomes a procurement criterion and total lifecycle cost begins to outweigh purchase price in decision-making, the adoption of green OTR vehicles is expected to accelerate.

Segmental Insights

Application Insights

In Saudi Arabia, In terms of application, the Saudi OTR vehicle market is categorized into construction, mining, agriculture, and others (which includes oil & gas, forestry, and logistics). Among these, the construction sector was the dominant end-use industry, fueled by the Kingdom's ambitious infrastructure projects under Vision 2030. These include NEOM, the Red Sea Project, Qiddiya, and expansive housing and transportation networks. Heavy earthmoving equipment such as excavators, dozers, and loaders are in high demand to meet the pace of ongoing and upcoming developments. The mining sector is another vital application area, bolstered by the government's focus on mineral resource extraction as part of its economic diversification strategy. Saudi Arabia is rich in resources such as phosphate, bauxite, and gold, and mining projects require rugged OTR vehicles like dump trucks, loaders, and drilling equipment to operate in remote and challenging environments. The agriculture sector, though relatively smaller, is steadily growing in importance as food security and agricultural sustainability gain national attention. Tractors and harvesters dominate this segment, supported by government subsidies and mechanization initiatives. The “others” category includes support equipment used in oil rigs, warehousing, and power plants, where specialized vehicles like forklifts and material handlers play a critical role. Increasing investment in renewable energy, logistics parks, and industrial zones is driving demand in this diverse category.

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Regional Insights

In Saudi Arabia, The Northern & Central region, which includes key cities like Riyadh, Al-Qassim, Hail, and parts of the Northern Borders Province, represents the largest and most dominant regional market for OTR vehicles in Saudi Arabia. In 2023, nearly 45% of Saudi Arabia’s development licenses were issued in Riyadh and its surrounding cities, representing 38% of all registered national projects, covering more than 150 million m² of built area. Riyadh, as the political and administrative capital, is a hub for major infrastructure and public-sector-led construction activities. The region is home to multiple industrial cities, government-backed housing projects, and urban redevelopment plans, all of which require a high concentration of construction machinery like excavators, bulldozers, and loaders. In addition, central Saudi Arabia features large agricultural belts, especially in Al-Qassim, which boosts demand for tractors and farm machinery. The region also hosts mega-projects like the Riyadh Metro, King Salman Park, and Diriyah Gate, which collectively contribute to sustained demand for a diverse range of OTR vehicles. Its well-developed road infrastructure and easier logistics access further encourage heavy equipment deployment. With strong government presence, robust investment, and an expanding urban population, the Northern & Central region is expected to maintain its leadership in terms of market share over the forecast period.

Recent Developments

• In 2024, Chinese heavy-equipment manufacturer XCMG inaugurated a regional service center in Dammam, featuring a transit warehouse, spare parts facility, and training hub. This bolsters support for key projects like NEOM, the Red Sea Initiative, and DGDA.
• In January 2024, HD Hyundai Construction Equipment entered into a supply agreement with Al Rawaf Consulting for 100 excavators—30 units at 50 tons and 70 units at 22 tons—to support pipeline and NEOM City infrastructure development.
• In 2024, The Arabian Machinery & Heavy Equipment Company (AMHEC) placed a record order for 55 mobile cranes from Saudi Liebherr in March 2024, boosting its fleet to over 500 cranes with a maximum capacity reaching 800 tons.
• In 2025, Saudi Aramco signed a joint development agreement with Chinese EV giant BYD via its subsidiary SATC to collaborate on new energy and vehicle-efficiency technologies, underlining the Kingdom’s push toward sustainable transport.

Key Market Players

• Caterpillar Inc.
• Epiroc Middle East FZE
• Sany Heavy Industry Co., Ltd.
• Abdul Latif Jameel IPR Company Limited
• Hyundai Construction Equipment Co.
• Hitachi Ltd.
• Komatsu Ltd.
• Volvo Construction Equipment Corporation
• Manitowoc Company Inc.
• Liebherr.

Report Scope:

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

• Saudi Arabia OTR Vehicle Market, By Vehicle Type:

o   Tractor

o   Excavator

o   Loader

o   Dozer

o   Dump Trucks

o   Forklift

o   Others

• Saudi Arabia OTR Vehicle Market, By Application:

o   Mining

o   Construction

o   Agriculture

o   Others

• Saudi Arabia OTR Vehicle Market, By Propulsion:

o   ICE

o   Electric

• Saudi Arabia OTR Vehicle Market, By Region:

o   Northern & Central

o   Eastern

o   Western

o   Southern

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Saudi Arabia OTR Vehicle market.

Available Customizations:

Saudi Arabia OTR 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).

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