Report Description

Forecast Period

2024-2028

Market Size (2022)

USD 47 Million

CAGR (2023-2028)

5.47%

Fastest Growing Segment

Motorcycle

Largest Market

Western  

Market Overview

The two-wheeler market in Saudi Arabia has experienced significant growth and transformation in recent years. This market primarily comprises motorcycles, scooters, and mopeds, catering to a diverse range of consumers with varying transportation needs. Rapid urbanization, increasing population, and changing lifestyles have contributed to the surge in demand for two-wheelers as a convenient and cost-effective mode of transportation. Motorcycles, in particular, are favored for their agility, fuel efficiency, and ability to navigate through congested city traffic, making them popular choices for daily commuting. The Saudi Arabian government's efforts to diversify the economy and reduce dependency on oil have also played a role in boosting the two-wheeler market. Investments in infrastructure and transportation, along with initiatives to encourage tourism and leisure activities, have created an environment conducive to the growth of the motorcycle and scooter segment. These vehicles are not only practical for urban commuting but also appeal to enthusiasts seeking recreational and adventure experiences.

Key Market Drivers

Urbanization and Congestion

Rapid urbanization in Saudi Arabia's major cities, coupled with population growth, has led to increased traffic congestion and challenges in urban mobility. Two-wheelers, especially motorcycles and scooters, offer a practical solution for navigating through congested streets and reaching destinations more efficiently. Their compact size and maneuverability allow riders to bypass traffic jams, making them an attractive option for daily commuting.

Economic Efficiency

Two-wheelers are inherently more fuel-efficient than traditional four-wheel vehicles, making them an economical mode of transportation. In a country where fuel costs can be significant, especially in relation to car ownership, motorcycles and scooters offer cost-effective alternatives. Consumers are drawn to these vehicles for their ability to cover longer distances with less fuel, ultimately reducing transportation expenses.

Changing Lifestyles and Mobility Preferences

The modern lifestyle in Saudi Arabia has seen a shift toward convenience, flexibility, and speed in transportation. Younger generations, in particular, value time efficiency and the ability to navigate through traffic quickly. Two-wheelers align with these changing preferences, providing a swift and agile means of travel, which resonates with the demands of contemporary urban life.

Government Initiatives and Infrastructure Development

The Saudi Arabian government's initiatives to diversify the economy and promote tourism have led to significant investments in infrastructure and transportation. Improved road networks, dedicated lanes, and infrastructure enhancements support the growth of the two-wheeler market. Government support for tourism and leisure activities further encourages the adoption of motorcycles and scooters for recreational purposes.

Gender Equality and Women's Empowerment

The historic lifting of the ban on women driving in Saudi Arabia has empowered women to explore various modes of transportation. This shift has resulted in a notable increase in female riders choosing two-wheelers for their convenience and accessibility. As more women opt for motorcycles and scooters, it expands the customer base and contributes to market growth.

Recreational and Adventure Tourism

Saudi Arabia's efforts to promote recreational and adventure tourism have spurred interest in activities like motorcycling and off-road exploration. Enthusiasts seeking unique travel experiences are contributing to the demand for recreational two-wheelers. The country's diverse landscapes provide opportunities for thrilling rides and off-road adventures, driving the popularity of motorcycles and similar vehicles.

Youth Demographics and Lifestyle Trends

The youth demographic in Saudi Arabia is increasingly drawn to the idea of motorcycling as a lifestyle choice and a means of self-expression. Motorcycles symbolize freedom and individuality, resonating with the aspirations and preferences of younger generations. Social and cultural factors play a role in the adoption of two-wheelers as a trendy and appealing mode of transportation.


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Key Market Challenges

Regulatory Challenges

In Saudi Arabia, the government has established stringent rules and regulations to ensure the highest safety standards for all vehicles, including two-wheelers. These safety standards are carefully enforced to guarantee the well-being of riders and other road users. Therefore, manufacturers are required to meet these strict safety requirements, which can sometimes lead to higher production costs. However, this emphasis on safety ultimately benefits everyone by reducing the risk of accidents and promoting a safer transportation environment.

Cultural Perception

Two wheelers, such as motorcycles and scooters, are sometimes unfairly perceived as a lower-status form of transport or are associated with high-risk behavior. This cultural perception, influenced by various factors such as media portrayals and societal norms, can have a significant impact on the demand for two-wheelers in different regions and communities. Despite these perceptions, it is important to recognize the practicality, affordability, and convenience that two-wheelers offer as a mode of transportation. By understanding the nuances surrounding this perception, we can work towards promoting a more inclusive and informed view of two-wheelers in society.

Infrastructure

The existing infrastructure in Saudi Arabia is not fully conducive to the use of two-wheelers. The lack of dedicated lanes and parking spaces, coupled with high traffic, poses significant challenges to two-wheeler users. As a result, riders often find themselves navigating through congested roads, competing with larger vehicles for space. The absence of proper infrastructure also hinders the promotion of sustainable and eco-friendly modes of transportation, limiting the potential benefits that two-wheelers can bring to the community. It is crucial for authorities to recognize these issues and invest in the development of infrastructure that caters to the needs of two-wheeler users, ensuring safer and more efficient commuting options for all.

Climate

The country's harsh desert climate can make two-wheelers less appealing as a mode of transport. High temperatures and dust storms can make riding two-wheelers uncomfortable, and potentially hazardous.

Petroleum Subsidies

The presence of substantial subsidies on petrol prices in Saudi Arabia often encourages the widespread use of cars over more fuel-efficient two-wheelers. This preference for cars can be attributed to the convenience and perceived status associated with car ownership. However, as long as these subsidies continue to exist, the demand for two-wheelers, despite their ecological and economic advantages, may persist at relatively low levels. This highlights the need for a comprehensive approach that addresses both the economic incentives and the environmental implications of transportation choices.

Key Market Trends

Urbanization and Economic Growth

As cities in Saudi Arabia continue to experience rapid growth and urbanization, the need for efficient and sustainable personal transportation options has become even more pronounced. In this context, two-wheelers, such as motorcycles and scooters, are gaining significant traction due to their exceptional maneuverability in congested traffic situations and their cost-effectiveness compared to traditional four-wheel vehicles. With their compact size and agility, two-wheelers offer a practical and convenient solution for commuting and navigating urban areas, contributing to the overall goal of reducing traffic congestion and carbon emissions. The rise in popularity of two-wheelers underscores the increasing recognition of their numerous advantages, making them a viable and attractive choice for modern urban dwellers.

Young Demographic

The young population in Saudi Arabia, with its increasing urbanization and changing transportation needs, is driving the demand for two-wheelers. These versatile vehicles not only offer an affordable and efficient mode of transport but also align perfectly with the fast-paced and dynamic lifestyle of the youth. Whether it's navigating through bustling city streets or exploring scenic routes, two-wheelers provide a convenient and exhilarating experience for the young generation.

E-mobility

There is a growing trend towards electric two-wheelers as people become more aware of environmental issues and recognize the need for sustainable transportation options. With increasing concerns about air pollution and climate change, individuals are seeking alternatives to traditional gasoline-powered vehicles. Additionally, government initiatives and incentives aimed at promoting clean energy play a crucial role in encouraging the adoption of electric two-wheelers. This shift towards eco-friendly transportation not only reduces carbon emissions but also contributes to a greener and more sustainable future for all.

Female Ridership

Ever since the lifting of the ban on women driving, there has been a remarkable increase in female ridership for two-wheelers. This shift has not only opened up new avenues of mobility for women but has also given rise to a whole new segment in the market catering specifically to their needs and preferences. It's an empowering movement that is reshaping the transportation landscape and fostering inclusivity and equality.

Rise in Ride Sharing and Delivery Services

With the rise of e-commerce and the increasing reliance on delivery services, there is a significant and ever-growing demand for two-wheelers. These vehicles prove to be highly efficient and cost-effective, allowing for swift and convenient transportation of goods. Their maneuverability in congested urban areas and their ability to navigate through traffic make them the ideal choice for last-mile deliveries, contributing to the overall efficiency and effectiveness of the delivery ecosystem.

Segmental Insights

Vehicle Type Insights

In Saudi Arabia, motorcycles occupy a larger market share compared to scooters. This preference is primarily driven by the country's climatic conditions, where the higher speeds and better cooling systems of motorcycles are more suitable than scooters. Additionally, motorcycles are seen as more versatile for the diverse terrain of Saudi Arabia, ranging from city streets to desert landscapes. Furthermore, motorcycles offer a sense of freedom and adventure to riders, allowing them to explore the vast landscapes and experience the thrill of riding through the desert dunes. The powerful engines and sturdy frames of motorcycles provide a sense of confidence and reliability, making them the preferred choice for long journeys and off-road adventures.

Fuel Type Insights

The fuel type landscape in Saudi Arabia's two-wheeler market is undergoing a remarkable transformation, driven by the increasing demand for electric vehicles. This surge can be attributed to the government's unwavering commitment to reduce dependency on fossil fuels and the rising environmental consciousness among consumers. While petrol-fuelled two-wheelers still hold a dominant market share, thanks to their well-established infrastructure and familiarity among consumers, the prospects for electric two-wheelers in Saudi Arabia appear promising. With continuous advancements in battery technology and the development of robust charging infrastructure, the market for electric two-wheelers is expected to experience substantial growth in the coming years, presenting a greener and more sustainable mode of transportation for the Kingdom.


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Regional Insights

The largest market share for two-wheelers in Saudi Arabia is dominated by the Western Region, encompassing bustling cities like Jeddah and Makkah. This region boasts a dense population and a thriving tourism sector, particularly during the Hajj and Umrah seasons, attracting visitors from all over the world. The use of two-wheelers in these vibrant cities not only offers a cost-effective and efficient mode of transportation but also enables easy navigation through the congested streets, ensuring swift mobility for both locals and tourists alike. Moreover, the region's youthful populace, known for their adventurous spirit, demonstrates a strong inclination towards two-wheelers, fueling the demand for these vehicles even further.

Recent Developments

  • In 2022, the Saudi Arabia’s Abdul Latif Jameel has invested around USD 220 million in Indian EV marker named “Greaves Electric Mobility”.
  • In 2022, Carrem which is one of the leading multi-service platforms has partnered with ALMQR to provide public network of e-bikes and scooters in Medina.

Key Market Players

·         Suzuki Barayan (Saleh Omar Barayan Sons Co Ltd)

·         Harley-Davidson Inc. (M.A. Al-Mutlaq Sons Co.)

·         Yamaha Motor Co., Ltd. (Al Khorayef Commercial Co. Ltd.)

·         KTM AG (Tristar Motorcycles LLC)

·         Moto Guzzi (Tristar Motorcycles LLC)

·         Honda Motor Company Limited (Abdullah Hashim Company Ltd.)

·         Kawasaki Motors Ltd. (Arabian Auto Agency Co. Ltd.)

·         BMW Motorrad (Mohamed Yousuf Naghi Motors Co.)

·         Hero MotoCorp Ltd. (M.A. Al-Mutlaq Sons Co.)

 By Vehicle Type

By Propulsion Type

By Region

  • Scooter/Moped
  • Motorcycle
  • ICE
  • Electric
  • Northern & Central
  • Western
  • Eastern
  • Southern


Report Scope:

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

  • Saudi Arabia Two-Wheeler Market, By Vehicle Type:

o   Scooter/Moped

o   Motorcycle

  • Saudi Arabia Two-Wheeler Market, By Propulsion Type:

o   ICE

o   Electric

  • Saudi Arabia Two-Wheeler Market, By Region:

o   Northern & Central

o   Western

o   Eastern

o   Southern

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Saudi Arabia Two-Wheeler Market.

Available Customizations:

Saudi Arabia Two-Wheeler market report with the given market data, Tech Sci 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 Two-Wheeler 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]

Table of content

1.    Introduction

1.1.  Product Overview

1.2.  Key Highlights of the Report

1.3.  Market Coverage

1.4.  Market Segments Covered

1.5.  Research Tenure Considered

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary

3.1.  Market Overview

3.2.  Market Forecast

3.3.  Key Regions

3.4.  Key Segments

4.    Impact of COVID-19 on Saudi Arabia Two-Wheeler Market

4.1.  Key Segments Impacted

4.2.  Key Regions Impacted

5.    Voice of Customers Analysis

5.1.  Brand Awareness

5.2.  Factors Influencing Purchase Decision

5.3.  Challenges/Unmet Needs

6.    Saudi Arabia Two-Wheeler Market Outlook

6.1.  Market Size & Forecast

6.1.1.     By Value & Volume

6.2.  Market Share & Forecast

6.2.1.     By Vehicle Type Market Share Analysis (Scooter/Moped, Motorcycle)

6.2.2.     By Propulsion Type Market Share Analysis (ICE and Electric)

6.2.3.     By Regional Market Share Analysis

6.2.3.1.        Northern & Central Market Share Analysis

6.2.3.2.        Western Market Share Analysis

6.2.3.3.        Eastern Market Share Analysis

6.2.3.4.        Southern Market Share Analysis