|
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
|
|
|
|
- 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).
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Arabia Two-Wheeler market is an upcoming report to be released soon. If you
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