Saudi Arabia Bus Market Size Set to Expand at CAGR of 7.5% to Reach USD 26.63 Billion by 2030
Saudi Arabia Bus Market is flourishing because of the growing population across expanding urban areas and thriving tourism industry.
Report Ocean, a leading strategic consulting and market research firm, in its recent study, estimated Saudi Arabia Bus Market size at USD 16.07 billion in 2023. During the forecast period between 2024 and 2030, Report Ocean expects Saudi Arabia Bus Market size to expand at a CAGR of 7.50% reaching a value of USD 26.63 billion by 2030. The rising adoption of electric buses to cut carbon emissions and air pollution and to promote sustainability, together with increased government investment in public transportation, are significant growth factors for Saudi Arabia bus market. During the forecast period, it is also anticipated that Saudi Arabia bus market will grow due to technological advancements in the industry, such as autonomous and smart buses.
Opportunity - Increasing Adoption of Electric Buses

The electric bus segment is anticipated to register the highest CAGR in Saudi Arabia Bus Market during the forecast period. The rising focus on sustainability and reducing carbon emissions is emerging as the major driver for the demand of electric buses in the Kingdom. Saudi Arabia Bus Market, based on fuel, is segmented into diesel buses, CNG (compressed natural gas) buses, electric buses, and others. Diesel buses hold the largest share of Saudi Arabia bus market owing to the low-cost availability of fuel in the Kingdom.

Impact of Escalating Geopolitical Tensions on Saudi Arabia Bus Market

The escalating geopolitical tensions could hinder the growth of Saudi Arabia bus market. The Kingdom has limited domestic production of buses and therefore has to depend on imports from other countries, including Japan, India, South Korea, and China, to meet its bus demand. However, geopolitical tensions directly disrupt the production and supply chain of the bus manufacturing industry.

Public Transportation Is Largest Application Segment

The public transportation segment dominates Saudi Arabia Bus Market. However, tourism sector is expected to grow at a high rate during the forecast period. The hajj pilgrimage and favorable government projects, such as "Madinah buses" to ensure the safety of pilgrims contributes to its market growth. Furthermore, an increasing number of bus tour services in the Kingdom is anticipated to propel the segment growth. Other major application segments in Saudi Arabia Bus Market include tourism, school/college buses, employee transportation, and cargo/parcel buses.

Competitive Landscape

The Saudi Arabia Bus Market is intensely competitive, as a number of companies are competing to gain a significant market share. Key players in the market include Toyota Motor Corporation, Hyundai Motor Company, Daimler AG, Tata Motors Limited, Ankai Automobile Co. Ltd, Mitsubishi Fuso Truck, Eicher Motors Limited, Ashok Leyland Limited, King Long United Automotive Industry Co., Ltd, Mercedes Benz AG, MAN SE, Alexander Dennis Limited (ADL), and AB Volvo.
To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

The in-depth analysis of the report provides information about growth potential, upcoming trends, and Saudi Arabia Bus Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Saudi Arabia Bus Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.