Report Overview

A growing demand for fuel-efficient, air-combating, and non-polluting buses, as well as an increasing focus on replacing current conventional bus fleets with electric buses are expected to drive Saudi Arabia Electric Bus Market during the forecast period 2024 and 2030.

Saudi Arabia Electric Bus Market – Industry Trends & Forecast Report, 2030

The Saudi Arabia Electric Bus Market size was estimated at USD 85.34 million in 2023. During the forecast period between 2024 and 2030, the Saudi Arabia Electric Bus Market size is projected to grow at a CAGR of 7.11% reaching a value of USD 138 million by 2030. Main factors propelling the growth of the Saudi Arabia electric bus market include the growing demand for fuel-efficient, air-combating, and non-polluting buses, as well as a focus on alternatives to replace their current conventional bus fleets with electric buses. The usage of electric buses is also being prompted by government initiatives to meet zero emissions targets, stringent restrictions, and growing environmental concerns.

Electric Vehicle – Overview

An electric bus is a public transportation vehicle that operates entirely on electric power, eliminating the need for traditional fossil fuels. Electric buses are equipped with electric motors powered by rechargeable batteries, typically lithium-ion batteries, which store and provide the necessary energy for propulsion. Electric buses contribute to sustainable and eco-friendly urban mobility by producing lower emissions and reducing the overall carbon footprint compared to their diesel or gasoline counterparts.

Saudi Arabia Electric Bus Market

Growth Drivers

Heightened Focus on Reducing Greenhouse Gas (GHG) Emissions

The growth of the electric bus market in Saudi Arabia is being propelled by the pressing need to address rising greenhouse gas (GHG) emissions. As a major player in the global energy market, Saudi Arabia has been historically dependent on fossil fuels, primarily oil, for its energy needs. However, the increased awareness about environmental issues and the impact of climate change has led the country to explore cleaner and more sustainable alternatives in various sectors, including transportation. Electric buses offer a significant reduction in GHG emissions compared to traditional diesel or gasoline-powered buses. By adopting electric buses, Saudi Arabia aims to mitigate its contribution to air pollution and combat climate change. The government's initiatives to diversify its energy mix and reduce dependency on fossil fuels align with the promotion of electric vehicles, contributing to the overall growth of the electric bus market in the kingdom.

Challenges

Lack of Charging Infrastructure

The growth of the Electric Bus Market in Saudi Arabia faces a significant challenge due to the lack of a robust charging infrastructure. While there is a growing interest in adopting electric buses as a more sustainable mode of transportation, the limited availability of charging stations hampers the widespread integration of electric vehicles into the country's public transportation system. The success of electric buses relies heavily on the development of an extensive and reliable charging network. Without a sufficient number of charging stations strategically located across the country, operators may face difficulties in planning routes and ensuring that electric buses can complete their journeys without running out of power. This limitation poses a practical barrier to the scalability and efficiency of electric bus operations.

Impact of Escalating Geopolitical Tensions on Saudi Arabia Electric Bus Market

Geopolitical tensions may create an environment of uncertainty, impacting foreign and domestic investments. This uncertainty could slow down or divert funds that might have otherwise been allocated for the development of the electric bus market, including charging infrastructure, research and development, and manufacturing facilities. Geopolitical tensions can lead to disruptions in global supply chains. If components essential for electric bus manufacturing are sourced internationally, any disruptions in the supply chain may affect production timelines and increase costs. It could potentially slow down the growth of the Electric Bus Market in Saudi Arabia.

Saudi Arabia Electric Bus Market

Segmental Coverage

Saudi Arabia Electric Bus Market – By Vehicle Type

Based on vehicle type, the battery electric vehicle segment is expected to grow over the forecast period. Increasing awareness about environmental issues and the need to reduce air pollution and greenhouse gas emissions are driving the adoption of cleaner transportation solutions. Battery electric buses, with zero tailpipe emissions, align with Saudi Arabia's commitment to sustainability and efforts to address climate change. The Saudi government has shown a commitment to promoting sustainable and environmentally friendly practices. Initiatives and policies supporting the adoption of electric vehicles, including buses, play a crucial role. Incentives, subsidies, and regulations favoring electric buses contribute to their growth in the market.

Saudi Arabia Electric Bus Market – By Battery Type

Based on vehicle type, the lithium nickel manganese cobalt (NMC) oxide segment is expected to grow at a higher CAGR over the forecast period. NMC batteries are known for their high energy density, which allows for longer driving ranges on a single charge. As electric buses aim to cover substantial distances within urban and intercity routes, the use of NMC batteries becomes attractive for operators seeking extended ranges and reduced charging frequency. Ongoing advancements in battery technology, including improvements in NMC chemistry, contribute to enhanced performance, energy storage, and overall efficiency. As NMC batteries evolve, they become more suitable for the demanding requirements of electric buses, addressing concerns related to range anxiety and charging infrastructure.

Competitive Landscape

Major players operating in Saudi Arabia Electric Bus Market include Tata Motors Limited, Zhuzhou CRRC Times Electric Co Ltd, Mercedes-Benz AG, AB Volvo, Yutong, and Avass Group. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In April 2023 - To improve the transport choices available to both local inhabitants and visitors to the Prophet's Mosque, Saudi Arabia has started operating electric bus services in Madinah.

Scope of the Report

By Vehicle Type

• Battery Electric Vehicle

• Plug-in Hybrid Electric Vehicle

• Fuel Cell Electric Vehicle

By Battery Type

• Lithium Nickel Manganese Cobalt Oxide

• Lithium Iron Phosphate

By Capacity

• Less Than 50KWh

• 50–250kWh

• Above 250 kWh

By End User

• Public

• Private