Saudi Arabia Electric Bus Market Grow with a CAGR of 7.39% through 2030

Saudi Arabia’s electric bus market is accelerating under Vision 2030, driven by government incentives, sustainability goals, urbanization, smart‑city plans like NEOM, and rising battery tech.

According to TechSci Research report, “Saudi Arabia Electric Bus Market – By Region, Competition, Forecast & Opportunities, 2030F”, the Saudi Arabia Electric Bus market stood at USD 85.25 million in 2024 and is anticipated to grow USD 130.43 million by 2030 with a CAGR of 7.39% during forecast period. The Saudi Arabia electric bus market is undergoing a notable transformation, driven by the Kingdom’s broader vision for sustainability, economic diversification, and modernization of its transportation systems. As part of Vision 2030, Saudi Arabia is actively transitioning toward cleaner energy solutions, and electrification of public transportation has emerged as a key strategic pillar. The government’s ambitious initiatives to reduce reliance on fossil fuels, minimize greenhouse gas emissions, and develop a world-class, sustainable mobility network are creating a favorable environment for the adoption of electric buses across urban and intercity routes. This transformation is being supported by extensive regulatory frameworks, policy incentives, and increasing investments in green transport infrastructure.

Electric buses are also being integrated into various public transportation initiatives across the country, as the government prioritizes modern, efficient, and environmentally friendly transit options. Public transport authorities, along with strategic players like SAPTCO (Saudi Public Transport Company), are deploying electric buses in several cities as part of the effort to decarbonize the sector and reduce urban air pollution. Pilot projects and permanent electric bus fleets have been launched in key cities, accompanied by supportive government policies that include subsidies, tax incentives, and fleet replacement programs. These actions are helping reduce the total cost of ownership for electric buses and making them a more attractive option for transport operators.

Furthermore, the Kingdom’s push toward smart city development is playing a pivotal role in shaping the electric bus market. Mega projects such as NEOM, the Red Sea Project, and Qiddiya are being developed with sustainability and green mobility as core principles. Electric buses form an integral part of these future urban landscapes, offering zero-emission public transport solutions powered by clean energy sources. These cities are being designed with integrated EV infrastructure, including smart charging stations, IoT-enabled fleet management systems, and AI-powered traffic management platforms, which will significantly enhance the operational efficiency and reliability of electric buses. The emphasis on innovation, digitalization, and sustainability is setting a precedent for the adoption of electric mobility across the country.

Collaborations with global OEMs and electric mobility solution providers are another key aspect of the market’s development. Saudi Arabia has partnered with several international manufacturers to import, assemble, and eventually produce electric buses locally. Companies such as Yutong, BYD, and TAM-Europe are actively engaged in supplying buses to the Kingdom, often in collaboration with local firms such as Electromin and Dussur. These partnerships are facilitating the transfer of technology, expertise, and best practices, while also laying the foundation for local manufacturing capabilities. The establishment of electric bus assembly lines and battery production units within Saudi Arabia is expected to significantly boost domestic value addition and reduce dependency on imports.

Despite the strong growth outlook, the market still faces challenges, including the high upfront cost of electric buses, limited charging infrastructure, and the need for trained technicians and operators. However, ongoing investments in charging stations, the expansion of renewable energy generation, and workforce development programs are expected to mitigate these issues over time. Saudi Arabia is also exploring public-private partnership models to scale infrastructure development and support electric bus deployment at a national level.

Browse over xx market data Figures spread through xx Pages and an in-depth TOC on " Saudi Arabia Electric Bus Market” 

The Saudi Arabia Electric Bus market is segmented into seating Capacity, propulsion, range, battery capacity and company.

Based on the propulsion, Hybrid Electric Vehicles (HEVs) are emerging as the fastest-growing segment in Saudi Arabia's electric bus market due to their operational flexibility, fuel efficiency, and suitability for long-distance and intercity routes. HEVs combine internal combustion engines with electric propulsion, allowing seamless operation even in areas with limited charging infrastructure. This makes them a practical transitional solution for transport operators amid the country’s ongoing electrification efforts. The lower initial investment compared to fully electric buses, coupled with reduced fuel consumption and emissions, further contributes to their rising adoption. Government support and growing demand for cleaner transport are accelerating HEV market expansion.

Based on the region, the Western region of Saudi Arabia is the fastest-growing area in the electric bus market, driven by rapid urban development, high population density, and strong government focus on sustainable transportation. Cities like Jeddah, Madinah, and Makkah are at the forefront of adopting electric buses, supported by smart mobility initiatives and green infrastructure planning. Major public transport upgrades, including electric bus integration into city networks and airport transit systems, are contributing to the region’s growth. Additionally, the region benefits from being a hub for tourism and pilgrimage, increasing the demand for efficient, eco-friendly transportation solutions that align with national sustainability goals.

Major companies operating in Saudi Arabia Electric Bus market are:

• Tata Motors Limited
• Zhuzhou CRRC Times Electric Co Ltd.
• Mercedes-Benz AG (Juffali Commercial Vehicles)
• AB Volvo (Zahid Tractor & H.M Co. Ltd)
• Isuzu Motors Saudi Arabia Company Limited
• Yutong Bus Co., Ltd.
• BYD Auto Co., Ltd.
• Higer Bus Company Limited
• Anhui Ankai Automobile Co., Ltd.
• Saudi Public Transport Company (SAPTCO)

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“The market is also benefiting from technological advancements in battery design, energy efficiency, and vehicle engineering. New-generation electric buses offer longer range, faster charging capabilities, and better performance in extreme temperatures an essential feature for Saudi Arabia’s hot climate. Manufacturers are developing thermal management systems and durable components to ensure that electric buses can operate reliably in the Kingdom’s challenging environmental conditions. At the same time, the integration of telematics, real-time monitoring, and predictive maintenance technologies is further improving the attractiveness of electric buses from an operational and cost-efficiency standpoint. In addition, public awareness and acceptance of electric vehicles, including buses, is gradually increasing due to rising environmental consciousness and the perceived benefits of cleaner transportation. Educational campaigns, government-backed pilot programs, and visible deployment of electric buses in high-traffic public areas are helping build public confidence and acceptance. As the population becomes more accustomed to electric transport options and experiences the benefits firsthand such as reduced noise pollution, smoother rides, and lower environmental impact—the adoption rate is likely to accelerate further,” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

Saudi Arabia Electric Bus Market, By Seating Capacity (Up to 30-Seater; 31-40-Seater; Above 40), By Propulsion (BEV, HEV, PHEV, FCEV), By Range (0-150 Miles, 151-250 Miles, 251-500 Miles, >500 Miles), By Battery Capacity (<100 KWH, 101-250 KWH, 251-400 KWH, >400 KWH), By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of SAUDI ARABIA Electric Bus market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the Saudi Arabia Electric Bus market.

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