Saudi Arabia Electric Commercial Vehicle Market Grow with a CAGR of 6.07% through 2030

Saudi Arabia’s electric commercial vehicle market is rapidly expanding, fueled by Vision 2030 policies, infrastructure investment, and rising fleet electrification in logistics and public transit. Strong growth projected through late‑2020s

According to TechSci Research report, “Saudi Arabia Electric Commercial Vehicle Market – By Region, Competition, Forecast & Opportunities, 2030F”, the Saudi Arabia Electric Commercial Vehicle market stood at USD 1.69 billion in 2024 and is anticipated to grow USD 2.40 billion by 2030 with a CAGR of 6.07% during forecast period. The Saudi Arabia electric commercial vehicle (ECV) market is undergoing a significant transformation, fueled by the Kingdom’s ambitious Vision 2030, which emphasizes sustainable development, environmental responsibility, and economic diversification. As global pressure mounts to reduce carbon emissions, Saudi Arabia is positioning itself as a leader in green mobility within the Gulf region. The electric commercial vehicle segment—encompassing electric buses, trucks, and vans—has emerged as a focal point of the country’s strategy to modernize transportation, reduce reliance on fossil fuels, and establish itself as a hub for advanced automotive technologies.

One of the key drivers behind the growth of this market is the Saudi government's proactive approach to clean energy adoption. Regulatory frameworks, policy initiatives, and financial incentives have been introduced to support the deployment of electric vehicles, particularly in the commercial segment where the impact on emissions reduction is most significant. Government entities, public transport authorities, and large logistics operators are being encouraged to replace internal combustion engine (ICE) fleets with electric alternatives. Several pilot programs and fleet electrification initiatives are underway, with public-private partnerships playing a critical role in facilitating these transitions. These efforts align with Saudi Arabia’s broader vision of becoming carbon neutral by 2060 and creating a cleaner, more resilient transportation network.

In addition to policy support, infrastructure development is rapidly advancing to accommodate the growing number of electric commercial vehicles. The country is investing in widespread charging infrastructure, including high-capacity and fast-charging stations suitable for commercial vehicles. Industrial zones, logistics hubs, and highways are being equipped with electric charging corridors that enable seamless operations for electric fleets. Charging infrastructure operators, along with utility companies and technology providers, are collaborating to create smart energy management systems that optimize electricity use, reduce grid load, and support sustainable energy consumption. These developments are critical in addressing range anxiety and operational inefficiencies, which have historically limited the adoption of electric commercial vehicles.

Further propelling the market forward is the entry of new players and the localization of electric vehicle manufacturing. The establishment of domestic EV production capabilities is part of Saudi Arabia’s industrial diversification strategy. Supported by sovereign wealth initiatives like the Public Investment Fund (PIF), several partnerships have been formed between global manufacturers and local firms to assemble and potentially manufacture electric commercial vehicles in the Kingdom. These initiatives aim not only to reduce costs and import dependence but also to create local employment, foster innovation, and stimulate the national economy. As the ecosystem matures, more investment is expected in research and development, component manufacturing, battery assembly, and EV recycling.

Despite the rapid momentum, the Saudi electric commercial vehicle market faces several challenges. High upfront vehicle costs, limited financing solutions, and a lack of widespread technical expertise continue to hinder mass adoption. Many commercial operators are still hesitant due to unfamiliarity with electric vehicle maintenance and concerns over vehicle downtime. Addressing these issues will require expanded government support in the form of subsidies, leasing options, and technician training programs. Additionally, OEMs and distributors need to invest in robust after-sales support, spare parts availability, and service infrastructure to build confidence among commercial fleet buyers.

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The Saudi Arabia Electric Commercial Vehicle market is segmented into vehicle type, propulsion type, battery type and company.

Based on the vehicle type, Fuel Cell Electric Vehicles (FCEVs) are emerging as the fastest-growing segment in Saudi Arabia's electric commercial vehicle market, driven by their extended range, quick refueling times, and suitability for heavy-duty applications. Supported by the Kingdom’s investments in green hydrogen and clean energy infrastructure, FCEVs are gaining traction among logistics providers and fleet operators seeking efficient long-distance transport solutions. Their ability to operate in extreme temperatures and challenging terrains makes them particularly suited for Saudi Arabia’s environment. As the hydrogen economy develops, FCEVs are expected to play a pivotal role in transforming commercial mobility and achieving national sustainability goals.

Based on the region, the Western region of Saudi Arabia is the fastest-growing market for electric commercial vehicles, driven by rapid urbanization, infrastructure upgrades, and strategic investments in green transport corridors along the Red Sea coast. Key cities like Jeddah and Yanbu are expanding EV adoption through municipal fleet conversions, logistics electrification, and integration with port operations. The region’s focus on sustainable industrial growth, touristic development projects, and large-scale urban mobility initiatives is accelerating demand for electric buses, trucks, and vans. With robust public-private partnerships and charging infrastructure investment, the Western corridor is emerging as the Kingdom’s primary hub for commercial electrification.

Major companies operating in Saudi Arabia Electric Commercial Vehicle market are:

• Higer Bus Company Ltd.
• Anhui Ankai Automotive Co, Ltd.
• Yuchai International Ltd.
• Daimler AG
• AB Volvo
• Tesla Inc.
• Mercedes-Benz Group AG
• Toyota Motor Corporation
• BMW AG
• Quantron AG

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“Technological innovation is another important factor driving the growth of the ECV market in Saudi Arabia. Rapid advancements in battery technology have led to improved vehicle range, reduced charging time, and enhanced performance—all of which are vital for commercial fleet operations. New electric commercial vehicle models now offer better payload capacities, longer service intervals, and integration with fleet management technologies. Original Equipment Manufacturers (OEMs) are collaborating with local companies to adapt global EV technologies to the specific needs of the Saudi market, taking into account factors such as high temperatures, extended driving distances, and the demand for high-performance, durable vehicles,” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

Saudi Arabia Electric Commercial Vehicle Market, By Vehicle Type (Electric Scooter & Moped, Electric Motorcycle), By Range (Less than 50 Km, 50–100 Km, 100–150 Km, Above 150 Km), By Battery Capacity (<25Ah, >25Ah), By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of SAUDI ARABIA Electric Commercial Vehicle 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 Commercial Vehicle market.

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