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

Market Overview

Saudi Arabia Electric Bus market was valued 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 the forecast period. Saudi Arabia’s electric bus market is witnessing steady growth, driven by the government’s Vision 2030 initiatives focused on sustainability and reduced dependence on fossil fuels. Efforts to modernize public transport systems and reduce carbon emissions are encouraging the adoption of electric buses across major cities like Riyadh, Jeddah, and Dammam. Mega projects such as NEOM and the Red Sea Project are integrating electric mobility solutions, further boosting demand. Additionally, According to the General Authority for Statistics, Saudi Arabia registered approximately 625,000 new vehicles in 2023, up from 540,000 in 2022 highlighting economic recovery and Vision 2030-driven government spending. This surge supports rising demand and infrastructure development, propelling electric bus market growth across the Kingdom.

Key Market Drivers

Vision 2030 and Government Initiatives

Saudi Arabia’s electric bus market is significantly influenced by its national development plan, Vision 2030, which aims to diversify the Kingdom’s economy away from oil dependency and create a more sustainable and environmentally conscious society. Central to this transformation is the emphasis on green transportation and decarbonizing the mobility sector. The government is actively investing in public transportation modernization, including electric buses, to reduce greenhouse gas emissions, improve air quality, and enhance energy efficiency. According to the Saudi Ministry of Industry and Mineral Resources (2024), the Kingdom plans to locally produce over 300,000 vehicles annually by 2030, including electric models driving EV market growth through industrialization, localization, and alignment with Vision 2030 objectives.

Public transport authorities, such as the Royal Commission for Riyadh City (RCRC) and the Saudi Public Transport Company (SAPTCO), have started incorporating electric buses into their fleets. Additionally, the government has launched pilot programs to test electric buses in urban settings, signaling long-term support. These policy-level initiatives are complemented by favorable regulations, subsidies, and incentives that promote investment in electric vehicle (EV) technologies and encourage public-private partnerships to build the required ecosystem.

Smart City Projects and Infrastructure Development

The Kingdom’s rapid urbanization and its ambitious smart city initiatives particularly NEOM, the Red Sea Project, and Qiddiya are creating a robust platform for the integration of electric buses. These projects are being developed with sustainability and intelligent mobility at their core, mandating the use of clean energy transportation, including electric and autonomous buses. For example, under Vision 2030, Saudi Arabia targets making 30% of all vehicles in Riyadh electric by 2030. Backed by over USD 50 billion in EV manufacturing and infrastructure investments, this initiative is significantly driving market demand and accelerating growth.

NEOM, for example, is envisioned as a futuristic, carbon-neutral city that completely relies on renewable energy and electric mobility. The city’s public transport network will feature electric buses, supported by advanced infrastructure such as AI-integrated traffic systems, charging stations, and digital fleet management platforms.

To accommodate these projects, the Saudi government and private sector stakeholders are investing in charging infrastructure, smart grid integration, and renewable energy generation. This strategic development is crucial for scaling up electric bus adoption and ensuring long-term operational viability.

Environmental Concerns and Emission Reduction Goals

Growing awareness of environmental issues and the global push to combat climate change have placed increasing pressure on nations to adopt sustainable practices. In line with international commitments such as the Paris Agreement, Saudi Arabia has pledged to reduce its carbon footprint and improve air quality across its cities. For instance, Jeddah’s public transport network received a major upgrade on April 1, 2025, with the launch of 76 new buses, including environmentally friendly electric models. The expanded system covers 14 main routes, 91 stops, improved safety and comfort features, and aims to ease traffic while enhancing residents’ quality of life.

The transportation sector is a significant contributor to CO₂ emissions, prompting a shift towards cleaner alternatives like electric buses. These vehicles produce zero tailpipe emissions, reducing urban pollution and contributing to improved public health outcomes. Additionally, the use of electric buses aligns with Saudi Arabia’s Circular Carbon Economy framework, which aims to promote carbon reduction, reuse, recycling, and removal.

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Key Market Challenges

High Initial Investment and Total Cost of Ownership

The high upfront cost of electric buses compared to their diesel counterparts remains a substantial barrier in Saudi Arabia, particularly for public and private operators seeking cost-effective transport solutions. Although electric buses offer long-term savings through lower fuel and maintenance costs, the initial capital expenditure which includes the cost of the bus, charging infrastructure, depot upgrades, and training is significantly higher.

This cost differential can be especially challenging in markets that are still transitioning and lack established financial support mechanisms. While the government offers some incentives under its sustainability and Vision 2030 plans, subsidies and financing models are not yet widespread or standardized. Many smaller transport companies and municipalities may find the transition financially burdensome without substantial external funding or public-private partnership models.

Operational and Climatic Challenges

Saudi Arabia’s harsh climate, particularly the extreme summer heat, presents operational challenges for electric buses. High temperatures can adversely affect battery performance, leading to reduced driving range, faster battery degradation, and increased cooling requirements. Air conditioning systems in electric buses consume a significant portion of battery power, which further diminishes vehicle range and efficiency.

Furthermore, thermal management systems need to be more advanced to ensure consistent vehicle performance throughout the year. Without sufficient technology adaptation, electric buses may struggle to operate efficiently under these conditions, leading to concerns about vehicle reliability, especially during peak demand months.

Key Market Trends

Integration of Smart Technologies and Telematics

A prominent trend in the Saudi electric bus market is the integration of smart technologies and telematics to optimize fleet performance, enhance safety, and reduce operating costs. Electric buses are increasingly being equipped with advanced telematics systems that provide real-time data on vehicle location, battery status, energy consumption, driving patterns, and maintenance needs. These systems enable transport operators and city authorities to monitor bus fleets efficiently, detect issues proactively, and optimize route planning.

Furthermore, as part of Saudi Arabia’s broader smart city ambitions, cities such as Riyadh and NEOM are adopting intelligent transportation systems (ITS) that allow electric buses to communicate with traffic signals, control centers, and charging stations. This connectivity ensures smoother traffic flow, minimizes downtime, and improves passenger experience. In the coming years, the adoption of AI-driven route optimization, predictive maintenance, and driver assistance features is expected to become a standard in the country’s electric bus landscape.

Growing Focus on Public Transport Electrification

Saudi Arabia is placing a strong emphasis on transforming its public transportation system, with electrification emerging as a central pillar of this strategy. Major urban centers like Riyadh, Jeddah, and Dammam are actively working toward replacing diesel buses with electric alternatives to reduce emissions and support national sustainability goals under Vision 2030.

In line with this, the Saudi Public Transport Company (SAPTCO) and Royal Commission for Riyadh City (RCRC) are piloting and scaling electric bus services. Several public tenders and agreements with international electric bus manufacturers have been initiated, demonstrating the country’s commitment to large-scale adoption. Notably, new metro and bus networks are being designed with electric mobility in mind, ensuring infrastructure compatibility with current and future electric vehicle technologies.

Emphasis on Local Manufacturing and Workforce Development

Another important trend is the growing emphasis on localization of electric bus manufacturing and related supply chains. As part of Vision 2030’s goals to develop domestic industries and create employment opportunities, the Saudi government is encouraging local production of electric vehicles, including buses, through joint ventures and industrial zone incentives.

Manufacturers are being invited to set up assembly plants and R&D centers within the Kingdom. This push toward localization not only reduces import dependency but also ensures that electric buses are built to withstand regional conditions such as high temperatures and sand exposure. The establishment of EV training academies and technical programs is also underway to upskill the local workforce in electric vehicle technologies, covering areas like battery management, electric drivetrains, and charging infrastructure maintenance.

Segmental Insights

Propulsion Insights

Battery Electric Vehicles (BEVs) are the dominating segment in the Saudi Arabia electric bus market due to their zero-emission capability, alignment with the Kingdom’s Vision 2030 sustainability goals, and lower long-term operational costs. BEVs are favored over hybrid alternatives as they offer full electrification, supporting government efforts to reduce carbon emissions and dependence on fossil fuels. Additionally, advancements in battery technology, expanding charging infrastructure, and government incentives are making BEVs increasingly viable for public transport. Their simplicity in design, reduced maintenance needs, and suitability for urban operations further contribute to their growing dominance in the country’s electric bus fleet.

Range Insights

The 0–150 miles range segment dominates the Saudi Arabia electric bus market, primarily due to its suitability for urban and intra-city public transportation. Most public buses operate on fixed, short-distance routes within cities like Riyadh and Jeddah, making this range ideal for daily operations without requiring frequent recharging. Buses within this range are more cost-effective, require smaller battery packs, and are easier to maintain, making them attractive to public transport operators. Additionally, the growing availability of urban charging infrastructure supports this segment, allowing efficient overnight or mid-day charging and ensuring consistent fleet performance for city-based mass transit systems.

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Regional Insights

The Northern and Central regions of Saudi Arabia dominate the electric bus market due to the presence of major urban centers such as Riyadh, the capital city, and key government institutions driving public transport modernization. These regions are at the forefront of implementing Vision 2030 initiatives, including sustainable mobility and smart city development. High population density, increasing urbanization, and greater investment in public infrastructure further support the adoption of electric buses. Additionally, projects like the Riyadh Metro and integrated bus networks are being developed with electrification in mind, positioning the Northern and Central regions as leaders in the country’s e-mobility transition.

Recent Developments

• In May 2025, Tabuk became the first city in Saudi Arabia to launch electric buses as part of its public transit system. The initiative includes five main routes spanning 136 km, 30 buses (25% electric), 106 stops, and 90 trained Saudi drivers, promoting sustainable urban mobility.

• In February 2023, Saudi Arabia introduced its first electric bus in (Jeddah), followed by launches in Madinah (April 2023), Dammam (November 2023), Tabuk (August 2024), and airport services featuring 300 km range, advanced AC, screens, heat-resistant batteries, 3‑hour full charge

• In April 2025, SAPTCO launched its first electric bus fleet in Tabuk. The system covers five routes across 136 km with 30 buses (25% electric), 106 stops, and is staffed by 90 Saudi-trained drivers marking a significant step toward greener public transport.

Key Market Players

• 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)

Report Scope:

In this report, the Saudi Arabia Electric Bus Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Saudi Arabia Electric Bus Market, By Seating Capacity:

o   Up to 30-Seater

o   31-40-Seater

o   Above 40

• Saudi Arabia Electric Bus Market, By Propulsion:

o   BEV

o   HEV

o   PHEV

o   FCEV

• Saudi Arabia Electric Bus Market, By Range:

o   0-150 Miles

o   151-250 Miles

o   251-500 Miles

o   >500 Miles

• Saudi Arabia Electric Bus Market, By Battery Capacity:

o   <100 KWH

o   101-250 KWH

o   251-400 KWH

o   >400 KWH

• Saudi Arabia Electric Bus Market, By Region:

o   Northern & Central

o   Western

o   Eastern

o   Southern

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the SAUDI ARABIA Electric Bus Market.

Available Customizations:

Saudi Arabia Electric Bus 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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