Saudi Arabia Bus (KSA) Market Share, Size, Trends, Industry Analysis Report, By Type (Single Deck, Double Deck); By Application, By Fuel Type; By Capacity; Segment Forecast, 2023 - 2032
- Published Date:Aug-2023
- Pages: 114
- Format: PDF
- Report ID: PM2152
- Base Year: 2022
- Historical Data: 2019-2021
The saudi arabia bus (KSA) market was valued at USD 294.47 million in 2022 and is expected to grow at a CAGR of 4.9% during the forecast period.
The bus industry in Saudi Arabia is poised for growth, driven by increased investments from both government and private entities in public transportation. The country's bus industry is one of the largest in the Middle East. The growing demand for public transit, ongoing industrial progress, and the expansion of the tourist industry have contributed to the robust bus market in Saudi Arabia. Additionally, the United Arab Emirates (UAE) and Saudi Arabia are due buyers of buses in the region.
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However, the emergence of the COVID-19 pandemic has disrupted the execution of structural reforms and impeded growth in Saudi Arabia. Furthermore, the country's economy has been adversely affected by the constraints on oil revenues due to trade limitations. The decline in uncertainties in the oil industry and oil prices have added to the economic challenges faced by Saudi Arabia in 2020.
Saudi Arabia's distribution network is facing disruptions due to its heavy reliance on imports. The restrictions on foreign flights and trade imposed to combat the COVID-19 pandemic have decreased car orders within the country.
Additionally, the consumer shift towards avoiding crowded places has led to a decline in demand for public transportation. This trend is expected to hinder the expansion of the bus market in Saudi Arabia in the forecast period.
However, companies like Zhongtong Bus Holding Co., Ltd, and MAN SE provide technologically advanced buses in Saudi Arabia. Interestingly, there is a high demand for these buses from schools and corporate offices. Chinese bus manufacturers have established strong dealer networks in the country, further fueling the demand for Chinese-brand buses. These brands are gaining popularity and market penetration, contributing to the growth of the bus market in Saudi Arabia.
The Saudi Arabian government has invested in public transportation infrastructure, including the bus network, to improve mobility and reduce traffic congestion. Initiatives such as Vision 2030 and the National Transformation Program (NTP) have set goals for enhancing public transportation systems, which create a favorable environment for the bus market.
Saudi Arabia has been promoting tourism as part of its economic diversification strategy. It has led to a rise in domestic and international tourism, creating opportunities for the bus market to cater to the transportation requirements of tourists, particularly in popular destinations such as Mecca and Medina. These present significant opportunities for growth and development in Saudi Arabia Bus (KSA) Market.
There is a growing emphasis on sustainability and reducing carbon emissions in the transportation sector. Buses, particularly electric and hybrid buses, are considered more environmentally friendly than individual vehicles. This increasing awareness of sustainability further supports the growth potential of the bus market.
Increasing Government Initiatives
Saudi Arabia has set its sights on developing and enhancing public transportation as part of its national Vision 2030 plan. This strategic direction creates a positive growth outlook for the bus industry in the coming years.
Additionally, the government is prioritizing the local manufacturing of buses to create employment opportunities and reduce reliance on imports. This emphasis on domestic production aims to strengthen the local sector, due to a further boost in the Saudi Arabia bus (KSA) market during the forecast period.
Moreover, the government's increasing initiatives to promote the country's automotive sector are expected to drive growth in the bus market. For example, establishing the Saudi National Automotive Manufacturing Company (SNAM), in collaboration with the South Korean SsangYong Motor Company, aims to develop a sustainable and integrated automotive sector in Saudi Arabia.
These efforts demonstrate the government's commitment to expanding and enhancing the bus industry, ultimately contributing to the growth and development of the Saudi Arabia bus market in the forecast period.
The market is primarily segmented based on type, application, fuel type, and capacity.
By Fuel Type
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The Single-deck segment is anticipated to experience the fastest market share during the forecast period
The single-deck segment is anticipated to experience the fastest market share during the forecast period. It is experiencing rapid urbanization, with more people moving to cities and urban centers. Single-deck buses are better suited for navigating through congested urban areas with narrower roads and lower bridges, making them a preferred choice for urban public transportation.
As cities in Saudi Arabia grow and face increasing traffic congestion, there is a growing emphasis on improving public transportation infrastructure to address mobility challenges. Single-deck buses are more versatile and agile, making them suitable for frequent stops and short-haul routes, often common in urban public transportation systems.
Single-deck buses generally have a lower manufacturing cost compared to double-deck buses. As public and private fleet operators seek cost-effective solutions to expand their bus fleets, single-deck buses may be attractive due to their lower initial investment and operating costs.
These buses are also well-suited for intercity routes, connecting different urban centers and regions in Saudi Arabia. As intercity transportation demand grows, the single-deck segment might experience increased demand for flexibility and efficiency in connecting various destinations.
The Diesel segment is anticipated to experience the largest growth over the forecast period
The diesel segment is anticipated to experience the largest growth over the forecast period because of a well-established infrastructure for diesel fuel distribution. Diesel is widely available nationwide, making it a convenient and accessible choice for bus operators and fleet managers.
Diesel engines have a lower initial cost than alternative powertrain technologies, such as electric or hydrogen fuel cell buses. This cost advantage may make diesel buses an attractive option for budget-conscious fleet operators.
These buses typically offer a longer driving range on a single fuel tank than electric buses, which require frequent charging. Diesel buses might be preferred for their extended range without regular refueling in a country with vast landscapes and long intercity routes.
Some of the major companies working in the global market include Toyota Motor Corporation, Hyundai Motor Company, Daimler AG, Tata Motors Limited, Ankai Automobile Co. Ltd, Mitsubishi Fuso TruckEicher Motors Limited, Ashok Leyland Limited, King Long United Automotive Industry Co., Ltd., Mercedes Benz AG, MAN SE, Alexander Dennis Limited (ADL), AB Volvo.
- In December 2020, Ashok Leyland introduced two passenger bus models in Saudi Arabia. These buses, known as Falcon buses, were designed for corporate clients. Production of the Falcon buses takes place at Ashok Leyland's Ras Al Khaimah factory in the United Arab Emirates.
Saudi Arabia Bus (KSA) Market Report Scope
Market size value in 2023
USD 302.20 million
Revenue forecast in 2032
USD 463.50 million
4.9% from 2023 – 2032
2019 – 2021
2023 – 2032
Revenue in USD million and CAGR from 2023 to 2032
By Type, By Application, By Fuel Type, By capacity, By Region
North America, Europe, Asia Pacific, Latin America; Middle East & Africa
Toyota Motor Corporation, Hyundai Motor Company, Daimler AG, Tata Motors Limited, Ankai Automobile Co. Ltd, Mitsubishi Fuso TruckEicher Motors Limited, Ashok Leyland Limited, King Long United Automotive Industry Co., Ltd., Mercedes Benz AG, MAN SE, Alexander Dennis Limited (ADL), AB Volvo.
key companies in saudi arabia bus (KSA) market are Toyota Motor Corporation, Hyundai Motor Company, Daimler AG, Tata Motors Limited, Ankai Automobile Co. Ltd.
The saudi arabia bus (KSA) market is expected to grow at a CAGR of 4.9% during the forecast period.
The saudi arabia bus (KSA) market report covering key segments are type, application, fuel type, and capacity.
key driving factors in saudi arabia bus (KSA) market are increasing Government Initiatives.
The saudi arabia bus (KSA) market size is expected to reach USD 463.50 million by 2032.