Report Overview

A spurring demand for buses from the thriving tourism sector and growing population across its expanding urban areas are expected to boost the growth of Saudi Arabia Bus Market during the forecast period between 2024 and 2030.

Saudi Arabia Bus Market - Industry Trends & Forecast Report, 2030

Saudi Arabia Bus Market size was estimated to be worth USD 16.07 billion in 2023. During the forecast period between 2024 and 2030, Saudi Arabia Bus Market size is projected to grow at a CAGR of 7.50%, reaching a value of USD 26.63 billion by 2030. Major growth factors for Saudi Arabia Bus Market include rising government investment in public transportation along with increasing use of electric buses to reduce carbon emissions and air pollution and promote sustainability. In addition, technological advancements in the sector such as smart and autonomous buses are anticipated to propel Saudi Arabia bus market during the forecast period.

Bus – Overview

Buses are the most popular kind of public transportation globally, utilized in both urban and rural locations, including suburbs. They are an economical and practical means of transporting many people across short and medium distances. Buses are frequently utilized for interstate travel as well as public transit in towns and cities alike. They are frequently utilized as shuttle services for events, activities, and school transportation. Buses usually carry a lot more people at once than private vehicles, which lowers the amount of greenhouse gas emissions produced per passenger. This indicates that using buses contributes to both improving urban air quality and minimizing adverse environmental effects.

Saudi Arabia Bus Market

Growth Drivers

Favorable Government Policies and Projects

The Saudi government is significantly investing in the public transportation system of the Kingdom to improve public transit and foster the tourism sector. For instance, Saudi Minister of Transport and Logistic Services Saleh bin Nasser Al-Jasser recently launched a mega bus transport services project in Riyadh that will use state-of-the-art fleet buses, is aimed at linking 200 cities and provinces, and can accommodate six million passengers annually. In another instance, Saudi Public Transport Company (SAPTCO) also won a five-year contract to operate a public transport network in Abha, Khamis Mushait, and Ahad Rufaidah from Aseer Municipality. Under the project, SAPTCO will provide public transport buses in these three cities. Such projects are anticipated to drive Saudi Arabia bus market during the forecast period.

Challenges

Competition from Private Vehicles

The high vehicle ownership in Saudi Arabia acts as a major restraining factor for its bus market growth. A significant percentage of the population prefers traveling in their private vehicle since it offers more convenience compared to public transportation. In addition, the increasing working-class population and rising disposable income further contribute to vehicle ownership in Saudi Arabia, which may further limit the use of buses, restricting its market growth.

Impact of Escalating Geopolitical Tensions on Saudi Arabia Bus Market

The escalating geopolitical tensions could negatively impact the growth of Saudi Arabia Bus Market. Due to its limited capacity to produce buses domestically, the Kingdom must rely on imports from nations such as China, Japan, India, and South Korea to meet demand. However, the production and supply chain of the bus manufacturing industry are directly disrupted by geopolitical tensions.

Saudi Arabia Bus Market

Segmental Coverage

Saudi Arabia Bus Market – By Type

Based on type, Saudi Arabia Bus Market is segmented into single-decker, double-decker, and articulated buses. The single-decker bus segment accounts for the highest market share. In general, single-decker buses are smaller and more compact than their double-decker counterparts, which makes them ideal for navigating crowded city streets. It usually has room for strollers or baggage in addition to sitting and standing areas for people. It is a vital component of public transportation networks in the Kingdom, offering a practical and affordable way to move passengers between urban and suburban locations.

Saudi Arabia Bus Market – By Seat Capacity

On the basis of seat capacity, Saudi Arabia Bus Market is segmented into 15–30 seats, 31–50 seats, and more than 50 seats. The 31–50 seat capacity bus segment accounts for the highest market share. This seating capacity buses are generally used in urban areas and can accommodate approximately 30 standing passengers along with seated ones. It is used for a variety of purposes, including public transportation, tourist excursions, and charter services, which drives its market growth. The 15–30 seat segment also covers a substantial market share owing to its prominent use for school transportation.

Saudi Arabia Bus Market – By Application

Based on the application, Saudi Arabia Bus Market is segmented into public transportation, tourism, school/college buses, employee transportation, and cargo/parcel buses. The public transportation segment holds the largest share of the Saudi Arabia bus market. The Kingdom offers robust public transportation that offers efficient and accessible bus services to its citizens. Public transportation is cost-effective and is said to promote economic activities. It also helps local authorities manage traffic and parking in urban cities, which drives its market growth. The tourism segment is also growing at a high rate owing to the significant investment in the tourism sector, particularly to accommodate hajj pilgrims.

Saudi Arabia Bus Market – By Business Model

Based on the business model, Saudi Arabia Bus Market is segmented into aggregator-based models, PPP (public-private partnership) models, leasing models, and others. The public-private partnership model is growing at a high rate owing to the rising investment in transportation infrastructure. With the increasing population and diversified needs of the citizens, the PPP model will catalyze the expansion of the Saudi Arabia bus market. However, the aggregator-based models also cover a substantial market share. The increasing launch of platforms that offer online bookings for buses is driving the growth of aggregator-based models.

Competitive Landscape

The Saudi Arabia Bus market is intensely competitive, as a number of companies are competing to gain a significant market share. Key players in the market include Toyota Motor Corporation, Hyundai Motor Company, Daimler AG, Tata Motors Limited, Ankai Automobile Co. Ltd., Mitsubishi Fuso Truck, Eicher Motors Limited, Ashok Leyland Limited, King Long United Automotive Industry Co., Ltd., Mercedes Benz AG, MAN SE, Alexander Dennis Limited (ADL), and AB Volvo. 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 November 2023 – Moventis, a public transport services division of Moventia, launched a state-of-the-art intercity transport service in Saudi Arabia.

Scope of the Report

By Type

• Single Decker

• Double Decker

• Articulated Bus

By Fuel

• Diesel Buses

• CNG (Compressed Natural Gas) Buses

• Electric Buses

• Others

By Seat Capacity

• 15–30 Seats

• 31–50 Seats

• More Than 50 Seats

By Application

• Public Transportation

• Tourism

• School/College Buses

• Employee Transportation

• Cargo/Parcel Buses

By Business Model

• Aggregator-based Models

• PPP (Public-Private Partnership) Models

• Leasing Models

• Others