Saudi Arabia Electric Buses Market: Green Mobility, Public Transport Electrification & Growth Outlook

Government investments in zero-emission public transport, Vision 2030 sustainability goals, and mega-projects like NEOM and Red Sea are driving electric bus adoption, supported by expanding charging infrastructure, fleet electrification initiatives, and partnerships with global manufacturers. According to IMARC Group's latest data, The Saudi Arabia electric buses market size reached USD 564.3 Million in 2025. Looking forward, IMARC Group expects the market to reach USD 2,909.4 Million by 2034, exhibiting a growth rate (CAGR) of 19.99% during 2026-2034.

Saudi Arabia's electric bus market represents a rapidly expanding sector gaining strong traction as the Kingdom positions itself as a regional leader in sustainable mobility. Major cities like Riyadh, Jeddah, and Dammam are leading the charge, with public transport authorities and private operators increasingly turning to electric solutions. The government is backing this transition through Vision 2030 initiatives, piloting electric fleets in urban areas and creating favorable conditions through subsidies, incentives, and public-private partnership opportunities. Mega-projects across the Kingdom are incorporating electric buses from the ground up, while the Saudi Public Transport Company (SAPTCO) and the Royal Commission for Riyadh City are already deploying electric vehicles to modernize the nation's transit infrastructure. With battery technology advancing and charging networks expanding, electric buses are becoming more practical for real-world operations in Saudi Arabia's demanding climate.

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Saudi Arabia Electric Buses Market Growth Drivers:

• Vision 2030 and Government-Led Sustainability Push

Saudi Arabia's Vision 2030 framework is fundamentally reshaping the transportation landscape, with electric buses serving as a cornerstone of the Kingdom's broader decarbonization strategy. The Saudi Green Initiative has committed to reducing carbon emissions by 278 million tons annually through clean transport, renewable energy integration, and circular carbon economy principles. Public transport authorities including SAPTCO and the Royal Commission for Riyadh City are actively incorporating electric buses into their fleets, supported by pilot programs testing zero-emission vehicles in urban settings. According to the Saudi Ministry of Industry and Mineral Resources, the Kingdom plans to locally produce over 300,000 vehicles annually, including electric models, driving market growth through industrialization and localization aligned with Vision 2030 objectives.

• Mega-Project Integration and Smart City Development

Large-scale developments like NEOM, The Red Sea Project, and Qiddiya are designing electric mobility into their infrastructure from day one, creating concentrated demand for electric bus fleets and charging solutions. NEOM operates the Kingdom's largest electric vehicle fleet with around 140 vehicles and has established charging stations across six areas as part of its connectivity plan. The Red Sea Project has built five solar farms with 760,000 photovoltaic panels to power its entire transport network, including the largest off-grid EV charging network in Saudi Arabia. These giga-projects function as proving grounds for electric bus technology in extreme desert conditions, while also establishing the technical standards and operational frameworks that will influence fleet procurement across the Kingdom's urban centers.

• Infrastructure Investment and Charging Network Expansion

The Kingdom has witnessed rapid growth in EV charging infrastructure, with public charging stations expanding from around 150 in 2022 to over 1,200 by early 2024, reflecting government-backed efforts under national electrification initiatives. The Public Investment Fund and Saudi Electricity Company launched EVIQ (Electric Vehicle Infrastructure Company), which plans to establish 5,000 fast chargers across 1,000 locations. Strategic partnerships are accelerating deployment—EVIQ is partnering with BYD on joint charging corridors, while companies like Electromin are deploying advanced charging solutions including XCharge's GridLink system that delivers nearly 200kW of DC fast-charging power while requiring just 44kW input from the grid, ideal for locations where traditional grid connections are cost-prohibitive.

Saudi Arabia Electric Buses Market Trends:

• Smart Technology Integration and Telematics Systems

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. Cities like Riyadh and NEOM are adopting intelligent transportation systems 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. The adoption of AI-driven route optimization, predictive maintenance, and driver assistance features is becoming standard in the country's electric bus landscape. These smart systems enable transport operators and city authorities to monitor fleets efficiently, detect issues proactively, and optimize route planning for maximum operational efficiency.

• Strategic Manufacturer Partnerships and Localization Efforts

Chinese manufacturers BYD, Yutong, and King Long are targeting public tenders with competitive pricing and turnkey charging packages, while European manufacturers like Daimler, Volvo, and Scania compete on lifecycle cost with extended warranties and digital maintenance platforms. Local content requirements of up to 40% are encouraging knock-down assembly proposals near Jeddah Port, with employment creation targets factored into bid scoring. Strategic alliances are shaping market outcomes—SAPTCO is collaborating with RATP Dev on autonomous-shuttle pilots, NEOM has awarded hydrogen-bus trials to a Daimler-Yutong consortium, and partnerships between local operators and global manufacturers are accelerating technology transfer while building domestic capabilities in electric mobility.

• Battery Technology Advancement and Climate Adaptation

The latest lithium-ion batteries can now achieve ranges of up to 400 kilometers on a single charge, addressing range anxiety among operators and making electric buses viable for public transport systems across Saudi Arabia. Manufacturers are developing climate-specific solutions for the Kingdom's extreme temperatures—Yutong demonstrated high-temperature battery performance with its first electric bus for Jeddah in 2023, unlocking follow-up orders. Daimler's eCitaro trials with SAPTCO highlight localized climate-control adaptations including high-capacity rooftop HVAC units. Safety innovations like Yutong's industry-first nitrogen protection system for batteries eliminate fire and explosion risks by creating an oxygen-free environment inside battery cases. These technological advances are making electric buses increasingly practical for Saudi Arabia's demanding operational environment while reducing total cost of ownership.

Recent News and Developments in Saudi Arabia Electric Buses Market

• May 2025: Jeddah Transportation Company, in partnership with SAPTCO, launched the new phase of the Jeddah public bus transport project, operating 91 new buses manufactured by Chinese company Yutong. The project aims to serve over 30 million passengers within three years, averaging 9 million annually, contributing to Saudi Vision 2030 goals by enhancing quality of life and promoting sustainable transport solutions.
• January 2025: SAPTCO appointed Bakr A. Al-Muhanna as Chairman and Eng. Khalid A. Al-Huqail as Managing Director to steer the company's regional growth plans and accelerate the deployment of electric and autonomous bus fleets across major Saudi cities as part of the Kingdom's public transport modernization strategy.
• November 2025: XCharge partnered with Electromin, Saudi Arabia's largest EV charging network operator, to deploy advanced battery-integrated charging infrastructure. The collaboration introduces GridLink technology delivering nearly 200kW of DC fast-charging power while requiring just 44kW grid input, with solar energy integration capability supporting the Public Investment Fund's plan to install 5,000 fast chargers across 1,000 locations.
• September 2025: SAPTCO signed a strategic Memorandum of Understanding with HOLON, the European company specialized in electric and autonomous buses, to operate autonomous buses across the Kingdom. The partnership includes three implementation phases: starting with autonomous bus deployment to test technology, followed by gradual fleet expansion to cover major cities and projects, supporting Vision 2030 objectives for modern transport modes and sustainable urban solutions.
• August 2024: Riyadh Air introduced its first electric bus for employee transport, developed with National Transportation Solutions Co. and TAM-Europe. The initiative supports Saudi Arabia's Vision 2030 to reduce emissions and promotes advanced public transit solutions, merging with the UN's Sustainable Development Goals after Riyadh Air joined the UN Global Compact.

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