Saudi Arabia EV Battery Cooling Systems Market: Thermal Management Innovation & EV Expansion

Market Overview

According to the latest report by IMARC Group, the Saudi Arabia EV battery cooling systems market was valued at USD 36.2 Million in 2025. The market is expected to reach USD 123.8 Million by 2034, expanding at 14.64% annually from 2026 to 2034. This growth is being fueled by government-backed EV initiatives under Vision 2030, the harsh desert climate where surface temperatures frequently exceed 50 degrees Celsius, and strategic partnerships between local entities and global automotive manufacturers establishing production facilities throughout the Kingdom.

How AI is Reshaping the Future of Saudi Arabia EV Battery Cooling Systems Market

• Real-time predictive algorithms analyze sensor data from temperature probes and battery management systems to forecast thermal loads during rapid acceleration or fast charging, activating specific cooling strategies before overheating occurs.
• Machine learning models optimize coolant flow rates and thermal gradients across battery cells automatically, reducing hotspots by 25% while cutting auxiliary cooling energy consumption significantly.
• Reinforcement learning systems discover complex control strategies that traditional engineering might miss, balancing temperature deviation penalties against water pump energy usage to achieve optimal efficiency.
• Neural networks trained on historical driving patterns can predict appropriate thermal responses based on real-time battery states, achieving 2-3°C temperature uniformity improvements across cells to prevent localized overheating.

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How Vision 2030 is Revolutionizing Saudi Arabia EV Battery Cooling Systems Industry

Vision 2030 is fundamentally reshaping the battery cooling systems sector through massive infrastructure investments and localization initiatives. The government's goal of achieving 30% EV adoption in Riyadh by 2030, backed by over USD 50 billion in manufacturing and infrastructure spending, has created sustained demand for advanced thermal management. EVIQ plans to establish more than 5,000 chargers across 1,000+ stations by 2030, with the Saudi Arabia EV charging station market reaching USD 191.0 Million in 2025. Lucid Motors' factory in King Abdullah Economic City will produce 150,000 vehicles annually, while Ceer awarded USD 1.3 billion in contracts (80% with local firms) to build localized supply chains. The Public Investment Fund's USD 10 billion investment in Lucid alone underscores the scale of commitment. These developments, combined with the target to produce 300,000 EVs annually by 2030, are driving demand for desert-grade cooling systems optimized for temperatures exceeding 50°C.

Market Trends & Drivers

Vision 2030 and Government Initiatives Driving Electric Mobility Adoption: The Saudi government is placing electric mobility at the center of Vision 2030, with investments spanning local manufacturing, charging infrastructure, and technology development. The Saudi Arabia EV charging station market reached USD 191.0 Million in 2025 according to IMARC Group, with EVIQ deploying 60 new stations by the end of 2025 across Riyadh, Jeddah, and the Eastern Province. Policies encouraging cleaner transportation are pushing automakers and suppliers to focus on reliable, efficient battery systems suited to local conditions. The government's partnership with Lucid to purchase at least 50,000 EVs demonstrates commitment to scaling adoption. As EVs become more common on Saudi roads—with over 40% of consumers considering EV purchases within three years—effective battery cooling becomes critical to ensure safety, performance, and long service life. Public sector initiatives and state-backed investments are building a complete EV ecosystem that steadily increases demand for advanced thermal management solutions.

Extreme Climate Conditions Necessitating Advanced Thermal Management Solutions: The harsh desert climate creates unique operational challenges requiring sophisticated cooling technologies engineered for extreme temperatures. During the June 2024 Hajj pilgrimage, temperatures in Saudi Arabia soared to 47°C, with Mecca and Medina experiencing conditions 1.5-2°C higher than average. Surface temperatures frequently exceed 50 degrees Celsius during summer months, substantially increasing thermal stress on battery systems and accelerating degradation without proper temperature regulation. These environmental factors drive strong demand for high-performance liquid cooling systems—which now dominate 42% of the market—along with advanced thermal interface materials and intelligent management architectures capable of maintaining batteries within the optimal 20-45°C operating range. Manufacturers are developing specialized desert-grade solutions incorporating enhanced heat dissipation capabilities, fire-resistant insulation, and automated ventilation systems specifically designed for regional conditions, creating substantial opportunities for innovative thermal management technologies.

Expansion of Domestic EV Manufacturing and Localized Supply Chains: Domestic EV manufacturing growth is driving strong demand for locally produced battery cooling system components as the Kingdom pursues industrial self-sufficiency. Partnerships between government entities and international automakers are creating integrated production networks that rely on robust thermal management supply chains. Lucid Motors' advanced production facility in King Abdullah Economic City produces large volumes of vehicles requiring sophisticated cooling systems installed during assembly. In 2025, Ceer signed USD 1.4 billion in deals with 80% going to local firms to build localized supply chains ahead of its 2026 launch, targeting production of 300,000 vehicles annually by 2030. These initiatives focus on building a complete domestic ecosystem—from batteries and cooling systems to related components—positioning Saudi Arabia as a regional hub for electric mobility. National mining initiatives targeting lithium and nickel aim to decrease import reliance, while specialized industrial zones like NEOM and KAEC are being developed to accommodate EV suppliers and cutting-edge manufacturing plants.

Market Segmentation

The report has segmented the market into the following categories:

By Cooling Technology:

• Air Cooling Systems
• Liquid Cooling Systems
• Phase Change Material (PCM) Cooling Systems
• Refrigerant Cooling Systems

By Battery Type:

• Lithium-Ion Batteries
• Nickel-Metal Hydride Batteries
• Solid-State Batteries
• Others

By Vehicle Type:

• Passenger Vehicles
• Commercial Vehicles
• Two-Wheelers
• Three-Wheelers

By Propulsion Type:

• Battery Electric Vehicles (BEVs)
• Plug-in Hybrid Electric Vehicles (PHEVs)
• Hybrid Electric Vehicles (HEVs)
• By End User:
• OEMs (Original Equipment Manufacturers)
• Aftermarket

By Region:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Recent News and Developments

• January 2026: IoT-enabled smart thermal management systems launch, providing real-time monitoring and predictive cooling for Ceer EVs. Systems optimize heat dissipation by 28%, boosting range efficiency in Saudi's harsh climate.
• November 2025: Compact lightweight cooling modules gain traction for urban EVs in Riyadh, featuring AI-driven adaptive liquid cooling that cuts energy consumption by 22%. These innovations enable smaller vehicle designs while maintaining safety standards.
• August 2025: Major EV manufacturer partners with Saudi tech firms to deploy advanced phase-change materials (PCM) in battery cooling systems, reducing thermal runaway risks by 35% in extreme desert conditions. Integration enhances battery lifespan and supports Vision 2030 electrification targets.
• May 2025: Lucid Group unveiled a strategic partnership with King Abdullah University of Science and Technology to develop advanced thermal management and battery optimization technologies, leveraging KAUST's supercomputing capabilities to enhance material science research and heat transfer modeling for next-generation cooling solutions.
• April 2025: Lucid Motors became the first global automotive manufacturing company to join the 'Made in Saudi' program, securing rights to use the 'Saudi Made' label and strengthening the Kingdom's industrial capabilities in EV production and thermal management systems.

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