KSA Marine Electric Vehicle Market Outlook to 2030

KSA Marine Electric Vehicle Market Overview

• The KSA Marine Electric Vehicle has experienced notable growth, this is reflected by Global Marine Electric Vehicle reaching a valuation of USD 10.4 billion in 2023. This growth is supported by increasing environmental concerns, government incentives, and advancements in battery technology.
• Key players in the KSA Marine Electric Vehicle Market include: ABB Group, Siemens AG, General Electric, and Wärtsilä, BAE Systems. These companies are pivotal in driving innovation and adoption in the marine electric vehicle industry through significant investments in research and development, strategic partnerships, and competitive pricing strategies.
• In 2024, Wärtsilä has collaborated with AVK to deliver on-site power generation solutions for data centers. The two companies will work together to provide reliable and sustainable power generation using Wärtsilä's technology.
• The Eastern Province, especially the city of Dammam, is dominating the marine electric vehicle market in Saudi Arabia. Dammam's advantageous position as a key port city, along with its proximity to major maritime activities, establishes it as a central hub for the adoption of marine electric vehicles.

KSA Marine Electric Vehicle Market Segmentation

• By Product Type: The KSA Marine Electric Vehicle Market is segmented by product type into propulsion systems, energy storage solutions, and electric marine engines. In 2023, Propulsion systems hold the dominant market share due to their critical role in enabling the transition from traditional fuel-powered engines to electric propulsion.

• By Application: The market is segmented by application into commercial, recreational, and defense. In 2023, the commercial segment holds the dominant market share due to the high demand for electric propulsion in commercial vessels, such as ferries, cargo ships, and offshore support vessels.

• By Region: The market is segmented by region into North, South, East, and West. In 2023, the Eastern region holds the dominant market share due to its strategic location and significant maritime activities. The presence of major ports and shipyards in the Eastern region, particularly in cities like Dammam, facilitates the adoption and deployment of marine electric vehicles.

KSA Marine Electric Vehicle Competitive Landscape

• Sea Electrics: In January 2024, SEA Electric announced a USD 300 million merger with Exro Technologies to combine their EV technologies into a comprehensive platform for electric vehicle propulsion systems. The merger, completed in April 2024, aims to deliver over 1,000 propulsion systems in 2024, with projected revenues exceeding USD 145 million. The new entity, operating as Exro Technologies Inc., seeks to accelerate electrification and achieve profitability
• Green Marine Technologies: Green Marine hosted a record-breaking GreenTech event in Halifax, Nova Scotia in 2024, reuniting almost 350 people to discuss sustainable shipping and share best practices. This was the 17th edition of the annual conference, which took place from June 5-7 at the Halifax Convention Center.

KSA Marine Electric Vehicle Industry Analysis

KSA Marine Electric Vehicle Growth Drivers

• Alignment with Saudi Vision 2030: The rapid deployment of electric vehicles in KSA aligns well with the country's environmental and economic objectives stated in Saudi Vision 2030. EVs can significantly cut down emissions, which suits programs like "Green Riyadh". The Saudi government is investing heavily to achieve its ambitious EV goals. They plan to invest $50 billion into EV production in the next ten years alone.
• Economic diversification: Saudi Arabia is actively pursuing the development of a domestic electric vehicle industry as a key strategy to drive economic diversification and reduce reliance on oil revenues by establishing a joint venture called EVIC to install over 5,000 fast chargers across the country.
• Ranking as top MENA EV market: Saudi Arabia is positioned to lead the Middle East and North Africa (MENA) region's transition towards sustainable transportation, as it is ranked the top electric vehicle (EV) market in the region. The Saudi EV market is expected to reach a valuation of $9.42 billion by 2029, growing at a rapid pace.

KSA Marine Electric Vehicle Challenges

• Charging Infrastructure: Saudi Arabia faces a significant challenge in building the necessary charging infrastructure to support its ambitious electric vehicle (EV) adoption goals. To achieve its target of having 700,000 EVs on the roads of Riyadh alone by 2030, the country needs to install 30,000 to 34,000 new public charging stations across the kingdom.
• Range Anxiety: The limited driving range of EVs compared to ICEVs, exacerbated by Saudi Arabia's large geography and hot climate, is a major concern for consumers and a significant barrier to EV adoption in the country. Many Saudi drivers are reluctant to switch to EVs due to "range anxiety" - the fear of running out of charge during long journeys across the vast landscape.

KSA Marine Electric Vehicle Market Government Initiatives

• Electric Vehicle Infrastructure Company (EVIC): In October 2023, the Saudi Public Investment Fund (PIF) and the Saudi Electricity Company established EVIC, which aims to install over 5,000 fast chargers across more than 1,000 locations in Saudi Arabia by 2030. In January 2024, EVIQ launched its first public electric vehicle DC fast-charging site in Riyadh, located at ROSHN Front (formerly Riyadh Front).
• Manufacturing and Local Production: The PIF launched Ceer in 2022, the first Saudi automotive brand focused on manufacturing electric vehicles in the Kingdom. Ceer plans to produce a range of vehicles, including sedans and SUVs, leveraging licensed technology from BMW. The first models are expected to be available by 2025, with an annual production target of 150,000 vehicles.

KSA Marine Electric Vehicle Market Future Outlook

By 2028, the KSA Marine Electric Vehicle market is projected to grow substantially due to factors like ongoing technological advancements, increased government incentives for electric vehicles, and a broader adoption of electric marine propulsion systems.

Market Future Trends

• Expansion of Electric Marine Vehicle Adoption: Over the next five years, the adoption of electric marine vehicles will grow significantly, driven by advancements in technology and increased government support. This growth will be supported by continued investments in research and development, as well as expanded charging infrastructure. By 2029, electric marine vehicles will grow with a reflection of CAGR of 11.26%.
• Advancements in Battery Technology: Advancements in battery technology will significantly impact the marine electric vehicle market, enhancing the viability of electric vessels for diverse applications and driving market growth. The industry is transitioning from traditional lead-acid batteries to advanced lithium-ion batteries, with costs having dropped dramatically from $500 per kWh to $250 per kWh today.