Saudi Arabia Heavy-Duty Trucks Market Outlook to 2030

Saudi Arabia Heavy-Duty Trucks Market Overview

• The Saudi Arabia heavy-duty trucks market is valued at USD 3.1 billion, driven by the growing need for freight transportation and the continuous expansion of infrastructure projects. Major development initiatives, such as the Saudi Vision 2030, have increased the demand for heavy-duty trucks, especially within sectors like construction, mining, and oil & gas. The logistics industry has also seen strong demand due to increased activity in both domestic and international trade, creating a need for durable, high-capacity trucks that can support long-distance haulage and heavy loads.
• Major cities such as Riyadh, Jeddah, and Dammam dominate the heavy-duty trucks market due to their strategic locations and industrial significance. Riyadh, as the political and economic hub, has the highest concentration of infrastructure projects and corporate activities, fueling demand for construction trucks and logistics services. Jeddah and Dammam, being key port cities, are crucial centers for import/export operations, making them major contributors to the demand for heavy-duty trucks, particularly in logistics and transport.
• The Saudi Transport General Authority (TGA) enforces regulations governing the operation of heavy-duty trucks. In 2024, the TGA introduced stricter safety and operational guidelines to improve road safety. These include requirements for vehicle maintenance, driver training, and compliance with weight limits. Compliance with these regulations is essential for companies operating heavy-duty trucks, as violations can result in fines and vehicle impoundment.

Saudi Arabia Heavy-Duty Trucks Market Segmentation

By Truck Type: The market is segmented by truck type into dump trucks, cargo trucks, tractor-trailer trucks, tanker trucks, and specialized trucks. Among these, tractor-trailer trucks hold a dominant market share. This dominance is due to the high demand for these trucks in long-distance transportation, especially in the logistics sector, which handles the majority of the country's freight movement. Tractor-trailer trucks are also highly flexible in terms of load capacity and trailer attachments, which makes them ideal for various industries, including oil & gas and construction.

By Fuel Type: The market in Saudi Arabia is also segmented by fuel type into diesel, electric, hybrid, and natural gas trucks. Diesel trucks have historically dominated the market due to their robust performance, availability, and the widespread presence of fueling infrastructure across the country. However, the growing focus on sustainability and reducing carbon emissions has led to increasing interest in electric and hybrid trucks, especially for urban use. Nonetheless, the high initial cost of electric trucks and the current limitations in charging infrastructure keep diesel trucks as the leading segment in 2023.

Saudi Arabia Heavy-Duty Trucks Market Competitive Landscape

The Saudi Arabia heavy-duty trucks market is dominated by both global and local players, with manufacturers focusing on technological innovation and fleet expansion to capture the growing demand for trucks in industrial sectors. The market is highly competitive, with established companies like Daimler AG and Volvo Trucks leading in terms of product innovation and large-scale distribution networks. Additionally, government regulations favoring local manufacturing are encouraging partnerships between international firms and local assemblers.

Saudi Arabia Heavy-Duty Trucks Industry Analysis

Growth Drivers

• Infrastructure Development (Construction Industry, Transport Projects): The construction industry in Saudi Arabia is experiencing a boom, driven by large-scale projects like NEOM and the Red Sea Project. The Saudi government has allocated $1.3 trillion for infrastructure projects, which necessitates a rise in heavy-duty trucks for transporting materials and machinery. Additionally, the expansion of transportation infrastructure like new roads and railway projects (such as the Saudi Landbridge) further fuels demand for heavy-duty trucks.
• Industrial Expansion (Mining, Oil & Gas): Saudi Arabia's mining and oil & gas sectors are critical contributors to its economy, with the mining industry alone expected to increase in prominence as part of the Vision 2030 objectives. Saudi Arabia produced approximately 10 million barrels of oil per day in 2023, maintaining heavy reliance on transporting oilfield equipment. The mining sector extracted 30 million tons of raw materials in 2022. Both industries rely on heavy-duty trucks to transport materials and equipment, which enhances demand for these vehicles.
• Vision 2030 (Diversification Initiatives, Investment in Non-Oil Sectors): Saudi Arabia's Vision 2030 aims to reduce dependence on oil by diversifying into sectors such as construction, tourism, and logistics. As of 2024, $500 billion has been directed toward non-oil sectors. This push requires increased transportation capacity for large-scale projects, fostering demand for heavy-duty trucks. Investment in renewable energy, construction, and industrial sectors directly contributes to the demand for advanced logistics infrastructure, including heavy-duty trucks.

Market Challenges

• High Initial Costs of Heavy-Duty Trucks: The acquisition of heavy-duty trucks represents a significant capital expenditure, with prices ranging from $150,000 to $250,000 per unit in Saudi Arabia. These high upfront costs deter small and medium enterprises (SMEs) from entering the market or expanding their fleets. Even larger companies must carefully consider operational efficiency and returns before making such purchases. Financing options are often limited, further exacerbating this challenge for many businesses involved in logistics and construction.
• Fluctuating Fuel Prices: Saudi Arabia's dependence on fuel means that fluctuations in global oil prices directly affect operational costs in the heavy-duty truck market. In 2024, global oil prices ranged between $85 and $90 per barrel, causing unpredictable costs for logistics companies. The volatility of fuel prices remains a concern for businesses managing large fleets of trucks, as fuel accounts for nearly 40% of total operating expenses.

Saudi Arabia Heavy-Duty Trucks Market Future Outlook

The Saudi Arabia heavy-duty trucks market is expected to continue its upward trajectory due to government support for infrastructure development and the growing industrial and logistics sectors. The ongoing push for sustainable transport solutions, coupled with advancements in truck technologies like autonomous driving, electric drivetrains, and telematics, will drive the market's evolution. Investment in the expansion of electric truck infrastructure and an increased focus on fleet management optimization will shape the market's landscape over the coming years.

Future Market Opportunities

• Increasing Urbanization (Road Network Expansion): Saudi Arabias urban population reached over 36 million in 2023, fueling the need for expanded road networks and logistics infrastructure. The government plans to invest $36 billion into improving its road networks by 2025, opening up opportunities for heavy-duty truck manufacturers. Increased urbanization requires more efficient transport services for goods and construction materials, directly driving demand for these trucks.
• Technological Advancements (Telematics, Autonomous Trucks): The adoption of telematics and autonomous driving technology is gaining momentum in Saudi Arabia. In 2024, several major logistics companies have already integrated GPS-based fleet management systems, improving efficiency and safety. Autonomous trucks are also being tested on key transportation routes. Companies utilizing advanced telematics reduce fuel costs by 20% and improve logistics planning, creating further demand for modern heavy-duty trucks with integrated technology.