KSA smart mobility market report Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025–2030

KSA Smart Mobility Market Overview

• The KSA Smart Mobility Market is valued at USD 6.7 billion, based on a five-year historical analysis. This growth is primarily driven by the government's commitment to diversifying the economy, enhancing urban infrastructure, and promoting sustainable transportation solutions. The increasing adoption of electric vehicles, autonomous vehicles, and smart traffic management systems has significantly contributed to the market's expansion, with major investments in smart city projects such as NEOM, The Line, and the Red Sea Project accelerating digital transformation and sustainable mobility.
• Key cities such as Riyadh, Jeddah, and Dammam dominate the KSA Smart Mobility Market due to their rapid urbanization, significant population growth, and ongoing infrastructure projects. Riyadh, as the capital, is a focal point for smart mobility initiatives, including the launch of autonomous vehicle pilots like WeRide’s Robotaxi, while Jeddah and Dammam are also investing heavily in public transport and smart city technologies, making them critical players in the market.
• The Saudi government has implemented the National Transport and Logistics Strategy, issued by the Ministry of Transport in 2021, which includes a comprehensive framework to promote electric and autonomous vehicles. This strategy sets a target for 25 percent of goods vehicles to be autonomous by 2030 and supports the broader adoption of electric vehicles through incentives such as tax exemptions and subsidies, aiming to reduce carbon emissions and enhance energy efficiency. The strategy also mandates compliance with new vehicle standards, supports charging infrastructure development, and encourages public-private partnerships to accelerate the transition to smart and sustainable mobility.

KSA Smart Mobility Market Segmentation

By Type:The KSA Smart Mobility Market can be segmented into various types, including Electric Vehicles, Autonomous Vehicles, Connected Vehicles, Mobility-as-a-Service (MaaS), Smart Traffic Management Solutions, Fleet Management Systems, and Micro-mobility (e-scooters, bike-sharing). Each of these segments plays a crucial role in shaping the future of transportation in the Kingdom, with electric and autonomous vehicles gaining traction due to government support and technological advancements, while shared mobility and smart traffic solutions are expanding in urban centers.

By End-User:The end-user segmentation of the KSA Smart Mobility Market includes Government Agencies (Ministry of Transport, SDAIA), Private Sector Enterprises, Public Transport Operators (SAPTCO, Riyadh Metro), and Logistics and Delivery Services. Each of these end-users has unique requirements and contributes to the overall growth of the market, with government agencies playing a leading role in policy implementation and infrastructure development, while private enterprises and logistics providers drive innovation and service expansion.

KSA Smart Mobility Market Competitive Landscape

The KSA Smart Mobility Market is characterized by a dynamic mix of regional and international players. Leading participants such as Uber Technologies, Inc., Careem Networks FZ LLC, Tesla, Inc., Siemens AG, Alstom S.A., Huawei Technologies Co., Ltd., Ford Motor Company, General Motors Company, Nissan Motor Corporation, BMW AG, Volkswagen AG, BYD Company Limited, SAPTCO (Saudi Public Transport Company), Riyadh Metro Project (Arriyadh Development Authority), SDAIA (Saudi Data and Artificial Intelligence Authority) contribute to innovation, geographic expansion, and service delivery in this space.

KSA Smart Mobility Market Industry Analysis

Growth Drivers

• Increasing Urbanization:The Kingdom of Saudi Arabia (KSA) is experiencing rapid urbanization, with urban areas projected to house over 83% of the population in future. This shift is driving demand for efficient transportation solutions, as urban centers like Riyadh and Jeddah expand. The urban population is expected to reach approximately 29 million in future, necessitating smart mobility solutions to alleviate congestion and improve accessibility, thereby fostering economic growth and enhancing quality of life.
• Government Initiatives for Smart Cities:The Saudi government has committed over $500 billion to develop smart cities as part of its Vision 2030 initiative. This includes projects like NEOM, which aims to integrate advanced mobility solutions. In future, the government plans to implement smart infrastructure across major cities, enhancing public transport systems and promoting electric vehicles. These initiatives are expected to create a conducive environment for smart mobility technologies, attracting investments and fostering innovation in the sector.
• Rising Demand for Sustainable Transportation:With a growing awareness of environmental issues, KSA is witnessing a surge in demand for sustainable transportation options. The government aims to increase the share of electric vehicles (EVs) to 30% of total vehicle sales in future. In future, the number of EVs on the road is projected to exceed 100,000, driven by incentives and infrastructure development. This shift towards sustainability is expected to stimulate investments in smart mobility solutions, aligning with global trends towards greener transportation.

Market Challenges

• Infrastructure Limitations:Despite significant investments, KSA's existing transportation infrastructure faces challenges in supporting smart mobility solutions. In future, only 20% of urban areas have integrated smart traffic management systems. This lack of infrastructure hampers the deployment of advanced mobility technologies, leading to inefficiencies in traffic flow and public transport. Addressing these limitations is crucial for the successful implementation of smart mobility initiatives and achieving urban sustainability goals.
• High Initial Investment Costs:The transition to smart mobility solutions requires substantial upfront investments, which can deter stakeholders. For instance, the cost of establishing electric vehicle charging stations is estimated at $10,000 per station, with a projected need for over 5,000 stations in future. This financial burden can limit the pace of adoption for both public and private sectors, necessitating government support and innovative financing models to encourage investment in smart mobility infrastructure.

KSA Smart Mobility Market Future Outlook

The KSA Smart Mobility Market is poised for significant transformation as urbanization accelerates and government initiatives gain momentum. In future, advancements in technology, particularly in AI and IoT, will enhance mobility solutions, making them more efficient and user-friendly. The integration of smart traffic management systems and the expansion of electric vehicle infrastructure will further support sustainable transportation. As public awareness grows, the market is expected to embrace innovative solutions that align with global sustainability goals, fostering a more connected and efficient urban environment.

Market Opportunities

• Expansion of Electric Vehicle Infrastructure:The KSA government plans to invest $1 billion in expanding electric vehicle infrastructure in future. This includes the installation of charging stations across major cities, which will facilitate the adoption of EVs. The anticipated growth in EV usage presents a significant opportunity for businesses to develop and deploy innovative charging solutions, enhancing the overall mobility ecosystem in the region.
• Integration of AI and IoT in Mobility Solutions:The integration of AI and IoT technologies in mobility solutions is expected to create new opportunities for innovation. In future, the market for smart mobility applications utilizing these technologies is projected to reach $200 million. This growth will enable real-time data analysis, improving traffic management and enhancing user experiences, thereby driving further investment in smart mobility initiatives.