(MENAFN- GlobeNewsWire - Nasdaq) Key opportunities in the Saudi Arabia bus market include embracing urbanization and population growth to enhance public transport infrastructure. Shifting towards electric and CNG buses aligns with sustainability initiatives, supporting Vision 2030. The government's focus on green technologies drives demand for eco-friendly buses.

Dublin, Sept. 09, 2025 (GLOBE NEWSWIRE) -- The "Saudi Arabia Bus Market, By Region, Competition, Forecast & Opportunities, 2020-2030F" has been added to ResearchAndMarkets's offering.

The Saudi Arabia Bus Market was valued at USD 707.4 Million in 2024 and is expected to reach USD 955.6 Million by 2030, rising at a CAGR of 5.14%

The market is expanding due to urbanization, population growth, and government efforts to enhance public transportation infrastructure. Segmented by bus type, fuel, passenger capacity, and size, the market features city buses, intercity buses, school buses, and electric buses. Diesel-powered buses dominate, but electric and CNG buses are gaining traction due to sustainability initiatives. The market also includes high-capacity buses, articulated buses, and mini buses tailored for urban, intercity, and tourist transportation needs.

The government's push for green technologies and the development of sustainable transport solutions is driving the shift towards electric buses. Growing demand for efficient public transit and environmental concerns are key factors shaping the market's future. In August 2024, Riyadh Air introduced its first electric bus for employee transport, supporting Saudi Arabia's Vision 2030 to reduce emissions. Developed with National Transportation Solutions Co. and TAM-Europe, the initiative promotes advanced public transit solutions. It merges with the UN's Sustainable Development Goals. Riyadh Air recently joined the UN Global Compact in 2024.

Market Drivers

Saudi Arabia's rapidly growing population and urbanization are key drivers in the expansion of the bus market. With urban areas such as Riyadh and Jeddah experiencing significant growth, there is a growing need for efficient and reliable public transportation systems. As cities expand, traffic congestion becomes a major issue, prompting the government to invest heavily in public transport infrastructure, including buses.

The increasing demand for convenient, affordable, and environmentally friendly transportation solutions drives the adoption of buses for urban commuting. The government's Vision 2030, which focuses on sustainable development, also prioritizes the improvement of public transport, further boosting demand for buses in cities and towns across the kingdom. Population growth has led to more commuters relying on buses as an alternative to private cars, contributing to the bus market's steady expansion.

Key Market Challenges

Despite the push for diversification, Saudi Arabia remains heavily reliant on oil revenues, which can create challenges for long-term investments in sectors like public transportation. Fluctuations in global oil prices can directly impact government spending on infrastructure projects, including bus systems.

Although Vision 2030 aims to reduce dependence on oil, it remains a significant part of the economy. In times of lower oil prices, public sector investments, including transportation, could face delays or budget cuts. This dependency on oil revenues makes the bus market vulnerable to macroeconomic changes and presents a challenge for sustained market growth, especially for the implementation of large-scale electric bus projects or other high-cost infrastructure initiatives.

Key Market Trends

A prominent trend in the Saudi Arabia bus market is the increasing shift towards electric and hybrid buses as part of the country's broader focus on sustainability. As environmental concerns rise, the government is encouraging the adoption of electric buses to reduce air pollution and lower carbon emissions.

Saudi Arabia is beginning to integrate electric buses into public transportation fleets in major cities, which aligns with its efforts to meet climate goals and support green energy initiatives under Vision 2030. Electric buses are becoming more cost-effective as battery technology improves, and their operational costs are lower than those of traditional diesel buses. This trend will likely continue as more investments are made in electric vehicle infrastructure, such as charging stations and maintenance facilities, making electric buses a more feasible option for bus operators.

Key Attributes:

Report Attribute	Details
No. of Pages	85
Forecast Period	2024 - 2030
Estimated Market Value (USD) in 2024	$707.4 Million
Forecasted Market Value (USD) by 2030	$955.6 Million
Compound Annual Growth Rate	5.1%
Regions Covered	Saudi Arabia

Report Scope

Key Market Players

• Abdul Latif Jameel Commercial Vehicles Co. Ltd.
• Almarai Transport Services Co.
• Aljazirah Vehicles Agencies Co. Ltd.
• International Trucks & Equipment Co. Ltd. (ITECO)
• Binzagr Commercial & Industrial Group
• General Automotive Company Ltd.
• Yutong Bus Co., Ltd
• Zhongtong Bus Holding Co., Ltd.
• Tata Motors Limited
• Hyundai Motor Company

Saudi Arabia Bus Market, By Bus Length:

• Up to 7m
• 7 to12 m
• Over 12m

Saudi Arabia Bus Market, By Fuel Type:

• Diesel
• Electric
• Others

Saudi Arabia Bus Market, By Bus Type:

• City Bus
• Intercity Bus
• Tourist Buses
• School Buses

Saudi Arabia Bus Market, By Region:

• Northern & Central
• Western
• Southern
• Eastern

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• Saudi Arabian Bus Market

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