GCC Eyes $18.7 Billion Windfall From Autonomous Vehicle Revolution By 2035

The Gulf Cooperation Council (GCC) could capture a staggering $18.7 billion share of the global fully autonomous vehicle (FAV) market by 2035, according to a new report by Strategy& Middle East, part of the PwC network. The global market itself is projected to reach $182 billion, driven by rapid advancements in robo-taxis, robo-shuttles, robo-buses, and passenger drones.

The report highlights how autonomous mobility is poised to redefine urban transport across the region, with robo-taxis expected to dominate the sector. These vehicles alone could generate $10 billion in market value within the GCC, accounting for 18 per cent of the global FAV market.

“Backed by ambitious visions and resources, the GCC is strongly positioned to seize a $19 billion opportunity and set a global benchmark for autonomous mobility,” said Dr. Andreas Gissler, Partner at Strategy& Middle East.“Achieving that goal will require coordinated regulation, infrastructure readiness, and above all, building public confidence in the technology - but the region has the means to deliver.”

The report points to giga-projects like Saudi Arabia's NEOM and the UAE's smart city initiatives as key enablers. These developments are already integrating autonomous systems, including dedicated lanes and urban mobility hubs, offering regulators flexible environments to test and refine technologies.

Mark Haddad, Partner at Strategy& Middle East, added:“Relative to other markets, the GCC has a unique edge in autonomous mobility. With strong investment capacity, easier licensing pathways, and unrivalled testing grounds in its giga projects, the region can lead. The real challenge is moving beyond promising pilots to reliable, real-world deployment at scale. That will require not just innovation but government support, infrastructure readiness, and smart incentives.”

The report outlines three critical tipping points for widespread adoption: pilot readiness, commercial viability, and scalability. While robo-taxis are nearing commercial readiness - already operating in pilot schemes in China and the US - other technologies like robo-shuttles and passenger drones remain in earlier stages of development.

Public sentiment is also evolving. A 2023 Strategy& survey found that 81 per cent of respondents in China and 29 per cent in the US were comfortable with driverless rides, up significantly from 2021 figures. However, the report cautions that infrastructure upgrades and regulatory clarity around safety, liability, and licensing will be essential to support full-scale deployment.

To ensure long-term success, the study recommends a coordinated approach involving governments, technology providers, and operators. It calls for tailored pilot programs, regulatory sandboxes, and capital injections from sovereign wealth funds to accelerate the transition from pilot to commercial scale.

“With the right foundations in place, Gulf cities can lead the global shift toward autonomous mobility - unlocking economic value while delivering safer, cleaner, and more connected transport for generations to come,” the report concludes.

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