(MENAFN- GlobeNewsWire - Nasdaq) The Saudi Arabia connected car market thrives on 5G deployment, smart infrastructure growth, and Vision 2030 alignment, spurring demand for enhanced vehicle connectivity and safety features. Key opportunities involve developing data-driven services, subscription models, and overcoming cybersecurity challenges.Dublin, Oct. 17, 2025 (GLOBE NEWSWIRE) -- The "Saudi Arabia Connected Car Market, By Region, Competition, Forecast and Opportunities, 2020-2030F" report has been added to ResearchAndMarkets's offering.
The Saudi Arabia Connected Car Market was valued at USD 253.22 Million in 2024, and is expected to reach USD 533.02 Million by 2030, rising at a CAGR of 13.26%.
The connected car market in Saudi Arabia is witnessing significant growth, fueled by rapid advancements in telecommunications infrastructure, particularly 5G deployment, and increasing adoption of smart mobility solutions.
These vehicles offer enhanced safety, navigation, entertainment, and real-time vehicle diagnostics, aligning with the Kingdom's Vision 2030 goals of technological modernization and reduced reliance on oil. Government support for smart transportation, rising consumer demand for in-car connectivity, and growing investments by global automotive manufacturers and tech firms are further accelerating market expansion. Moreover, the increasing focus on autonomous driving and data-driven services is reshaping the future of the automotive ecosystem in Saudi Arabia.
Rapid Deployment of 5G and Smart Infrastructure
A key trend fueling the growth of Saudi Arabia's connected car market is the swift expansion of 5G networks alongside the development of smart infrastructure. As a regional leader in 5G deployment, the Kingdom offers high-speed, low-latency connectivity essential for real-time communication between vehicles, infrastructure, and cloud-based platforms. This advanced digital framework enables critical connected car features such as live navigation, over-the-air (OTA) software updates, real-time traffic alerts, and vehicle-to-everything (V2X) communication.
Aligned with Vision 2030, major smart city projects like NEOM and The Line are receiving focused investments in intelligent transportation systems, creating a fertile environment for testing and deploying future mobility technologies. According to the Communications, Space and Technology Commission (CST), approximately 98% of the population is covered by 4G, with 5G coverage rapidly expanding across key urban centers. This robust network infrastructure underpins the seamless functioning of connected vehicle services, driving market adoption and innovation across the automotive sector.
Cybersecurity and Data Privacy Concerns
One of the most critical challenges facing the connected car ecosystem is cybersecurity. As vehicles become increasingly integrated with the internet and cloud services, they are exposed to potential cyber threats. Hackers can target vulnerabilities in software or communication systems, posing risks not only to user data but also to passenger safety. The lack of unified cybersecurity standards for automotive systems in Saudi Arabia further complicates the issue.
Moreover, concerns around data privacy, especially regarding how driving behavior, location, and personal information are collected and used, remain high. Addressing these issues requires the development of strong regulatory frameworks, partnerships with cybersecurity firms, and consumer education to build trust in connected car technology.
Data-Driven Services and Emerging Business Models
Another notable trend in Saudi Arabia's connected car market is the growing emphasis on data-driven services and emerging business models. As vehicles become increasingly digitized, they generate vast amounts of data related to driving behavior, location, diagnostics, and system usage. This data can be leveraged by automakers, insurance companies, fleet operators, and mobility service providers to deliver more tailored, efficient, and predictive offerings. For example, insurers are exploring usage-based insurance (UBI) models that adjust premiums based on driving patterns. Similarly, fleet management companies are using telematics solutions to optimize operations, reduce fuel consumption, and improve driver performance.
OEMs are also offering subscription-based services and pay-as-you-go models for connected features, allowing consumers to customize their in-car experiences. According to the Saudi Data and Artificial Intelligence Authority (SDAIA), over 100 terabytes of data are now being processed through the National Data Bank (NDB), supporting advanced analytics across sectors including mobility and transportation. These data-driven innovations align with Saudi Arabia's digital transformation objectives and offer new revenue streams for industry stakeholders.
Key Attributes:
Report Attribute | Details |
No. of Pages | 81 |
Forecast Period | 2024 - 2030 |
Estimated Market Value (USD) in 2024 | $253.22 Million |
Forecasted Market Value (USD) by 2030 | $533.02 Million |
Compound Annual Growth Rate | 13.2% |
Regions Covered | Saudi Arabia |
Report Scope:
Key Market Players
Apple Inc. AT&T Inc. Ford Motor Company General Motors Company BMW Group Google Inc Audi AG Delphi Automotive PLC NXP Semiconductors N.V Car Force
Saudi Arabia Connected Car Market, By Vehicle Type:
Passenger Car Commercial Vehicle
Saudi Arabia Connected Car Market, By Connectivity Type:
Embedded Tethered Integrated
Saudi Arabia Connected Car Market, By Communication:
Vehicle To Vehicle Vehicle to Infrastructure Vehicle to cloud Vehicle to Pedestrian Vehicle to Everything
Saudi Arabia Connected Car Market, By Service:
Driving Assistance Connected Safety Well Being Vehicle Management Intersection Assistance Emergency Braking Others
Saudi Arabia Connected Car Market, By Region:
Northern & Central Western Eastern Southern
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Saudi Arabian Connected Car Market
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