The Saudi Arabia Connected Cars market size was valued at USD 2.03 billion in 2022 which is expected to grow to USD 6.4 billion in 2030 with a CAGR of 15.4% during the forecast period between 2023 and 2030.
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Saudi Arabia Connected Cars Market size was valued at USD 2.03 billion in 2022, expected to reach USD 6.4 billion in 2030 with a CAGR of 15.4% for the forecast period between 2023 and 2030. The Saudi Arabia-connected cars market is experiencing a rapid surge as a pivotal player in the Kingdom's automotive industry. This transformative landscape is marked by integrating advanced internet connectivity and communication technologies into vehicles, revolutionizing transportation and driving experiences. Connected cars offer cutting-edge features and services, including real-time navigation, in-car infotainment, remote diagnostics, and safety applications like vehicle-to-vehicle (V2V) communication. Several key market drivers propel this growth. Firstly, Saudi consumers' rising tech-savviness and increasing affinity for smart and connected technologies drive the demand for connected cars. Secondly, the Saudi government's focus on smart mobility initiatives and the development of smart cities provides a favorable environment for connected car adoption.
Collaborations between automotive manufacturers and technology companies accelerate the integration of connectivity solutions, expanding the appeal of connected cars. Additionally, the emphasis on road safety and the deployment of advanced driver assistance systems (ADAS) further fuel the adoption of connected cars. The deployment of 5G networks enhances connectivity capabilities, enabling faster data transmission and supporting the growth of a comprehensive Vehicle-to-Everything (V2X) ecosystem. As the Saudi Arabia connected cars market continues to grow, it brings forth transformative opportunities in the automotive sector, fostering a future of intelligent, connected, and sustainable mobility solutions.
In the Saudi Arabia connected cars market, there has been a significant increase in demand for advanced safety features among consumers. As awareness of road safety and accident prevention grows, there is a strong emphasis on equipping vehicles with cutting-edge safety technologies. Saudi Arabian car buyers have increasingly sought features such as autonomous emergency braking, lane-keeping assist, adaptive cruise control, and blind-spot monitoring. The desire for enhanced protection for drivers and passengers has driven automakers and technology companies to integrate these safety features into their connected car offerings. Moreover, the Saudi government's focus on road safety and regulations supporting the adoption of advanced safety technologies has further boosted the demand for connected cars equipped with comprehensive safety solutions.
For instance, in 2023, Volvo introduced the XC60 Recharge. The Volvo XC60 Recharge has comprehensive safety features, making it a standout choice for safety-conscious consumers. It includes Volvo's advanced City Safety system, which offers collision avoidance assistance with pedestrians. Other safety technologies include lane-keeping aid, adaptive cruise control, blind-spot information system, and road sign information, ensuring a secure and protected driving experience.
The Saudi Arabia-connected cars market is benefiting from significant advancements in communication infrastructure. The widespread deployment of 5G technology has revolutionized the connectivity capabilities of connected vehicles, enabling faster and more reliable data transmission. With reduced latency and increased bandwidth, 5G facilitates seamless real-time communication between vehicles, infrastructure, and other devices, enhancing the overall driving experience. This improved connectivity paves the way for advanced features such as Vehicle-to-Vehicle (V2V) communication, Vehicle-to-Infrastructure (V2I) communication, and Vehicle-to-Everything (V2X) ecosystem, promoting safer and more efficient transportation. Moreover, the continuous expansion and improvement of communication networks across the Kingdom are creating a robust and supportive environment for the growth of the Saudi Arabian connected cars market, driving the adoption of cutting-edge connected car technologies.
The popularity of electric vehicles (EVs) is witnessing a significant upswing in the Saudi Arabia-connected cars market. As part of a global movement towards sustainable and environmentally friendly transportation solutions, EVs have garnered increasing attention from Saudi Arabian consumers. The growing awareness of environmental issues and the desire to reduce carbon emissions drive more individuals and businesses to embrace EVs as a viable alternative to traditional combustion engine vehicles. The Saudi government's support through incentives, such as tax exemptions and subsidies, has further accelerated the adoption of electric cars. With advancements in EV technology and the development of a robust charging infrastructure, the demand for electric vehicles is expected to continue its upward trajectory, making them a prominent and sought-after segment in the Saudi Arabia connected cars market.
For example, in 2023, Lucid Motors launched its Lucid Air which is an all-electric luxury sedan with impressive performance and cutting-edge technology. With its sleek design, spacious interior, and long-range capabilities, Lucid Air aims to rival established electric vehicle manufacturers. Its advanced features and high-quality materials provide a luxurious driving experience, making it an appealing choice for eco-conscious consumers seeking upscale electric mobility.
Impact of COVID-19
The COVID-19 pandemic notably impacted the Saudi Arabia-connected cars market. During the initial phases of the outbreak, the automotive industry faced challenges such as supply chain disruptions, factory closures, and reduced consumer demand due to lockdowns and economic uncertainties. The connected cars market experienced a temporary slowdown as people refrained from non-essential travel and vehicle purchases. However, the pandemic highlighted the importance of connected car technologies in ensuring safer and more efficient transportation. As restrictions eased, there was a renewed interest in connected cars, particularly in features related to contactless services, remote diagnostics, and the demand for in-car entertainment during limited social interactions. The Saudi Arabian market showed resilience, increasing government support for smart mobility initiatives, driving the sector's gradual recovery and continued growth beyond the pandemic.
Impact of Russia-Ukraine War
The war did not directly impact the Saudi Arabia-connected cars market. However, geopolitical tensions and conflicts in key oil-producing regions like the Middle East can lead to fluctuations in oil prices and global supply chain disruptions, affecting the overall economy and consumer confidence in Saudi Arabia. Any economic uncertainties arising from the war could impact consumer spending and vehicle sales, including the demand for connected cars. Additionally, disruptions in international trade and logistics could potentially impact the supply of components and technologies used in connected cars, leading to delays or increased manufacturing costs. However, the extent of the impact would depend on various geopolitical and economic factors and requires continuous monitoring to assess the actual consequences on the Saudi Arabia-connected cars market.
Report Scope
Saudi Arabia Connected Cars Market Assessment, Opportunities and Forecast, 2016-2030F” is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative & quantitative assessment of the current state of the connected cars market globally, industry dynamics and challenges. The report includes market size, segmental shares, growth trends, COVID-19 and Russia-Ukraine war impact, opportunities and forecast between 2023 and 2030. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business model, competitive intelligence, etc.
Details |
|
Base Year of the Analysis |
2022 |
Historical Period |
2016-2021 |
Forecast Period |
2023-2030 |
Projected Growth Rate |
CAGR of 15.4% between 2023 and 2030 |
Revenue Forecast in 2030 |
USD 6.4 billion |
Units |
Revenue in USD billion |
Segments Covered |
By Network, By System, By Components, By Vehicle, By Communication, By Sales Channel, By Application |
Regions Covered |
Central, Western, Northern, Eastern, Southern
|
Key Companies Profiled |
Toyota Motor Corporation, BMW AG, Mercedes-Benz Group AG., FCA US LLC, Volkswagen Group, Volvo AG, Mazda Motors, Hyundai Motor Company., Mitsubishi Motors, Kia Corporation |
Customization Scope |
15% free report customization with purchase |
Pricing and Purchase Options |
Avail the customized purchase options to fulfil your precise research needs |
Delivery Format |
PDF and Excel through email (subject to the license purchased) |
In this report, Saudi Arabia Connected Cars Market has been segmented into the following categories:
1. By Network
1.1. 3G
1.2. 4G-LTE
1.3. 5G-LTE
2. By System Type
2.1. Embedded System
2.2. Tethered
3. By Components
3.1. Central Gateway
3.2. Head Unit
3.3. Electronic Control Unit (ECU)
3.4. Telematics Control Unit (TCU)
3.5. Others
4. By Vehicle Type
4.1. Internal Combustion Engines (ICE) Vehicle
4.2. Electric/ Hybrid Vehicle
5. By Communication Type
5.1. Vehicle to Infrastructure
5.2. Vehicle to Vehicle
5.3. Vehicle to Pedestrian
5.4. Vehicle to Cloud
5.5. Others
6. By Sales Channel
6.1. Original Equipment Manufacturer (OEM)
6.2. After Market
7. By Application
7.1. Navigation
7.2. Safety
7.3. Entertainment
8. By Region
8.1. Central
8.2. Western
8.3. Northern
8.4. Eastern
8.5. Southern
Key Players Landscape and Outlook
The Saudi Arabia-connected cars market has seen involvement from various key players in the automotive and technology sectors. Major automakers like Toyota, Nissan, and Honda have been actively integrating connected car technologies into their vehicle models, catering to the increasing demand for smart and tech-savvy vehicles. Telecom companies and technology providers, such as STC, Mobily, and Huawei, have also played a crucial role in developing and providing the necessary infrastructure for seamless connectivity in connected cars. The market's potential to offer safer, more efficient, and connected transportation solutions will likely attract more players and investments.
For instance, in 2023, the Memorandum of Understanding (MoU) between CTG-STC aims to enhance the IoT business in Saudi Arabia. The collaboration seeks to elevate IoT services in the country and the broader region by leveraging various technologies and digital solutions, drawing upon the expertise of both companies. Through this joint effort, CTG-STC aims to strengthen its IoT offerings, leading to further advancements in the connected cars market and potentially unlocking new possibilities in the broader IoT landsca
· Toyota Motor Corporation
· BMW AG
· Mercedes-Benz Group AG.
· FCA US LLC
· Volkswagen Group
· Volvo AG
· Mazda Motors
· Hyundai Motor Company.
· Mitsubishi Motors
· Kia Corporation
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• How are the markets divided into different product/service segments and the market size and growth of each segment?
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• How are the markets predicted to develop in the future and what factors will drive or inhibit growth?
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Purchase Options
USD ($)
i
1,840
2,000
8%
i
2,970
3,300
10%
i
3,960
4,500
12%
i
5,950
7,000
15%
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