Saudi Arabia Heavy Commercial Vehicle Market Assessment, By Vehicle Type [Trucks, Bus, Special Vehicles], By Fuel Type [Electric, ICE], By Application [Logistics, Construction, Mining, Agriculture, Others], By Region, Opportunities and Forecast, 2017-2031F

Saudi Arabia Heavy Commercial Vehicle Market is projected to witness a CAGR of 12.12% during the forecast period 2024-2031, growing from USD 11.26 billion in 2023 to USD 28.12 billion in 2031.

Saudi Arabia Heavy Commercial Vehicle Market Size, Growth, Report 2031

Saudi Arabia heavy commercial vehicle market&nbsp;is projected to witness a&nbsp;CAGR of 12.12%&nbsp;during the forecast period 2024-2031, growing from&nbsp;USD 11.26 billion&nbsp;in 2023 to&nbsp;USD 28.12 billion&nbsp;in 2031. The market has witnessed significant growth in recent years and is expected to maintain an expansion in the coming years owing to substantial investment in mega construction projects, rapid expansion in the transportation and logistics sector, development of smart city projects, and improvements in road infrastructure. Saudi Arabia heavy commercial vehicle market demand is rising considerably owing to growth in the e-commerce sector, technological advancement in heavy commercial vehicles, and increasing investment by the government in infrastructure development in emerging countries. For instance, in February 2024, Saudi Arabia announced the launch of the National Infrastructure Fund (INFRA) to ramp up investment to boost infrastructural development, offer jobs, and attract international investments and expertise, which further drives the usage of heavy commercial vehicles.
In addition, in Saudi Arabia, the adoption of electric and hybrid heavy commercial vehicles is rising significantly as the Saudi government announced different initiatives and incentives to promote the adoption and usage of electric vehicles across different industries. For instance, according to Riyadh Sustainability Strategy 2021, the government of Saudi Arabia is working to ensure that 30% of all vehicles are fully powered by electricity in Riyadh by 2030. Furthermore, companies in the market are efficiently investing in different research and development activities to enhance the functioning of heavy commercial vehicles, extend usage, and enhance durability and compatibility. In addition, companies are launching new and advanced heavy commercial vehicles to address the rising demand for HCVs at construction sites.
For instance, in June 2024, Anhui Jianghuai Automobile Group Co., Ltd. announced the launch of medium and heavy-duty trucks in Saudi Arabia featuring diverse powertrain combinations, including Weichai+FAST and Cummins+ZF, offering a wide variety of choices for customers across different industries.
<h2 style="text-align: justify;">Introduction of Electric Vehicles in the Country Drives Market Growth</h2>
In Saudi Arabia, the government is introducing different strategies and programs to ensure a sustainable future for the city and reduce carbon emissions, driving the demand for heavy electric commercial vehicles, which further propels Saudi Arabia's heavy commercial vehicle market growth. The Saudi government compels companies to produce electric vehicles by offering different incentives and tax benefits coupled with combatting climate change for a sustainable future across the Middle East. In addition, the government of Saudi Arabia encourages a shift towards EV charging infrastructure from traditional methods in different applications, including buildings, fleets, and residential, to help the nation accomplish its sustainability objectives, leading to the demand for heavy electric commercial vehicles. Therefore, the growth of heavy commercial vehicles is rising in Saudi Arabia and creating different market growth opportunities for companies. In addition, key participants are planning to launch new heavy-duty trucks to address the rising demand and contribute to the zero-carbon emissions goal.
For instance, in October 2023, Mercedes-Benz AG announced the launch of its revolutionary heavy-duty electric truck, eActros 300 L 4x2 to contribute to accomplishing a significant milestone in the pursuit of emission-free road transport of goods.
<h2 style="text-align: justify;">Significant Growth in the Construction Sector Drives Market Demand</h2>
The demand for heavy-duty commercial vehicles is significantly rising owing to the rising demand for HCVs for construction projects and technological advancements in HCVs. The KSA Construction Contractor Award and other awarded contracts and an increase in investment in infrastructure development led to the demand for heavy-duty trucks to transport materials and equipment. In addition, technological advancements in HCVs, including vehicle tracking, cost-saving, driver safety, and timely alerts, allow end users to complete construction projects on time and ensure a long-life span for vehicles, driving the demand for heavy-duty trucks in Saudi Arabia. Furthermore, companies in the Saudi Arabia market are launching new heavy commercial vehicles to address the rising demand for HCVs across different industries, including construction, logistics, e-commerce, transportation, and others. Also, the Saudi government is planning to announce more investments in construction, driving the demand for heavy-duty trucks in the Saudi Arabia market.
For instance, in April 2024, according to the Vision 2030 plan, the KSA government is willing to fund more in the construction sector in the coming years, increasing the demand for heavy commercial vehicles across the Kingdom.
<h2 style="text-align: justify;">Government Initiatives and Policies Drive the Market Growth in Saudi Arabia</h2>
In Saudi Arabia, the KSA government is aiming to introduce HCV vehicles in different sectors. In the growth and stability of HCVs, government policies and initiatives are playing a key role in Saudi Arabia. Under Vision 2030, the country aims at infrastructure development and economic diversification, ensuring that the heavy-duty truck sector can efficiently address the growing requirements of logistics, construction, and mining industries. The KSA environmental objectives align with different policies that encourage emissions and fuel efficiency and the adoption of advanced technologies, including hybrid and electric trucks. In addition, the government of Saudi Arabia regulates safety standards in the transport system and bans outdated trucks from enhancing road safety, protecting the ecosystem, and fostering competitiveness in the transportation industry.
For instance, in April 2022, the Public Transport Authority in Saudi announced a ban on importing trucks for transporting goods with an operational life of over five years to accomplish the strategic objectives of preserving the environment, reducing emissions and pollution, raising the effectiveness and competitiveness of the transport fleet and reducing the rate of fuel consumption as well as maintenance and operating costs.
<h2 style="text-align: justify;">Trucks Hold the Largest Saudi Arabia Heavy Commercial Vehicle Market Share</h2>
Trucks hold the largest market share in the Saudi Arabia HCV market owing to varied factors, including Saudi Vision 2030, which aims to improve public transportation infrastructure. The demand for trucks in Saudi Arabia is also rising due to technological advancements, the integration of effective accessories, and expansion in the e-commerce industry. In addition, the usage of trucks is also rising in the logistics and transportation sectors to meet specific requirements. Companies in the market are efficiently introducing highly advanced trucks suitable for carrying heavy loads and providing better value for money and performance.
For instance, in May 2023, Iveco S.p.A. announced a collaboration with Arabian Auto Agency to launch the new on-road truck IVECO S-Way in Saudi Arabia, delivering a complete package of features focused on the driver experience.
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<h2 style="text-align: justify;">Flatbed Trucks are Expected to Register the Largest Market Share in Saudi Arabia</h2>
Flatbed trucks are estimated to hold the largest market share owing to significant technological advancements, increased investment in infrastructure development, and growing demand for cost-effective transportation. In Saudi Arabia, construction companies are using flatbed trucks to transport different machines, including excavators, bulldozers, and others, driving the Saudi Arabia flatbed trucks market growth in the forecast period. In addition, different industries, including military, aviation, aerospace, and other flatbed trucks, can be considerably used to haul different types of machinery to ensure safe and secure transport, fostering flatbed truck market growth in Saudi Arabia. Furthermore, companies are introducing new flatbed trucks to address the rising demand from different sectors and allow shippers to load large amounts of materials.
For instance, ABRAG AL MENA OFFICE FOR CUSTOMS CLEARANCE &amp; TRANSPORTATION offers flatbed trucks to handle any type of shipment and customers a variety of equipment options to address customer specifications.
Future Market Scenario (2024-2031F)
1.&nbsp;An increase in investment by government and private entities in infrastructure and construction development is projected to drive Saudi Arabia's heavy commercial vehicle market growth.
2.&nbsp;Integration of lightweight raw materials and components in heavy commercial vehicles is expected to propel Saudi Arabia heavy commercial vehicle market demand.
3.&nbsp;Technological advancement in heavy commercial vehicles to ensure safe and secure transportation, fostering the demand for heavy commercial vehicles in Saudi Arabia.
4.&nbsp;Rising awareness concerning the sustainable environment and growing requirements for heavy commercial vehicles in logistics and e-commerce sectors are anticipated to surge the demand for heavy commercial vehicles in Saudi Arabia.
Report Scope
&ldquo;Saudi Arabia Heavy Commercial Vehicle Market Assessment, Opportunities and Forecast, 2017-2031F&rdquo;,&nbsp;is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of Saudi Arabia heavy commercial vehicle market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
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Report Attribute
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Details
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Base Year of the Analysis
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2023
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Historical Period
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2017-2022
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Forecast Period
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2024-2031
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Projected Growth Rate
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CAGR of 12.12% between 2024 and 2031
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Revenue Forecast in 2031
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USD 28.12 billion
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Segments Covered
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Vehicle Type, Fuel Type, Application
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Regions Covered
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Riyadh, Makkah, Eastern Province, Rest of Saudi Arabia
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Key Companies Profile
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Mercedes-Benz Group AG, Iveco Group N.V., AB Volvo, Ashok Leyland Limited, Hyundai Motor Company, Traton SE, Tata Motors Limited, Ford Motor Company, Hino Motors Limited, Mitsubishi Fuso Truck and Bus Corporation
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Customization Scope
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15% free report customization with purchase
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Pricing and Purchase Options
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Avail the customized purchase options to fulfill your precise research needs
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Delivery Format
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PDF and Excel through email (subject to the license purchased)
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In the report,&nbsp;Saudi Arabia heavy commercial vehicle market&nbsp;has been segmented into the following categories:&nbsp;
<ul style="text-align: justify;">
<li>By Vehicle Type
<ul>
<li>Trucks</li>
</ul>
</li>
<li>Box Trucks</li>
<li>Tanker Trucks</li>
<li>Flatbed Trucks</li>
<li>Dump Trucks</li>
<li>Concrete Mixer Trucks</li>
<li>Fire Trucks</li>
<li>Others
<ul>
<li>Bus</li>
</ul>
</li>
<li>Bus</li>
<li>Coaches
<ul>
<li>Special Vehicle</li>
</ul>
</li>
<li>Cranes</li>
<li>Loaders and Dozers</li>
<li>Telehandlers</li>
<li>Excavators</li>
<li>Graders</li>
<li>Others</li>
<li>By Fuel Type
<ul>
<li>Electric</li>
<li>ICE</li>
</ul>
</li>
<li>By Application
<ul>
<li>Logistics</li>
<li>Construction</li>
<li>Mining</li>
<li>Agriculture</li>
<li>Others</li>
</ul>
</li>
<li>By Region
<ul>
<li>Riyadh</li>
<li>Makkah</li>
<li>Eastern Province</li>
<li>Rest of Saudi Arabia</li>
</ul>
</li>
</ul>
Key Players Landscape and Outlook
Companies in Saudi Arabia heavy commercial vehicle market are significantly investing in different research and development activities to advance the performance of heavy commercial vehicles and ensure a safe driving experience. Companies are also planning to integrate advanced technologies and lightweight components to contribute to net-zero carbon emissions. In addition, key participants are adopting different strategies, including joint ventures, mergers and acquisitions, partnerships, collaborations, and others to expand their product portfolio and footprint.
In September 2023, Daimler Commercial Vehicles MENA announced that Fleetboard, the top telematics service created by Mercedes-Benz Trucks, will soon be a standard feature on every Mercedes-Benz Actros truck.
In January 2023, Arabian Auto Agency announced the supply of 20 Iveco S-Way trucks to Globe Marine Services Co, a prominent company across the Kingdom. The Iveco S-Way represents the latest on-road truck developed by Iveco, designed to offer an all-inclusive solution emphasizing driver comfort, efficiency, and business productivity.
Key Players Operating in Saudi Arabia Heavy Commercial Vehicles Market are:
<ul style="text-align: justify;">
<li>Mercedes-Benz Group AG</li>
<li>Iveco Group N.V.</li>
<li>AB Volvo</li>
<li>Ashok Leyland Limited</li>
<li>Hyundai Motor Company</li>
<li>Traton SE</li>
<li>Tata Motors Limited</li>
<li>Ford Motor Company</li>
<li>Hino Motors Limited</li>
<li>Mitsubishi Fuso Truck and Bus Corporation</li>
</ul>
Markets and Data&rsquo;s reports answer the following questions:
<ul style="text-align: justify;">
<li>What is the current and future market size of the product/service in question globally or specific to different countries?</li>
<li>How are the markets divided into different product/service segments and the market size and growth of each segment?</li>
<li>What is the market potential of different product segments and their investment case?</li>
<li>How are the markets predicted to develop in the future and what factors will drive or inhibit growth?</li>
<li>What is the business environment and regulatory landscape specific to the product/service?</li>
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Saudi Arabia Heavy Commercial Vehicle Market Assessment, Opportunities and Forecast, 2017-2031F

Saudi Arabia heavy commercial vehicle market is expected to experience growth due to increasing investment in existing infrastructure, growing funding by the governments in construction development, rising demand from logistics and e-commerce sectors, and technological advancements in vehicles. 

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