Saudi Arabia Electric Car Market to Surge at a CAGR of Around 25.85% During 2025-30

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Saudi Arabia Electric Car Market Overview, Trends, Size and Forecast: 2025-2030

The Saudi Arabia Electric Car Market size was valued at around USD560 million in 2024 and is projected to reach USD2,224.88 million by 2030. Along with this, the market is estimated to grow at a CAGR of around 25.85% during the forecast period, i.e., 2025-30, cites MarkNtel Advisors in the recent research report. The rise in the market is due to an increase in the need for low-carbon emission automotive, higher adoption rate of urban mobility solutions, developing charging infrastructure, financial support from the government, advancements in batteries, smart connectivity via AI, ML, IIoT, etc., reduced taxation, increasing demand for ADAS-powered vehicles, and others.

Saudi Arabia is an oil-dependent nation; however, the faster rate of depletion of fossil fuels and the increasing carbon emissions and their negative impact on the health of the citizens have pushed the government to initiate the Vision 2030 plan. Thus, to minimize the carbon footprint from one of the major carbon emitting sector, i.e., automotive, the government encourages the electric vehicle including electric cars, through several green initiatives such as National Transport and Logistics Strategy, NEOM Mobility initiatives, etc., and reduced taxation and custom duty, promoting to an increase in the adoption of electric cars in the nation. 

Additionally, the advancements of AI in the automotive sector have resulted in the formation of the Autonomous Driving Assistance System (ADAS). It provides a safe driving experience to the drivers as it alerts them about the threat and automates the vehicle while following the traffic regulations. Hence, resulting in the lowering of road accidents. Hence, the technological advancements and premium driving experience further boost the market growth in Saudi Arabia, further states the research report, “Saudi Arabia Electric Car Market Analysis, 2025.”

Saudi Arabia Electric Car Market Segmentation Insights:

Lithium-Ion Battery Electric Cars Generating Maximum Market Revenue

Based on battery type, the market is further segmented into Lithium-Ion Battery, Lead Acid Battery, Nickel-Metal Hydride Battery, and others. Electric cars with lithium-ion batteries hold the majority of the market share, around 53%. It is due to their high capacitance, fast charging, operational efficiency, lower carbon emissions, high longevity, etc.

The lithium-ion battery provides a longer travel time with fast charging and a high capacitance value to the batteries; as a result, it is extensively used in electric cars in Saudi Arabia. As a result, to avoid frequent charging, the key market players such as Ceer Motors, Lucid Group Inc., Hyundai Motor Company & Kia, and others, are integrating high-energy density, light-weight, fast charging, longer operational lifespan lithium-ion batteries into their electric automotive, thus increasing the demand and market share of them in the Saudi Arabia electric car industry.

Public Sector is the Primary End-User of Saudi Arabia Electric Car Industry

The public sector dominates the Electric Car market in Saudi Arabia, with a market share of around 48%. It is due to the focus of the authorities towards eco-friendly goods, low operational cost, Vision 2030, increasing need for public fleet, rising prices of fuel, etc.

The government mandates and Vision 2030 strategy are accelerating the demand for electric cars in the public sector, with the aim of achieving 30% electrification by 2030 in major cities like Riyadh. To meet such goals, the government is investing heavily in the development of the electric ecosystem in the country and increasing the public fleet solutions, due to the rising white collar population and tourism & pilgrimage. Thus, the increasing encouragement of electric vehicles, the development of the charging infrastructure, and the deployment of electric cars by the government of Saudi Arabia, facilitate the largest market share of electric vehicles in the public sector of the country.

Top Companies in the Saudi Arabia Electric Car Market

With strategic initiatives, such as mergers, collaborations, and acquisitions, the top Electric Car Market companies in Saudi Arabia, including Ceer Motors, Lucid Group Inc., Tesla Inc., Nissan Motor Corporation, BMW AG, Hyundai Motor Company & Kia, BYD Auto, MG Motor (SAIC), Volkswagen Group, Geely Automobile Holdings (including Geometry, Zeekr, etc.), and others, are looking forward to increase their market size & share.

Key Questions Answered in the Research Report

1. What is the scope, size, value, and forecast of the Saudi Arabia Electric Car Market?
2. What is the volume and share of each segment in the Saudi Arabia Electric Car Market?
3. What are the key trends shaping the Saudi Arabia Electric Car Market from 2025 to 2030?
4. What growth factors and risks impact the Saudi Arabia Electric Car Market?
5. What are the main challenges faced by players in the Saudi Arabia Electric Car Market?
6. What are the top opportunities in the Saudi Arabia Electric Car Market?
7. What does competitive analysis reveal about the Saudi Arabia Electric Car Market landscape?
8. Who are the key players and companies leading the Saudi Arabia Electric Car Market?
9. What innovations are transforming the future dynamics of the Saudi Arabia Electric Car Market?
10. How are partnerships and collaborations driving the Saudi Arabia Electric Car Market growth?
11. How does the Saudi Arabia Electric Car Market differ based on geography and segments?