Saudi Arabia Shared Mobility Market: Key Stats and Trends Driving Growth {2030}

The shared mobility market in Saudi Arabia is anticipated to grow significantly in the coming years, driven by factors such as rising disposable incomes, increased travel demand, and a push toward clean energy.

The presence of numerous holy sites, such as Mecca and Medina, draws millions of visitors annually, particularly during religious festivals like Eid Al-Fitr and Eid Al-Adha, which further enhances the need for shared transportation options.

This report explores key drivers, challenges, trends, and projections in the Saudi Arabian shared mobility market, based on the TechSci Research report, "Saudi Arabia Shared Mobility Market - Industry Size, Share, Trends, Competition, Opportunity, and Forecast, 2018-2030F."

Saudi Arabia Shared Mobility Market Overview

Saudi Arabia's shared mobility market has witnessed steady growth over recent years, though the COVID-19 pandemic in 2020 imposed challenges due to travel restrictions and the suspension of religious pilgrimages. Despite this, the market rebounded, fueled by rising disposable incomes and consumer preference for convenient transportation alternatives.

The adoption of online booking platforms has reduced costs for users, making shared mobility a preferred choice over public transport options.

Browse more thanXX market data Figures spread through XX Pages and an in-depth TOC on "Saudi Arabia Shared Mobility Market" @ https://www.techsciresearch.com/report/saudi-arabia-shared-mobility-market/14596.html

Key Drivers of Saudi Arabia Shared Mobility Market Growth

• Increased Disposable Income

Saudi Arabia's rising disposable income levels are a critical factor influencing the growth of the shared mobility market. Consumers with higher spending power are increasingly inclined to invest in practical, convenient transportation solutions, particularly for recreational activities and family outings.

• Tourism Growth and Religious Pilgrimages

The presence of holy cities and the influx of millions of pilgrims each year have made the tourism sector a significant contributor to shared mobility growth in Saudi Arabia. The demand for passenger vehicles increases considerably during pilgrimage seasons, providing a stable demand for shared mobility services and driving sector expansion.

• Preference for Cost-Effective Transportation Solutions

The high cost of vehicle ownership in Saudi Arabia encourages businesses and individuals to prefer shared transportation solutions. Companies require passenger cars and two-wheelers for long-term use, and renting offers cost-effective benefits over purchasing new vehicles. The set, low-cost per-ride structure of shared mobility further enhances its appeal as an affordable option for various user segments.

Key Segments and Saudi Arabia Shared Mobility Market Share Analysis

• Passenger Car Segment Dominance

The Saudi Arabian shared mobility market is primarily dominated by passenger cars, accounting for the largest market share due to high sales figures. In 2021, the sales of passenger cars were approximately 475,837 units, underscoring the demand for private transport solutions among both individual and corporate users.

• Commercial Vehicles

With a sales figure of around 80,722 in 2021, commercial vehicles hold a noteworthy share in the market. These vehicles cater mainly to logistics and corporate clients, further boosting the sector's growth. Medium shared mobility services, particularly passenger cars and two-wheelers, are rapidly being incorporated into fleets for logistical and corporate applications.

• Corporate Sector Demand

Corporate clients represent over 50% of the shared mobility user base in Saudi Arabia, with a preference for passenger cars for city commuting. The high demand from the corporate segment highlights the importance of shared mobility as an efficient transport solution for business travelers and executives.

• Online Booking Platforms

The online segment dominates with more than 80% market share compared to offline channels, highlighting the trend towards digital transformation in the shared mobility sector. The popularity of online booking platforms reduces transaction times and enhances accessibility, making shared mobility an attractive option for tech-savvy consumers.

Technological Advancements of Saudi Arabia Shared Mobility Market 

Rise of Clean Energy Mobility

Clean energy mobility is becoming a focal trend in Saudi Arabia, with the integration of electric vehicles (EVs) into shared mobility fleets gaining traction. EVs are favored for their long-term operational cost savings and alignment with Saudi Arabia’s sustainable development goals. This shift is expected to continue over the medium to long term, bolstering the market's sustainability credentials.

Increased Investment in Fleet Expansion

Shared mobility companies in Saudi Arabia are expanding their vehicle fleets and adding premium options to enhance user experience. This expansion is attracting significant investment, as investors recognize the growth potential and business opportunities within the sector. These investments are expected to further drive market growth and increase competition.

Digital Transformation and User Experience Enhancement

The shared mobility market in Saudi Arabia is witnessing a strong digital transformation, as companies invest in technology to streamline booking, tracking, and payment processes. By improving user experience, shared mobility companies aim to retain customers and increase market penetration.

Major Players in the Saudi Arabia Shared Mobility Market

1. Careem Inc.
   A leading ride-hailing platform in the Middle East, Careem offers various shared mobility services, from car rides to bike rentals. As an established player, Careem continually expands its fleet, aiming to cater to both corporate and individual users across Saudi cities.

2. Swvl Holdings Corp
   Swvl is a tech-enabled mass transit solution provider offering affordable shared transport options. Known for its innovative approach, Swvl primarily targets corporate clients, providing efficient shuttle services within Saudi Arabia’s urban centers.

3. ekar
   Ekar is the first car-sharing service in the region, allowing users to book vehicles by the minute, hour, or day. The company emphasizes user convenience and affordability, making it a popular choice in Saudi Arabia’s shared mobility landscape.

4. KOI Ride
   KOI Ride specializes in ride-sharing services with a focus on eco-friendly options. The company is also exploring partnerships to integrate electric vehicles into its fleet, aligning with Saudi Arabia’s clean energy goals.

5. Udriver
   Known for its flexible booking options, Udriver caters to both individual commuters and corporate clients. It offers a diverse fleet of passenger vehicles, addressing varying user needs in the country’s major urban centers.

6. FENIX
   FENIX is an electric scooter and micromobility provider, catering primarily to short-distance urban travelers. FENIX has carved a niche by focusing on last-mile connectivity, which is increasingly in demand in Saudi cities.

7. Saudi Transport & Investment Co. (Mubarrad)
   Mubarrad is a significant player in the logistics and transport sector. The company’s shared mobility solutions cater mainly to corporate and logistics clients, adding value to the shared mobility ecosystem with a focus on commercial vehicle services.

8. Telgani
   Telgani is a local Saudi company specializing in car rentals and ride-sharing services. Known for its strong market presence, Telgani offers flexible booking options through its user-friendly app, which has become popular among corporate clients and tourists alike.

9. Uber Technologies, Inc.
   A global leader in ride-hailing, Uber operates extensively in Saudi Arabia, providing reliable shared transportation solutions. Uber’s established brand presence and extensive fleet make it a go-to option for both local commuters and tourists.

10. KDDAD Taxi Service
    KDDAD Taxi Service offers ride-hailing options throughout Saudi Arabia, focusing on affordability and accessibility. With a user-friendly app and a broad range of vehicle options, KDDAD is a popular choice for shared mobility within the Kingdom.

These companies continue to expand their operations in Saudi Arabia’s shared mobility market, investing in fleet growth, technology, and premium offerings to provide customers with a variety of mobility options. The competitive landscape is expected to drive further innovation and improvement in services, ultimately benefiting consumers and supporting the sector’s expansion.

Challenges in the Saudi Arabia Shared Mobility Market

COVID-19 Pandemic Impact

The COVID-19 pandemic significantly impacted the Saudi shared mobility market in 2020, as travel restrictions and lockdowns were imposed to curb the virus's spread. This led to a reduction in both corporate and tourist users, creating a temporary setback for the sector. However, with the resumption of tourism and business activities, the market has been on a recovery path.

Download Free Sample Report @ https://www.techsciresearch.com/sample-report.aspx?cid=14596

Customers can also request 10% free customization on this report.

Infrastructure Limitations

Despite substantial investments in urban infrastructure, Saudi Arabia's shared mobility market faces challenges related to road congestion and a lack of dedicated lanes for shared and electric vehicles. Addressing these infrastructure limitations will be crucial to support the sector's continued growth.

Consumer Awareness and Cultural Preferences

Although shared mobility is gaining popularity, traditional ownership preferences remain strong among Saudi consumers. Raising awareness about the environmental and cost-saving benefits of shared mobility services could accelerate adoption rates.

Market Projections and Future Outlook

• Projected Growth Rate

The Saudi Arabian shared mobility market is anticipated to grow at a substantial rate in the coming years, driven by increased demand for cost-effective transport options and technological advancements. The influx of tourists, rising disposable incomes, and a favorable regulatory environment will further bolster market expansion.

• Government Initiatives and Policy Support

The Saudi government’s Vision 2030 initiative emphasizes diversification of the economy and modernization of the transportation sector. Policies promoting sustainable energy usage and infrastructure development are expected to support the growth of the shared mobility market by encouraging the adoption of electric vehicles and shared transportation solutions.

• Emerging Opportunities in Tourism and Corporate Sectors

The tourism sector, especially religious tourism, will continue to be a significant driver of shared mobility demand in Saudi Arabia. Additionally, the corporate sector’s preference for shared mobility solutions is likely to grow, given the cost-saving benefits and increasing reliance on flexible transport options for business travelers.

Conclusion

The shared mobility market in Saudi Arabia presents considerable growth opportunities as it aligns with consumer trends, government policies, and technological advancements.

The sector’s robust growth trajectory is fueled by increased disposable incomes, rising tourism, and a shift towards clean energy solutions.

Challenges such as infrastructure limitations and consumer preferences for vehicle ownership remain, but market players are addressing these issues through investment in fleet expansion and digital innovation.

With favorable government support and an increasing focus on sustainability, the Saudi shared mobility market is poised for a promising future.

You may also read:

Autonomous Vehicle Market Overview {2030}: Comprehensive Key Findings

Asia-pacific Electric Two-Wheeler Market Size {2030}: Growth Projections and Insights

Asia-Pacific Shared Mobility Market Dynamics: Overview for {2030}