Saudi AV Market to Surpass $6B by 2033, Driven by Urban Congestion Solutions
Saudi Arabia’s autonomous vehicle market reached US$1.01 billion in 2024 and is projected to grow to US$6.07 billion by 2033. This represents a compound annual growth rate (CAGR) of 22.03% from 2025 to 2033. The surge is fueled by government-led efforts to reduce traffic congestion, optimize route efficiency, and embed smart mobility into national infrastructure. These priorities are not only reshaping urban transport, but also redefining the future of Saudi Logistics Tech.
Saudi’s Role in GCC’s $18.7B AV Market Centers on Urban Mobility
According to a recent report by a member of the PwC network, Saudi Arabia is emerging as a key player in the Gulf’s autonomous vehicle (AV) transformation, with robo-taxis alone projected to generate up to US$10 billion in value by 2035. This figure is part of a broader US$18.7 billion opportunity forecasted for the entire GCC region,
While the $18.7B projection spans all six GCC countries, Saudi Arabia’s giga-projects and smart city initiatives, such as NEOM and ROSHN, position it as a likely frontrunner. These developments are embedding AV technologies into urban planning from inception, creating regulatory sandboxes that allow for flexible piloting and real-world testing.
This strategic groundwork is laying the foundation for a new era in Saudi Logistics Tech, where autonomous mobility becomes a core driver of economic and operational transformation.
Riyadh’s Delivery Robots Cut Food Transit Times by 50%
Saudi Arabia’s AV momentum is already visible in logistics. In August 2025, Jahez and ROSHN Group launched the Kingdom’s first commercial autonomous food delivery service in Riyadh’s ROSHN Front Business Area. The rollout includes five self-driving robots, operating daily between 9am and 5pm.
These robots are equipped with GPS, six cameras, over 20 sensors, and internal cooling systems tailored to Saudi Arabia’s climate. They navigate independently, interact with pedestrians via on-screen prompts, and handle uneven terrain using built-in suspension systems.
Since launch, delivery times have been reduced by up to 50%, with over 50 deliveries completed in the commercial zone and 79 deliveries during earlier trials in the Sidra residential community. Each robot is estimated to reduce 1.2 tonnes of CO₂ emissions annually, contributing to ROSHN’s green mobility goals.
This pilot, licensed by the Transport General Authority, is a tangible example of how Saudi Logistics Tech is optimizing last-mile delivery through automation.
Infrastructure, Regulation, and Trust Are Key to Scaling Saudi AVs
The PwC report identifies three tipping points for AV adoption: pilot readiness, commercial readiness, and scalability. Saudi Arabia has the financial capacity, streamlined licensing, and mega-scale projects to meet these thresholds—but success will depend on more than ambition.
To fully realize its AV potential, Saudi Logistics Tech must prioritize infrastructure upgrades, regulatory clarity, and public trust. Without coordinated action, early investments risk becoming obsolete. The report emphasizes the need for public-private collaboration, financial incentives, and visible safety records to build confidence and drive adoption.
Autonomous Delivery Is Becoming a Strategic Pillar of Saudi Logistics Tech
Jahez’s autonomous rollout reflects a broader strategic shift. As the first company to receive a regulatory sandbox licence for autonomous delivery, Jahez is positioning automation as a logistics cornerstone.
Mohammed Al-Barrak, CTO at Jahez, stated that automation remains a key pillar of the company’s logistics strategy. Jayesh Maganlal, Chief Information and Digital Officer at ROSHN Group, added that the launch aligns with ROSHN’s broader goals of expansion, innovation, and sustainability.
These moves signal that Saudi Logistics Tech is operational, scalable, and strategically embedded in the Kingdom’s mobility vision.
Saudi AV Market to Surpass $6B, Logistics Tech Takes the Lead
Saudi Arabia’s autonomous vehicle market is on track to exceed US$6 billion by 2033, signaling a pivotal shift in how the Kingdom moves people and goods. As smart mobility scales and delivery automation proves its value, Saudi Logistics Tech is establishing itself as a strategic engine of national growth.
Also Read: Saudi Arabia’s $100B Smart Logistics Push Is Rewiring the Global Supply Chain
