Saudi Arabia Automotive Transmission Market Overview, 2029

Saudi Arabia Automotive Transmission Market Overview, 2029

Saudi Arabia's automotive gearbox industry is expected to increase significantly, driven by a mix of solid economic fundamentals and growing vehicle demand across the kingdom. This increase is mostly driven by the country's strong economic recovery following COVID-19, which has boosted consumer spending and industry activity. Saudi Arabia's strategic efforts, such as Vision 2030, aim to diversify the economy away from oil dependency, and have greatly increased investment in the automotive sector; including the development of local manufacturing capabilities for both traditional and electric cars (EVs).The market's expansion is encouraged by government regulations that promote foreign direct investment (FDI) and collaborations with major automakers. Saudi Arabia is becoming a popular location for automobile manufacturers aiming to extend their presence in the Middle East due to recent measures that have resulted in more manufacturing sites being established. Furthermore, Saudi customers' rising disposable incomes and growing taste for modern automotive technology are driving demand for a variety of gearboxes, including manual, automatic, and continuously variable transmissions (CVTs). The increased interest in EVs, driven by environmental concerns and government incentives, is increasing the need for advanced gearbox systems designed for electric drivetrains. Despite these encouraging developments, the industry confronts hurdles such as the need to establish a comprehensive EV charging infrastructure and handle global supply chain concerns, such as the semiconductor shortage that is affecting car manufacturing worldwide. Several variables can impact Saudi Arabia's transmission sector, which is critical for the effective distribution of power throughout the country. Investment in infrastructure, such as transmission lines, substations, and grid upgrading, is required to provide a dependable and efficient transmission network. Likewise, meeting the rising energy demand caused by population expansion, urbanization, industry, and economic development need a strong transmission system capable of managing increasing power transmission. However, given the kingdom's ambitious renewable energy ambitions, including large-scale renewable energy sources such as solar and wind into the grid demands modifications and extensions to the transmission infrastructure to account for the fluctuating nature of these energy sources. Building resilience to climate change impacts such as extreme weather events, sea-level rise, and temperature changes is critical to guaranteeing the transmission infrastructure's dependability and stability. Creating a qualified workforce and cultivating knowledge in transmission planning, operation, and maintenance is critical for the effective management and optimization of the transmission network.

According to the research report, ""Saudi Arabia Automotive Transmission Market Overview, 2029,"" published by Bonafide Research, the Saudi Arabia Automotive Transmission market is anticipated to add to more than USD 80 Million by 2024–29. The kind of gearbox used in cars in Saudi Arabia reflects local tastes and regulations as well as international automotive trends.
In Saudi Arabia, manual transmissions sometimes referred to as ""stick shift"" or ""standard transmission,” is a well-established choice for car buyers. They provide drivers complete control over changing gears, which is useful in some driving situations. Because manual gearboxes offer precise control, especially in rough terrain, amateurs and experts frequently choose them for off-road driving and desert exploration in Saudi Arabia. In addition, some drivers like manual gearboxes over automatic ones because they believe they are more reliable and require less maintenance. In Saudi Arabia, automatic transmissions are becoming more and more prevalent, especially in metropolitan regions where traffic congestion is severe. Many drivers who want a hassle-free driving experience find automatic shifting to be convenient, particularly in stop-and-go traffic. Automatic gearboxes are become more and more common in a nation where infrastructure development and urbanization are growing quickly. This is because they provide easy and seamless operation, which makes them ideal for driving in cities. A compromise between manual and automated transmissions is provided by Automated Manual Transmission (AMT) systems. AMTs are becoming more popular in Saudi Arabia, even if they are still less common than manual or automatic alternatives. This is especially true for entry-level or inexpensive car categories. Automatic shifting is convenient with AMTs, and it doesn't cost extra as with standard automatic gearboxes. Because of their price, AMTs are a desirable choice for budget-conscious customers looking to add some automation to their driving experience without going over budget. Continuously Variable Transmissions (CVTs) are slowly making their way into various car models, despite not being as popular in Saudi Arabia as they are in some other countries. With an endless range of gear ratios, CVTs provide seamless acceleration and increased fuel economy. Drivers looking for the best fuel efficiency may find this interesting, especially in light of the growing emphasis on environmental sustainability. A few high-performance cars that are sold in Saudi Arabia have Dual-Clutch Transmissions (DCTs). DCTs improve driving dynamics and performance by providing quick and accurate gear changes. DCT-equipped vehicles are more popular among enthusiasts and drivers who value technical improvements and sporty driving qualities, even though they are less common than vehicles with manual or automatic gearboxes.

In Saudi Arabia, passenger vehicles continue to be the most popular vehicle category, reflecting the tastes of both individual drivers and families. There are many different kinds of sedans, hatchbacks, and coupes in this category to suit a range of preferences and price points. A person's desire to possess a car, lifestyle choices, and personal mobility requirements all influence the demand for passenger cars. As a result of urbanization and increased earnings, passenger automobiles are now regarded as status symbols and ways to show one's individuality in addition to being a mode of transportation. Two-wheelers such as motorcycles and scooters are available in the Saudi Arabian market, however not as much as passenger automobiles. Commuters who want affordability and agility, especially in crowded cities where mobility is essential, like them. For weekend vacations and leisure activities, some enthusiasts and recreational riders choose two-wheelers. Nonetheless, the market share of two-wheelers in Saudi Arabia is still rather small when compared to passenger automobiles. In Saudi Arabia, the demand for light commercial vehicles—such as vans and pickup trucks—is rising due to the country's economic activity in the construction, logistics, and small business sectors. The cargo capacity, robustness, and versatility of LCVs make them valuable for a wide range of commercial applications. The demand for LCVs is anticipated to rise further due to continuing infrastructure projects, the growth of e-commerce, and delivery services, particularly in metropolitan areas and industrial hubs. Buses and trucks are examples of heavy commercial vehicles that are essential for moving people and products throughout Saudi Arabia's enormous territory. These vehicles promote infrastructure development and economic activity by being vital to the construction, logistics, and public transit sectors. The demand for HCVs is expected to stay constant as the kingdom makes investments in megaprojects and transport infrastructure, while it will be impacted by changes in the laws and the state of the economy.


Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Automotive Transmission market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Transmission Type
• Manual
• Automatic
• Automated Manual Transmission (AMT)
• Others (CVT, DCT)

By Vehicle Type
• Passenger Vehicles (passenger cars, Two wheelers, Suv,..)
• LCVs
• HCVs

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Automotive Transmission industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

Keywords:
Automotive Transmission, Manual, Automatic, Automated Manual Transmission (AMT), Others (CVT, DCT), Passenger Vehicles (passenger cars, Two wheelers, Suv,..), LCVs, HCVs.