Saudi Arabia Automotive Sensors Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Saudi Arabia Automotive Sensors Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Saudi Arabia Automotive Senors market was valued at USD 387.2 Million in 2021. It is expected to reach USD 532.8 Million by 2027, registering a CAGR of around 6.59% during the forecast period (2022-2027).

The COVID-19 outbreak and propagation had a detrimental impact on the automotive sensors industry in 2020, resulting in lower demand for car sensors. As a result, the revenues earned by them decreased. As a result, the market's growth trajectory has slowed during the first half of 2020. This pattern maintained until the first quarter of 2021. The rise in manufacturing volume of passenger cars and hybrid electric vehicles is observed in the country after the pandemic due to the easing of restrictions in the country, the market will cope with all the losses that happen during the period and will grow at a certain pace.

Over the long-term, the Saudi Arabia automotive sensors market is expected to expand rapidly owing to the key factors such as rising demand for vehicle safety and a shift in customer preference toward alternative fuel cars. Furthermore, continued sensor technology advancements and the rising usage of autonomous cars are likely to generate enormous potential prospects for the Saudi Arabia automotive sensors market over the next five years.

The Saudi Guidelines, Metrology, and Quality Organization (SASO) has published standards requiring automotive manufacturers to rigorously adhere to safety norms for new vehicles. The new standards should follow the criteria outlined in technical regulation sector 42 under the specific requirements for automotive manufacturing. Under the proposed method, automobile industry participants must also work on developing electronic components, safety sensors, smart braking systems, and other safety features. The increased emphasis of major authorities on increasing car safety is predicted to fuel the growth of the Saudi Arabia automotive sensors market by 2027.

Several automotive sensors, including engine speed, temperature, vehicle speed, throttle position, and others, are used in electric cars. With the expansion of the electric car sector, the Saudi Arabia automotive sensors market is likely to rise significantly over the forecast period.

Key Market TrendsInfotainment and ADAS systems Are Expected to Drive the Market

From reconfigurable instrument clusters to center, the number of displays in a vehicle is expanding. Simultaneously, display quality is improving as a result of larger displays with higher resolutions and higher brightness levels. E-mirrors for back and side views, as well as wireless charging modules and extra media hubs, are becoming more widespread. Car buyers want aesthetically pleasing surface designs, which necessitates the use of extra integrated circuits (ICs) such as inductance-to-digital converter (LDC) sensors, which enable a force touch function on non-screen surfaces and can measure the amount of force exerted.

• For instance, In December 2021, Texas Instruments (TI) launched LDC sensors LDC3114-Q1, which allows a smooth user interface (UI) experience with touch-on-metal, plastic, or glass surfaces for UI surrounding the central console.

Advanced driver assistance systems include advanced safety features. Initially known for cruise control, ADAS has evolved into much more, putting sensors on cars to a whole new level to enable features such as in-cabin monitoring, blind-spot recognition, lane departure warning, parking assistance, and even the most advanced autonomous driving technology.

• For instance, In July 2022, The Saudi Arabian government intends to invest USD 80 billion in Neom City in order to boost demand for autonomous vehicles for daily commuting in Neom City. Neom City is planned to support the most sophisticated infrastructure, and the government is expected to assist vehicle-to-vehicle and vehicle-to-city communications as part of its ongoing efforts to expand the advanced telecommunications industry. Automotive sensor market participants should spend in R&D to enhance sensor technology and make it appropriate for autonomous cars.

Saudi Arabia's Transition to Electric Mobility Pushing the Market

Saudi Arabia is a growing economy, owing to high individual income levels and the country's robust banking and financial sector. As a result, sales of luxury items such as automobiles, and other luxury goods have increased. The country is also undergoing tremendous population expansion, and younger buyers are now the most powerful drivers of the luxury market.

Additionally, the Saudi government has announced a plan to build four economic towns to boost internal commerce, attract foreign direct investment (FDI), and diversify into non-oil industries, which is bolstering the country's market growth for luxury goods.

Saudi Arabia claims to have at least 30% cars plying on the road of Riyadh to be electric by 2030. The goal to boost EVs in Riyadh comes as more countries attempt to reduce or phase-out internal combustion engines run on gasoline and petrol. Strengthening the claim are the initiatives as The Saudi Arabian government is signing deals with several global players to provide the country with the latest electric vehicles.

The National Industrial Development Center (NIDC) aspires to recruit 3-4 Original Equipment Manufacturers across the ICE and EV value chain, with the objective of producing 300,000 cars yearly with a 40 percent local content by 2030, in compliance with the Kingdom's Vision 2030 targets. Through loans, tax breaks, and tariff exemptions, the NIDC promotes industrialization. Vehicle body panels, wheel components, and other vehicle components are in high demand, providing potential for U.S. firms seeking joint venture agreements in the Kingdom.

International companies are entering Saudi Arabia which will increase the demand need for advances and innovative technologies for electronic sensors in the auto sector and positively impact the market growth during the forecast period.

• In May 2022, Lucid Group, a manufacturer of electric vehicles based in the United States, announced the establishment of its first overseas facility in Saudi Arabia. The factory will initially service the local market and will be capable of producing 155,000 cars per year.
• In May 2022, Saudi Arabia’s Ministry of Industry and Mineral Resources has announced that the kingdom is targeting to manufacture more than 300,000 cars annually by the year 2030.

In the light of all these situations, the market growth for automotive sensors is expected to grow with significant growth during the forecast period.

Competitive Landscape

The Automotive Sensors market is moderately consolidated due to the presence of prominent players in the region. However, some of the major players such as Robert Bosch GmbH, Denso Corporation, Infineon Technologies AG, Texas Instruments Incorporated, and Continental AG, have captured significant shares in the market.

• For instance, In December 2021, Texas Instruments (TI) launched TMAG5170-Q1 a 3D Hall-effect sensor to detect the position in e-shifters (gear shifters), which are frequently integrated with touch and UI elements surrounding center consoles.

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