The Kingdom’s Land Transport Market has witnessed remarkable growth in recent years due to higher demand for passenger and freight transport services alongside increased economic and tourism activities. The market expanded at a Compound Annual Growth Rate (CAGR) of 8.3%, reaching a valuation of SAR 59.5 billion (USD 15.8 billion) in 2025 (representing about 31.6% of the total transport and logistics sector, which also encompasses maritime and air transport as well as logistics services).

The increasing demand for the Kingdom's land transport services and activities stems from population growth, higher household spending, and a rebound in inbound and domestic tourism, along with growing foreign trade and increased government investment in road infrastructure, aligned with rising volumes of cargo and freight shipment linking cities, industrial zones, ports, and distribution and storage hubs.

Estimates show that the market will continue to grow, reaching SAR 93.7 billion (USD 25 billion) by 2030, with a projected CAGR of about 9.5%. This growth aligns with Vision 2030 objective to expand the transport and logistics ecosystem, particularly the infrastructure and services related to passenger and freight transport, unlocking a wealth of promising opportunities within the Saudi market.

The market’s key opportunities lie in expanding the localization of the transport industry and increasing local content through various initiatives. Notable among these are the National Industrial Development and Logistics Program (NIDLP) and the National Transport and Logistics Strategy (NTLS), both of which serve as core pillars for supporting local value chains. Shifting business environments and evolving individual culture across broad segments of society represent avenues to develop innovative transport services and solutions.

Added to this is the anticipated boom in demand driven by demographic growth alongside expansion in domestic and international industrial and trade sectors. This is further supported by the projected hike in tourists and visitors, as well as the hosting of major international events, such as Expo 2030 and the FIFA World Cup 2034. These events are set to yield widespread economic and commercial momentum, spurring upgrades to road infrastructure and logistics services across state giga projects such as NEOM, the Red Sea, Qiddiya, and Diriyah, in addition to future development projects within the Kingdom.

Furthermore, market development plans are generating many opportunities for other business sectors, such as manufacturing, transport equipment, building and construction, and transport and shipping technology. Paving roads and establishing or upgrading land ports and logistics centers will require a wide range of industrial, construction, and technological products and services. Finally, the widening transition toward digital transformation, the adoption of Artificial Intelligence (AI) technologies, and the expansion of e-commerce are driving market efficiency and unlocking new horizons for growth.

While the market abounds with opportunities, headwinds persist, driven by economic volatility, geopolitical tensions, dependence on imported inputs and technologies, competitive pressures, demand management, and directing consumer behavior toward better transport solutions. To counter these headwinds, the government introduced incentive packages, including long-term industrial funding, customs exemptions, export support, and streamlined regulations, in a bid to build a more attractive and enabling investment environment.

This Report aims to assess market realities, project its outlook, and provide an analytical perspective that supports decision-makers and investors in defining their strategic directions within this vital sector.