Saudi Arabia E-Axle Market

Saudi Arabia E-Axle Market Overview:

The Saudi Arabia e-axle market size reached USD 45.00 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 205.64 Million by 2033, exhibiting a growth rate (CAGR) of 16.41% during 2025-2033. The market is being driven by government initiatives targeting 30% electric vehicle adoption by 2030, rising environmental awareness, and advancements in EV technology.

Saudi Arabia E-Axle Market Trends:

Rapid Expansion of Charging Infrastructure Driven by Ambitious EV Adoption Targets

Saudi Arabia's ambitious push to electrify transportation is driving a rapid expansion of charging infrastructure and policies that directly boost demand for integrated e-axles. Under Vision 2030 and the Green Initiative, the Kingdom aims for 30% of new car sales to be electric by 2030, up from just 1% in 2024. To support this, the number of public charging stations surged from 150 in 2022 to over 1,000 by early 2024, primarily concentrated in Riyadh, Jeddah, and Dammam. However, gaps in infrastructure persist, particularly along the east-west corridor, where only 101 stations were available in 2024 compared to 261 in the UAE, prompting further investment. Regulatory incentives, such as reduced import duties on EV components and rebates for charging station operators, have reduced deployment lead times. As range anxiety diminishes and total cost of ownership improves, automakers are increasingly equipping new models with high-power, lightweight e-axles capable of fast charging at up to 350 kW, accelerating market adoption.

Localization of EV Powertrain Manufacturing through Strategic PIF Partnerships

A key driver of Saudi Arabia's e-axle market growth is the rapid on-shoring of EV production and e-axle assembly, propelled by the Public Investment Fund’s (PIF’s) strategic partnerships with global OEMs and emerging domestic brands. In September 2023, Lucid Group inaugurated Saudi Arabia’s first car manufacturing facility in KAEC, with a production capacity of 155,000 vehicles annually, integrating advanced e-axle units locally. That same quarter, PIF and Hyundai launched a joint venture, investing over USD 500 million to build a highly automated plant, 70% PIF-owned, that will produce both electric and ICE powertrains, signaling a shift towards mixed-line production. More recently, Saudi EV maker Ceer signed 11 deals worth SAR 5.5 billion (USD 1.4 billion) in early 2025, with 80% of the agreements involving local suppliers for Saudi-sourced e-axle components. These efforts align with PIF's goal to scale EV production from 150,000 units in 2026 to 500,000 by 2030, bolstering a domestic supply chain that is expected to reduce unit costs by up to 20% by 2027 and meet the growing demand for e-axles.

Saudi Arabia E-Axle Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region/country level for 2025-2033. Our report has categorized the market based on component type, vehicle type, and drive type.

Component Type Insights:

• Combining Motors
• Power Electronics
• Transmission
• Others

The report has provided a detailed breakup and analysis of the market based on the component type. This includes combining motors, power electronics, transmission, and others.

Vehicle Type Insights:

• ICE Vehicles
  • Passenger Vehicle
  • Commercial Vehicle
• Electric Vehicle

A detailed breakup and analysis of the market based on the vehicle type have also been provided in the report. This includes ICE vehicles (passenger vehicle and commercial vehicle) and electric vehicle.

Drive Type Insights:

• Forward Wheel Drive
• Rear Wheel Drive
• All Wheel Drive

The report has provided a detailed breakup and analysis of the market based on the drive type. This includes forward wheel drive, rear wheel drive, and all wheel drive.

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern and Central Region, Western Region, Eastern Region, and Southern Region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Saudi Arabia E-Axle Market News:

• April 2025: Tesla launched operations in Saudi Arabia, showcasing the Cybertruck and a redesigned Model Y as part of the kingdom's push for 30% EV adoption within five years. The Cybertruck's e-axle system integrates motors, inverters, and gearsets into a liquid-cooled subassembly, enhancing durability and performance in desert conditions.
• September 2024: Foton Motor unveiled its premium electric van brand, eVIEW GRAND, at the Riyadh Electric Vehicle Expo. This marks Foton's official entry into the Saudi Arabian market, indicating potential integration of e-axle technology in their EV lineup.

Saudi Arabia E-Axle Market Report Coverage:

Key Questions Answered in This Report:

• How has the Saudi Arabia e-axle market performed so far and how will it perform in the coming years?
• What is the breakup of the Saudi Arabia e-axle market on the basis of component type?
• What is the breakup of the Saudi Arabia e-axle market on the basis of vehicle type?
• What is the breakup of the Saudi Arabia e-axle market on the basis of drive type?
• What is the breakup of the Saudi Arabia e-axle market on the basis of region?
• What are the various stages in the value chain of the Saudi Arabia e-axle market? 
• What are the key driving factors and challenges in the Saudi Arabia e-axle market?
• What is the structure of the Saudi Arabia e-axle market and who are the key players?
• What is the degree of competition in the Saudi Arabia e-axle market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia e-axle market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia e-axle market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia e-axle industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.