Global Self-Driving Car Market to Reach $182B by 2035, GCC Leads with $19B
▼ Summary
– The global market for fully autonomous vehicles could reach $182 billion by 2035, with the GCC region contributing nearly $19 billion.
– Robo-taxis are projected to be the largest segment in the GCC, potentially establishing a $10 billion market by 2035.
– Giga-projects like NEOM and UAE smart cities are incorporating driverless technology, serving as testing grounds for autonomous systems.
– Three critical tipping points for autonomous mobility are readiness for pilot projects, commercial readiness, and readiness to scale.
– Successful deployment requires government support, infrastructure upgrades, regulatory frameworks, and building public trust through reliable pilots and safety records.
The global market for fully autonomous vehicles is projected to reach a staggering $182 billion by 2035, with the Gulf Cooperation Council (GCC) region capturing a substantial $19 billion share. A recent analysis from Strategy& Middle East, part of the PwC network, reveals that this transformative technology is set to redefine urban transportation. Robo-taxis, robo-shuttles, and passenger drones will introduce fully automated, integrated, and on-demand mobility networks, making autonomous travel accessible to a wider population.
Within this emerging landscape, robo-taxis are forecast to dominate the GCC market, potentially generating $10 billion by 2035. This segment alone would represent roughly 18 percent of the expected global market share. The region’s massive development projects, including Saudi Arabia’s NEOM and various smart city initiatives in the UAE, are already embedding driverless technology into their blueprints. These projects feature dedicated lanes for autonomous vehicles and advanced urban mobility hubs, serving as ideal testing environments.
These giga-projects provide regulators with flexible, controlled settings to pilot and refine autonomous systems more effectively than in established cities. Expanding this approach across the GCC could significantly accelerate progress. Bolstered by sovereign wealth funds and ambitious national agendas such as Saudi Vision 2030 and UAE Vision 2071, the region possesses the resources and strategic vision to scale autonomous vehicle deployment rapidly.
Dr. Andreas Gissler, a partner at Strategy& Middle East, emphasized that the GCC is uniquely positioned to capture this $19 billion opportunity and establish a worldwide benchmark for autonomous mobility. He noted that reaching this objective will depend on coordinated regulatory frameworks, infrastructure preparedness, and, critically, fostering public trust in the technology.
The report outlines three essential tipping points for autonomous mobility to achieve broad adoption. The first is readiness for pilot projects, where the technology proves itself in controlled settings. The second is commercial readiness, enabling systems to function dependably in diverse real-world conditions and compete with existing transport options, though government backing remains crucial. The third is readiness to scale, marked by full integration into the mobility ecosystem, widespread user acceptance, and financial independence.
Mark Haddad, another partner at Strategy& Middle East, pointed out that the GCC holds a distinct advantage in autonomous mobility compared to other markets. With robust investment capacity, streamlined licensing processes, and unparalleled testing grounds within giga-projects, the region is poised to lead. The primary hurdle, he explained, is advancing beyond successful pilot programs to dependable, large-scale real-world implementation. This leap will demand not only innovation but also consistent government support, infrastructure readiness, and intelligent incentive structures.
The analysis further stresses that regional infrastructure will require considerable upgrades to support a fully functional network of fully autonomous vehicles. Some current systems may need repairs or modernization before new technologies can be effectively integrated. There is a risk that early infrastructure investments might not align with future FAV requirements, creating potential inefficiencies. While the GCC has the financial strength to manage this transition, the report highlights the necessity for long-term commitment. Continuous funding is vital to maintain momentum in FAV deployment.
Building public confidence through dependable pilot programs, competitive pricing, and transparent safety records is equally important. To secure a leadership role, the study recommends comprehensive program management that brings together governments, technology providers, and operators. Customized pilot projects, regulatory sandboxes, and well-defined safety standards will be essential, complemented by incentives and capital investments from national and sovereign wealth funds. With these foundational elements firmly in place, cities across the Gulf can expedite the shift from experimental pilots to full commercial operation.
(Source: Economy Middle East)
