The global market for fully autonomous vehicles (FAVs) – set to redefine mobility in major cities – could be worth $182 billion by 2035, generating nearly $19 billion in the GCC region alone, according to a new report issued by Strategy& Middle East, part of the PwC network. 

 

In particular, robo-taxis, robo-shuttles, robo-buses, and passenger drones have the potential to revolutionise transport across the region, making autonomous mobility options accessible to all through fully automated, integrated, and demand-responsive networks. Within this paradigm shift, robo-taxis are expected to be the largest FAV segment, potentially creating a $10 billion market in the GCC by 2035 — around 18% of the anticipated global market share., the report said.

 

The research points out that the region’s giga-projects — including Saudi Arabia’s NEOM and the UAE’s smart city initiatives — are already embedding driverless technology into their plans, from dedicated autonomous lanes to new urban mobility hubs. These are serving as effective sandboxes where regulators can pilot and refine autonomous systems more flexibly than in legacy cities. Expanding this approach across more countries in the region could further accelerate progress. With the backing of sovereign wealth funds and bold national development plans such as Saudi Vision 2030 and UAE Vision 2071, the GCC has the resources to bring autonomous vehicles to scale.

 

Dr Andreas Gissler, Partner at Strategy& Middle East, said: “Backed by ambitious visions and resources, the GCC is strongly positioned to seize a $19 billion opportunity and set a global benchmark for autonomous mobility. Achieving that goal will require coordinated regulation, infrastructure readiness, and above all, building public confidence in the technology — but the region has the means to deliver.”

 

Emerging uses of autonomous mobility

The report identifies three tipping points that autonomous mobility must cross before widespread adoption. The first is readiness for pilot projects, where the technology proves itself in controlled conditions. The second is commercial readiness, when systems can operate reliably in diverse, real-world scenarios and compete with existing alternatives — though government support remains crucial. The third is readiness to scale, marked by full integration into the mobility ecosystem, broad user acceptance, and financial sustainability. 

 

Robo-taxis are already moving toward the second stage, but most technologies are still some years away from full-scale adoption. In Chinese and American cities, robo-taxis are now operating in commercial pilot schemes with paying customers, where they have proven more reliable — and in some cases safer — than human-driven cabs. These pilots could evolve into a viable transport option as early as 2028. In Europe, robo-shuttles are being tested at universities, corporate campuses, and last-mile settings, while robo-buses and robo-trucks have shown strong potential for longer-haul transport. Passenger drones, meanwhile, could reshape mobility in coastal and waterfront cities, opening new aerial routes.

 

Mark Haddad, Partner at Strategy& Middle East, said: “Relative to other markets, the GCC has a unique edge in autonomous mobility. With strong investment capacity, easier licensing pathways, and unrivalled testing grounds in its giga projects, the region can lead. The real challenge is moving beyond promising pilots to reliable, real-world deployment at scale. That will require not just innovation but government support, infrastructure readiness, and smart incentives.”

 

Key enablers for successful adoption

While the opportunity is immense, the report outlines important areas that must be strengthened for the region to unlock the full potential of FAVs. It emphasizes that scaling success will hinge on enhanced coordination and the evolution of regulatory frameworks around safety, liability, and licensing. Public sentiment also plays a key role. Encouragingly, a 2023 Strategy& survey found that 81% of respondents in China and 29% in the US were comfortable with driverless rides, up from 39% and 18% in 2021, respectively.

 

The report also notes that regional infrastructure will need further development to support a fully operational FAV network. Some existing systems may require upgrades or repairs before new technologies can be introduced. There is also a possibility that early investments in infrastructure could be mismatched with future FAV requirements, leading to inefficiencies. While the GCC has the financial capacity to support this transition, the report highlights the importance of long-term commitment and sustained funding to ensure progress in FAV deployment. Building public trust through reliable pilots, competitive pricing, and visible safety records is also important.

 

Roadmap for the future of mobility

To build a leadership position, the study calls for comprehensive program management that brings together governments, technology providers, and operators. Tailored pilot projects, regulatory sandboxes, and clear safety standards will be essential, alongside incentives and capital injections from national and sovereign wealth funds. With these foundations in place, Gulf cities can accelerate the transition from pilots to commercial scale.

 

By acting now, GCC countries can position themselves at the forefront of a new paradigm shift — unlocking economic value while delivering safer, cleaner, and more connected transport for generations to come, the report said. – TradeArabia News Service