Fully autonomous vehicles a $19 billion opportunity for the GCC by 2035

The global market for fully autonomous vehicles could be worth $182 billion by 2035, with the Gulf Cooperation Council well positioned to capture a $19 billion share of the total. That is according to a report from Strategy&.

The emergence of fully autonomous vehicles is set to redefine mobility in major cities around the world. In particular, robo-taxis, robo-shuttles, robo-buses, and passenger drones have the potential to revolutionize transport, making autonomous mobility options accessible to all through fully automated, integrated, and demand-responsive networks.

The Strategy& report found that robo-taxis are expected to be the largest autonomous vehicle segment, potentially creating a $10 billion market in the GCC by 2035 – around 18% of the anticipated global market share.

The researchers 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 Gulf region has the resources to bring autonomous vehicles to scale.

Andreas Gissler, Partner at Strategy&, 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&, 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, Strategy&’s experts outline important areas that must be strengthened for the region to unlock the full potential of fully autonomous vehicles. They emphasize that scaling success will hinge on enhanced coordination and the evolution of regulatory frameworks around safety, liability, and licensing.

The report also notes that regional infrastructure will need further development to support a fully operational autonomous network. Some existing systems may require upgrades or repairs before new technologies can be introduced.

Public sentiment also plays a key role – drivers and passengers need to trust autonomous vehicles and the general public needs to feel comfortable with autonomous vehicles on the road.

Conclusion

Strategy&’s experts conclude that while the GCC has the financial capacity to support the transition to fully autonomous vehicles is, long-term commitment and sustained funding is needed to ensure progress in deployment. Building public trust through reliable pilots, competitive pricing, and visible safety records is also important.

“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,” said Gissler.