The global market for fully autonomous vehicles (FAVs) could reach $182 billion by 2035, with the GCC expected to contribute nearly $19 billion, according to a report by Strategy& Middle East, part of the PwC network.

Key technologies include robo-taxis, robo-shuttles, robo-buses, and passenger drones, with robo-taxis projected to lead, creating a $10 billion market in the GCC—about 18% of global demand.

Regional giga-projects, such as Saudi Arabia’s NEOM and the UAE’s smart city initiatives, are already incorporating driverless technology through autonomous lanes and mobility hubs, offering real-world testing grounds that could accelerate broader adoption.

“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,” said Dr. Andreas Gissler, Partner at Strategy& Middle East. “Achieving that goal will require coordinated regulation, infrastructure readiness, and above all, building public confidence in the technology.”

The report outlines three stages that autonomous mobility must pass before achieving widespread adoption: pilot readiness, where technology is tested in controlled environments; commercial readiness, where systems operate reliably in real-world conditions but still require government support; and readiness to scale, when autonomous services are fully integrated, financially sustainable, and widely accepted by users.

Mark Haddad, Partner at Strategy& Middle East, highlighted that the GCC enjoys structural advantages over other markets, including significant investment capacity, streamlined licensing, and large-scale testing opportunities within giga-projects.

However, he cautioned that the key challenge lies in moving from pilot projects to scaled deployment, which will require supportive regulation, infrastructure investment, and targeted incentives.

The report also warns that infrastructure upgrades will be essential for fully operational FAV networks, with early investments risking misalignment with future requirements. It stresses the importance of long-term planning, consistent funding, and building public trust through safe pilots, competitive pricing, and strong safety records.

To establish global leadership, the report recommends coordinated program management involving governments, technology providers, and operators, combined with targeted pilots, regulatory frameworks, and safety standards. With backing from sovereign wealth funds and national initiatives, Gulf cities could emerge as frontrunners in advancing autonomous mobility.