According to a market study conducted by Glasgow Research and Consulting, the commercial vehicles market in the Gulf Cooperation Council has experienced significant growth in recent years and is expected to continue this trend in the coming years. The market is projected to reach a value of approximately $13.7 billion by 2023, with a compound annual growth rate (CAGR) of 6.6% between 2023 and 2028. Key factors driving market expansion include favorable macroeconomic conditions, changing customer preferences, emerging market trends, and innovation.
Strong economic growth supported by construction, oil and gas, and tourism, along with supportive government policies and infrastructure investments, further drives demand for commercial vehicles. Light commercial vehicles dominate the market, accounting for 55.5% of total sales in 2023. Approximately 180,000 medium and heavy commercial vehicles were sold last year. The commercial vehicles market in the Gulf Cooperation Council is expected to continue to grow until 2028.
Factors influencing changes in demand for commercial vehicles include:
Economic diversification: Governments are shifting focus from oil-dependent economies to diversified industries such as manufacturing, retail, and tourism.
Infrastructure development: Investments in seaports, airports, roads, and logistics facilities enhance connectivity and efficiency. Government initiatives to bolster infrastructure further drive demand for commercial vehicles.
Strategic location: The geographical proximity of Gulf Cooperation Council countries to Europe, Asia, and Africa makes it an attractive hub for international trade.
Increase in e-commerce: The growing adoption of e-commerce fuels demand for light commercial vehicles for last-mile delivery.
Helping to Expand the Logistics Chain:
Fuel efficiency: Demand for fuel-efficient vehicles is growing due to rising fuel costs.
Electric and hybrid vehicles: Governments promote environmentally friendly vehicles, driving their adoption.
Technology: Increased adoption of technology such as automation, Internet of Things, and data analytics.
The commercial vehicle sector in the Gulf Cooperation Council also faces challenges such as:
The unique climate and terrain of the Gulf Cooperation Council require specialized commercial vehicles with features such as high ground clearance, four-wheel drive, and heavy-duty suspension systems.
Fluctuating oil prices: Volatile oil prices affect the demand for commercial vehicles.
Competition: Intense competition among manufacturers affects market share.
Regulatory framework: Stricter emissions standards and safety regulations pose challenges.
Market Share by Country
Saudi Arabia and the United Arab Emirates lead the commercial vehicles market in the Gulf Cooperation Council region. Within this market, trucks constitute the largest segment, including small, light, medium, and heavy trucks. Economic growth in Saudi Arabia and the UAE is expected to accelerate, driven by strong reform initiatives. Key sectors driving demand for trucks include manufacturing, construction, retail, and transport.
Technological innovations in the automotive industry, along with the introduction of advanced features in high-performance trucks, have significantly boosted the commercial vehicles market in the Gulf Cooperation Council. Truck drivers often travel long distances across Gulf Cooperation Council countries to deliver goods to the logistics and construction sectors. Remote communication systems allow fleet managers to accurately track vehicles and provide details such as truck speed, load, and tachograph data.
Senior Writer The quest for automotive knowledge began as soon as the earliest memories. Various sources information, even questionable ones, have been explored including video games, television, magazines, or even internet forums. Still stuck in that rabbit hole.
