MENA Commercial Vehicles Market Set to Surpass USD 11.4 Billion by 2033, Growing at a CAGR of 6.9%

Posted on 2024-08-09 by Future Market Insights in Automotive // 0 Comments

The Middle East/North Africa (MENA) commercial vehicles market is projected to grow at a CAGR of 5.1% from 2023 to 2033, reaching a valuation of USD 6.9 billion in 2023 and crossing USD 11.4 billion by 2033.

This growth is primarily driven by an increase in private and public partnership projects and a surge in construction activities across the region. Additionally, amendments to laws related to construction and other infrastructural activities are expected to create favorable prospects for the market.

The waste management sector has been experiencing significant growth, with the market in Saudi Arabia alone expected to surpass USD 450 million by 2024. This growth is attributed to population increases and rising construction activities in the region.

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Türkiye offers numerous opportunities for market growth. Research by FMI indicates that the Türkiye construction market is expected to grow at a CAGR of 5%. The Turkish government is working to construct 2,000 km of high-speed rail lines from Northeast to Western Türkiye, which will likely boost sales of commercial vehicles in the MENA region during the forecast period.

In the petroleum sector, the UAE remains prominent, producing an average of 3.2 million barrels of petroleum and liquids per day. The mining activities involved in petroleum extraction heavily rely on trucks and commercial vehicles.

The development of electric trucks is also expected to present significant opportunities for the market. With the rapid consumption of oil and natural gas, the demand for non-renewable energy sources remains high. Electric trucks, which primarily run on solar energy or hydrogen fuels, align with sustainability goals and are expected to see increased adoption.

Insights from FMI researchers suggest that the growth of PPP projects, increasing construction and infrastructural activities, and other factors will drive the expansion of the MENA commercial vehicles market during the forecast period.

Key Takeaways:

The market is expected to grow at 5.2% during the forecast period.
The estimation is expected to be USD 6.9 billion in 2023.
By 2033, the valuation is expected to go past USD 11.4 billion.
As per country-wise analysis, the UAE market is expected to hold the dominant market share.
Saudi Arabia’s market is projected to advance at a CAGR of 5%.
Türkiye’s market is expected to surge at 5.5%.
On the basis of class type, the heavy-duty segment is expected to hold a significant market share and is projected to advance at a CAGR of 5.5%.

Competitive Landscape

The key players operating in the market are making tactical moves that include a surge in marketing activities. The manufacturers are also involved in a lot of strategic collaborations in order to make use of the technology possessed by their business partners. Moreover, massive investments are being made in the process of mergers and acquisitions in order to expand the footprints. There are also investments done in Research and Development activities specifically to improve the mileage and improve load-bearing capacity.

Daimler AG, AB Volvo, Scania AB, Paccar Inc., MAN SE, Navistar International Corp., Hino Motors, Ltd., Isuzu Motors Ltd., Dongfeng Motor Corporation, FAW Group Corporation, Toyota Motor Corporation, Ford Motor Company, Nissan Motor Company Limited, General Motor Company and Volkswagen AG. Manufacturers are using advanced telematics systems and financing options to lure customers.

Crucial developments in the market are:

In December 2022, Scania and Girteka collaborated to scale up sustainable transportation.
In October 2022, Volvo announced that it would be supplying 20 heavy duty electric-trucks to Amazon.

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Middle East/North Africa (MENA) Commercial Vehicles Market Segmentation

By Product Type:

Trucks
Buses
Vans
Trailers

By Class Type:

Light Duty
Medium Duty
Heavy Duty

By Country:

United Arab Emirates
Türkiye
Saudi Arabia
Algeria
Egypt
Morocco

About Future Market Insights (FMI)

Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer, Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.

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