Commercial Vehicles - Saudi Arabia

Saudi Arabia

In Saudi Arabia, the Commercial Vehicles market is anticipated to see unit sales reach 89.21k vehicles by the year 2024.
The market is projected to experience a steady annual growth rate (CAGR 2024-2029) of 1.80%, resulting in a projected market volume of 97.53k vehicles by 2029.
It is worth noting that the production of Commercial Vehicles market is expected to reach 0.00 in 2029, providing insight into the potential growth of the market.
From an international standpoint, the in the United States is poised to dominate the market with sales reaching 11,630.00k vehicles in 2024.
In Saudi Arabia, the commercial vehicles market is experiencing a surge in demand due to the country's growing construction and logistics sectors.

Definition

A commercial vehicle is a motor vehicle that is used for business or commercial purposes rather than personal use. These vehicles are designed and used for transporting goods and passengers or providing services in exchange for compensation. The specific definition of a commercial vehicle can vary from one jurisdiction to another, and it may encompass a wide range of vehicles, depending on their size, purpose, and usage.

Structure

The Commercial Vehicles market is structured into three markets:

Light Commercial Vehicles (LCVs): This market focuses on vehicles designed for the transportation of goods or provision of services on a relatively small scale. LCVs typically include vans, mini trucks, and small cargo vehicles used by businesses and individuals for local deliveries, trade, and various commercial applications. Light commercial vehicles are defined as vehicles meant for carrying goods or passengers with a gross vehicle weight rating (GVWR) of up to 3.5 tons with some variation based on specific vehicle models, designs, and regional regulations.
Buses: Buses are motor vehicles designed for the transportation of passengers, varying in size and capacity and ranging from small minibuses to large coaches. This market considers medium and heavy buses and coaches (MHBCs). The gross vehicle weight rating (GVWR) of MHBCs typically exceeds 3.5 tons.
Trucks: The Trucks market is dedicated to heavy-duty vehicles used for the transportation of goods over long distances. Trucks are motor vehicles designed to transport cargo, ranging from small delivery trucks to heavy-duty freight carriers. Only heavy commercial vehicles (HCVs) are considered in this market. HCVs are typically defined as vehicles with a GVWR of 16 tons or more.

Additional Information

The market includes the production and sales of commercial vehicles within a specific region, regardless of the brand or model. Private vehicles, recreational vehicles, construction, and agricultural vehicles, as well as specialty vehicles such as ambulances and fire engines, are not included in the Commercial Vehicles market.

Notable key players in the Commercial Vehicles market include industry giants such as Daimler AG, Volvo Group, and PACCAR Inc., as well as various regional manufacturers and specialized vehicle manufacturers. These companies play a pivotal role in shaping the market landscape and driving innovation within the industry.

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Analyst Opinion

The Commercial Vehicles market in Saudi Arabia has been experiencing significant growth in recent years. Customer preferences in the market are shifting towards more fuel-efficient and environmentally friendly vehicles.

This is driven by increasing awareness of the impact of vehicle emissions on the environment and the desire to reduce operating costs. As a result, there is a growing demand for electric and hybrid commercial vehicles in Saudi Arabia. Another customer preference in the market is for vehicles with advanced safety features.

With the increasing focus on road safety, customers are seeking commercial vehicles that are equipped with features such as lane departure warning, adaptive cruise control, and automatic emergency braking. Trends in the market include the rise of e-commerce and last-mile delivery services. With the increasing popularity of online shopping, there is a growing need for efficient and reliable delivery services.

This has led to an increased demand for commercial vehicles that are suitable for urban environments and can navigate through congested city streets. Another trend in the market is the growing adoption of telematics technology. Telematics systems allow fleet managers to track and monitor their vehicles in real-time, enabling them to optimize routes, improve fuel efficiency, and enhance overall fleet performance.

This technology is becoming increasingly popular in Saudi Arabia as companies look for ways to improve operational efficiency and reduce costs. Local special circumstances in the market include the hot climate and harsh terrain of Saudi Arabia. Commercial vehicles in the country need to be able to withstand extreme temperatures and rugged conditions.

This has led to the development of vehicles with enhanced cooling systems and durable components. Underlying macroeconomic factors driving the growth of the Commercial Vehicles market in Saudi Arabia include the country's strong economy and population growth. Saudi Arabia has a thriving construction industry, which requires a large number of commercial vehicles for transportation and logistics.

Additionally, the government's focus on diversifying the economy and reducing dependence on oil has led to increased investment in infrastructure projects, further driving the demand for commercial vehicles. Overall, the Commercial Vehicles market in Saudi Arabia is experiencing growth due to customer preferences for fuel-efficient and safe vehicles, as well as trends in e-commerce and telematics technology. The local special circumstances of the hot climate and harsh terrain also contribute to the development of vehicles tailored to the Saudi Arabian market.

The underlying macroeconomic factors of a strong economy and population growth further support the growth of the market.

Methodology

Data coverage:

The data encompasses B2B enterprises. Figures are based on unit sales and production of commercial vehicles.

Modeling approach:

Market sizes are determined through a combined Top-Down and bottom-up approach, building on specific predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., the Statista Consumer Insights Global survey). In addition, we use relevant key market indicators and data from country-specific associations, such as consumer spending per capita on transportation and consumer price index for purchase of vehicles. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, linear regression, the S-curve function and exponential trend smoothing methods are applied.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.