Commercial Vehicles - United Arab Emirates

United Arab Emirates

The projected unit sales in the Commercial Vehicles market in the United Arab Emirates are expected to reach 35.09k vehicles by 2024.
It is anticipated that the unit sales will exhibit an annual growth rate (CAGR 2024-2029) of 0.96%, resulting in a projected market volume of 36.80k vehicles by 2029.
This growth potential highlights the development of the Commercial Vehicles market in the country.
Additionally, it is worth noting that the production of Commercial Vehicles market is expected to reach 0.00 by 2029, further emphasizing the growth potential of the market.
From an international standpoint, it is evident that the in the United States will account for the majority of sales in 2024, with a projected figure of 11,630.00k vehicles.
The United Arab Emirates is experiencing a significant increase in demand for electric commercial vehicles due to government incentives and a push towards sustainability.

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 United Arab Emirates is experiencing significant growth and development due to various factors. Customer preferences in the Commercial Vehicles market in United Arab Emirates have been shifting towards more environmentally friendly and fuel-efficient vehicles.

This is driven by increasing awareness about the impact of carbon emissions on the environment and the need to reduce dependence on fossil fuels. Customers are also looking for vehicles that offer advanced safety features and improved technology, such as connectivity options and driver-assistance systems. Additionally, there is a growing demand for vehicles that are versatile and can be used for multiple purposes, such as transporting goods and passengers.

Trends in the market indicate a strong growth in the sales of electric and hybrid commercial vehicles. This is in line with the global trend towards electrification and the push for sustainable transportation solutions. The government of United Arab Emirates has also implemented various incentives and initiatives to promote the adoption of electric vehicles, including tax benefits and subsidies for electric vehicle purchases.

As a result, more customers are opting for electric and hybrid commercial vehicles, leading to a rise in their sales. Another trend in the Commercial Vehicles market in United Arab Emirates is the increasing popularity of online sales and digital platforms. Customers are now more inclined to research and purchase vehicles online, as it offers convenience and a wider range of options.

This trend has been further accelerated by the COVID-19 pandemic, which has led to a shift towards digital channels for various transactions. As a result, companies in the Commercial Vehicles market are investing in digital platforms and online sales channels to cater to the changing customer preferences. Local special circumstances in United Arab Emirates also contribute to the development of the Commercial Vehicles market.

The country has a strong economy and is known for its infrastructure development projects, such as the construction of new roads, airports, and buildings. This creates a demand for commercial vehicles for construction and transportation purposes. Additionally, United Arab Emirates is a popular tourist destination, attracting millions of visitors each year.

This leads to a need for commercial vehicles for transportation services, such as taxis, buses, and tour operators. Underlying macroeconomic factors, such as population growth, urbanization, and government policies, also play a significant role in the development of the Commercial Vehicles market in United Arab Emirates. The country has a growing population and a high rate of urbanization, which increases the demand for transportation services and commercial vehicles.

The government has implemented policies to support the growth of the automotive industry, including tax incentives, infrastructure investments, and regulations to promote safety and environmental sustainability. In conclusion, the Commercial Vehicles market in United Arab Emirates is developing due to shifting customer preferences, trends towards electrification and digitalization, local special circumstances, and underlying macroeconomic factors. The market is expected to continue growing as customers prioritize environmentally friendly vehicles, online sales channels become more popular, infrastructure development projects increase, and government policies support the automotive industry.

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.