SUVs - GCC

The revenue in the SUVs market in the GCC is projected to reach US$11,900m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2028) of 2.10%, resulting in a projected market volume of US$12,930m by 2028.
The unit sales of SUVs market in the GCC market segment are expected to reach 385.6k vehicles in 2028.
The volume-weighted average price of SUVs market in the GCC market segment in 2024 is expected to amount to US$34k.
From an international perspective, it is shown that the most revenue will be generated United States, amounting to US$275bn in 2024.
The demand for luxury SUVs in the GCC market has been steadily increasing, driven by the region's affluent population and their preference for spacious and high-performance vehicles.

Key regions: United States, Germany, United Kingdom, India, China

Market

Make

Region

Region comparison

Currency

Analyst Opinion

The SUVs market in GCC has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: Customers in the GCC region have shown a growing preference for SUVs due to their versatility, spaciousness, and perceived safety. SUVs offer a higher seating position, which provides a better view of the road and a sense of security. Additionally, SUVs offer ample cargo space, making them ideal for families and those with an active lifestyle. The demand for SUVs is also influenced by the desire for luxury and prestige, as many customers in the region associate SUVs with status and success.

Trends in the market: One of the key trends in the SUVs market in the GCC is the increasing popularity of compact and mid-size SUVs. These vehicles offer the benefits of an SUV, such as higher ground clearance and a commanding driving position, while being more fuel-efficient and easier to maneuver in urban areas. This trend is driven by the growing urbanization in the GCC region, with more people living in cities and needing vehicles that are suitable for both city driving and occasional off-road adventures. Another trend in the SUVs market is the rise of electric and hybrid SUVs. As the GCC region seeks to reduce its dependence on fossil fuels and promote sustainability, there is a growing interest in electric and hybrid vehicles. SUVs are no exception to this trend, with several automakers introducing electric and hybrid SUV models to cater to the environmentally conscious customers in the region.

Local special circumstances: The GCC region is known for its harsh desert terrain and extreme weather conditions, which make SUVs a practical choice for many customers. SUVs are designed to handle rough roads and off-road adventures, making them well-suited for the challenging conditions in the region. Additionally, the hot climate in the GCC region often necessitates the use of air conditioning, and SUVs provide ample space for cooling systems, making them more comfortable for passengers.

Underlying macroeconomic factors: The growth of the SUVs market in the GCC can also be attributed to the region's strong economy and high disposable income levels. The GCC countries have experienced rapid economic development in recent years, driven by oil revenues and diversification efforts. This has led to an increase in purchasing power and a higher demand for luxury goods, including SUVs. Additionally, favorable government policies, such as low taxes and import duties on vehicles, have made SUVs more affordable and accessible to customers in the region. In conclusion, the SUVs market in the GCC is developing due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The demand for SUVs is driven by their versatility, spaciousness, and perceived safety. Compact and mid-size SUVs are becoming increasingly popular, as are electric and hybrid SUVs. The harsh desert terrain and extreme weather conditions in the region make SUVs a practical choice for many customers. The strong economy and high disposable income levels in the GCC, along with favorable government policies, have also contributed to the growth of the SUVs market.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. 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, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

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. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).