SUVs - United Arab Emirates

United Arab Emirates

Revenue in the SUVs market is projected to reach US$3,602m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.87%, resulting in a projected market volume of US$3,761m by 2029.
SUVs market unit sales are expected to reach 78.2k vehicles in 2029.
The volume weighted average price of SUVs market in 2024 is expected to amount to US$48k.
From an international perspective it is shown that the most revenue will be generated in the United States (US$333bn in 2024).

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

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Analyst Opinion

The SUVs market in United Arab Emirates has been experiencing significant growth in recent years.

Customer preferences: Customers in United Arab Emirates have shown a strong preference for SUVs due to their versatility, spaciousness, and perceived safety. SUVs are often seen as a status symbol and a reflection of success, which has further fueled their popularity among consumers in the country. Additionally, the rough terrain and desert landscape of the UAE make SUVs a practical choice for navigating challenging road conditions.

Trends in the market: One of the key trends in the SUVs market in United Arab Emirates is the increasing demand for luxury SUVs. The affluent population in the country is willing to invest in high-end SUV models that offer premium features, advanced technology, and superior performance. Luxury SUVs from brands such as Range Rover, Mercedes-Benz, and BMW have gained significant traction in the market. Another trend in the market is the growing popularity of electric SUVs. As the UAE government aims to reduce carbon emissions and promote sustainable transportation, there has been a push towards electric vehicles. Electric SUVs offer the dual benefit of being environmentally friendly and providing the desired spaciousness and versatility of traditional SUVs.

Local special circumstances: The UAE's strong economy and high disposable income levels have contributed to the growth of the SUVs market. The country's oil wealth has created a prosperous consumer base that is willing to invest in premium vehicles. Additionally, the UAE's tourism industry attracts a large number of visitors who often prefer to rent SUVs for their travel needs, further driving the demand for these vehicles.

Underlying macroeconomic factors: The UAE's favorable economic conditions, including low taxes, high GDP per capita, and a stable business environment, have attracted global automotive manufacturers to establish a presence in the country. This has led to a wide range of SUV models being available in the market, catering to various customer preferences and budgets. Furthermore, the UAE government's initiatives to diversify its economy and reduce its dependence on oil have resulted in increased investments in various sectors, including automotive. This has created a favorable business environment for automotive manufacturers and dealerships, leading to the growth of the SUVs market. In conclusion, the SUVs market in United Arab Emirates is experiencing significant growth due to customer preferences for spacious and versatile vehicles, the popularity of luxury SUVs, the increasing demand for electric vehicles, the country's strong economy, and favorable business environment.

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).