Commercial vehicles are commonly used as a means of transportation in various types of industries. It help operators load, unload as well as transport goods over a long distance. Owing to large number of projects in pipeline sector in each economy of the Middle East countries and the North African province, the construction industry is reflecting fastest expansion.
According to Future Market Insights, the global market for commercial vehicles is likely to reach nearly US$ 8.5 Bn by the end of 2027, up from US$ 5.25 Bn in 2017, in terms of revenues. The market will witness expansion at 5 % CAGR during the forecast period (2017-2027). The market for commercial vehicles in the (Middle East & North Africa) MENA region was pegged at nearly 152,200 units in 2017 and is estimated to reach a number of 212,230 units in the year 2027, witnessing expansion at moderate single-digit CAGR throughout the forecast period.
To what extent the sales of heavy duty commercial vehicles will surpass that of medium duty vehicles in the MENA region?
The commercial vehicles market in MENA region has been segmented on the basis of region and class type. The heavy duty segment, by class type was anticipated to reach valuation up to US$ 3.2 Bn in the year 2017 and is estimated to reach valuation of approximately US$ 5.3 Bn by the end of 2027 with 5.1% CAGR. However, the medium duty segment was projected to reach valuation of approximately US$ 1,850 Mn in the year 2017 and is estimated to reach value of approximately US$ 3 Bn by the end of 2027, witnessing 4.8% CAGR.
How is construction industry influencing the growth of commercial vehicles market in MENA region?
The construction industry in the Iran was projected to be worth US$ 88 Bn in 2013 and was anticipated to reach valuation of US$ 154.4 bn by the end of 2016. Owing to this upward growth, the market for heavy trucks had experienced boost in this economy. Further, increasing urbanization is resulting into rapid growth of construction industry in rest of the economies of Middle East region, which will also boost the demand for commercial vehicles in construction and building activities in this region.
Iran is one of the largest market for trucks in the MENA region, and it is undergoing a huge expansion in its economy with economic sanctions lifted up the Iran. Owing to the vast use of commercial vehicles in petrochemical industries, economies such as Oman and UAE are further becoming lucrative markets for commercial vehicles and is anticipated to fuel overall demand for trucks in Middle East.
The Saudi Arabia commercial vehicles market was projected to be valued at approximately US$ 560 Mn in the year 2017 and will reach valuation of approximately US$ 900 Mn by the end of 2027, witnessing expansion at 4.6% CAGR throughout the assessment period. Whereas, the market in Turkey was projected to reach valuation of approximately US$ 1,350 Mn by the end of 2017 and is estimated to reach valuation of approximately US$ 2150 Mn by the end of 2027, with significant CAGR over the forecast period.
Who are the prominent players in the MENA’s commercial vehicle market?
Several leading players operating in the market has been profiled in the report such as Volkswagen AG, Daimler AG, Scania AB, General Motor Company, Paccar Inc., Navistar International Corp., Toyota Motor Corporation, Hino Motors, Ltd., Dongfeng Motor Corporation, Isuzu Motors Ltd., FAW Group Corporation, Ford Motor Company, MAN SE, Nissan Motor Company Limited, and AB Volvo. Manufacturers are utilizing improved telematics system as well as financial options to attract consumers.