Middle East & North Africa Commercial Vehicle Market to Grow with a CAGR of 8.67% through 2030
The Middle East & North Africa commercial vehicle market is driven
by infrastructure development, growing e-commerce demand, and government investments
in logistics. These are the factors driving the market in the forecast period
2026-2030.
According to TechSci Research report, “Middle East & North
Africa Commercial Vehicle Market – By Country, Competition, Opportunities and Forecast, 2020-2030F”, The Middle East & North Africa
Commercial Vehicle Market was valued at USD 29.34 Billion in 2024 and is
expected to reach USD 48.32 Billion by 2030 with a CAGR of 8.67% during the
forecast period.
The Middle East and North Africa (MENA) commercial vehicle market is
witnessing a dynamic transformation fueled by evolving industrial needs,
modernization of national fleets, and shifting regulatory environments. Unlike
traditional growth areas tied solely to logistics and construction, the current
trajectory of the market is shaped by a broader range of demand sources,
including defense procurement, municipal services, and oilfield logistics.
Governments across the region are updating vehicle fleets in waste management,
firefighting, and public transportation, thereby creating a stable demand for
specialized commercial vehicles. These applications are being prioritized under
national development strategies that aim to improve urban functionality,
emergency preparedness, and service delivery.
A prominent factor driving the market is the expansion of inter-regional
and cross-border trade, necessitating a more diverse and efficient vehicle
fleet. As MENA countries work toward trade diversification, improved road
connectivity and harmonized transport policies have accelerated the demand for
medium and heavy commercial vehicles capable of long-haul duties across
deserts, borders, and industrial corridors. This is complemented by rising
private investment in trade-centric infrastructure such as bonded warehouses,
free zones, and dry ports, where efficient vehicle flow is essential. Moreover,
the integration of smart transport corridors and intelligent traffic systems
requires vehicles equipped with digital compatibility, nudging the market
toward smarter vehicle ecosystems rather than only fuel-efficient ones.
The need for temperature-controlled transport has become a significant
demand driver, especially with the rapid expansion of food and pharmaceutical
logistics. This trend is not only limited to urban delivery but extends to
long-distance cold chain networks, creating a niche segment of high-value
commercial vehicles with built-in refrigeration, humidity control, and load
monitoring technologies. Fleet operators are investing in vehicles with modular
storage, IoT-linked cargo surveillance, and automation to maintain regulatory
compliance and product integrity. As a result, the market is now characterized
by its increasing reliance on vehicles that offer adaptability, cargo-specific
functionality, and integration with warehouse management systems. This technological
convergence is turning vehicles into mobile logistics assets rather than just
transport tools, changing the way commercial fleets are designed, purchased,
and operated.
In this environment, the MENA commercial vehicle market is moving toward
a model where customization, operational intelligence, and functional
specificity are key success criteria. Stakeholders ranging from public utility
services to multinational fleet operators are demanding vehicles that deliver
not only mobility but measurable efficiency gains, predictive maintenance, and
integration with digital supply chains. The changing buyer profile, growing
demand for fleet-as-a-service models, and increased focus on circular economy
practices—such as vehicle remanufacturing and leasing—are also shaping future
growth paths. As a result, the commercial vehicle sector in MENA is evolving
from a traditional hardware-driven market into a service-enabled, multi-utility
domain.
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Middle East & North Africa
Commercial Vehicle Market Is Segmented by Vehicle Type, Propulsion Type, Application,
and By Country.
In 2024, electric
commercial vehicles (EVs) emerged as the fastest-growing propulsion segment in
the Middle East and North Africa (MENA) region. This surge is attributed to
intensified government initiatives targeting emissions reduction, coupled with
escalating fuel prices prompting fleet operators to seek cost-effective
alternatives. The adoption of EVs is further propelled by advancements in
battery technology, enhancing vehicle range and reliability, thus making them
viable for diverse commercial applications. Moreover, the expansion of charging
infrastructure across key urban centers has alleviated range anxiety,
encouraging businesses to transition from internal combustion engine (ICE) vehicles
to electric counterparts. Incentive programs, including tax breaks and
subsidies, have also played a pivotal role in accelerating the shift towards
electrification within the commercial vehicle sector. As a result, logistics
companies, public transportation agencies, and last-mile delivery services are
increasingly integrating electric trucks and vans into their operations,
aligning with broader sustainability goals and operational efficiency targets.
Among the countries in the
MENA region, Egypt recorded the most significant growth in the commercial
vehicle market in 2024. This expansion is driven by the government's strategic
focus on revitalizing the automotive industry, as outlined in the national
automotive industry strategy for 2024–2030. The strategy aims to boost annual
vehicle production and includes initiatives to establish Egypt as a regional
hub for car manufacturing, particularly emphasizing electric vehicles. The
resumption of operations by state-owned automakers and the introduction of
electric buses signify a commitment to modernizing the public transport fleet
and reducing urban emissions. Additionally, partnerships with international
manufacturers have facilitated technology transfer and investment in local
production facilities, enhancing the domestic automotive landscape. These
developments, combined with a growing demand for efficient and sustainable
transportation solutions, have positioned Egypt as a leading market for
commercial vehicle growth in the region.
Major Market Players
Operating in Middle East & North Africa Commercial Vehicle Market Are:
- TATA Motors Ltd
- MAN Truck & Bus Middle East FZE
- Ashok Leyland (U.A.E) L.L.C
- Mercedes-Benz Group AG
- Scania AB
- Toyota Motor Corporation
- Ab Volvo
- Isuzu Motors International FZE
- Zhengzhou Yutong Bus Co., Ltd.
- General Motors Corporation
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As cities grow and trade gets busier, the Middle
East and North Africa are seeing more demand for strong and reliable commercial
vehicles, “Whether it’s for construction, transport, or daily deliveries,
businesses here want vehicles that get the job done efficiently. We’re also
seeing a real push toward modern and cleaner options like electric trucks,
which shows how the market is evolving with new needs and smarter technology”,
said Mr. Karan Chechi, Research Director of TechSci Research, a research-based
global management consulting firm.
“Middle East & North Africa Commercial Vehicle Market – Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Type (Light commercial vehicle (LCV), Medium Commercial Vehicle (MCV) and Heavy Commercial Vehicle (HCV)), By Propulsion Type (ICE, Electric), By Application (Construction, Logistics, Mining, Oil & Gas & Others), By Country, Competition, Opportunities and Forecast, 2020-2030F”, assesses the market's future
growth potential and provides data on market size, trends, and forecasts. It
aims to offer comprehensive market insights, helping decision-makers make
informed investment choices. The report also highlights emerging trends, key
drivers, challenges, and opportunities in the Middle East & North Africa
Commercial Vehicle Market.
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