UAE Light Commercial Market to be Led by pickup trucks through 2028
The key drivers for the
UAE light commercial vehicle market are the country's economic growth and
diversification, which create demand for efficient transportation solutions,
and the increasing popularity of e-commerce and last-mile delivery services,
driving the need for versatile and agile vehicles for logistics operations are
factors driving the UAE Light Commercial Vehicle market in the forecast period
2023-2028.
According to TechSci Research report,
“UAE Light Commercial Market– By
Region, Competition, Forecast & Opportunities, 2028,” The UAE's
light commercial vehicle market's expansion is primarily fueled by factors such
as the nation's economic advancement and diversification. These factors result
in a rising demand for effective transport systems. Simultaneously, the surge
in e-commerce popularity and the growing requirement for last-mile delivery
services necessitate the use of flexible and nimble vehicles for logistics
tasks.
The light commercial vehicle market
is anticipated to experience substantial growth during the forecast period.
This growth can be attributed to various factors such as the increasing demand
for efficient transportation solutions, expanding e-commerce industry, and the
development of infrastructure projects across the region. Dubai and Abu Dhabi,
with their well-established automotive sectors and strategic geographic
locations, are expected to continue playing a crucial role in driving the
market forward and maintaining a significant market share. With their robust
economies and progressive business environments, these cities serve as key hubs
for commercial activities and provide ample opportunities for growth and
expansion in the light commercial vehicle segment.
In order to meet the growing demand
for light commercial vehicles, manufacturers have been increasingly investing
in production facilities as well as in research and development. For instance,
in April 2021, Volvo opened a new plant in Dubai and announced plans to launch
eight new models by the end of 2022. Similarly, Ford announced an investment of
AED 4 billion for its light commercial vehicles segment in 2020, in the region.
The growth of the light commercial
vehicle market in the UAE is strongly influenced by regulatory changes that
specifically benefit commercial vehicles. In an effort to promote the use of
these vehicles, the government has implemented a range of incentives, such as
tax reductions and the provision of free parking permits. These measures have
proven to be highly effective in attracting a multitude of manufacturers to
introduce their products into the thriving UAE market, further contributing to
the expansion of the light commercial vehicle sector.
In, technology advancements have
greatly contributed to the exponential growth of this sector. For instance, the
integration of advanced connectivity solutions into commercial vehicles has
played a pivotal role. These solutions include telematics, which enable
real-time vehicle tracking and remote diagnostics, as well as infotainment
systems that provide passengers with enhanced entertainment options. Moreover,
the incorporation of advanced driver assistance systems ensures improved safety
and convenience for drivers. By leveraging these technologies, manufacturers
are not only able to enhance the overall driving experience but also offer
comprehensive fleet management solutions to their customers. This holistic
approach empowers businesses to optimize operational efficiency, reduce costs,
and provide a seamless customer experience.
The growth of the UAE light
commercial vehicle market is also driven by an increase in e-commerce
activities. Online shopping has surged significantly over the last year due to
the COVID-19 pandemic, and this is expected to further drive the demand for
commercial vehicles. This has led to a shift in focus from passenger cars to
light commercial vehicles as manufacturers are investing in developing
technologically advanced products with efficient engines and superior payload
capacity.
In conclusion, the UAE light
commercial vehicle market is witnessing steady growth due to increasing
investments by global and local manufacturers, regulatory changes as well as
technological advancements. This presents an attractive opportunity for
investors to capitalize on the growing demand in this sector. Moreover, with
the government’s focus on developing a sustainable transport system, the market
is expected to continue its growth trajectory in the coming years.
Further, companies are also
investing in launching new products such as electric light commercial vehicles,
to meet the growing demand for eco-friendly and zero-emission transport
solutions. This is expected to provide a further boost to the market in the
future.
Browse over xx market data Figures
spread through xx Pages and an in-depth TOC on "UAE Light CommercialMarket Market."
The UAE Light Commercial Market is analyzed
based on vehicle type, fuel type, by end-user and by region. Based on the
vehicle type, the market is segmented into pickup trucks and vans. Based on the
fuel the market is divided into ICE and electric type. Based on the end-user,
the market is divided into individual and fleet owner. Based on the region, the
market is segmented into Dubai, Abu Dhabi, Sharjah, and the rest of UAE.
Key market players in the UAE Light
Commercial Market include:
·
Toyota Motor Corporation
·
Mitsubishi Motors
Corporation
·
Nissan Motors Co. LTD
·
General Motors Company
·
Hyundai Motor Company
·
Ford Motor Company
·
Isuzu Motors Limited
·
Volkswagen AG
·
Tata Motors.
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“The UAE light commercial vehicle
(LCV) market is growing due to key factors. Firstly, the country's strong
economy and diversification across industries like construction, logistics, and
tourism drive demand for efficient transportation solutions. Secondly, the rise
of e-commerce and last-mile delivery services fuels the need for versatile and
agile vehicles, leading to an increasing market for light commercial vehicles
during the forecast period I UAE.” said Mr. Karan Chechi, Research Director
with TechSci Research, a research based global management consulting firm.
“UAE Light Commercial Vehicle Market By Vehicle Type (Pickup Truck, Van
& Light Bus), By Fuel Type (Diesel, Gasoline & Alternate), By End Use
(Individuals Vs Fleet Owner), and by Region, Competition Forecast &
Opportunities, 2018 – 2028,” has evaluated the future growth potential of light
commercial vehicle market in UAE and provides statistics and information on
market structure, size, share and future growth. The report is intended to
provide cutting-edge market intelligence and help decision makers take sound
investment decision. Besides, the report also identifies and analyzes the
emerging trends along with essential drivers, challenges and opportunities
present in UAE Light Commercial Market.
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