|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
31.16
Thousand Units
|
|
CAGR
(2023-2028)
|
10.19%
|
|
Fastest
Growing Segment
|
Class
8
|
|
Largest
Market
|
Saudi
Arabia
|
Gulf Cooperation Council
(GCC), a political and economic alliance of six middle east countries, namely,
Saudi Arabia, Qatar, Bahrain, Oman, Kuwait, and United Arab Emirates has a huge
demand for heavy commercial vehicles because of their direct involvement with
the oil and gas industries and the economy of these GCC countries hugely
depends upon these oil and gas reserves. Further, these countries are now
getting involved in the diversification of revenues which is resulting in the
development of other heavy industries (mining and marine).
GCC Heavy Commercial Vehicle Market
Overview
The GCC heavy commercial
vehicle market is expected to grow at a faster rate in the forecasted period.
The market is significantly driven by the rise of construction projects,
transportation, infrastructural development, and manufacturing. The heavy
commercial vehicles encompass a range of vehicles, such as buses, trailers, and
specialized heavy trucks.
The heavy commercial vehicles
market in GCC has been consistently rising for the past few years because these
countries have rich reserves of oil and gas whose operations are further linked
with many other industries. The GCC countries don’t have fertile soil therefore
they heavily depend upon the imports of goods. These countries are known for
their aggressive projects, such as building huge skyscrapers, airports, and stadiums.
So, these kinds of projects require the use of heavy commercial vehicles which help
in transporting raw materials like cement, equipment, and machinery. The
heavy-duty vehicles are mostly driven by diesel. Some of them also use CNG but
because of the environmental concerns, other types of fuels are also being
explored although they are in developing stage as of now.
GCC Heavy Commercial Vehicle Market
Drivers
The
construction sector in the Gulf Cooperation Council (GCC) is projected to
experience a period of robust growth in the near to mid-term. This positive
outlook is attributed to the increased availability of project finance
resulting from record-high export earnings and the continuation of the
implementation of long-range and non-renewable energy sector development
strategies across the GCC. The construction industry has a vast pipeline of
projects with several contracts still to be awarded across a variety of
sectors, including power, water, transport, commercial, residential, and
industrial projects.
The
logistics market in the GCC is expected to see a lot of growth in the next few
years, thanks to the growing need for warehousing facilities and the influx of
government and private investment to make the region a strong logistics hub
with good regulations. Dubai is becoming more and more important in global
trade, and the economy is expected to do well in the coming years. Bahrain has
some of the cheapest set-up and operating costs in the GCC, which has made it a
great place to start a business and get access to the GCC and Arab world.
GCC
countries have known for a long time that manufacturing growth is key to
diversifying the domestic economy, creating more productive jobs, and
increasing non-oil exports. From a tax point of view, it's essential to replace
government revenue that's mainly based on hydrocarbon exports with more non-oil
sector revenue. So, GCC countries have put in place a lot of plans and
initiatives to grow and consolidate their domestic manufacturing base.