GCC Light Commercial
Vehicle Market was valued at USD 7,136.60 million in 2022 and is forecast to
grow at a CAGR of 8.64% to reach USD 11,917.51 million in the year 2028. In
2022, the GGC light commercial vehicle has a total volume of 153.79 thousand
units, and the market is expected to have 232.69 thousand units’ volume in the
coming year 2028, with the CAGR of 6.86%.
The rapid expansion plans
in the region have resulted in the rise of construction activities. The number of residential housing and other infrastructural facilities
will expand as the population grows, spurring an increase in construction
activities. As the construction activities has increases the need for
construction vehicles has also increases in the GCC countries. The GGC
countries has seen an increase in demand for the light commercial vehicles, as
the infrastructure projects and other innovations will also arise as the
private sector expands in the upcoming years. As a result, the GCC countries
will see an increase in demand for light commercial cars throughout the
forecasted years.
The governments of the Gulf
Cooperation Council (GCC) region have slowed down international trade because
of the economic crisis brought on by the epidemic and the decline in oil
prices.
Rising E-commerce Industry
Major changes in the GCC's
countries e-commerce sector are driving the market for light commercial
vehicles. Sales of light commercial vehicles are anticipated to rise because of
prompt item delivery to clients. From 2019 to 2022, the GCC countries is
anticipated to experience a 33% annual rise in e-commerce, with Saudi Arabia
and the UAE having even faster growth rates of 39% and 38%, respectively. But
it is projected that increased popularity of online shopping will accelerate the
sales of light com ercial vehicle, due to this GCC light commercial vehicle market is expected to grow
in the coming years.
Increasing
Vehicle Rental Service
In many
countries of GCC region the light commercial vehicle rental service is growing
at a healthy rate, due to a rise in online enterprises around the world. The leasing
of light commercial vehicles is expanding at a steady rate. The industry is
becoming more competitive because of the rise in market players providing
rental services, especially in Saudi Arabia and the United Arab Emirates. As in
these two-country tourism is always high, as per data from Saudi Arabia
government the total number of tourists visited in year 2022 is around 18
million. Due to increasing tourism the need for goods and other essential
things also increases, to transfer these things from one place to another and are
done with the help of light commercial vehicles in the country. At the same
time, regional demand for light vehicles is rising. This is fueling a
significant increase in the demand for light commercial vehicles. Many
businesses prefer rental services due to their convenience and profitability,
which has increased with technological advancement in the automobile industry
and expanding import activity in GCC countries.
Increasing
Development Activities and Tourism Sector
Road development
initiatives continue to rank among the biggest infrastructure expenditures made
in the GCC region, and government authorities continue to place a high priority
on them. The GCC countries' rapid infrastructure investment is promoting a
friendly and ideal environment for international alliances, tourism, and
investment. In addition, the GCC reported investing USD 121.3 billion in
projects for roads, bridges, and railroads to improve the land transportation
infrastructure. Due to the advancements, the tourism industries in GCC nations
are growing. The Road and Transport Authority (RTA) of the United Arab Emirates
recently highlighted 35 projects for 2020, including the expansion of the Dubai
Metro service and repairs to the motorways and junctions near the Expo site.