Middle East & Africa
SUV market is predicted to grow in coming years due to the
increasing logistic and travel activities in the country.
Middle East & Africa SUV Market Overview
The SUV market in the Middle East & Africa is
growing due to the increasing popularity for sports utility vehicles among many
consumers in the region. The demand for SUVs is also increasing due to the
preference of consumers towards comfort, more spacious, and advanced safety
features. Other benefits of SUVs
are higher ground clearance and commanding driver seating position and
robustness as well as off-road driving capability which provides advantage over
other vehicle types. The SUV market is expected to grow in the coming years. Additionally,
mid-size SUVs have the largest market share among all types of SUVs. These SUVs are available in multiple engine options with
gasoline (naturally aspirated and turbocharged) and diesel (some plug-in hybrid
variants for better fuel economy). Furthermore, these SUVs also offered
various transmission options, such as automatic transmission (AT), continuously
variable transmission (CVT), and dual-clutch transmission (DCT). Moreover, with
the development of autonomous technology, the SUV segment is anticipated to grow
at higher rate in Middle East & Africa region.
Middle
East & Africa SUV Market Driver
Increasing Demand for Premium
Vehicles
Despite the current economic
difficulties, the Middle East region's SUV market has been stable. Consumers in the Middle East and Africa region tend to
prioritize comfort and luxury while travelling. So, premium SUV car
manufacturers are expected to launch a variety of models with varying price
ranges and benefits in financing, which can increase the demand for premium SUV
vehicles in the Middle East & Africa. Furthermore, SUVs offer several
advantages over hatchbacks and sedans, such as increased space, off-road
capabilities, and different vehicle sizes. Also, established companies offer a
wide selection of SUV models with safety and driver assistance features, such
as smart entry, start-stop, all-wheel disc brakes, heated & ventilated
seats, sunroof, ambient lighting, and off roading gear, which attract more
customers. Additionally, major brands such as
Mercedes-Benz and Toyota are expanding their network across multiple regions
for convenient and faster delivery of vehicles, thus, increasing the sales in
the Middle East & African region. Therefore, it is expected that the SUV
market in the Middle East will expand at a significant rate by 2028.

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Middle
East & Africa SUV Market Challenge
Underdeveloped Aftermarket
Services
As with all industries, the
automotive aftermarket sector has seen fluctuation in market size to ups and
downs over the past two years due to the pandemic and delayed in trade
activities. In addition, a decrease in vehicle miles traveled (VMT), trade
restrictions, and a decrease in automotive aftermarket services demand has led
to slower vehicle sales and reduction in customer base in the Middle East &
Africa. In addition, during the pandemic, several automotive manufacturers experienced
longer working time to assemble their vehicles due to parts shortages,
especially microprocessor and semiconductor shortages. This slowed down the
growth of the SUV vehicle industry. Overall, the growth rate of the SUV vehicle
market in the Middle East & Africa is expected to be slower in the initial
years.
Middle
East & Africa SUV Market Trend
Increasing Penetration of
Electric SUV Segment
The Middle East & Africa
region is witnessing a global shift towards zero-emission vehicles over
environmental concerns, and emission regulations. As
the technology in the automotive sector advances, the demand for more advanced
electric SUVs is increasing. Also, the shift towards larger and heavier
cars has caused the SUV segment to double in size over the past decade. To meet this demand, many manufacturing businesses have
invested in the vehicle manufacturing and charging infrastructure industry in
the MEA countries over the past few years. Additionally, automobile
manufacturers are introducing new eco-friendly models and hybrid models to
drive the sales of SUVs in Middle East & Africa. For example, MG motors
introduced the all-electric SUV MG ZS EV to the UAE region in 2020. According to the International Energy Agency,
approximately 40% of annual car sales worldwide are attributed to the SUV
segment, demonstrating a strong shift towards SUVs. In conclusion, the
adoption of new technologies is leading to an increase in the Middle East &
African SUV market in the coming years.
Recent Developments
- In
September 2022, NISSAN strengthened collaboration with relevant authorities to
combat counterfeit products in the Middle East region through
regular market sweeps, raids of unauthorized sellers, and informative training
sessions for the safety of its customers.
- In
July 2022, Hyundai’s all-new 2022 IONIQ 5 received an Insurance Institute for
Highway Safety (IIHS) 2022 TOP SAFETY PICK PLUS (TSP+) designation and in
October 2022, it won SUV of the year award.
Market
Opportunities
As
the demand for SUVs continues to grow due to improved off-road capabilities,
spacious seating, and touring purposes, it enables more opportunities for local
manufacturers. To take advantage of the growing demand, several manufacturers
are collaborating with the local assemble plants and accessories companies to
meet customer needs quickly and satisfactorily. Moreover, the local
manufacturers can reduce costs, increase the efficiency of the supply chain, and
meet customer-centric requirements to help increase the overall sales of the
region. Due to the above factors, manufacturers and suppliers have many
possibilities to establish distribution networks in many MEA countries to meet
the growing demand in the upcoming years.
Market Segmentation
The Middle East & Africa SUV
market is segmented by length, type, fuel type, and country.
Based on length, the market is segmented into SUV-C, SUV-D, SUV-E, and SUV-F. In
terms of type, the market is divided into compact, mid-size, and large. Further,
based on fuel type, the market is divided into petrol, diesel, hybrid &
electric. The market analysis also studies the country wise segmentation to
devise tire market, divided among Saudi
Arabia, United Arab Emirates, Qatar, Israel, South Africa, Egypt, and rest of
Middle East & Africa.
Company Insights
- In April
2023, the Nissan company showcased Concept, as well as the new Qashqai, which
is a part of Nissan’s new SUV lineup in auto shanghai 2023.
- Nissan unveiled the adventure-ready
Ariya electric SUV, which will travel 27,000km
from the magnetic north pole to the south pole in February 2023.
- Nissan
Middle East started offering innovative digital solutions in October 2022, with
the aim of improving services and increasing customer satisfaction and
engagement, to further increase brand awareness.
Company Profiles
Fiat Chrysler
Automobiles N.V., Honda Motor Co. Ltd., Toyota Motor Corporation, Nissan Motor
Corporation, Ford Motor Company, General Motors Company, Hyundai Motor Company,
Daimler AG, Renault SA, and Volkswagen AG are the key players developing
advanced technologies to stay competitive in the market and enhancing their
product portfolio in the regions to increase their customer outreach.
Attribute
|
Details
|
Base Year
|
2022
|
Historical Years
|
2018 – 2022
|
Estimated Year
|
2023
|
Forecast Period
|
2024 – 2028
|
Quantitative Units
|
Value in USD Million, Volume in Thousand Units, and CAGR for
2018-2022 and 2023-2028
|
Report Coverage
|
Revenue forecast, volume forecast, company share, competitive
landscape, growth factors, and trends
|
Segments Covered
|
Length
Type
Fuel Type
Country
|
Country Wise Scope
|
Saudi Arabia, United Arab Emirates, Qatar, Israel, South
Africa, Egypt, Rest of Middle East & Africa
|
Key Companies Profiled
|
Toyota Motor Corporation, Nissan Middle East FZE, Hyundai
Motor UAE, BMW Group Middle East, Honda Middle East, Tesla Inc.,
Mercedes-Benz Cars Middle East (MBC ME), Volkswagen Group Middle East QFZ
LLC, Ford Middle East, BYD Company Ltd.
|
Customization Scope
|
10% free report customization with purchase. Addition or
alteration to country, regional & segment scope.
|
Pricing and Purchase Options
|
Avail customized purchase options to meet your exact research
needs. Explore purchase options
|
Delivery Format
|
PDF and Excel through Email
(We can also provide the editable version of the report in PPT/pdf format on
special request)
|
Report Scope:
In this report, Middle East &
Africa SUV market has been segmented into following categories, in addition to
the industry trends which have also been detailed below:
·
Middle East & Africa SUV Market, By Length:
o SUV-C
o SUV-D
o SUV-E
o SUV-F
·
Middle East & Africa SUV Market, By Type:
o Compact
o Mid-Size
o Large
·
Middle East & Africa SUV Market, By Fuel Type:
o Petrol
o Diesel
o Hybrid & Electric
·
Middle East & Africa SUV Market, By Country:
o Saudi Arabia
o United Arab Emirates
o Qatar
o Israel
o