Report Description

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