Market Research Report
GCC Automotive Logistics Market - Growth, Trends, and Forecasts (2020 - 2025)
|Published by||Mordor Intelligence Pvt Ltd||Product code||965302|
|Published||Content info||120 Pages
Delivery time: 2-3 business days
|GCC Automotive Logistics Market - Growth, Trends, and Forecasts (2020 - 2025)|
|Published: August 1, 2020||Content info: 120 Pages||
The GCC Automotive Logistics Market is estimated to grow at a CAGR of approximately 4.5% during the forecast period.
The Middle East is one of the most important markets for automotive manufacturers across the globe. Right from entry-level carmakers that focus on mass-market products to companies with a premium product lineup, every brand wants to gain and increase its market share in this region. Saudi Arabia remains a very important market for U.S. automakers
Gulf Cooperation Council (GCC) countries like Saudi Arabia and the United Arab Emirates are expanding import and premium vehicle markets and seeing rising aftermarket and second-hand vehicle volumes. Logistics will thus be key to further unlocking the automotive industry's potential in the region. Manufacturers and distributors depend on seamless flows to satisfy customer expectations and just-in-time supply chains, as well as to access the technology driving change across the global automotive industry, including electrification, autonomous, and connectivity.
The automotive and transport mobility sector across the GCC is set for big changes post-Covid-19, with new business models likely to emerge in the region, the movement restrictions and other health safety precautions caused by the Covid-19 pandemic have intensified online and e-commerce purchases in the automotive and transport mobility sector across the GCC.
Spotlight on Saudi Arabia Market
Saudi Arabia already accounts for about 40% of total vehicles sold in the Middle East. With the benchmark international oil price rebounding to an average USD 66 in 2019, overall automotive sector investments into the kingdom are expected to rise, leading to an increase in demand for trucks as well as buses used for the transport of labor. The Middle East as a whole, Saudi Arabia is primarily an import-driven automotive market, with sales of all vehicles amounting to approximately 422,000 units in 2018, including 340,000 cars and 82,000 commercial vehicles. Local vehicle production in Saudi Arabia is largely limited to heavy-duty commercial vehicles (from completely or semi-knocked down kits).
Increasing Penetration of Electric Vehicles in Gulf Countries
Electric and hybrid modes of transport are gaining momentum in the Gulf region and particularly in Israel, Jordan, Oman, Saudi Arabia, and UAE. The UAE government has already started making efforts to reduce the contribution of road transport to its footprint; so that it makes the country an ideal location to push the adoption rate of green mobility solutions (objectives to reach 10% of EV by 2030 in Dubai).
The Middle East is known for its oil and gas but an era of electric cars whizzing, along the region's superhighways. Low fuel prices and the passion for speed, luxurious automobiles in the region have meant that drivers have been relatively slow to shift to electric vehicles especially compared to their counterparts in markets, like China. However, the adoption of electric cars is set to enter the fast lane in the Gulf, especially in tech-savvy urban hubs like Dubai.
As the EVs are in the nascent stage in the country, the country has not yet set out incentives for the deployment of EVs, such as free charging stations, Greenbank loans, etc. EV incentives are yet to be developed, especially when EV deployment starts on a commercial scale. However, the country has taken a few initiatives which are likely to boost the EV demand in the country. For instance,
Saudi Electricity Company has signed a deal with Nissan Motor, Takaoka Tokyo and Tokyo Electric Power Company for the first EV pilot project in Saudi Arabia. Reportedly, the agreement provides for the development of fast-charger EV stations
Saudi Arabia has signed a memorandum of understanding ("MoU") with the UK in a move to reduce carbon emissions and support Saudi Vision 2030. The MoU commits both countries to cooperate and share expertise to develop technologies including smart grids and EVs.
UAE is another most developed market for EVs, not only regarding sales but also regarding charging infrastructure, with Dubai having some 200 charging stations and Abu Dhabi around 20. The UAE government targeting to have 42,000 electric cars on the roads in a few years.
The GCC Automotive Logistics Market is Fragmented, the market is expected to grow during the forecast period due to the growing demand for electric vehicles and many other factors are driving the market. International players are dominated in the market.