Dublin, July 10, 2023 (GLOBE NEWSWIRE) -- The "Middle East & North Africa Commercial Vehicle Market By Vehicle Type, By Propulsion, By Application, By Region, Competition, Forecast & Opportunities, 2018- 2028F" report has been added to ResearchAndMarkets.com's offering.
The Middle East & North Africa Commercial Vehicle market was valued at USD 25.25 billion in 2022 and is expected to register a CAGR of 8.67% during the forecast period of 2023-2028F
The Middle East and North Africa Commercial Vehicle market is growing owing to the rapid infrastructure development projects that are initiated by the government, which led to an increase in the sale of commercial vehicles.
Moreover, the rising urbanization and emergence of the e-commerce industry are boosting the growth of commercial vehicles as light commercial vehicles are used in the logistics and distribution networks. Furthermore, the developing mining sector and the increasing requirement for commercial vehicles have raised the demand for commercial vehicles, which has a positive influence on the commercial vehicle market in the Middle East and North Africa.
Increasing Commercial Vehicle Network in Logistics and E-Commerce Industry
A surge in demand for material handling and carrying equipment has led to an increase in demand for vehicles such as commercial trucks and trailers, a preference for heavy-duty commercial vehicles, and increased investments in logistics and construction activities are some of the factors driving the growth of the Middle East & North Africa (MENA) commercial vehicles market.
The construction industry is expanding rapidly because of the large number of projects in the pipeline in each Middle Eastern country, and this is also related to the Middle Eastern governments' attempts to diversify their economies. These changes are also tied to the large-scale international events conducted in this region, such as World Expo 2020 in Dubai and the FIFA World Cup 2022 in Qatar.
Due to their extensive use in industries such as petrochemicals, the UAE and Oman are also increasingly becoming appealing markets for commercial vehicles, which is likely to improve the total demand for trucks in the Middle East region.
Increasing Production and Sales of Electric Commercial Vehicles:
The expanding electric vehicle industry is likely to drive the market owing to increased freight, logistics, and construction activities. The advent of severe restrictions to reduce excessive emissions has prompted vehicle manufacturers to design and build low-emission fleets to replace diesel vehicles with cleaner alternatives.
As a result of their improved range, battery life, dependability, and low cost, commercial electric vehicles have become a significantly more enticing option. Owing to their affordable operating costs and positive environmental effects, electric commercial vehicles are becoming more and more popular in the Middle East and North Africa.
For instance, the UAE-based logistics company DP Global introduced a fleet of commercial electric vehicles at its logistics hub in Dubai in 2020. As a result, the increasing commercial electric vehicle industry is predicted to drive the expansion of the commercial vehicle market in the Middle East and North Africa.
Technological Advancement
With the development of electric and autonomous vehicles, the commercial vehicle sector is experiencing tremendous technological breakthroughs. For instance, Telematics technology was first introduced by Volvo Trucks and has been considered a key growth driver in the Commercial Vehicle Market.
Telematics allows fleet managers to monitor truck movements as well as parameters such as speed, load, and full tachograph data. Telematics advances, making it easier to monitor fuel usage. Fleet managers can get exact statistics on driving distance, emission levels, and fuel consumption, in addition to receiving vehicle status updates, for the efficient management of vehicles.
Since Dubai's Roads and Transport Authority (RTA) mandated that all heavy vehicles install telematics to reduce accident risk, encourage safe driving habits, strengthen the country's infrastructure, and reduce the financial, human, and environmental impact of heavy trucks, the adoption of the technology has skyrocketed.
Furthermore, municipal waste management trucks have begun to use the technology for more efficient waste collection and management. 'Waste bins are attached with sensors using advanced IoT-based devices.' Monitoring, management, and transportation of trash bins, drivers, and vehicles are all possible with a well-integrated system.
Strict Government Regulations
Increased carbon emissions have resulted in the implementation of government regulations and rules for automobile manufacturers. Manufacturers confront challenges because of increased government regulations and standards. Trucks and commercial vehicles are the primary causes of air pollution.
They emit significant volumes of nitrogen oxides, carbon monoxide, and other pollutants into the atmosphere. Transportation is responsible for almost a quarter of all airborne hydrocarbons, nitrogen oxides, and carbon monoxide emissions. Domestic governments in MENA are implementing new vehicle norms to reduce pollution in the environment.
Market Trends
Investment in the transport and logistics industry is increasing as trade operations in the Middle East increase. The governments in the region are also investing heavily in infrastructure development. It would boost demand for commercial vans, trucks, and trailers in the region.
Industrial production has increased in countries such as the United Arab Emirates, Saudi Arabia, Kuwait, and Qatar. Production would be pushed by a rising population and high disposable income. Manufacturing and logistics firms would help the economy in the future. For example, the first phase of the Dubai-based Jafza Logistics Park project is scheduled to be completed in 2023.
Governments in the Middle East and Africa are devoting time and resources to sustainable transportation technologies and renewable energy, which are predicted to enhance demand for and use of buses, hence aiding the market growth.
The Middle East and Africa bus sector is seeing an increase in the use of electric buses. With increased worries about the environment and sustainability, governments in the region are investing in electric buses to replace those that run on fossil fuels.
Recent Developments
Yutong introduced its most recent EV battery safety technology in September 2021. It is the world's first EV safety system to be tested on commercial vehicles in batches. It provides five layers of security, including whole-vehicle security, box security, system security, monitoring security, and component security, while also achieving three significant improvements in safety, road adaptation, and all-weather capability.
Admiral Mobility has announced plans to import 5,000 Geely Farizon electric commercial vehicles to the Middle East, including 3,000 commercial electric trucks (6-tonne and 8-tonne) and 2,000 electric Farizon SuperVANs. The company will get its first shipment in early 2023. The company wishes to comply with the UAE's Sustainable Development Goals.
Volvo Group disclosed an extended range for Volvo's battery electric trucks, as well as a new, completely electric rear axle that can accommodate more batteries.
Tata Motors Limited has presented a wide range of 21 new commercial vehicles across all sectors. These cutting-edge vehicles complement Tata Motors' long-standing 'Power of 6' benefit offering by addressing specific usage and applications while delivering improved productivity and lower total cost of ownership. They were created and constructed to meet the changing needs of cargo and passenger transport across segments and to lower the total cost of ownership (TCO).
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Middle East & North Africa Commercial Vehicle Market.
- Toyota Motor Corporation
- Ford Middle East
- General Motors Africa & Middle East
- Ab Volvo
- Isuzu Motors International FZE
- Mercedes-Benz Group AG
- Scania AB
- MAN Truck & Bus Middle East FZE
- Tata Motors Ltd
- Ashok Leyland (U.A.E) L.L.C
Report Scope:
Middle East & North Africa Commercial Vehicle Market, By Vehicle Type:
- Light Commercial Vehicles (LCV)
- Medium Commercial Vehicles (MCV)
- Heavy Commercial Vehicles (HCV)
Middle East & North Africa Commercial Vehicle Market, By Propulsion Type:
- Internal Combustion Engine (ICE)
- Electric
Middle East & North Africa Commercial Vehicle Market, By End User:
- Construction
- Logistics
- Mining
- Oil & Gas
- Others
Middle East & North Africa Commercial Vehicle Market, By Country:
- Turkey
- Saudi Arabia
- Egypt
- UAE
- Iraq
- Morocco
- Kuwait
- Qatar
- Oman
- Bahrain
For more information about this report visit https://www.researchandmarkets.com/r/tx1sqm
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