The automotive market share in GCC is expected to increase by 346.37 thousand units from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 6.74%.
This automotive market in the GCC research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers the automotive market in GCC segmentations by type (passenger cars and commercial vehicles) and geography (Saudi Arabia, UAE, Kuwait, and Others). The automotive market in GCC report also offers information on several market vendors, including BMW AG, Daimler AG, General Motors Co., Hyundai Motor Co., Kia Motors Corp., Mitsubishi Motors Corp., Nissan Motor Co. Ltd., Stellantis NV, Toyota Motor Corp., and Volkswagen AG among others.
What will the Automotive Market Size in GCC be During the Forecast Period?
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Automotive Market in GCC: Key Drivers, Trends, and Challenges
The growing investment in smart cities is notably driving the automotive market growth in GCC, although factors such as the shutdown of manufacturing and production units may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the automotive industry in GCC. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Automotive Market Driver in GCC
- One of the key factors driving the automotive market growth in GCC is the growing investment in smart cities driven by growing urbanization, which has resulted in the continuous expansion of urban areas, leading to a shortage of land availability.
- According to the World Bank Group estimates, the share of the urban population is expected to reach 90% of the total population by 2050 in the GCC. Hence, the concept of smart cities is gaining momentum globally. For instance,
- In June 2020, Huawei and Smart City Solutions Company (SC2), a leading Saudi Arabian service provider and operator and part of the Batic Group, signed an agreement to collaborate on smart city projects in Saudi Arabia.
- Smart cities will provide smarter solutions that can be deployed to reduce the strain due to urban population growth; these solutions will include the introduction of energy-efficient road networks leading to efficient public transportation systems.
- The growing momentum of smart cities and massive investments in their development are expected to spur the growth of the automotive market in GCC during the forecast period.
Key Automotive Market Trend in GCC
- Another key factor driving automotive market growth in GCC is the technological advances in EVs.
- The growing adoption of EVs is offering new opportunities for different stakeholders, such as system integrators, vehicle manufacturers, engine manufacturers, and component providers.
- Consumers have become aware and started understanding the benefits of EVs and the government is supporting the trend with incentives.
- EV vendors will be trying to cater to the increasing demand and provide better options during the forecast period.
- Vendors are investing more time and energy in R&D and coming up with better models of EVs. For instance;
- In December 2021, General Motors announced its plan to launch 15 EVs in the GCC by 2025.
- These factors are expected to positively impact the market in focus during the forecast period.
Key Automotive Market Challenge in GCC
- One of the key challenges to the automotive market growth in GCC is the shutdown of manufacturing and production units as the COVID-19 pandemic severely affected this sector, especially in 2020 and early 2021.
- Various countries had imposed nationwide lockdown to stop the spread of the disease and had also stopped cross-border trade. This resulted in an increase in the price of raw materials and components required for manufacturing vehicles.
- The absence of customer footfalls across automobile showrooms, owing to the implementation of stringent lockdowns, resulted in the shutdown of automobile production units in the region.
- Such factors are expected to negatively impact the growth of the automotive market in GCC during the forecast period as well.
This automotive market in GCC analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Parent Market Analysis
Technavio categorizes the automotive market in GCC as a part of the global automotive market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the automotive market in GCC during the forecast period.
Who are the Major Automotive Market Vendors in GCC?
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
- BMW AG
- Daimler AG
- General Motors Co.
- Hyundai Motor Co.
- Kia Motors Corp.
- Mitsubishi Motors Corp.
- Nissan Motor Co. Ltd.
- Stellantis NV
- Toyota Motor Corp.
- Volkswagen AG
This statistical study of the automotive market in GCC encompasses successful business strategies deployed by the key vendors. The automotive market in GCC is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.
Product Insights and News
- BMW AG - The company offers automobiles such as luxury cars, electric vehicles, and sports cars through its brand BMW and Mini.
- BMW AG - Automotive segment of the company offers vehicles under the brands BMW, MINI, and Rolls Royce.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The automotive market in GCC forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Automotive Market in GCC Value Chain Analysis
Our report provides extensive information on the value chain analysis for the automotive market in GCC, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chains is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The value chain of the global automotive market includes the following core components:
- Inputs
- Inbound logistics
- Automobile manufacturers
- Distribution and logistics
- Marketing and sales
- Aftermarket and service
- Innovation
The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
What are the Revenue-generating Type Segments in the Automotive Market in GCC?
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The automotive market share growth in GCC by the passenger cars segment will be significant during the forecast period. The significant increase in the demand and sale of passenger cars will drive the market growth through this segment. For instance, in 2019, 2.3 million passenger cars were sold in the Middle East, which is expected to increase to over 3 million cars during the forecast period.
This report provides an accurate prediction of the contribution of all the segments to the growth of the automotive market size in GCC and actionable market insights on post COVID-19 impact on each segment.
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Automotive Market Scope in GCC |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2021 |
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Forecast period |
2022-2026 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.74% |
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Market growth 2022-2026 |
346.37 th units |
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Market structure |
Fragmented |
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YoY growth (%) |
5.91 |
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Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
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Key companies profiled |
BMW AG, Daimler AG, General Motors Co., Hyundai Motor Co., Kia Motors Corp., Mitsubishi Motors Corp., Nissan Motor Co. Ltd., Stellantis NV, Toyota Motor Corp., and Volkswagen AG |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
What are the Key Data Covered in this Automotive Market in GCC Countries Report?
- CAGR of the market during the forecast period 2022-2026
- Detailed information on factors that will drive automotive market growth in GCC during the next five years
- Precise estimation of the automotive market size in GCC and its contribution to the parent market
- Accurate predictions on upcoming trends and changes in consumer behavior
- The growth of the automotive industry in GCC
- A thorough analysis of the market's competitive landscape and detailed information on vendors
- Comprehensive details of factors that will challenge the growth of automotive market vendors in GCC
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