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GCC Used Car Market Size (2024 - 2029)

The GCC used car market is projected to experience significant growth over the forecast period, driven by factors such as cost-effectiveness and a diverse vehicle fleet. The market's expansion is attributed to a shift in consumer preference towards pre-owned cars, influenced by economic considerations and supply chain disruptions affecting new car production. Despite challenges like price discrepancies and lack of standardization, the region has seen improved sales in the used car segment. Enhanced trade logistics and partnerships further support the market's growth, indicating a robust demand for used cars across the GCC.

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Market Size of GCC Used Car Industry

GCC Used Car Market Overview
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 8.58 %
Market Concentration Medium

Major Players

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*Disclaimer: Major Players sorted in no particular order

GCC Used Car Market Analysis

GCC Used Car Market was valued at USD 16.38 billion in 2021 and is expected to surpass a net valuation of USD 28.98 billion by 2027 end, registering a solid CAGR growth of 8.58% over the forecast period.

The COVID-19 pandemic had a moderate impact on the market as initial lockdowns in 2020 resulted in a slowdown in demand, however with ease in restrictions in 2021 consumers were encouraged to prefer used cars over new cars in wake of the pandemic coupled with fewer vehicle production due to supply chain disruptions and shortage of some auto components.

Over the longer-term forecast period, factors including economical cost and variety in the fleet are expected to boost the used car demand in the GCC region. However, price discrepancies, lack of standardization, and others are expected to act as major restraints to the growth of the market.

Demand for pre-owned cars for family, personal use among residents, and partial economic disruption with the new car segment alongside value-for-money have cumulatively driven the market into an immersive growth in the GCC. Over the years, the GCC which is the council of prominent middle eastern countries including the United Arab Emirates, the Kingdom of Saudi Arabia, Kuwait, Bahrain, Qatar, and Oman has consistently witnessed improved sales bars in the used car segment.

Key logistics and trade partners are revamping their trade volumes to felicitate the vehicles demand in the GCC region. This has helped used car business owners who are simply importing cars from around the GCC region. For instance, in September 2022, Jebel Ali Free Zone (Jafza), which is the leading trade and logistics hub in the Middle East facilitated a total of 1.2 million (MT) from Dubai. The total volume of trade remains 4.8 million MT of vehicle & transport commodities through the United Arab Emirates in 2021.

Considering these factors and developments, demand for a used cars in the GCC region is expected to witness a high growth rate during the forecast period.

GCC Used Car Industry Segmentation

A Used Car, a pre-owned vehicle, or a secondhand car, is a vehicle that has previously had one or more retail owners. Used cars are sold through various outlets, including franchise and independent car dealers, rental car companies, buy here pay here dealerships, leasing offices, auctions, and private party sales.

GCC Used Car Market is segmented by vehicle type, sales channel, vendor type, and country. Based on vehicle type, the market is segmented into hatchback, sedan, and sports utility vehicles (SUV) and multi-purpose vehicles (MPVs)). Based on sales channel, the market is segmented into online and offline. Based on vendor type, the market is segmented into organized and unorganized, and based on country, the market is segmented into Country United Arab Emirates, Bahrain, Saudi Arabia, Oman, Qatar, and Kuwait. For each segment, market sizing and forecast have been done on basis of a value (USD billion).

Vehicle Type
Hatchback
Sedan
SUV and MUV
Sales Channel
Online
Offline
Vendor Type
Organized
Unorganized
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GCC Used Car Market Size Summary

The GCC used car market is poised for significant growth, driven by factors such as economic affordability and a diverse vehicle fleet. The market experienced a moderate impact from the COVID-19 pandemic, with initial demand slowdowns due to lockdowns. However, as restrictions eased, consumers increasingly favored used cars over new ones, influenced by supply chain disruptions and a shortage of new vehicle production. The region, comprising countries like the United Arab Emirates, Saudi Arabia, Kuwait, Bahrain, Qatar, and Oman, has seen a consistent rise in used car sales. Key logistics hubs, such as Jebel Ali Free Zone, have facilitated trade volumes, supporting the demand for used vehicles. Despite challenges like price discrepancies and lack of standardization, the market is expected to grow robustly, with hatchbacks gaining popularity due to their affordability and fuel efficiency.

In the United Arab Emirates, the high penetration of internet users has led to a shift from offline to online business models, enhancing the customer experience in the used car market. Consumer preferences have shifted towards fuel efficiency and certified used cars, which offer pre-inspection and maintenance services. The market is moderately fragmented, with major players like Al Tayer Group, Al-Naboodah, and Al-Futtaim Group leading the charge. These companies are adopting strategies such as collaborative agreements and fleet expansion to capture market share. Initiatives like the certified pre-owned programs and financing options are making used cars more accessible. As economic sentiments encourage residents to opt for affordable vehicles, the demand for used cars in the GCC, particularly in the UAE, is expected to witness high growth in the coming years.

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GCC Used Car Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

    2. 1.2 Market Restraints

    3. 1.3 Porters Five Force Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION (Market Size in Value USD Billion)

    1. 2.1 Vehicle Type

      1. 2.1.1 Hatchback

      2. 2.1.2 Sedan

      3. 2.1.3 SUV and MUV

      4. 2.1.4

    2. 2.2 Sales Channel

      1. 2.2.1 Online

      2. 2.2.2 Offline

    3. 2.3 Vendor Type

      1. 2.3.1 Organized

      2. 2.3.2 Unorganized

GCC Used Car Market Size FAQs

The GCC Used Car Market is projected to register a CAGR of 8.58% during the forecast period (2024-2029)

Arabian Auto Agency, YallaMotors, AlNabooda Automobiles, AlTayer Motors and Alfuttaim Group are the major companies operating in the GCC Used Car Market.

GCC Used Cars Market Report Snapshots

GCC Used Car Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)