In-Depth Analysis by Ken Research
GURUGRAM, India, Feb. 5, 2024 /PRNewswire/ — Ken Research forecasts a significant growth trajectory for the UAE Used Car Market, predicting its expansion to AED 39.8 billion by 2028. The market, currently valued at around AED 20.4 billion, is experiencing a compound annual growth rate (CAGR) of 10.9%, signifying a vibrant and evolving used car industry.
Market Transformation and Key Drivers
The UAE Used Car Market has undergone substantial transformation since the 1990s, driven by a diversifying economy and an increasing expat community. The demand for affordable transportation has shifted the market landscape from traditional offline channels to a mix of organized and unorganized sectors, with a notable segmentation based on market structure, car types, and regional influences.
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Revenue Growth and Expanding Opportunities
From 2017 to 2028, the market is expected to see a considerable increase in revenue, growing from AED 7.8 billion to AED 39.8 billion. This growth is fueled by factors such as the global shortage of semiconductor chips, boosting demand for used cars, and the sustained need for mid-level cars.
Ecosystem and Competitive Dynamics
The market, featuring major players like Al Futtaim, AWR-Arabian Automobile, and Al Habtoor, is moderately fragmented. Al Futtaim leads among OEM players, holding a significant share. The industry reflects a shift from traditional channels to a blend of organized and unorganized sectors, with the competitive landscape being dominated by a few OEM players contributing to 40% of total market sales.
Segmentation Insights
In 2023, the market is distinctly segmented by the type of car. SUVs are a popular choice, particularly among families, while the influx of expats fuels demand for sedans and hatchbacks. This trend reflects diverse preferences within the market, with families opting for SUVs for recreational purposes and individuals gravitating towards sedans and hatchbacks for commuting.
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Regional Market Analysis
Dubai leads the market segmentation by region, driven by its large population, frequent tourist influx, and thriving business hub. Sharjah is witnessing growth in demand, focusing on improving business infrastructure. However, smaller-population emirates experience lower demand for used cars.
Future Market Outlook
The UAE used car market is expected to witness a growth slowdown in 2023 due to improved conditions in the new car market related to semiconductor shortages. However, strong demand in the used car market persists, especially for mid-level cars. Factors driving demand include affordability, availability, the necessity for mobility, and a substantial expat population.
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Ken Research offers an authoritative and comprehensive analysis of the UAE Used Car Market. Our extensive report provides detailed insights into market trends, competitive landscapes, and future forecasts. Explore our research offerings at Ken Research for unparalleled market intelligence in the used car industry.
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Taxonomy
By Market Structure
Organized Sector
Unorganized Sector
By Organized Sector
OEMs/Franchise Dealers
Multi-Brands Dealerships
Online Marketplaces/Classified
By Unorganized Sector
Auction Houses
C2C & Others
Local Dealers
By Car Type
SUV
Sedan
Hatchback
Coupe
Pickup Truck
Others
By Brands
Toyota
Nissan
Mitsubishi
Hyundai
Ford
Chevrolet
Kia
Others
By Country of Origin
Japan
USA
South Korea
Germany
China
Others
By Region
Ajman
Ras Al-Khaimah
Umm Al-Quwain
Sharjah
Abu Dhabi
Fujairah
Dubai
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France used car market was valued at USD ~ Billion in 2021, and it is expected to reach a value of USD ~ billion by 2027, registering a CAGR of ~% during the forecast period (2022 – 2027). Amid the COVID-19 pandemic-associated lockdown, the demand for used cars witnessed a halt in sales for the first half of the year 2020. However, since the second half of the year 2020, the demand for used vehicles started to pick the pace and continued until 2021.
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According to Ken Research estimates, due to the impact of COVID-19, there has been a substantial decrease in the denominator (new car sales) while the numerator, i.e. the pre-owned car market, has been relatively stable. Turkey used car market is expected to grow at an 11.8% CAGR during 2021-2026F, driven by an increase in prices of new cars and government initiatives. The Turkish automotive industry had a foreign trade surplus of approximately $9.5 billion in 2021.
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