UAE Used Car Market: A Thriving Industry with Forecasted Growth to AED 39.8 Billion by 2028

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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UAE Used Car Market

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UK Used Car Market Outlook to 2026F driven by declining production of New Vehicles in UK & affordability of used Cars due to increasing cost of living in the Country

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