COMMERCIAL VEHICLES-GCC
Market dynamics and current trends driving growth and demand in the GCC Market According to GMI Research, with offices in the USA, Europe and India, the major factors that are driving the growth of the GCC Commercial Vehicle market include the growing preference for connected commercial vehicles and the increasing demand for commercial vehicles from logistics, tourism, infrastructure, and public transport industry.
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he commercial vehicle is defined as a vehicle that is used to carry goods, materials, or passengers. The commercial vehicle can be truck, bus, van, or car and is used in transportation, logistics, mining, industrial, and other industries. Passenger commercial vehicles are registered to a specific company and are capable of carrying more than 15 passengers. The GCC region countries are aiming to diversify its economy to reduce its dependence on the oil sector, which will help to prevent the oil price from having such a significant impact on its economy. The governments are heavily investing in mega projects, such as Dubai Expo 2020 and FIFA World Cup 2021 in Qatar, to boost tourism across the region, which will further increase the demand for the commercial vehicles such as van, buses, and cars.
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Demand for commercial vehicles The demand for commercial vehicle is also impacted by the increasing number of ongoing and upcoming infrastructure projects in GCC countries, such as Smart cities project, the red sea project in Saudi Arabia, and development of rail infrastructure in GCC countries, which require commercial vehicles to transport goods and material from one place to another. Growing population and increasing per capita income are fuelling the higher consumption of goods. The economy of GCC countries is highly dependent on importing goods, thus the growing consumption pattern will drastically increase the demand for transportation and logistics activities. In addition to this, the development of a rapid transit system and metro rails in
GCC countries are likely to surge demand for commercial buses. However, the growth of railway network in GCC region and the high dependence on private cars for communicating will hinder the growth of the market. Based on product offerings, the light commercial vehicle segment is expected to grow at a higher CAGR during the forecast period owing to the increasing usage of light commercial vehicles, such as pick-up vans and small size buses, driven by its dynamic features which enable the owners to modify the vehicle.
Higher CAGR Based on end-use, the logistics segment is projected to grow at a higher CAGR in the market during the forecast period owing to the high dependency on import of goods due to increasing demand from rising population and high disposable income, which increase
