Articles
Companies

Home / ANALYSIS / MENA LCV/MCV market to grow at CAGR of 5% until 2027

MENA LCV/MCV market to grow at CAGR of 5% until 2027

by Dennis Daniel on Feb 20, 2018




Growth in pick and drop operations in industries such as construction, retail, and distribution are driving the markets for light and medium duty vehicles in the Middle East region.

A report published by Future Market Insights, which studies the performance of the MENA commercial vehicles (trucks) market over a 10 year assessment period from 2017 to 2027, estimates a revenue growth from nearly $5,250m in 2017 to nearly $8,500m by the end of 2027, resulting in a CAGR of 5% during the period.

In terms of volume, the MENA trucks market was pegged at 152,191 units in the year 2017 and is poised to reach a figure of 212,232 units in 2027, projecting a CAGR of 3.4% during the forecast period.

The trucks market in Saudi Arabia was estimated to be valued at nearly $560m in 2017 and is likely to reach a valuation of nearly $900m in 2027 and exhibit a CAGR of 4.6% during the assessment period.

The light duty segment in the class type category was estimated to be valued at nearly $160m at the end of 2017 and is estimated to touch a valuation of nearly $250m by the end of 2027.

The medium duty segment was estimated to be valued at nearly $1,850m in 2017 and is likely to touch a valuation of nearly $3,000m by 2027.

At a global level, the market research report ‘2025 Vision of Transformations in Global Medium-Duty Truck Market’, indicates that the thrust towards freight efficiency improvement will push the demand for alternative powertrains and advanced telematics-enabled technologies in medium duty trucks.

According to the study, urbanisation, proliferation of hub-and-spoke distribution and growth in ASEAN, Africa and Middle East markets will propel medium duty truck growth at a CAGR 4.8% to touch 1.55 million units globally in 2025, from 972,000 units in 2015.

However, the medium duty segment is facing volume pressure globally from growth in heavy duty trucks which are preferred for logistics between hubs and light city vehicles which are preferred for city distribution.

Sustained demand for the segment will come from urbanisation and routing. On the architectural front, cab-over type medium duty trucks are growing in demand in comparison to conventional trucks due to the impact of urbanisation which drives the demand for more fuel-efficient truck design.

Alternative powertrains will not experience significant adoption in medium duty trucks due to the negative impact on payload due to a larger fuel tank in CNG trucks and batteries in hybrid/fully electric powertrains.

 



Advertisement




Articles
Companies