NEW YORK, May 10, 2016 /PRNewswire/ --
According to recently published report "UAE Commercial Vehicles Market Forecast & Opportunities, 2021" UAE truck market, which includes pickup & light duty trucks, medium and heavy duty trucks (M&HCV), is the dominating segment of the UAE commercial vehicle market. In comparison with other Middle East countries, which derive a large chunk of their revenue from the oil and gas sector, the UAE has diversified into non-oil sectors such as manufacturing, construction, power, wholesale, retail and transportation which has reduced its dependence on oil and gas sector.
Despite of such a positive contrast, the country's truck market witnessed negative growth during 2011-2015 due to slowdown in construction projects across the country and tight liquidity situation. However, in 2014, $100 billion investment was allocated for the housing and transport sector in Abu Dhabi, which was in line with country's economic vision 2030. In addition, Abu Dhabi's Executive Council announced investment of $89 billion, road development and other infrastructure projects in the housing sector in 2013. Further, around USD 2 billion are estimated to be invested in developing state-of-the-art housing establishments in the country. Various road construction project such as 62 km highway connecting Dubai and Abu Dhabi are also scheduled for completion by 2017.
According to TechSci analysis, the country is expected to witness investment in energy, infrastructure, residential and commercial projects over the next five years. Moreover, the country would be hosting the "World Expo 2020". Consequently, the country is poised to witness large scale infrastructure development. Moreover, the UAE government is focusing on diversification of economy in the non-oil sector over the next decade, as per the government's plan to trim down the share of revenue derived from the oil sector to around 20% by 2030.
Few of the prominent projects, which are likely to raise the demand for trucks in the UAE are, Abu Dhabi Metro construction, Dubai Metro rail line construction, Emirates Roads Master Plan, Etihad railway Network, Airport expansion project, Abu Dhabi Airport expansion projects, etc.
The average selling price (ASP) of trucks in the UAE is anticipated to increase at a low pace over next five years. Garnering support from the expected growth in the volume sales coupled with anticipated price rise, market for trucks in the UAE is projected to grow by 2021, thereby exhibiting revenue growth at a CAGR of around 8.65% during 2016-2021.
The UAE truck market is dominated by Mitsubishi. The company emerged as a leader in pickup & light truck category backed by its wide product portfolio. The market share of Mitsubishi is estimated to further grow by 2021 backed by anticipated increase in its market share in medium and heavy duty truck markets.
On the other hand, second and third largest market shares in the UAE truck market were held by Nissan and Toyota respectively, in 2015. Nissan with its presence in the pickup & light duty truck segment and medium duty truck segment has been playing on volume sales. However, Toyota, along with its subsidiary "Hino" accounted for third largest market share in the pickup & light duty truck category in the same year. Hino was the largest player for medium duty trucks in the UAE in 2015. The market share of Toyota (along with its subsidiary Hino) is further forecast to increase by 2021 according to TechSci Research report.
"UAE Commercial Vehicles Market Forecast & Opportunities, 2021" has evaluated the future growth potential of commercial vehicle market in the UAE and provides statistics and information on market side, structure and trends. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment evaluation. Besides, the report also identifies and analyzes emerging trends along with essential drivers, challenges and opportunities available in the UAE commercial vehicles market.
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SOURCE TechSci Research