Report Overview

An increasing number of large infrastructure development projects, thriving e-commerce sector, and economic growth are expected to drive GCC Commercial Vehicle (CV) Market during the forecast period between 2024 and 2030.

GCC Commercial Vehicle (CV) Market – Industry Trends & Forecast Report, 2030

GCC Commercial Vehicle (CV) Market size was estimated at USD 13.7 billion in 2023. During the forecast period between 2024 and 2030, GCC Commercial Vehicle (CV) Market size is projected to grow at a CAGR of 6.60% reaching a value of USD 21.6 billion by 2030. Prominent drivers of the market include economic diversification as governments shift focus from oil dependence to industries like manufacturing, retail, and tourism, alongside significant investments in infrastructure such as seaports, airports, roads, and logistics facilities to enhance connectivity and efficiency. The GCC’s strategic location as a trade hub, the rising adoption of e-commerce fueling demand for light commercial vehicles (LCVs) for last-mile delivery and the expansion of cold chain logistics, further accelerates market growth. Additionally, increasing fuel costs are driving demand for fuel-efficient vehicles, while government initiatives promoting electric and hybrid models support the shift toward eco-friendly transportation. Technological advancements, including automation, IoT, and data analytics, are enhancing vehicle functionality and aligning with the growing preference for connected CVs. Major events like Dubai Expo 2020 and Qatar’s FIFA World Cup 2021 have also bolstered demand for CVs in tourism & hospitality  and infrastructure development projects, while the region’s efforts to reduce oil dependency aim to create a sustainable foundation for market expansion.

Commercial Vehicle (CV) – Overview

A commercial vehicle (CV) is a type of motor vehicle used primarily for transporting goods, materials, or passengers for business or commercial purposes. These vehicles are designed to perform tasks related to industries such as logistics, transportation, mining, and construction. Common types of CVs include trucks, vans, buses, and cars, with passenger commercial vehicles specifically capable of carrying more than 15 passengers. Typically, CVs are registered to businesses or organizations rather than private individuals and are essential for sectors like public transport, retail, industrial operations, and e-commerce.

GCC Commercial Vehicle (CV) Market

Growth Drivers

Increasing Demand for CVs from Infrastructure Development Projects

The rapid pace of infrastructure development across the countries in Gulf Cooperation Council (GCC) region has emerged as a significant driver of GCC Commercial Vehicle (CV) Market. Massive investments in highways, bridges, ports, and logistics facilities are enhancing connectivity, reducing transit times, and optimizing supply chain efficiency, thereby increasing the demand for CVs. This modernization of infrastructure is not only streamlining logistics operations but also opening new markets and trade opportunities, fostering economic growth across the region. Companies like ALSI Global are leveraging these advancements to enhance their operations, aligning with the expanding infrastructure to maintain industry leadership. As these developments continue to reshape the GCC logistics landscape, the Commercial Vehicle (CV) Market is expected for substantial growth, fueled by enhanced connectivity and strategic market access enabled by infrastructure expansion.

Challenges

High Initial Cost

The high initial cost of commercial vehicles (CVs) poses a significant challenge to the growth of the GCC Commercial Vehicle (CV) Market. Advanced technologies, such as fuel-efficient engines, electric and hybrid systems, and safety features, have driven up manufacturing costs, resulting in higher purchase prices. These elevated costs can strain budgets for small and medium-sized enterprises (SMEs), limiting their ability to upgrade or expand fleets. Additionally, financing challenges and longer payback periods further deter potential buyers. As a result, the high upfront investment required for CVs acts as a key restraint on market growth, particularly for cost-sensitive businesses.

Impact of Escalating Geopolitical Tensions on GCC Commercial Vehicle (CV) Market

Intensifying geopolitical tensions among countries across the Middle East region, particularly escalating conflicts between Israel and neighboring countries, have significantly impacted the growth of GCC Commercial Vehicle (CV) Market. Disruptions to supply chains and transportation routes due to the ongoing conflicts threaten the timely delivery of CVs and spare parts. Additionally, fluctuations in oil prices, driven by fears of supply disruptions, have affected economic activities in the GCC countries. While oil prices initially rose, recent declines due to oversupply concerns could hinder infrastructure investments and logistics operations, thereby dampening demand for CVs. The heightened geopolitical risks may also lead to stricter trade regulations, increasing costs for importing and exporting vehicles, and further underlining the vulnerability of the GCC Commercial Vehicle (CV) Market to regional political, economic, and trade instabilities.

GCC Commercial Vehicle (CV) Market

Segmental Coverage

GCC Commercial Vehicle (CV) Market – By Vehicle Type

Based on vehicle type, GCC Commercial Vehicle (CV) Market is divided into Light Commercial Vehicles (LCVs), Heavy Trucks, and Buses & Coaches segments. The LCVs segment is expected to hold the largest share of GCC Commercial Vehicle (CV) Market by vehicle type during the forecast period. The GCC countries, including Saudi Arabia, UAE, Kuwait, and Oman, are heavily reliant on imported vehicles, as they lack domestic automotive manufacturing plants. Commercial vehicles, primarily imported from countries like China, Japan, and India, are subject to high import duties, which increase vehicle prices. To address this, GCC governments are implementing policies to encourage local manufacturing, which is anticipated to reduce the cost of LCVs and drive demand. Investments in tourism and hospitality, including airport expansions and the relaxation of visa rules in Qatar and UAE, are expected to boost the region's economy and, in turn, increase the demand for LCVs. Additionally, mega projects such as Saudi Vision 2030, the Red Sea project, smart city developments, and rail infrastructure expansions require the transportation of goods and materials, further fueling demand for CVs. The growing population and consumption patterns also contribute to the rising need for goods transportation, accelerating LCV market growth. Furthermore, the expansion of sectors like manufacturing, retail, and logistics, supported by favorable government policies, has spurred demand for LCVs. The increasing use of LCVs for long-haul transportation services and mobile businesses, such as food trucks, has also boosted their market penetration in the region, indicating a strong future for the LCV segment in the GCC.

GCC Commercial Vehicle (CV) Market – By Fuel Type

By fuel type, GCC Commercial Vehicle (CV) Market is bifurcated into Internal Combustion Engine (ICE) and Electric Vehicle (EV) segments. The ICE segment holds a higher share in GCC Commercial Vehicle (CV) Market by fuel type. The region's abundant oil reserves make fuel relatively inexpensive, making IC engine vehicles a cost-effective option. Additionally, the well-established infrastructure for IC engine vehicles, including extensive networks of fuel stations and repair facilities, further supports their dominance. Many consumers in the GCC still prefer the performance, range, and refueling convenience offered by IC engine vehicles, particularly for long-distance travel and heavy-duty applications. While there's growing interest in EVs, the limited EV infrastructure, higher initial costs, and consumer preferences currently favor IC engine vehicles. However, with increasing government support, technological advancements, and growing environmental concerns, the adoption of EVs is expected to accelerate in the future.

GCC Commercial Vehicle (CV) Market – By End Use

On the basis of end use, GCC Commercial Vehicle (CV) Market is divided into Industrial, Mining & Construction, Logistics, Passenger Transportation, and other segments. The logistics segment holds the highest share in GCC Commercial Vehicle (CV) Market by end use, primarily due to the region's growing demand for efficient transportation of goods across vast distances. The rapid expansion of e-commerce, trade, and infrastructure projects, such as ports and warehouses, has significantly boosted the logistics sector. Additionally, the increasing reliance on light and heavy commercial vehicles for last-mile delivery services, long-haul transportation, and supply chain management has further fueled market growth. With rising demand for timely deliveries and optimized distribution networks, logistics continues to drive the highest demand for CVs in the GCC region.

GCC Commercial Vehicle (CV) Market – By Country

The in-depth research report on the GCC Commercial Vehicle (CV) Market covers GCC countries: Saudi Arabia, UAE, Qatar, Kuwait, Oman, and Bahrain. Saudi Arabia (KSA) and the United Arab Emirates (UAE) are the dominant players in the GCC Commercial Vehicle (CV) market, particularly within the truck segment, which encompasses light-duty, medium-duty, and heavy-duty trucks. Their leadership is underpinned by strong economic growth across vital sectors such as manufacturing, construction, retail, and transportation. Both countries benefit from favorable government policies, strategic infrastructure investments, and ongoing efforts to diversify their economies beyond oil. These factors contribute significantly to the growth of the Commercial Vehicle (CV) market, particularly as both nations focus on modernizing logistics, construction, and manufacturing industries. The combination of continued economic expansion and infrastructure development positions Saudi Arabia and the UAE as key drivers of Commercial Vehicle (CV) demand in the GCC region, ensuring their sustained dominance in the market during the forecast period.

Competitive Landscape

Major players operating in GCC Commercial Vehicle (CV) Market include Toyota, Mitsubishi Fuso, Isuzu, Hyundai, MAN Truck & Bus, Volvo Trucks, Mercedes-Benz, Tata Motors, and Ford. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In September 2024 - Mullen Automotive, in collaboration with Volt Mobility and VoltiE Group, began the delivery of its first EV vehicles in Dubai, marking a significant milestone in its Middle Eastern operations. Volt Mobility, a UAE-based vehicle transport and leasing company, placed a USD 210-million order for Mullen’s all-electric commercial vehicles, including 300 units for 2024 and 3,000 units for 2025. Mullen is also establishing a service network to support Volt’s fleet.

• In April 2024 - Stellantis announced plans to expand its product range in Saudi Arabia, introducing smart cars and light commercial vehicles (LCVs) under brands like Fiat, Citroen, and Peugeot. As part of its Dare Forward 2030 strategy, the company aims to enhance its market share, aligning with Saudi Vision 2030's sustainability goals.

Scope of the Report

By Vehicle Type

• Light Commercial Vehicles (LCVs)

• Heavy Trucks

• Buses & Coaches

By Fuel Type

• Internal Combustion Engine (ICE)

• Electric Vehicle (EV)

By End Use

• Industrial

• Mining & Construction

• Logistics

• Passenger Transportation

• Others

By Country

• Saudi Arabia

• UAE

• Qatar

• Kuwait

• Oman

• Bahrain