GCC Heavy Commercial Vehicle Market to be Led by Heavy Commercial Trucks through 2028

The rising construction sector, infrastructural development of transportation networks, increase in manufacturing activities, and government initiatives regarding decarbonization are driving the heavy-commercial vehicle market in GCC.  

According to TechSci Research report, “GCC Heavy Commercial Vehicle Market- By Country, Competition, Forecast and Opportunities, 2028,” the GCC heavy commercial vehicle market is expected to surge substantially during the forecast period due to increase in various heavy industry operation in the GCC countries, such as steel industry, construction industry, logistics industry, mining industry, and improving public transportation networks. The GCC countries are investing in several projects related to infrastructural development, real estate areas, commercial, and residential complexes. All these projects rely on the usage of heavy commercial vehicles; thus, the respective market is going to witness huge demand.

Heavy commercial vehicles market is often considered as the economic indicator of a country. Development in this market reflects the measure of development activities that are going on in a particular country. The Kingdom of Saudi Arabia has announced the financing of a USD 6 billion Steel Plate Mill Complex and Electric Vehicle Battery Metals Plant, as part of its diversification efforts. This is part of the Kingdom's plan to attract a total of USD 32 billion in investment for Mining sector. The Kingdom aims to capitalize on its status as a global Mining Production and Logistics Hub. The ministry intends to finance nine mining projects for midstream minerals and metals. These projects include a steel plate mill complex for the shipbuilding, oil & gas, construction and defense sectors, a "green" flat steel complex for the automotive, food packaging, machinery and equipment sectors, and an EV battery metals plant. Moreover, Kuwait is focused on improving trade relations, which has led to an increase in import and export value and volume. The economy of Kuwait is based on oil and is small, well-off, and relatively liberal. Aramex (a logistics company) plans to set up the largest logistics warehouse in Kuwait, which will support Aramex's e-commerce fulfillment business growth. Aramex's new 16,000 square meter electronic fulfilment facility at the Agility Logistics Park in Kuwait is projected to be the largest logistics warehouse in the country. Further, there are number of construction projects that attract huge investments in the GCC countries, but currently they are mostly concentrated in Saudi Arabia and UAE. The GCC project pipeline for the period up to 2026 will continue to be dominated by the combined oil and natural gas sector, which will continue to generate many contract awards. This sector is often associated with construction-related activities to maintain and increase production capacity. Additionally, there will be a strong presence in the construction sector, as well as in light and heavy manufacturing. As of June 2022, the construction and transport sector accounted for approximately USD 77 billion of the total contract award value, with another USD 352 billion in design and study stages, mainly in the form of government-supported infrastructure projects for the development of roads, railways, ports, airports, and water sanitation systems. Other projects will also be present in the pipeline, such as real estate, energy transition projects, transport (mainly in the form of railway), and the capacity building of the oil, gas, and LNG sector. Therefore, all these investments and projects are going to create huge demand for heavy commercial vehicles in the GCC countries.

The heavy commercial vehicle market is segmented based on the vehicle types into heavy trucks and heavy buses. Among these two segments, the heavy trucks have a major share in the market because transportation systems in many GCC countries are still in developing stage and are still dominated by private vehicles. Therefore, heavy commercial buses are not able to capture a huge chunk of the market as compared to the heavy commercial trucks. Furthermore, heavy commercial vehicles are classified as into class 7 and class 8 vehicles based on their gross vehicle weights. In terms of sales, class 7 are more in numbers in comparison to the class 8 vehicles because of their involvement in catering to small and medium enterprises in GCC countries. This factor is further augmented by the fact that there is rapid urbanization going on in the GCC countries. Based on fuel type, the heavy commercial vehicles are divided into diesel, CNG, and alternate fuel. The heavy commercial vehicles are mostly powered by diesel because of their specific requirements of large payload and torque. Another fuel type that is often used after diesel fuel is CNGs. However, due to environmental concerns, there has been push towards the development of alternate fuels owing to their ecofriendly nature as compared to diesel. Although they are in a developing stage in terms of technological advancements, but they are getting popular at a fast pace.

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Key market players in the GCC heavy commercial vehicle market include:

• Toyota Motors Corporation
• Mitsubishi Fuso Truck and Bus Corporation
• ISUZU Motors Middle East FZE
• Hyundai Motor Company
• MAN Truck and Bus Middle East FZE
• Volvo Group Middle East FZE
• Mercedes-Benz KSA
• Tata Motors Limited
• Ford Motor Company
  
  

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“The rising investments in heavy industries such as steel, aluminum, mining, and construction, is boosting heavy commercial vehicle market in GCC, and the scenario is likely to remain same over the next few years. Moreover, the government initiatives to diversify the economies in the GCC countries are opening several opportunities in other related industries which is further leading to the growth in heavy commercial market. Additionally, the technological advancement is also providing tremendous opportunities for the growth and development in this industry which are projected to positively impact the GCC heavy commercial vehicle market during the forecast period” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.

“GCC Heavy Commercial Vehicle Market By Vehicle Type (Heavy Truck and Heavy Buses), By Class Type (Class 7 and Class 8), By Fuel Type (Diesel, CNG, and Alternate Fuel), By End User (individual and Fleet Owner), By Application (Wholesale & Retail, Transport, Construction, Mining, and Others), By Region, Competition, Forecast and Opportunities, 2028” has assessed the GCC heavy commercial vehicle market’s future development potential and provides data and information on market size, structure, and projected market growth. The report's goal is to give current market knowledge and assist decision makers in making informed investment decisions. Furthermore, the study identifies and analyses emerging trends, as well as key drivers, constraints, and opportunities in the GCC heavy commercial vehicle market.

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