Construction, mining, petrochemicals and waste management industries to drive demand for heavy-duty trucks in MENA
In terms of value, the MENA trucks market is likely to increase from $3.2 billion in 2017 to $5.3 billion by 2027
Globally, the market for heavy-duty commercial vehicles over 6 tonnes grew strongly in 2017, according to the German Association of the Automotive Industry. Around 3.3 million trucks were sold worldwide, which was a rise of 16% compared with 2016. The growth was driven by the keen demand in China, but also by the markets in Europe and the US and the growth in India. Worldwide, four out of ten heavy-duty commercial vehicles were purchased in China. This took the Chinese market to a volume of 1.35 million vehicles. The year-on-year growth of 40% equates to 384,000 units. The robust market development was principally due to the purchases brought forward before the nationwide introduction of China’s new exhaust standard 5 in mid-year, and to stricter controls to prevent overloading and the extra heavy trucks needed in their wake. In India, too, sales of heavy commercial vehicles increased markedly in 2017. The market expanded by 13% to reach 295,000 trucks.
The US truck market picked up a lot of speed in the second half of 2017, and made up for losses at the beginning of 2017. The market finished the year with growth of 4%, on 415,000 heavy trucks sold. The heavy-duty segment over 15 tonnes ultimately proved to be the most dynamic.
Demand for trucks in the Middle East is increasing due to their vast use in end-use industries such as construction, mining, petrochemicals and waste management. Future Market Insights estimates that 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, and display a CAGR of 3.4% in the forecast period. In terms of value, the MENA trucks market was estimated to be nearly $3.2 billion in 2017 and is likely to reach nearly $5.3 billion in 2027 and in the process exhibit a CAGR of 5.1%.
The trucks market in Saudi Arabia is estimated to be valued at nearly $560 million in 2017 and is likely to reach a valuation of nearly $900 million in the year 2027 and exhibit a CAGR of 4.6% during the assessment period.
In the developed economies, the buyers of commercial vehicles are opting for vehicles that are equipped with advanced diagnosis and automation. Manufacturers of commercial vehicles have thus adapted to this demand by employing process R&D and product innovation in advanced telematics systems. This trend is also likely to gain a foothold in the MENA market and create significant opportunities in the coming years and boost market growth. In addition, there is an introduction of new and advanced components in the driver cabin of commercial vehicles that make the job of the driver easy in all types of weather conditions. This is especially true in the severely hot countries of the MENA region, or even during heavy rain or snow and very cold conditions. In addition, due to the introduction of new high strength steel and truck bodies that can withstand the high temperatures in the MENA region, the market is poised to attain a growth trajectory. With the introduction of rugged axles and the machine superstructure manufactured with the advanced machines that can bear high load conditions are also adding to the attraction of commercial trucks market in the MENA region.