UAE Used Car Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 18.39 Billion |
| Market Size (2029) | USD 32.03 Billion |
| CAGR (2024 - 2029) | 11.73 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
UAE Used Car Market Analysis
The UAE Used Car Market size is estimated at USD 18.39 billion in 2024, and is expected to reach USD 32.03 billion by 2029, growing at a CAGR of 11.73% during the forecast period (2024-2029).
The United Arab Emirates used car market has been growing steadily over the years and has become a key part of the automotive industry. Factors driving the growth of the used car market include affordability, availability, quality of used cars, the large number of expatriates, and consumer preferences. However, price discrepancies, lack of standardization, and others are expected to act as major restraints to the growth of the market.
The used car market in the United Arab Emirates is expected to continue to grow, driven by factors such as affordability, availability, and changing consumer preferences. However, the exact scope of future growth will depend on a variety of factors, including the overall health of the economy, consumer preferences, and government policies affecting the automotive industry.
The used car market in the United Arab Emirates is driven by the country鈥檚 vibrant travel and tourism industry. Tourists and locals alike prefer these versatile used vehicles for their spacious interiors, accommodating both passengers and luggage comfortably.
Due to the increasing digitization and the ability of companies to provide immersive purchase experiences remotely, the United Arab Emirates used car market聽is expected to witness significant growth. Furthermore, the rise in the value-added service offering and the variety of finance providers offering credit for used cars will also contribute to the growth of the used car market in the country.
UAE Used Car Market Trends
The Sports Utility Vehicles (SUVs) and Multi-Purpose Vehicles (MPVs) Segment is Expected to Hold Higher Share in the Market
Sport utility vehicles and multi-purpose vehicles are surging in popularity in the United Arab Emirates used car market, driven by the country鈥檚 vibrant travel and tourism industry. Tourists and locals alike prefer these versatile vehicles for their spacious interiors, accommodating both passengers and luggage comfortably. The robust design of SUVs suits the diverse terrains encountered during travel, providing a sense of reliability.
Multi-purpose vehicles (MPVs) have flexible seating configurations that cater to larger groups, which enhances the communal travel experience. This trend aligns with the demand for reliable and adaptable vehicles in the tourism sector, promoting a noticeable uptick in the resale and purchase of sport utility vehicles and multi-purpose vehicles.
The SUV trend among youth may be the driving force for the SUV segment among domestic buyers. In this situation, the existence of SUVs with luxurious and sporty looks generally cater to the higher class while yet providing a reasonable level of comfort. SUVs offer greater deals to customers who have these concerns. Even for a low budget, there is a low-cost SUV that nonetheless gives the image of a robust and latest vehicle. This SUV sector is good value for money in the middle-income economy.
The increasing tourism, entertainment, and leisure activities in the country are anticipated to boost the demand for multi-purpose vehicles. MPVs topped the used car sales in the past few years. According to current conditions, the MPV car trend is still strong in the United Arab Emirates and is anticipated to hold high market shares.
The most popular top-selling multi-purpose vehicles in the United Arab Emirates include the Mitsubishi Pajero, Nissan Altima, Toyota Land Cruiser, Toyota Fortuner, Kia Seltos, Kia Sportage, Honda Accord, Kia KA4 Carnival, Honda Odyssey, LDV G10, and Volkswagen Multivan.
Owing to space, versatility, affordability, reliability, and appeal to changing consumer preferences. It is anticipated that the trend of used sport utility vehicles (SUVs) and multi-purpose vehicles (MPVs) is expected to continue to grow in the coming years.
The Online Booking Type Segment is Expected to Register the Fastest Growth Rate Between 2024 and 2029
Internet penetration in the United Arab Emirates is relatively high, with the country having one of the highest rates of Internet use in the world. According to Statista, the number of internet users in the United Arab Emirates reached 9.38 million in January 2023, up by 0.8% from 2022. The United Arab Emirates has a significantly high penetration of internet users in the GCC region, and this is primarily attributed to the availability of high-speed internet at an affordable price. In January 2023, the number of internet users in the country stood at nearly 99% of the total country鈥檚 population. The availability of high-speed broadband networks, the widespread adoption of mobile devices, and the growing reliance on digital technologies for communication and commerce have all contributed to this trend.
Many multi-brand B2B, B2C, and independent dealerships are expected to develop their online presence in order to participate in the online used car market. Some players are introducing various business strategies on their own digital platforms to enhance the digital experience for owners of used car fleets and targeting B2B customers across the value chain. Used vehicle platforms are likely to focus on establishing a transactional marketplace to enable 100% online end-to-end transactions without having to visit showrooms from the comfort of their homes. For instance,
- In December 2022, Al-Futtaim Automotive, a new and used car player, announced a partnership with Autorola AS. This new joint venture aims to enhance the country鈥檚 business-to-business used car market. This joint venture introduced an integrated and end-to-end digital platform for the used car industry.
- In February 2022, Cars24, a renowned online platform, recently launched AI-enabled software in the UAE, allowing vehicle enthusiasts to purchase and sell cars within 30 minutes of downloading the program. Customers can also calculate their monthly EMI and track other characteristics like engine, steering, and tires. It is one of the most advanced platforms for consumers to obtain car financing, insurance, maintenance, and other important services.
Such developments are expected to improve the online segment of the market between 2024 and 2029 and are poised to create a positive outlook for the market.
UAE Used Car Industry Overview
The UAE used car market is considered to be moderately fragmented, accommodating several leading players like Al-Futtaim Group, Al Nabooda Automobiles LLC, Arabian聽Automobiles Company, Souq Al Haraj, Car Switch, and Yalla Motors. While several key offline used car dealers are focused on adopting expansion strategies like collaborative agreements, mergers, and acquisitions, other new entrants are also encouraged to explore the market and are actively focused on fleet expansion, varied offerings, etc.
- In February 2023, AW Rostamani Group, an automotive dealer in the United Arab Emirates, launched its first luxury used-car showroom, NXT Luxury, Dubai, United Arab Emirates. This milestone marks the growth of the used-car segment in the United Arab Emirates, with AW Rostamani Group extending its offering to meet the demands of its customers.
- In October 2023, YallaMotor, a United Arab Emirates-based automotive marketplace, launched a new app that makes buying and selling used cars easier.
UAE Used Car Market Leaders
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Al-Futtaim Group
-
Al Nabooda Automobiles LLC
-
Arabian Automobile Company
-
Souq Al Haraj
-
Al Tayer Motors
*Disclaimer: Major Players sorted in no particular order
UAE Used Car Market News
- October 2023: CarSwitch, a Dubai-based online used car marketplace, announced its plans to expand its operations across the United Arab Emirates and launch new services, such as car financing and subscription services. The company is also planning to open new physical showrooms in major cities across聽the聽country.
- January 2023: Linda Cars, a used car dealership in the United Arab Emirates, announced its expansion with the opening of a new showroom in the Al Quoz area of Dubai. The new facility will host some of the United Arab Emirates鈥� prominent car brands, including Porsche, Mercedes, Audi, BMW, Jeep, Jaguar, and Range Rover.
Used Cars In UAE Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 The Increasing Demand for Luxury Cars is Anticipated to Boost the Market
4.2 Market Restraints
4.2.1 Comparatively Limited Market Transparency May Hinder the Market
4.3 Industry Attractiveness - Porter's Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Vehicle Type
5.1.1 Hatchbacks
5.1.2 Sedans
5.1.3 Sports Utility Vehicles (SUVs) and Multi-Purpose Vehicles (MPVs)
5.2 By Vendor Type
5.2.1 Organized
5.2.2 Unorganized
5.3 By Booking Type
5.3.1 Online
5.3.2 Offline
5.4 By Fuel Type
5.4.1 Petrol
5.4.2 Diesel
5.4.3 Others
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Al Nabooda Automobiles LLC
6.2.2 Al-Futtaim group
6.2.3 CARS 24
6.2.4 Yalla Motors. com
6.2.5 ALBA TRADING FZC
6.2.6 ARABIAN AUTOMOBILES CO LLC
6.2.7 OpenSooq.com
6.2.8 SellAnyCar.Com
6.2.9 Al Tayer Motors
6.2.10 Carswitch
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
UAE Used Car Industry Segmentation
A pre-owned vehicle or a secondhand car is a vehicle that has previously had one or more retail owners. A certified pre-owned (CPO) vehicle is a pre-owned vehicle that has been extensively inspected (pre-purchase inspection) and expertly reconditioned.
The United Arab Emirates used car market is segmented by vehicle type, vendor type, booking type, and fuel type. By Vehicle type, the market is segmented into hatchbacks, sedans, and sports utility vehicles (SUVs) and multi-purpose vehicles (MPVs). By vendor type, the market is segmented into organized and unorganized. By booking type, the market is segmented into online and offline. By fuel type, the market is segmented into petrol, diesel, and others. For each segment, market sizing and forecasting are done on the basis of value (USD).
| By Vehicle Type | |
| Hatchbacks | |
| Sedans | |
| Sports Utility Vehicles (SUVs) and Multi-Purpose Vehicles (MPVs) |
| By Vendor Type | |
| Organized | |
| Unorganized |
| By Booking Type | |
| Online | |
| Offline |
| By Fuel Type | |
| Petrol | |
| Diesel | |
| Others |
Used Cars In UAE Market Research FAQs
How big is the UAE Used Car Market?
The UAE Used Car Market size is expected to reach USD 18.39 billion in 2024 and grow at a CAGR of 11.73% to reach USD 32.03 billion by 2029.
What is the current UAE Used Car Market size?
In 2024, the UAE Used Car Market size is expected to reach USD 18.39 billion.
Who are the key players in UAE Used Car Market?
Al-Futtaim Group, Al Nabooda Automobiles LLC, Arabian Automobile Company, Souq Al Haraj and Al Tayer Motors are the major companies operating in the UAE Used Car Market.
What years does this UAE Used Car Market cover, and what was the market size in 2023?
In 2023, the UAE Used Car Market size was estimated at USD 16.23 billion. The report covers the UAE Used Car Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the UAE Used Car Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the future trends expected in the UAE Used Car Market?
The key future Trends in the UAE Used Car Market are: a) Growing online marketplace for used cars b) Increased demand for electric and hybrid vehicles c) Enhanced financing options
Used Cars In UAE Industry Report
The used cars industry in UAE is experiencing significant growth, driven by a variety of factors that cater to different market segments. The strong demand for SUVs, luxury vehicles, and budget-friendly options highlights the country's preference for high-end, spacious, and versatile cars, alongside economical choices. This market trend is also seeing a surge in interest for diesel, automatic transmission, and single-owner vehicles, indicating a shift towards well-maintained and reliable options. Dominated by private sellers, the industry is evolving with financed transactions becoming more common, enhancing accessibility for buyers.
The niche market for classic and vintage cars is expanding, adding to the industry's diversity. Technological advancements and the increasing use of online platforms are making transactions more convenient, with a noticeable shift towards sustainable and fuel-efficient vehicles. This dynamic market landscape is detailed in 糖心vlog传媒鈩� Industry Reports, offering insights into the market share, industry trends, industry statistics, industry outlook, and a forecast outlook for the used cars industry in UAE.
The market forecast reveals a comprehensive overview, including market size, market value, and market growth. Market leaders are leveraging industry analysis to stay ahead, while industry information and industry research provide valuable insights. The market overview and market segmentation highlight the diverse range of vehicles and preferences within the UAE market.
For a detailed understanding, the report example and report PDF download offer in-depth analysis and industry sales data. Research companies are actively contributing to the evolving market predictions and market review, ensuring that stakeholders are well-informed. This report summary encapsulates the market data, market outlook, and market segmentation, providing a thorough understanding of the used cars market in UAE.
