UAE Used Car Market, By Vehicle Type (Hatchback, Sedan, SUV, Others), By Fuel Type (Petrol, Diesel, Others), By Channel (Dealership, C2C, Classifieds, Others), By Category (Exported, Domestic Sales); Trend Analysis, Competitive Market Share & Forecast, 2015-2028

  • Published Date: May 2022
  • Report ID: BWC2183
  • Available Format: PDF
  • Page: 118

Report Overview

The UAE used car market is poised to grow two-fold by 2028, attributed to the growing preference of consumers for vehicle ownership, rising disposable income, and the surge in the number of the market players providing quality and affordable used cars...

UAE Used Car Market – Industry Trends & Forecast Report 2028

UAE used car market was worth USD 20.60 billion in 2021 and is further projected to reach USD 43.13 billion by 2028, at a CAGR of 10.9% during 2022-2028 (forecast period). This can be ascribed to the increasing preference of consumers for vehicle ownership, rising disposable income, and rise in the number of the market players providing quality and affordable used cars.

UAE Used Car Market

UAE Used Car Overview

A used car, often known as a secondhand car, is a vehicle that has previously been owned or used. These used cars are sold through a variety of channels, including dealers, buy here pay here dealerships, outlets, auctions, rental car businesses, and private party sales, among others. The price of a used car is determined by its condition and location. Mechanical condition, look, mileage, and vehicle history are all factors in judging the car's condition.

Used automobiles lose much of their value during the first few years of ownership and are less likely to develop problems as long as the owner maintains the overall condition of the vehicle. The optimal age to buy a car is thought to be around the 5-year mark, therefore the vehicle's condition is determined by mileage, equipment quality, dent & paint, interior electronics, and tire condition. Cars that are less damaged and require less maintenance are sold at a higher price. If a person has to sell his automobile in the UAE, the car would go through a Secure Diagnostic Access (SDA) test, which means the dealer would inspect the car throughout and only then would it be sold.

UAE Used Car Market Trend

Growth Driver

Drivers-Increasing Penetration through Digital Platforms Driving Market Growth

With the outbreak of COVID-19, consumers' purchasing habits have shifted dramatically. Consumers are far more adaptable in utilizing digital mediums for buying and selling things online. Coupled with that, the UAE's internet penetration rate has reasoned to contribute to raising the awareness of the UAE's online marketplace and classified ecosystem in order to provide better options for customers to conduct adequate research before purchasing a used automobile product. In recent years, even dealers with a physical presence rather than an online presence have begun to sell their used car fleet on classified websites and online marketplaces in order to better contact clients. Strengthening the online ecosystem of the used automobile domain in the UAE would be a key determinant of the market's growth in the coming years.

Opportunity

Large Number of Expatriate Population

The UAE’s population in 2022 stands at 10.08 million. In 2022, the total number of expats in the UAE is 8.92 million. The inflow of immigrants is one of several factors contributing to the country's population growth. The number of foreigners settling in the UAE has increased as a result of the country's ample job prospects. With Expo 2020 generating a wide range of career opportunities, country may expect a rise in the number of foreigners in the following months.

Impact of COVID-19 – UAE Used Car Market

During the COVID-19 pandemic, the automobile and transportation industries were undoubtedly among the hardest afflicted. However, things are looking up. Car dealerships are becoming busier, and many are looking for more inventory to sell. Overall mobility is increasing steadily. Automobile demand fell sharply as a result of economic restrictions and customers' falling purchasing power in UAE The used automobile market has grown this year as COVID-19 has encouraged used car sales as people avoid mass transit and focus more on isolation. The used automobile industry experienced numerous obstacles in the first few weeks of COVID-19, but the moment of uncertainty and existential crisis gave way to a boom in the buying and selling of used cars when the lockdown was implemented.

UAE Used Car Market: By Fuel Type

Based on the fuel type, UAE used car market is segmented into petrol, diesel and others. In 2021, the petrol fuel type segment held the highest revenue share of 44%. UAE, being one of the largest oil producers throughout the world, hosts a vast network of petrol stations spread across the country. Two types of petrol, namely Special 95 and Super 98 are most commonly used in UAE Special 95 has a high octane content and provides wonderful performance for all petrol-driven vehicles having medium compression engines whereas Super 98 also has high octane content and is appropriate for high-performance cars having powerful engines.

UAE Used Car Market Share

UAE Used Car Market: By Vehicle Type

Based on the vehicle type, the UAE used car market is segmented into hatchback, sedan, Sport Utility Vehicle (SUV) and others. The SUV segment is the leading segment in terms of value with respect to the market size owing to its added perks of being a family car with off-road capabilities and a spacious cabin. An equal percentage of users have also shown interest in sedans. Most popular models in the SUV section include the Toyota Land Cruiser and the high-end Mercedes Benz S-Class, famous for its superior comfort, style, innovation and general luxurious appeal. Although there has been a mounting interest in spacious, luxurious cars, the price-conscious purchasers are equally interested in easy-to-maintain, affordable sedan models like the Toyota Camry, which is known for its resale value and fuel prices.

Competitive Landscape

The leading players in the UAE used car market include Al Tayer Group, Al-Naboodah, Al-Futtaim group, SellAnyCar.com, Elite Cars, Carswitch, Dubizzle.com, Arabian Automobiles, Yalla Motors and others prominent players. In particular, Al Fatta, Al-Naboodah, and Al Tayer held the largest share in 2021 owing to their continually expanding portfolio that includes some of the world's most recognized and respected automobile brands through addressing their customers' holistic B2C and B2B needs.

Recent Development

February 2022: Cars24 is a renowned online platform that has recently launched an AI-enabled software in U.AE. that allows 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 as engine, steering, and tires. It is one of the most advanced platforms for consumers to obtain car financing, insurance, maintenance, and other important services.

Scope of the Report

Attribute Details
Years Considered Historical data – 2015-2021
Base Year – 2021
Forecast – 2022 – 2028
Facts Covered Revenue in USD Million and Billion, and Volume in Thousand Units and Units
Market Coverage UAE
Market Segmentation By vehicle type, fuel type, channel, and category
Key Players Al Tayer Group, Al-Naboodah, Al-Futtaim group, SellAnyCar.com, Elite Cars, Carswitch, Dubizzle.com, Arabian Automobiles, Yalla Motors

 

By Vehicle Type

  • Hachback
  • Sedan
  • SUV
  • Others

By Fuel Type

  • Petrol
  • Diesel
  • Others

By Channel

  • Dealership
  • C2C
  • Classifieds
  • Others

By Category

  • Exported
  • Domestic Sales
  1. Research Framework

1.1. Research Objective

1.2. Product Overview

1.3. Market Segmentation

  1. Research Methodology

2.1. Qualitative Research

  1. Primary & Secondary Research

2.2. Quantitative Research

2.3. Market Breakdown & Data Triangulation

  1. Primary & Secondary Research End-use Vendors
  2. Secondary Research
  3. Primary Research

2.4. Breakdown of Primary Research Respondents, By Region

2.5. Assumption & Limitation

  1. Executive Summary
  2. U.A.E Used Car Market Insights

4.1. Industry Value Chain Analysis

4.2. DROC Analysis

  1. Market Driver
  2. Market Restraints
  3. Market Challenges
  4. Market Opportunity

4.3. Porter’s Five Forces Analysis

  1. Bargaining End-use Industry of Suppliers
  2. Bargaining End-use Industry of Buyers
  3. Threat of New Entrants
  4. Threat of Substitutes
  5. Intensity of Rivalry

4.4. Recent Development/ Technological Advancement

  1. U.A.E Used Car Market Overview

5.1. Market Size & Forecast by Value, 2015-2028

  1. By Value (USD Million)
  2. By Volume (Units)

5.2. Market Share & Forecast

  1. By Vehicle Type

5.2.1.1. Hatchback

5.2.1.2. Sedan

5.2.1.3. SUV

5.2.1.4. Others

  1. By Fuel Type

5.2.2.1. Petrol

5.2.2.2. Diesel

5.2.2.3. Others

  1. By Channel

5.2.3.1 Dealership

5.2.3.2 C2C

5.2.3.3 Classifieds

5.2.3.4 Others

5.2.4. By Category

5.2.4.1 Exported

5.2.4.2 Domestic Sales

6. Competitive Landscape

6.1. List of Key Players and their Offerings

6.2. Company Market Share Analysis, 2021

6.3. Competitive Benchmarking, By Operating Parameters

6.4. Key Developments & Growth Strategies

7. Impact of Covid-19 Across U.A.E Used Car Market

8. Company Profile (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *

8.1. CarSwitch DMCC

8.2. Dubizzle

8.3. SellAnyCar.com

8.4. SellAnyCar.com

8.5. Al Futtaim Group

8.6. YallaMotor.com

8.7. Dubi Cars International FZ LLC

8.8. Arabian Automobiles

8.9. Al Tayer Group

8.9. Saeed & Mohammed Al Naboodah Holding LLC

8.10. Sun City Motors LLC

9. Key Strategic Recommendations

 

List of Figures

 

Fig 1: U.A.E. Used Car Market Segmentation

Fig 2: Direct Value Chain

Fig 3: Dealer Value Chain

Fig 4: Expat Population in UAE, (2022)

Fig 5: UAE Population Growth, 2015-2022 (in Million)

Fig 6: Change in Price since March 1, 2020

Fig 7: Porters Five Forces Analysis

Fig 8: UAE Used Car Market Size, By Value (USD Million), 2015-2028

Fig 9: UAE Used Car Market Size, By Volume (Units), 2015-2028

Fig 10: UAE Used Car Market Share (%), By Vehicle Type, By Volume (Units), 2015-2028

Fig 11: UAE Used Car Market Share (%), By Vehicle Type, By Value, 2015-2028

Fig 12: UAE Used Car Market Share (%), By Fuel Type, By Value, 2015-2028

Fig 13: UAE Used Car Market Share (%), By Fuel Type, By Volume (Units), 2015-2028

Fig 14: Specific Energy, Energy Density and Co2 Emitted Per Gallon

Fig 15: UAE Used Car Market Share (%), By Channel, By Value, 2015-2028

Fig 16: UAE Used Car Market Share (%), By Channel, By Volume (Units), 2015-2028

Fig 17: UAE Used Car Market Share (%), By Category, By Value, 2015-2028

Fig 18: UAE Used Car Market Share (%), By Category, By Volume (Units), 2015-2028

Fig 19: UAE Used Car Market Volume Share Analysis, 2021 (Estimated)

 

List of Tables

 

Table 1: UAE Used Car Market Size, By Vehicle Type, By Value (USD Million), 2015-2028

Table 2: UAE Used Car Market Size, By Vehicle Type, By Volume (Units), 2015-2028

Table 3: UAE Used Car Market Size, By Fuel Type, By Value (USD Million), 2015-2028

Table 4: UAE Used Car Market Size, By Fuel Type, By Volume (Units), 2015-2028

Table 5: UAE Used Car Market Size, By Channel, By Value (USD Million), 2015-2028

Table 6: UAE Used Car Market Size, By Channel, By Volume (Units), 2015-2028

Table 7: UAE Used Car Market Size, By Category, By Value (USD Million), 2015-2028

Table 8: UAE Used Car Market Size, By Category, By Volume (Units), 2015-2028

Table 9: List of Key Players and Their Offerings

Table 10:  Competitive Benchmarking, By Operating Parameters

Table 11:  Key Developments & Growth Strategies

Table 12: CarSwitch DMCC Overview

Table 13: Dubizzle Overview

Table 14: SellAnyCar.com Overview

Table 15: Al Futtaim Group Overview

Table 16: Al Futtaim Group Financial Analysis (Millions USD)

Table 17: YallaMotor.com Overview

Table 18: Dubi Cars International FZ LLC Overview

Table 19: Arabian Automobiles Company Overview

Table 20: Al Tayer Group Overview

Table 21: Saeed & Mohammed Al Naboodah Holding LLC Overview

Table 22: Sun City Motors LLC Overview

Market Segmentation

By Vehicle Type

  • Hachback
  • Sedan
  • SUV
  • Others

By Fuel Type

  • Petrol
  • Diesel
  • Others

By Channel

  • Dealership
  • C2C
  • Classifieds
  • Others

By Category

  • Exported
  • Domestic Sales
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