Automotive - Industry - MEA Market, Share and Trends 2023-2028

Report ID:

AUIND1M

|

Industry:

Summary of Automotive

The automotive sectors in the Middle East and Africa regions have seen steady growth in recent years, driven by economic expansion and rising personal incomes. Vehicle sales across the MEA region have been increasing at a compound annual rate of 4-5%. Countries with larger populations and economies like Saudi Arabia, South Africa, Morocco and Egypt have led this growth, with sales concentrated in the passenger vehicle segments.

Local production is growing as well, with major automakers like Renault, Nissan, Toyota, Hyundai and others setting up manufacturing facilities to serve local and export markets. Nations like Morocco, Egypt and South Africa offer competitive production costs and free trade agreements that make them attractive assembly hubs. Morocco in particular has emerged as a hub for passenger car and light commercial vehicle exports to Europe and Africa.

As infrastructure spending on roads, rail and urban transport rises across MEA countries, demand for commercial vehicles is also picking up. Trucks, buses and construction equipment manufactured locally or regionally help enable mining, energy, logistics and real estate development projects.

Overall– the automotive industry supports hundreds of thousands of local jobs and is central to industrialization strategies for many nations in the region. Based on our estimates, we can say that Middle East and Africa’s regional Automotive industry is forecasted to be a $193.52 billion industry in 2029 from $134.14 billion in 2023 with a CAGR of 6.27%.

Recent Trends and Insights

SUV sales dominate new vehicle registrations in the Gulf countries and North Africa due to growing demand for versatile vehicles suited for diverse road conditions. Popular models include – Toyota RAV4, Hyundai Tucson, Kia Sportage.

Electric vehicle adoption is gaining momentum in certain markets like the UAE and South Africa where governments are promoting EVs through tax incentives and charging infrastructure investments. Tesla leads luxury EV sales in Dubai and Cairo.

Self-driving vehicles are being tested and pilot programs for robotaxis launched in Dubai and Saudi Arabia. UAE aims to have 25% autonomous vehicles on roads by 2030.

Shared mobility services have found strong acceptance across major cities with homegrown operators like Careem challenging global rivals Uber and Lyft. Ride-hailing supports mobility needs.

Localization levels are rising as automakers set up local assembly plants and source more components within the region to meet demand. North African nations especially encourage local content.

Product Insights

Vehicle supply chain disruptions will continue in 2023 as specific factories in Germany and neighboring countries are greatly impacted owing to the raw material shortages and regional transportation logistics of vehicle parts resulting from the war in Ukraine. As a result, premium vehicles made in Germany and exported to the MEA region will continue to be more restricted owing to lower production levels in the short term. This will also apply to new Chinese-based OEMs that have targeted MEA with their vehicle exports.

Trucks dominate commercial vehicle sales, led by the Toyota Hilux and similar pickup trucks from Nissan, Isuzu and Ford. These versatile vehicles are widely used in construction, logistics and mining.

Electric vehicles are gaining traction in certain markets like the UAE, where Tesla Model 3/Y and Hyundai Kona Electric are top sellers. Startups like NAWA Technologies are developing affordable EVs for the region.

Shared mobility fleets rely on Japanese and Korean sedans and multi-purpose vehicles that are durable and cost-effective. Cars from Toyota, Hyundai, Kia are widely used by operators.

Local assembly is boosting models like the Renault Duster, Nissan X-Trail and Kia Picanto that are tailored for the region and competitively priced. Autonomous vehicle pilots are testing concepts from international brands as well as local partners like Yannex and Desert Technologies.

Key Companies

Some major players within this vast domain of industry are

  • Arabian Automobiles Company (AAC
  • Toyota
  • Nissan
  • Hyundai
  • Fiat Chrysler Automotive Group
  • Volkswagen AG
  • BMW AG
  • GAA (Gulf Advantage Automobiles)
  • Saudi Arabia National Tire Company

Regional Analysis

Electric vehicle adoption is gaining momentum in countries like the UAE and South Africa where governments are promoting EVs through tax incentives and investments in charging infrastructure. Automakers are launching new EV models to tap into this growing market.

Connected and autonomous vehicle technologies are being tested extensively in UAE and Saudi Arabia thanks to investments in 5G and smart city initiatives. Both countries have ambitious self-driving vehicle deployment targets for the next decade.

Shared mobility continues expanding across North African cities through local operators as well as international leaders like Uber. This has boosted vehicle demand from ride-hailing fleets.

The used vehicle market is thriving with GCC countries and North African nations sourcing pre-owned cars from Europe and Japan as affordable options.

Local assembly is on the rise to meet domestic demand more cost-effectively and reduce vehicle imports. Countries like Morocco and Egypt offer production-linked incentives.

Market Segmentation

By Type:

  • Connected vehicle technologies (telematics, infotainment, OTA updates)
  • Advanced driver assistance systems (ADAS)
  • Electric powertrain components
  • Vehicle safety systems
  • Automotive manufacturing equipment
  • Industrial automation solutions

By End user:

  • Original Equipment Manufacturers (OEMs)
  • Automotive suppliers
  • Mobility service providers
  • Infrastructure providers
  • Automotive dealerships

By Enterprise Size:

  • Large automakers
  • Mid-size vehicle manufacturers
  • Component and parts suppliers
  • Startups in mobility, EV, and self-driving technologies

By Country:

  • Saudi Arabia
  • Iran
  • United Arab Emirates
  • Israel
  • Egypt
  • Iraq
  • Qatar

Our Methodology

We have offered a well-founded review of the Middle East & Africa’s regional Automotive market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.

We value your investment and offer free customization with every report to fulfil your research needs.

Frequently Asked Questions

The MEA Size of the Automotive Industry is USD 134.14 Billion in 2023 and is expected to grow to USD 193.52 Billion by 2029

The CAGR of the Automotive Industry Market in MEA is 627%

The Saudi Arabia region accounts for 45% of the total market share of the Automotive Industry Market

The key players in the Automotive Industry Market in MEA are SAIC Motor, Nissan, Toyota Motor Corporation, Volkswagen Group and Hyundai-Kia. These industry leaders collectively contribute to shaping the landscape of this market and driving growth within the industry.

The factors driving the Automotive Industry Market in MEA are Infrastructure boosting demand, SUV/luxury preference, Local manufacturing support, Urbanization and EV investments. These factors contribute to the overall growth of this industry, establishing it as a key player in the interconnected global economy.

Summary of Automotive

The automotive sectors in the Middle East and Africa regions have seen steady growth in recent years, driven by economic expansion and rising personal incomes. Vehicle sales across the MEA region have been increasing at a compound annual rate of 4-5%. Countries with larger populations and economies like Saudi Arabia, South Africa, Morocco and Egypt have led this growth, with sales concentrated in the passenger vehicle segments.

Local production is growing as well, with major automakers like Renault, Nissan, Toyota, Hyundai and others setting up manufacturing facilities to serve local and export markets. Nations like Morocco, Egypt and South Africa offer competitive production costs and free trade agreements that make them attractive assembly hubs. Morocco in particular has emerged as a hub for passenger car and light commercial vehicle exports to Europe and Africa.

As infrastructure spending on roads, rail and urban transport rises across MEA countries, demand for commercial vehicles is also picking up. Trucks, buses and construction equipment manufactured locally or regionally help enable mining, energy, logistics and real estate development projects.

Overall– the automotive industry supports hundreds of thousands of local jobs and is central to industrialization strategies for many nations in the region. Based on our estimates, we can say that Middle East and Africa’s regional Automotive industry is forecasted to be a $193.52 billion industry in 2029 from $134.14 billion in 2023 with a CAGR of 6.27%.

Recent Trends and Insights

SUV sales dominate new vehicle registrations in the Gulf countries and North Africa due to growing demand for versatile vehicles suited for diverse road conditions. Popular models include – Toyota RAV4, Hyundai Tucson, Kia Sportage.

Electric vehicle adoption is gaining momentum in certain markets like the UAE and South Africa where governments are promoting EVs through tax incentives and charging infrastructure investments. Tesla leads luxury EV sales in Dubai and Cairo.

Self-driving vehicles are being tested and pilot programs for robotaxis launched in Dubai and Saudi Arabia. UAE aims to have 25% autonomous vehicles on roads by 2030.

Shared mobility services have found strong acceptance across major cities with homegrown operators like Careem challenging global rivals Uber and Lyft. Ride-hailing supports mobility needs.

Localization levels are rising as automakers set up local assembly plants and source more components within the region to meet demand. North African nations especially encourage local content.

Product Insights

Vehicle supply chain disruptions will continue in 2023 as specific factories in Germany and neighboring countries are greatly impacted owing to the raw material shortages and regional transportation logistics of vehicle parts resulting from the war in Ukraine. As a result, premium vehicles made in Germany and exported to the MEA region will continue to be more restricted owing to lower production levels in the short term. This will also apply to new Chinese-based OEMs that have targeted MEA with their vehicle exports.

Trucks dominate commercial vehicle sales, led by the Toyota Hilux and similar pickup trucks from Nissan, Isuzu and Ford. These versatile vehicles are widely used in construction, logistics and mining.

Electric vehicles are gaining traction in certain markets like the UAE, where Tesla Model 3/Y and Hyundai Kona Electric are top sellers. Startups like NAWA Technologies are developing affordable EVs for the region.

Shared mobility fleets rely on Japanese and Korean sedans and multi-purpose vehicles that are durable and cost-effective. Cars from Toyota, Hyundai, Kia are widely used by operators.

Local assembly is boosting models like the Renault Duster, Nissan X-Trail and Kia Picanto that are tailored for the region and competitively priced. Autonomous vehicle pilots are testing concepts from international brands as well as local partners like Yannex and Desert Technologies.

Key Companies

Some major players within this vast domain of industry are

  • Arabian Automobiles Company (AAC
  • Toyota
  • Nissan
  • Hyundai
  • Fiat Chrysler Automotive Group
  • Volkswagen AG
  • BMW AG
  • GAA (Gulf Advantage Automobiles)
  • Saudi Arabia National Tire Company

Regional Analysis

Electric vehicle adoption is gaining momentum in countries like the UAE and South Africa where governments are promoting EVs through tax incentives and investments in charging infrastructure. Automakers are launching new EV models to tap into this growing market.

Connected and autonomous vehicle technologies are being tested extensively in UAE and Saudi Arabia thanks to investments in 5G and smart city initiatives. Both countries have ambitious self-driving vehicle deployment targets for the next decade.

Shared mobility continues expanding across North African cities through local operators as well as international leaders like Uber. This has boosted vehicle demand from ride-hailing fleets.

The used vehicle market is thriving with GCC countries and North African nations sourcing pre-owned cars from Europe and Japan as affordable options.

Local assembly is on the rise to meet domestic demand more cost-effectively and reduce vehicle imports. Countries like Morocco and Egypt offer production-linked incentives.

Market Segmentation

By Type:

  • Connected vehicle technologies (telematics, infotainment, OTA updates)
  • Advanced driver assistance systems (ADAS)
  • Electric powertrain components
  • Vehicle safety systems
  • Automotive manufacturing equipment
  • Industrial automation solutions

By End user:

  • Original Equipment Manufacturers (OEMs)
  • Automotive suppliers
  • Mobility service providers
  • Infrastructure providers
  • Automotive dealerships

By Enterprise Size:

  • Large automakers
  • Mid-size vehicle manufacturers
  • Component and parts suppliers
  • Startups in mobility, EV, and self-driving technologies

By Country:

  • Saudi Arabia
  • Iran
  • United Arab Emirates
  • Israel
  • Egypt
  • Iraq
  • Qatar

Our Methodology

We have offered a well-founded review of the Middle East & Africa’s regional Automotive market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.

We value your investment and offer free customization with every report to fulfil your research needs.

Frequently Asked Questions

The MEA Size of the Automotive Industry is USD 134.14 Billion in 2023 and is expected to grow to USD 193.52 Billion by 2029

The CAGR of the Automotive Industry Market in MEA is 627%

The Saudi Arabia region accounts for 45% of the total market share of the Automotive Industry Market

The key players in the Automotive Industry Market in MEA are SAIC Motor, Nissan, Toyota Motor Corporation, Volkswagen Group and Hyundai-Kia. These industry leaders collectively contribute to shaping the landscape of this market and driving growth within the industry.

The factors driving the Automotive Industry Market in MEA are Infrastructure boosting demand, SUV/luxury preference, Local manufacturing support, Urbanization and EV investments. These factors contribute to the overall growth of this industry, establishing it as a key player in the interconnected global economy.

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Understand the macroeconomic situations that affect the global positioning of countries.

Businesses can better understand how chatbots can advocate their vision.

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Creating a sustainable environment for driving multiple countries into a better tomorrow.

Understand how the U.S. discrepancy in accordance to their debt creates a havoc. 

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Featured Reports

Understand the macroeconomic situations that affect the global positioning of countries.

Businesses can better understand how chatbots can advocate their vision.

DeFi helps reduce dependency on traditional methods of transactions.

Creating a sustainable environment for driving multiple countries into a better tomorrow.

Understand how the U.S. discrepancy in accordance to their debt creates a havoc. 

Sustainable blockchain technology has immense benefit for the environment which cannot go unnoticed.