GCC Automotive Logistics Market Size (2024 - 2029)

The automotive logistics market in the GCC is poised for growth, driven by the expanding import and premium vehicle sectors in countries like Saudi Arabia and the United Arab Emirates. This growth is crucial for automotive manufacturers aiming to enhance their market share in the region, which is becoming increasingly important for both entry-level and premium brands. The logistics sector plays a vital role in supporting just-in-time supply chains and meeting customer expectations, particularly as the region embraces electric and hybrid transportation solutions. The UAE's initiatives to promote green mobility further underscore the significance of logistics in unlocking the automotive industry's potential in the Gulf region.

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Market Size of GCC Automotive Logistics Industry

GCC Automotive Logistics Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 6.38 Billion
Market Size (2029) USD 7.95 Billion
CAGR (2024 - 2029) 4.51 %
Market Concentration Medium

Major Players

GCC Automotive Logistics Market Major Players

*Disclaimer: Major Players sorted in no particular order

GCC Automotive Logistics Market Analysis

The GCC Automotive Logistics Market size is estimated at USD 6.38 billion in 2024, and is expected to reach USD 7.95 billion by 2029, growing at a CAGR of 4.51% during the forecast period (2024-2029).

  • The Middle East is one of the most important markets for automotive manufacturers. Right from entry-level carmakers that focus on mass-market products to companies with a premium product lineup, every brand wants to gain and increase its market share in this region. Saudi Arabia remains a very important market for US automakers.
  • GCC countries like Saudi Arabia and the United Arab Emirates are expanding their import and premium vehicle markets. They also witness rising aftermarket and second-hand vehicle volumes. Thus, logistics will be the key to unlocking the automotive industry's potential further in the region.
  • Manufacturers and distributors depend on seamless flows to satisfy customer expectations and just-in-time supply chains and access the technologies that drive change across the global automotive industry, including electrification, autonomy, and connectivity.
  • In the Gulf region, especially in Israel, Jordan, Oman, Saudi Arabia, and the United Arab Emirates, electric and hybrid means of transportation have gained popularity. The UAE government is taking steps to lessen road travel's impact on the environment, making the nation a prime site for promoting green mobility solutions (objectives include having 10% of Dubai's vehicles be electric by 2030).

GCC Automotive Logistics Industry Segmentation

Automotive logistics refers to the efficient coordination and transportation of resources, including equipment, inventory, and materials, linked to both finished vehicles and automotive parts. This process ensures their smooth movement from their origin to the intended destination.

The GCC automotive logistics market is segmented by service (transportation, warehousing, distribution, & inventory management, and other services), type (finished vehicles, auto components, and other types), and country (United Arab Emirates, Saudi Arabia, Qatar, Kuwait, Bahrain, and Oman).

The report offers the market size and forecast values in USD for the above segments.

By Service
Transportation
Warehousing, Distribution, and Inventory Management
Other Services
By Type
Finished Vehicle
Auto Components
Other Types
By Country
Saudi Arabia
United Arab Emirates
Qatar
Kuwait
Oman
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GCC Automotive Logistics Market Size Summary

The GCC automotive logistics market is poised for significant growth, driven by the region's strategic importance to automotive manufacturers and the increasing demand for electric vehicles. Countries like Saudi Arabia and the United Arab Emirates are expanding their import and premium vehicle markets, with logistics playing a crucial role in meeting the demands of a rapidly evolving automotive landscape. The region is witnessing a shift towards electric and hybrid transportation, supported by government initiatives aimed at reducing environmental impact and promoting green mobility solutions. This transition is further bolstered by international logistics players who are enhancing their capabilities to support the burgeoning automotive sector.

Saudi Arabia's ambitious Vision 2030 plan is a key driver of the automotive logistics market, with a focus on reducing reliance on oil exports and boosting the manufacturing sector. The country aims to increase domestic vehicle production and assembly, aligning with its economic diversification goals. The "Made in Saudi" initiative and the National Industrial Development and Logistics Program are central to this strategy, fostering innovation and attracting international partnerships. The UAE, with its favorable economic conditions and advanced infrastructure, continues to be a major hub for automotive activities in the Gulf region. The market's growth is supported by strategic acquisitions and expansions by leading logistics companies, enhancing their presence and operational capacity in the region.

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GCC Automotive Logistics Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Demand for Automobile in the GCC Region

      2. 1.2.2 Growing Population

    3. 1.3 Market Restraints

      1. 1.3.1 Lack of Standardized Regulations

      2. 1.3.2 Varying Infrastructure Levels

    4. 1.4 Market Opportunities

      1. 1.4.1 Advancement in Technology

      2. 1.4.2 Growth of Automotive Manufacturing Plants

    5. 1.5 Value Chain/Supply Chain Analysis

    6. 1.6 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.6.1 Threat of New Entrants

      2. 1.6.2 Bargaining Power of Buyers/Consumers

      3. 1.6.3 Bargaining Power of Suppliers

      4. 1.6.4 Threat of Substitute Products

      5. 1.6.5 Intensity of Competitive Rivalry

    7. 1.7 Spotlight on the Effect of E-commerce on Traditional Automotive Logistics Supply Chain

    8. 1.8 Insights on Automotive Aftermarket and its Logistics Activities

    9. 1.9 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Service

      1. 2.1.1 Transportation

      2. 2.1.2 Warehousing, Distribution, and Inventory Management

      3. 2.1.3 Other Services

    2. 2.2 By Type

      1. 2.2.1 Finished Vehicle

      2. 2.2.2 Auto Components

      3. 2.2.3 Other Types

    3. 2.3 By Country

      1. 2.3.1 Saudi Arabia

      2. 2.3.2 United Arab Emirates

      3. 2.3.3 Qatar

      4. 2.3.4 Kuwait

      5. 2.3.5 Oman

GCC Automotive Logistics Market Size FAQs

The GCC Automotive Logistics Market size is expected to reach USD 6.38 billion in 2024 and grow at a CAGR of 4.51% to reach USD 7.95 billion by 2029.

In 2024, the GCC Automotive Logistics Market size is expected to reach USD 6.38 billion.

GCC Automotive Logistics Market Report Snapshots

Automotive Logistics Market in GCC Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)