BURNABY, Canada, April 12, 2016 /PRNewswire/ --
Anticipated stabilization of crude oil prices, growing infrastructure along with logistics sectors and implementation of favourable government initiatives to drive commercial vehicle sales in UAE through 2021
According to TechSci Research report, "UAE Commercial Vehicles Market Forecast & Opportunities 2021", commercial vehicles market in the UAE is forecast to grow at a CAGR of 7.5% during 2016 - 2021. Commercial vehicles market in the country is predominantly import driven, with most of the vehicles being shipped into the country as CBUs (Completely Built Units) or SKDs (Semi Knocked Down) units. UAE is poised to witness rise in demand for commercial vehicles, on the back of anticipated growth in the country's infrastructure projects, increasing transportation requirements from tourism sector coupled with rising demand for buses from schools and staff transportation, over the next five years.
However, declining crude oil prices have affected the country's economy over the last couple of years. The country witnessed a slowdown in construction and infrastructure development due to higher lending rates. Further, the micro small and medium enterprise (MSME) and logistics sectors witnessed sluggishness during 2014 and 2015, which impeded the sales of commercial vehicles in the country. Nevertheless, with anticipated recovery in crude oil prices by 2017, the economy of the country is expected to recover, with the construction, infrastructure and logistics sectors also expected to witness revival in growth. It is forecast that the logistics sector in the country would grow at a CAGR of around 6% over next five years. Additionally, the country is scheduled to host the "World Expo 2020", which is anticipated to boost the construction sector, thereby positively influencing the country's commercial vehicles sales.
"Truck segment, which includes pickup & light truck, medium and heavy trucks, garnered the largest volume share in the UAE commercial vehicle market in 2015. Moreover, anticipated stabilization of crude oil prices is forecast to revive growth in the construction, infrastructure and logistics sector, thereby leading to continuing dominance of the truck segment over the next five years," said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
"UAE Commercial Vehicles Market Forecast & Opportunities, 2021" has evaluated the future growth potential of commercial vehicle market in the UAE and provides statistics and information on market side, structure and trends. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment evaluation. Besides, the report also identifies and analyzes emerging trends along with essential drivers, challenges and opportunities available in the UAE commercial vehicles market.
About TechSci Research:
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SOURCE TechSci Research