+353-1-416-8900REST OF WORLD
+44-20-3973-8888REST OF WORLD
1-917-300-0470EAST COAST U.S
1-800-526-8630U.S. (TOLL FREE)

UAE Used Car Market Outlook to 2028

  • PDF Icon

    Report

  • 97 Pages
  • February 2024
  • Region: United Arab Emirates
  • Ken Research Private Limited
  • ID: 5938757

The UAE Used Car Market has undergone significant changes since the 1990s, driven by a diversifying economy and an increasing expat community

The UAE Used Car Market has undergone significant changes since the 1990s, driven by a diversifying economy and an increasing expat community. With the demand for affordable transportation on the rise, the market has transitioned from traditional offline channels to a landscape that includes both organized and unorganized sectors. The market is segmented based on factors such as market structure, car types, and regional influences.

Notably, major players like Al Futtaim lead in a moderately fragmented market. Future projections indicate steady growth, influenced by improvements in the new car market and sustained demand for mid-level cars. This research report aims to offer valuable insights for industry stakeholders, investors, and enthusiasts navigating the dynamic and evolving UAE Used Car Market.

In the ecosystem of the UAE Used Car Industry, major players like Al Futtaim, AWR-Arabian Automobile, Al Habtoor, Al Nabooda Auto Mobile, and Al Ghandi Auto Group shape a moderately fragmented market. Al Futtaim leads among OEM players with a significant share. The industry, evolving since the 1990s, reflects a shift from traditional channels to a blend of organized and unorganized sectors. Segmentation considers market structure, car types, and regional influences. The competitive landscape is dominated by a few OEM players, contributing to 40% of total market sales. Future growth is expected to be steady, driven by improvements in the new car market and sustained demand for mid-level cars. This report aims to provide insights for stakeholders, investors, and enthusiasts navigating this dynamic marketplace.

UAE Used Car Market Analysis

UAE used car market evolved in the 1990s and early 2000s with a diversifying economy and growing expat community.

Initial transactions were offline through C2C channels and local dealerships, due to limited digital literacy.

Recent developments include the entry of unorganized dealers and online platforms like Yalla Motors and Car Switch.

Semiconductor chip shortage in new cars has increased demand for used cars.

OEM certified dealerships offering attractive financing options boost consumer confidence, especially for eco-friendly vehicles.

Improved online infrastructure is shifting the market towards online auto-classifieds.

Anticipation of solutions to the semiconductor chip shortage signals market maturity and adaptability in the UAE's used car industry.

Key Trends by Market Segment

By Market Structure: In 2023, the UAE Used Car Market is segmented based on market structure. The Organized sector, comprising OEMs, Multi-Brand Outlets, and Online Marketplaces, holds a significant share due to the increasing influence of online platforms and value-added services offered by organized stores. In contrast, the Unorganized sector, which includes C2C transactions, local dealers, auction houses, and other sources, commands a larger market share. This dominance is fueled by a robust auction market and the widespread presence of local dealers in various unorganized marketplaces like Al Aweer, Al Quoz, and Souq Al Haraj, reflecting the diverse dynamics of the UAE's used car market.

By Car Type: In 2023, the UAE Used Car Market is distinctly segmented by the type of car, measured in units sold. SUVs stand out as a popular choice, particularly among families, given their spacious and comfortable features, making them ideal for long drives and vacations. The increasing population is contributing to a growing demand for SUVs. Simultaneously, the influx of expats for job opportunities is fueling demand for sedans and hatchbacks. These vehicle types are favored by individuals for daily commuting to and from work or office. This dual trend reflects the diverse preferences within the market, with families opting for SUVs for recreational purposes and single individuals gravitating towards sedans and hatchbacks for practical commuting needs.

By Region: In 2023, the UAE Used Car Market is segmented by region. Dubai leads with the highest share, driven by its large population, frequent influx of tourists, and thriving business hub. Sharjah is witnessing growth in demand, focusing on improving business infrastructure. However, smaller-population emirates like Fujairah and Ras Al-Khaimah currently experience lower demand for used cars. Regional differences highlight the impact of demographics and economic factors on the market dynamics.

Competitive Landscape

Major Players in UAE Used Car Market

The UAE Used Car Market is moderately fragmented.

Key players include Al Futtaim, AWR-Arabian Automobile, Al Habtoor, Al Nabooda Auto Mobile, and the Al Ghandi Auto Group.

The market features a moderate level of fragmentation, with a presence of OEM-certified and brand-authorized dealerships.

Al Futtaim leads the market among OEM players, commanding approximately 12% of the share.

The top 5 OEM players collectively contribute to around 40% of the total market sales.

Other market drivers include the strategic presence of OEM-certified dealerships, emphasis on brand authority, and the reliability associated with major players, influencing consumer preferences and market trends.

Future Outlook

UAE used car market to witness growth slowdown in 2023 due to improved conditions in the new car market related to semiconductor shortages.

Reduced waiting periods for new cars shift consumer preference, but strong demand in the used car market persists, especially for mid-level cars.

Factors driving demand include affordability, availability, the necessity for mobility, and a substantial expat population.

Future market growth expected to maintain a steady rate of approximately 6%.

Improved new car market conditions will result in more vehicles entering the used car segment, supporting continued growth in the UAE used car market.

 

Additional benefits of purchasing an enterprise license:

  • TAM/SAM/SOM Analysis
  • Customer Cohort Analysis
  • Marketing Initiatives
  • White Space Opportunity Analysis
  • Interactive Data Visualizations
  • Customization: 20 Analyst Hours
  • 3 Months Post Sales Analyst Support
  • Complimentary Update Next Year
  • Custom Webinars

Table of Contents

1. Executive Summary
1.1 Executive Summary of UAE Used Car Market
2. Country Overview of UAE
2.1 Economic Overview (Overview of UAE, Inflation Rate, UAE Nominal GDP, and Key Indicators)
2.2 Population Demographics (Total Population by Gender, Emirates, Employment and Age Group)
3. Automotive Industry in UAE
3.1 Automobile Manufacturing Hubs in UAE (Major Automobile Manufacturing Hubs and Growth Drivers of UAE Automotive Manufacturing Hubs)
3.2 UAE Motor Vehicles Import Scenario (UAE Motor Vehicles Import Data and Major Motor Vehicles Exporting Countries)
3.3 Landscape of Total Number of Cars in UAE Automotive Market (No. of Car Parc in UAE and Number of Car Parc per 1,000 people in UAE from 2017 to 2022)
3.4 Passenger Car Landscape (UAE New Passenger Cars Market Sales Data in Units, 2017-2023 and Average Age of Passenger Cars)
3.5 Passenger Car Market by Type and Brand of Car (UAE New Passenger Cars by Type of Cars and UAE New Passenger Cars by Major Brands)
4. UAE Used Car Market Overview
4.1 Ecosystem of the UAE Used Car Market
4.2 Business Cycle of the UAE Used Car Market
4.3 Timeline of Major Players in UAE Used Car Market
4.4 Step-by-Step Sales Process of Used Cars in UAE
4.5 Value Chain Analysis for UAE Used Cars Market
4.6 Role of Entities in Value Chain Analysis of UAE Used Cars Market
4.7 Sourcing of Used Cars by Dealers in UAE
4.8 Lead Generation in Used Cars for UAE Used Cars Market
5. Market Sizing and Segmentation, 2017-2023
5.1 Market Sizing of UAE Used Car Market, 2017-2023 (UAE Used Car Market Size by Revenue and By Units Sold, Average Price and Used to New Car Ratio)
5.2 Market Segmentation by Market Structure, 2023 (By Organized Sector and Unorganized Sector)
5.3 Market Segmentation by Organized and Unorganized, 2023 (Organized Sector by OEMs, Multi - Brands and Online Marketplaces and Unorganized Sector by Local Dealers, Auction Houses, C2C and others)
5.4 Market Segmentation by Type of Car, 2023 (By SUV, sedan, Hatchback, Coupe, Pick-up Truck and Others)
5.5 Market Segmentation by Brand, 2023 (By Toyota, Nissan, Mitsubishi, Hyundai, Ford, Chevrolet, Kia and Others)
5.6 Market Segmentation by Country of Origin, 2023 (By Japan, USA, Germany, South Korea, China and Others)
5.7 Market Segmentation by Region, 2023 (By Dubai, Abu Dhabi, Sharjah, Ras Al-Khaimah, Ajman, Umm Al-Quwain and Fujairah)
6. Used Car Financing Market in UAE
6.1 Overview of Used Car Financing in UAE
6.2 Customer Preferences and Trends regarding Used Car Financing in UAE
6.3 Cross-Comparison of Major Banks in UAE
7. End-User Analysis
7.1 Customer Profiling in UAE Used Car Market (By Gender, Age and Income)
7.2 Customer Preferences in UAE Used Car Market (Factors Influencing Used Car Purchasing Over New Car Purchasing Decision and Focus Areas for Dealerships)
7.3 Buying Criterion of Customers in UAE Used Car Market (On basis of Budget, Services Offered, Buying Channel, Purpose, Color, Age and Milage)
7.4 Used Car Pricing and Depreciation in UAE (Price preference and Country wise Depreciation)
8. Industry Analysis
8.1 Porter’s Five Forces Analysis on UAE Used Car Market
8.2 Growth Drivers of UAE Used Car Market
8.3 Challenges and Pain-Points by UAE Used Car Industry
8.4 Trends and Developments in UAE Used Car Market
8.5 Government Regulations in UAE Used Car Market
9. Competition Landscape
9.1 Competition Scenario of OEM Players in UAE Used Car Market
9.2 Market Share of Major OEM Players in UAE Used Car Market, 2023
9.3 Competition Scenario of Multi - Brand Players in UAE Used Car Market
9.4 Market Shares of Major Multi - Brand Players in UAE Used Car Market, 2023
9.5 Competition Scenario of Online Marketplaces in UAE Used Car Market
9.6 Market Share of major Online Marketplaces Players in UAE Used Car Market, 2023
10. Future Outlook and Segmentation, 2023-2028
10.1 Future Market Outlook 2023-2028
10.2 UAE Used Car Market Segmentation by Market Structure, by Organized Sector and by Unorganized Sector, 2028
10.3 UAE Used Car Market Segmentation by Type of Car, 2028
10.4 UAE Used Car Market Segmentation by Brand and Country of Origin, 2028
10.5 UAE Used Car Market Segmentation by Region, 2028
10.6 Future Trends and Way Forward in UAE Used Car Market
11. Analyst Recommendations
11.1 Factors Influencing Different Business Models
11.2 Focus Area for Existing AWR Businesses
11.3 Strategy for Car Mobility-as-a-Service
11.4 Operating Models in Mobility-as-a-Service
11.5 Success Factors to Capture Future Market
12. Industry Speaks13. Research Methodology (Market Definitions, Abbreviations Used, Market Sizing Approach, Consolidated Research Approach, Sample Size Inclusion, Research Limitations and Future Conclusions)

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • AL Futtaim​
  • AWR - Arabian Automobile​
  • Al Habtoor​
  • Al Futtaim Automall​
  • NXT​
  • Dubizzle​
  • Dubi Cars