GCC Used Car Market Size (2024 - 2029)

GCC Used Car Market Analysis

GCC Used Car Market was valued at USD 16.38 billion in 2021 and is expected to surpass a net valuation of USD 28.98 billion by 2027 end, registering a solid CAGR growth of 8.58% over the forecast period.

The COVID-19 pandemic had a moderate impact on the market as initial lockdowns in 2020 resulted in a slowdown in demand, however with ease in restrictions in 2021 consumers were encouraged to prefer used cars over new cars in wake of the pandemic coupled with fewer vehicle production due to supply chain disruptions and shortage of some auto components.

Over the longer-term forecast period, factors including economical cost and variety in the fleet are expected to boost the used car demand in the GCC region. However, price discrepancies, lack of standardization, and others are expected to act as major restraints to the growth of the market.

Demand for pre-owned cars for family, personal use among residents, and partial economic disruption with the new car segment alongside value-for-money have cumulatively driven the market into an immersive growth in the GCC. Over the years, the GCC which is the council of prominent middle eastern countries including the United Arab Emirates, the Kingdom of Saudi Arabia, Kuwait, Bahrain, Qatar, and Oman has consistently witnessed improved sales bars in the used car segment.

Key logistics and trade partners are revamping their trade volumes to felicitate the vehicles demand in the GCC region. This has helped used car business owners who are simply importing cars from around the GCC region. For instance, in September 2022, Jebel Ali Free Zone (Jafza), which is the leading trade and logistics hub in the Middle East facilitated a total of 1.2 million (MT) from Dubai. The total volume of trade remains 4.8 million MT of vehicle & transport commodities through the United Arab Emirates in 2021.

Considering these factors and developments, demand for a used cars in the GCC region is expected to witness a high growth rate during the forecast period.

GCC Used Car Industry Segmentation

A Used Car, a pre-owned vehicle, or a secondhand car, is a vehicle that has previously had one or more retail owners. Used cars are sold through various outlets, including franchise and independent car dealers, rental car companies, buy here pay here dealerships, leasing offices, auctions, and private party sales.

GCC Used Car Market is segmented by vehicle type, sales channel, vendor type, and country. Based on vehicle type, the market is segmented into hatchback, sedan, and sports utility vehicles (SUV) and multi-purpose vehicles (MPVs)). Based on sales channel, the market is segmented into online and offline. Based on vendor type, the market is segmented into organized and unorganized, and based on country, the market is segmented into Country United Arab Emirates, Bahrain, Saudi Arabia, Oman, Qatar, and Kuwait. For each segment, market sizing and forecast have been done on basis of a value (USD billion).