Middle-East and Africa Used Car Market Size (2024 - 2029)

Middle East and Africa Used Car Market Analysis

The Middle-East and Africa Used Car Market was valued at USD 18.20 Billion in 2021 and is expected to reach USD 32.20 Billion by 2027, registering a CAGR of over 10.82% during the forecast period (2022 - 2027).

The emergence of the COVID-19 pandemic had a huge impact on the automotive sector in the Middle-East and Africa, causing supply chain disruption and transportation halts, as well as a lack of fresh additions to the used car fleet. This resulted in a decrease in the number of models available for purchase, as well as a decrease in the number of purchases. However, in the latter half of 2020, i.e., after Q3 and between Q1 2021, the market began to open up again, returning to pre-pandemic levels and expanding chances for the Middle-East and Africa used automobile industry.

By Q2 2021, Africa accounts for the largest import of used vehicles, around 40%, which is majorly driven by the countries like Nigeria and Libya, 85% of the total vehicle fleet in Africa is contributed by used vehicles. Due to high carbon emissions from the used vehicle and to protect the local vehicle manufacturing industry, several regional regulatory bodies have imposed a ban on the import of used vehicles.

The market for used cars in the Middle-East and Africa is continuously expanding. The introduction of organized participants into the market in developing countries has addressed the trust deficit that has plagued the used car industry in those countries for decades.

Additional factors driving market expansion include rising disposable income levels, rising consumer demand for luxury automobiles, shorter car ownership durations, expanding import-export, and a growing inclination among two-wheeler owners to upgrade to tiny and compact cars. Thus, the consumers in Middle-Eastern countries and the African region have witnessed a steep rise in their purchasing power, and with used car availability, now each and every income class in Middle-East and African region are capable of buying a car, making a prominent share in the market growth. However, the market is still in the growth phase and is projected to witness prominence during the forecast period 2022-2027.

Middle East and Africa Used Car Industry Segmentation

The Used Car Market is segmented by Vehicle Type (Hatchback, Sedan, and Sports Utility Vehicle(SUV)), Vendor Type (Organized and Unorganized), and By Country (United Arab Emirates, Saudi Arabia, Kenya, Egypt, and the Rest of Middle-East and Africa). The Report Offers Market Size and Forecast in Value (USD billion) for the above-mentioned Segments.

In addition, all the regulatory policies shaping the purchase of used electric vehicles in the Middle-East and African region have been portrayed in the report for a deep and comprehensive understanding of market dynamics.