The UAE used cars market is projected to increase at a CAGR of 10.5% over the forecast period 2022 to 2028 and is set to reach a market value of US$ 32 billion (AED 118 billion) by the end of 2028. This impressive CAGR is a result of the increasing average age of vehicles, the growing penetration of digital platforms, and the rising demand from shared mobility companies, which are the primary market growth drivers.
Moreover, the majority of ex-pats in UAE are there on a temporary basis until their employment contract expires. Due to this, ex-pats prefer purchasing a pre-owned vehicle rather than spending a large sum of money on a brand-new vehicle, resulting in an increase in the demand for used cars over the years.
Key Parameters and Takeaways: UAE Used Cars Market
- If a person needs to sell a vehicle in the UAE, the vehicle would be subjected to a Secure Diagnostic Access (SDA) test, which would entail a thorough inspection by the dealer before it could be sold.
- The emergence of a large number of companies offering financing options in the form of loans and easy EMIs to increase customer affordability is anticipated to boost the growth of the UAE used car market over the forecast period. However, the availability of limited or no warranty coverage options may impede the growth of the UAE used car market over the forecast period.
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Petrol holds the largest segment in fuel type in UAE due to them being the largest oil producer
As one of the world’s major oil producers, the UAE has an extensive network of petrol stations throughout the country. In UAE, Special 95 and Super 98 are the most common types of petrol. Special 95 has a high-octane content and provides excellent performance for all petrol-powered automobiles with medium compression engines, whereas Super 98 also has a high-octane content and is suitable for high-performance automobiles with powerful engines.
Although there has been an increase in demand for roomy, high-end automobiles, budget-conscious buyers are also interested in affordable, easy-to-maintain sedans like the Toyota Camry, which is renowned for its resale value and fuel economy. The adoption of an online sales platform by market participants has simplified and accelerated the process. It streamlines the documentation, eligibility, and payment processes with a few clicks.
The UAE used car market is anticipated to expand at an exponential rate over the forecast period, on account of the adoption of online platforms and the increasing investments made by market participants to remain competitive.
The increase of tourism in Dubai is gaining traction for the used cars market in UAE
Dubai accounted for the highest sales of used cars in the UAE used car market in 2020 by volume and the same is expected in the forecast years as well in terms of volume. This is because the region is a hub for tourism in the country and used cars in UAE are highly purchased by car rental companies for travel and tourism purposes.
In Sharjah, the rising demand for high-value cars or supercars is the key reason for the higher rise in revenue as compared to volume. A number of operational and marketing changes are expected to happen in the market as the companies are becoming more customers centric. In other emirates, demand is expected to remain constant.
Market structure and competition landscape
The key players in the used cars market in UAE are Al-Futtaim, Al Naboodah Group, The Elite Cars LLC, Car Switch Dubai, dubizzle, YallaMotor, Nissan (Arabian Automobiles Company), Gargash Motors and General Trading, SellAnyCar FZE, Dubicars International FZ-LLC, Cars24, Al Tayer Group, Al Ghandi Auto Group, among others.
To maintain their market position, the key players in the UAE used cars market focus on various growth strategies such as partnerships, and research and development. Some of the key developments in the used cars market are;
- In January 2020, Dubicars collaborated with AlgoDriven, a technology solutions provider for the automotive industry that offers accurate and real-time data, to analyze the three million monthly searches and thousands of transactions on its website.
- In April 2021, Cars24, a leading online marketplace in India, expanded its operations to the UAE in order to meet the rising demand for pre-owned automobiles, thereby generating massive revenue in the coming years.
- In February 2022, Cars24 a well-known online platform released AI-enabled software in the UAE that allows car enthusiasts to buy and sell automobiles within 30 minutes of downloading the software.
Also Explore insightful report on Global Car Rental Market
Key Market Segmentation
RationalStat has segmented the UAE Used Car market based on the vehicle type, fuel type, sales channel, category, end user, and region.
- Second-hand/Used Cars Market By Vehicle Type
- Others (Hatchback, Convertible, etc.)
- Second-hand/Used Cars Market By Fuel Type
- Second-hand/Used Cars Market By Sales Channel
- Online ( Classified Channel)
- Second-hand/Used Cars Market By Category
- Domestic Sales
- Second-hand/Used Cars Market By End User
- Second-hand/Used Cars Market By Region
- Abu Dhabi
- Umm Al-Quwain
- Ras Al Khaimah
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RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.
RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:
- Defining the problem by understanding the type of market and data required by the client.
- Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
- Formulating a hypothesis to create market numbers, forecasts, influencing factors, and their relevance.
- Evaluating and analyzing the data by referring to data sources utilized and leveraged.
- Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.
- Annual reports, company filings, investor presentations, product catalogs, white papers, research reports, trade fairs, and company documents.
- Available industry and market-related documents in the public domain.
- Paid databases including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, and Thomson Reuters, among others.
- Whitepapers, research papers, and industry blogs
Why Buy this Report?
The report is intended for used car dealerships, used car buyers, used car sellers, classified used car online websites, associations of second-hand vehicles and used cars, auction players, distribution companies, logistics players, investment firms, government organizations, educational organizations, regulatory agencies, research organizations, and market research firms, among others. The report provides an in-depth analysis of market size, consumption patterns, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.
Frequently Asked Questions (FAQs)
The UAE used cars market is expected to grow at a CAGR of approximately 10.5% during the forecast period 2022-2028.
The UAE used cars market is expected at US$ 32 billion in 2028.
The rising expatriate population is the key driver in the UAE used cars market.
Dubai is the leading region in the UAE used cars market.
Some of the key players operating in the UAE market include Al-Futtaim, Al Naboodah Group, The Elite Cars LLC, Car Switch Dubai, dubizzle, YallaMotor, Nissan (Arabian Automobiles Company), Gargash Motors and General Trading, SellAnyCar FZE, etc.