By Staff writer
New research shows growth in vehicle use in region set to exceed 7% annually over next four years
Passenger vehicle numbers in the Gulf region are estimated to increase at an average of 7.4 percent annually over the next four five years, new research has revealed.
A total of 19.1 million vehicles are expected to be on the region's roads by 2020, up from 14.35 million in 2015.
Despite a slight decline this year, vehicle sales in the GCC will stabilise in 2017, before a cumulative growth phase from 2017-2020 puts the region back on track as the Middle East and North Africa's largest automotive market.
According to analysts Frost & Sullivan, Saudi Arabia will hold the lion's share of cars on GCC roads, with 10.03 million vehicles by 2020 - 52.5 percent of the entire regional market.
The UAE will have 3.53 million vehicles, an 18.5 percent share, while the rest of the region, which includes Kuwait, Oman, Qatar and Bahrain, will have 5.54 million vehicles - Kuwait being the largest followed by Oman and Qatar.
The revised forecast of vehicles in operation on GCC roads was released ahead of Automechanika Dubai 2016, the Middle East and Africa's largest trade and networking fair for the automotive aftermarket taking pace in May at the Dubai International Convention and Exhibition Centre.
According to Frost & Sullivan, the average age of cars in the region will increase to eight years in 2020.
By then, 0-3 year-old vehicles will contribute 27 percent of units in operation, while cars aged 10 years and older will dominate the market, holding a 31 percent share.
"The growth of car numbers on GCC roads combined with an aging fleet will drive demand for automotive aftermarket spare parts and services," said Ahmed Pauwels, CEO of Automechanika Dubai's organiser, Messe Frankfurt Middle East.
"Demand for spare parts - excluding tyres and batteries - in the GCC alone will be worth $11.9 billion by 2020, up from an estimated $7.6 billion in 2015. The good news is more than 2,000 exhibitors from 60 countries will line-up at Automechanika Dubai 2016, which targets the growing regional market for auto parts, services, accessories, tyres, batteries and auto components," added Pauwels.