SUVs - Saudi Arabia

Saudi Arabia

Revenue in the SUVs market is projected to reach €6,663m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 1.17%, resulting in a projected market volume of €7,061m by 2029.
SUVs market unit sales are expected to reach 260.5k vehicles in 2029.
The volume weighted average price of SUVs market in 2024 is expected to amount to €26k.
From an international perspective it is shown that the most revenue will be generated in the United States (€309bn in 2024).

Key regions: United States, Germany, United Kingdom, India, China

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Analyst Opinion

The SUVs market in Saudi Arabia has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: In Saudi Arabia, SUVs have become increasingly popular among consumers due to their versatility, spaciousness, and ruggedness. Many customers in the country prefer SUVs over other vehicle types because of their ability to navigate rough terrains and extreme weather conditions. Additionally, SUVs are seen as a status symbol and a reflection of a luxurious lifestyle. As a result, there has been a shift in consumer preferences towards larger and more premium SUV models.

Trends in the market: One of the key trends in the SUVs market in Saudi Arabia is the increasing demand for electric and hybrid SUVs. As the country aims to reduce its dependence on fossil fuels and promote sustainable transportation, there has been a growing interest in eco-friendly vehicles. This trend is expected to continue as the government implements policies and incentives to encourage the adoption of electric and hybrid vehicles. Another trend in the market is the rise of SUVs with advanced safety features and technology. Saudi Arabia has seen an increase in road accidents in recent years, and as a result, there is a growing demand for vehicles that prioritize safety. SUVs with features such as collision warning systems, lane departure warning, and adaptive cruise control are becoming more popular among consumers.

Local special circumstances: One of the key factors driving the growth of the SUVs market in Saudi Arabia is the country's unique geography and climate. The vast desert landscapes and extreme weather conditions make SUVs a practical choice for many consumers. SUVs offer better traction and stability on sandy terrains, making them suitable for off-road adventures and desert driving. Additionally, the spacious interiors of SUVs are well-suited for large families and provide ample storage space for luggage and outdoor equipment.

Underlying macroeconomic factors: Saudi Arabia has a strong economy fueled by its oil reserves, which has contributed to the growth of the SUVs market. The country's high disposable income levels and low fuel prices make SUVs an affordable and attractive option for many consumers. Additionally, the government's efforts to diversify the economy and promote tourism have led to an increase in consumer spending, further driving the demand for SUVs. In conclusion, the SUVs market in Saudi Arabia is experiencing significant growth due to changing customer preferences, such as the preference for larger and more premium SUV models, the demand for electric and hybrid SUVs, and the desire for advanced safety features. The country's unique geography and climate, along with its strong economy, also contribute to the growth of the market. As these trends and special circumstances continue to shape the market, it is expected that the SUVs market in Saudi Arabia will continue to thrive in the coming years.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).