Middle East/North Africa (MENA) Commercial Vehicles Market Outlook 2025-2035: Key Developments and Future Scope

The Middle East and North Africa (MENA) commercial vehicles market is on the cusp of a major expansion phase, driven by sweeping reforms in transportation, rising infrastructure investments, and large-scale fleet modernization programs. The market is projected to grow from USD 7.61 billion in 2025 to USD 18.72 billion by 2035, registering a strong CAGR of 5.1% over the forecast period.

Growth across the region is being accelerated by national logistics strategies, increasing cross-border trade, and public-private partnerships that are transforming procurement dynamics for light-, medium-, and heavy-duty vehicles. With economic diversification programs reshaping industrial and commercial activity, governments across GCC nations-particularly Saudi Arabia and the United Arab Emirates-are prioritizing vehicle replacement, operational efficiency, and emissions compliance.

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Modernization, Electrification, and Alternative Fuels Gain Momentum

Fleet upgrades are becoming central to national transport visions across the region. By 2024, several countries had already begun adopting hybrid and electric commercial vehicles through pilot programs funded via public tenders and city-led clean mobility initiatives. These projects aim to reduce dependence on imported diesel and gasoline while aligning with global climate commitments.

Simultaneously, the integration of telematics, connected fleet platforms, and advanced tracking systems is accelerating as operators seek to improve safety, optimize fuel consumption, and reduce downtime. Smart mobility ecosystems are emerging as a competitive advantage for logistics providers, with predictive maintenance and real-time asset management solutions steadily gaining adoption.

E-Commerce, Retail Distribution, and Digital Logistics Reshape Vehicle Demand

The rapid rise of the regional digital economy is redefining demand for commercial trucks and vans. E-commerce expansion, last-mile delivery networks, and cross-border logistics corridors are prompting operators to procure compact delivery vans, medium-duty trucks, and custom-configured fleets designed for urban distribution.

Regulatory pressures to meet stricter emissions and fuel economy standards are also steering procurement decisions, particularly in densely populated city centers. Manufacturers are responding with enhanced serviceability, improved payload optimization, and upgraded safety technologies to meet shifting operational requirements.

Commercial Trucks Maintain Dominance with a 72.6% Market Share in 2025

Commercial trucks remain the backbone of the MENA commercial vehicles market, accounting for an estimated 72.6% share in 2025. Their extensive usage across mining, logistics, construction, and cross-border freight continues to position them as essential to economic expansion. Stabilizing oil prices and reinvigorated infrastructure projects in Saudi Arabia, the UAE, Qatar, and Egypt are fueling demand for robust, multi-axle trucks engineered for harsh climatic and operational conditions.

Leading global manufacturers, including Mercedes-Benz, MAN, Tata Motors, Volvo, and Scania, are strengthening their presence through localized fleet customization and assembly operations. Customized heavy-duty trucks built for desert terrains, off-road operations, and high-volume freight transport remain in high demand across the GCC.

Heavy-Duty Vehicles to Capture 47.8% Market Share in 2025

Heavy-duty vehicles represent the most significant value segment in the region, expected to command 47.8% of market value in 2025. Their role in supporting large-scale industrial, logistics, and oilfield activities continues to deepen as governments develop industrial clusters, enhance regional supply chain corridors, and expand cross-national mobility infrastructure.

Modular configurations-such as tankers, flatbeds, and tippers-allow heavy-duty trucks to perform multiple roles, reducing operational redundancy and improving fleet profitability. These advantages, combined with increasing government incentives for fleet modernization, are accelerating heavy-duty vehicle procurement across the GCC and North Africa.

Historical & Future Outlook: Strengthening Through Economic Diversification

Between 2020 and 2024, the market grew at a CAGR of 4.6%, reflecting recovery from pandemic-era disruptions and geopolitical challenges. Investments in construction, oil and gas, logistics, and public transport drove vehicle demand during this period. Over the next decade, rising industrial production, manufacturing growth, expanding logistics parks-such as Dubai's Jafza Logistics Park-and nearshoring trends in Türkiye are expected to advance the region's commercial mobility ecosystem further.

Advancements in materials science are also influencing chassis design. Wider use of steel and aluminum alloys is enabling manufacturers to deliver lighter, more durable, and load-efficient vehicle structures tailored for harsh operating environments.

Country-Level Outlook: Saudi Arabia, Türkiye, and UAE Lead Demand

Saudi Arabia, backed by Vision 2030 megaprojects and USD 500 billion in planned urban development investments, is projected to increase its market share from 14.0% in 2025 to 15.0% by 2035. Growth is being driven by demand from e-commerce, warehousing, construction, and large-scale logistics operations.

Türkiye, benefiting from its strategic geopolitical position and nearshoring opportunities, is becoming a critical production and distribution hub. Although its share is expected to see a slight shift from 28.4% in 2025 to 27.7% in 2035, the country's USD 190 billion investment in multimodal transport infrastructure will support strong long-term commercial vehicle demand.

The United Arab Emirates, with rapid real estate, industrial, and utilities expansion, will continue to see heightened demand for small commercial vehicles supporting construction and mobility developments.

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Market Constraints: Stringent Emission Norms Create Cost Pressures

Environmental regulations remain a key restraint for heavy-duty vehicle manufacturers. New emissions standards in the MENA region, designed to mitigate nitrogen oxide and carbon monoxide emissions, are reshaping production strategies and increasing compliance costs. Diesel engines-long the backbone of the commercial fleet-are facing heightened scrutiny, prompting OEMs to accelerate the development of cleaner, more efficient alternatives.

Industry Movements: Strategic Alliances and Localized Manufacturing

Leading OEMs are leveraging mergers, acquisitions, and joint ventures to strengthen their foothold in the MENA region. Examples include:

• Admiral Mobility's partnership with Geely Farizon to supply 5,000 electric commercial vehicles starting 2024 as part of UAE sustainability commitments.
• Daimler Truck's strategic investment in Manz to expand high-tech machinery capabilities and strengthen local manufacturing ecosystems.

CKD and assembly operations are being localized to reduce import costs and enhance supply chain resilience, with major players such as Daimler AG, Volvo AB, Scania AB, Isuzu Motors, Hino, Dongfeng, FAW, and Toyota expanding their regional strategies.

A Decade of Strong, Sustainable Growth Ahead

Supported by digital logistics reforms, infrastructure spending, emissions compliance mandates, and diversified industrial development, the MENA commercial vehicles market is positioned for solid growth through 2035. As governments scale up investments in mobility infrastructure and private operators push for more efficient fleet solutions, the region is expected to remain one of the most attractive markets for commercial vehicle manufacturers worldwide.

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This release was published on openPR.