- Middle East region shows highest number of visits to car dealerships vs. mature markets.

- Saudis show highest rate of openness to digital automotive purchase globally

- Respondents in the Middle East are much more favorable to adopting autonomous vehicles than respondents in Europe, North East Asia, and the USA

- Significant potential for transition to Electric Vehicles in the next car purchase

Arthur D. Little (ADL) has published the fourth edition of its influential Future of Automotive Mobility (FOAM) report, covering current and future automotive trends. This year's study includes insights from over 16,000 respondents across 25 countries, including the Middle East region. The report provides detailed perspectives on car ownership, electric vehicles, autonomous driving, and new mobility services within the Middle East market.

"The Middle East region is at the forefront of embracing the future of mobility," said Alan Martinovich, Partner and Head of Automotive Practice in the Middle East and India at Arthur D. Little. "Our findings highlight a significant readiness to transition to electric vehicles, a favorable attitude towards autonomous driving technologies, and a strong inclination towards digital transactions in car purchases. These insights are crucial for automotive manufacturers and policymakers navigating the evolving landscape of the Middle East automotive market."

Key Findings for the Middle East

Car Ownership and Driving Patterns

Middle East respondents exhibit a strong preference for car ownership over public transportation. The study reveals that residents in the Middle East have longer commutes and higher annual mileage compared to their European counterparts. On average Middle East residents commute 32 km daily which is 50% higher than Europe, and drive 18,000 km annually, 38% more than Europe.

Shift to Electric Vehicles

While the majority of respondents currently own internal combustion engine (ICE) vehicles, there is significant interest in transitioning to electric drivetrains for future car purchases, specifically Plug-in Hybrid Electric Vehicles (PHEV) and pure Battery Electric Vehicles. Many potential buyers are driven by factors such as lower total cost of ownership, environmental benefits, and concerns about climate change. However, challenges such as limited range, high up-front costs, and poor charging infrastructure remain.

Emerging Mobility Trends

Ride-hailing services (Uber, Careem) are a popular (tried by 56%) new mobility option among Middle East residents, with higher usage rates than for traditional car sharing and ride sharing, and especially higher than those in Europe (28%), and the USA (50%).

The study indicates that Middle East residents are inclined to consider new mobility services, with an average of around 15 journeys made using new mobility services monthly, higher than Europe and the USA.

Autonomous Vehicles

Middle East consumers exhibit a notably higher acceptance of autonomous vehicles compared to respondents in Europe, North East Asia, and the USA with markets like Saudi Arabia exhibiting 3 times higher acceptance than Europe, and UAE exhibiting twice as high as mature markets. Safety concerns, including risks associated with both human and machine errors, remain the primary obstacles to broader adoption.

Car Purchasing Behavior

The internet has emerged as a primary channel for Middle East residents in the car buying process, encompassing everything from vehicle research to arranging test drives and finalizing purchases. Despite their strong inclination to buy cars online—among the highest globally with upwards of 53%—Middle East consumers still frequent dealerships, averaging 3.3 visits per purchase, which is also one of the highest rates worldwide.

"Our study highlights the promising market opportunities for car manufacturers (OEMs) and distributors in the Middle East," commented Rich Parkin, Partner in Automotive Practice at Arthur D. Little and lead author of the study. "Consumers in the region show a growing interest in car ownership and have high expectations for the latest vehicle technologies and a digital as well as physical buying experiences. To meet the changing preferences of Middle Eastern customers, car manufacturers (OEMs) and distributors need to effectively combine physical and digital experiences.”

The full report, "The Future of Automotive Mobility 2024," provides a detailed analysis of global automotive trends and their implications for various regions, including the Middle East. This study is an indispensable resource for industry stakeholders seeking to understand and capitalize on the dynamic changes shaping the future of mobility.

To view the full report click here: https://tinyurl.com/ymxrunny

About Arthur D. Little: Arthur D. Little has been at the forefront of innovation since 1886. We are an acknowledged thought leader in linking strategy, innovation, and transformation in technology-intensive and converging industries. We navigate our clients through changing business ecosystems to uncover new growth opportunities. We enable our clients to build innovation capabilities and transform their organizations. Our consultants have strong practical industry experience combined with excellent knowledge of key trends and dynamics. ADL is present in the most important business centers around the world. We are proud to serve most of the Fortune 1000 companies, in addition to other leading firms and public sector organizations. Website: https://www.adlittle.com/en

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