MEA Used Car Market

MEA Used Car Market Size, Share and Growth Forecast by Car Type (Hatchback, Sedan, SUV, MUV, Others), by Fuel Type (Petrol, Diesel, Others), by Sales Channel (Online, Offline), and by Country for 2024-2031

Report ID: PMRREP34579

Report Type: Ongoing

Format: PPT*, PDF, EXCEL

Industry: Automotive

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MEA Used Car Market Size, Share, & Growth Analysis

The MEA market for used car is estimated to be valued at US$87.3 Bn by the end of 2031 from US$49.8 Bn recorded in 2024. The market is expected to secure a CAGR of 8.4% in the forthcoming years from 2024 to 2031.

Key Highlights of the Market

  • Digital platforms are gaining traction for both buying and selling.
  • Companies are introducing lucrative packages as more consumers seek flexible financing solutions.
  • The used car market witnesses growing emphasis on certified pre-owned vehicles.
  • Companies are increasingly shifting towards AI and Big Data analytics for mining market insights.
  • The market is experiencing deepening penetration of AR/VR for virtual car tours.
  • Mobile apps continue to be preferred for convenient transactions.
  • Blockchain will play a vital role in maintaining the transparency in vehicle history.

Market Attributes

Key Insights

Market Size (2024E)

US$49.8 Bn

Projected Market Value (2031F)

US$87.3 Bn

Forecast Growth Rate (CAGR 2024 to 2031)


Historical Growth Rate (CAGR 2019 to 2023)


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Market Introduction and Trend Analysis

The Middle East and Africa (MEA) used car market holds buying and selling of pre-owned or second-hand vehicles. This segment is crucial within the broader automobile industry, providing an affordable alternative for individuals who either cannot afford a new car or prefer to avoid the high costs associated with new futuristic vehicles.

The MEA used car market features a diverse array of cars, including hatchbacks, sedans, SUVs, MUVs and other vehicles, including wagon cars or luxury cars, catering to various consumer needs and preferences.

The Middle East and Africa's used automobile market has been affected by several variables, including the state of the local economy, evolving consumer preferences, and the accessibility of financing options. Economic fluctuations can significantly impact the market, affecting both demand and supply.

Additionally, cultural and social trends play a role in shaping consumer choices, while accessible financing solutions make it easier for more people to participate in the market, thereby driving its growth and dynamism.

MEA’s used car industry has evolved extensively over the years, driven by digital transformation, increased financing options, and a focus on quality and certification.

The adoption of AI, AR/VR, mobile apps, and blockchain technology has enhanced customer experience and market transparency, making the process of buying and selling used cars more efficient and reliable.

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Historical Growth and Course Ahead

The MEA used car market has seen significant changes in historical years. The pandemic in 2020 shifted consumer preference towards personal vehicles, boosting demand for used cars as new car supply chains faced disruptions.

This led to a surge in online sales platforms, enhancing digital services and virtual showrooms. In 2021, economic recovery brought a resurgence in the market, with increased financing options making used cars more accessible.

Online marketplaces like Carzaty, and WeBuyCars expanded, offering comprehensive online buying experiences within most of the countries in MEA. Governments also introduced regulations to improve market quality, especially in Saudi Arabia.

By 2023, sustainability trends and interest in electric vehicles began to influence the market, despite economic challenges in several African nations. This period underscored the market's resilience and adaptability to changing economic conditions, technological advancements, and evolving consumer preferences.

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Market Growth Drivers

Economic Diversification and Growth

Economic expansion and increased diversity are key factors driving the MEA used car market. In the UAE, efforts to reduce dependency on oil have stimulated other sectors, increased disposable income, and boosted consumer confidence.

This economic uplift enables more individuals to afford used cars, supporting market growth. Similarly, in South Africa, a stable and sophisticated financial sector offers extensive financing options, making used cars more accessible to a broader population.

Government policies in the UAE encourage economic diversification, leading to a more resilient economy. This economic stability increases consumer spending on durable goods like cars.

South Africa’s established banking infrastructure provides favorable loan conditions, enhancing the affordability of pre-owned vehicles and driving market demand. These economic conditions foster a healthy used car market by increasing the purchasing power of consumers.

The availability of financing options in South Africa and the UAE’s diversified economy exemplifies how regional economic growth directly influences the used car sector. This trend highlights the importance of economic policies in shaping consumer markets.

Digitalization, and Technological Advancements

Digitalization and technological advancements are significantly reshaping the Middle East and Africa used car market.

In Saudi Arabia, platforms like Syarah offer a full spectrum of online services, including virtual showrooms and detailed vehicle inspections, making the buying process seamless and transparent. These digital platforms cater to the tech-savvy population, enhancing consumer experience and trust.

Nigeria is also experiencing a digital revolution in its used car market with companies like Cars45. This platform uses mobile apps to streamline transactions, providing services such as instant price quotes and vehicle history reports.

This technological integration simplifies the buying and selling process, making it more efficient and accessible to a wider audience.

The embrace of digital tools in Saudi Arabia, and Nigeria underscores a broader trend towards modernization in the used car market.

These advancements not only improve market efficiency but also attract a new generation of consumers who prefer online transactions. By leveraging technology, the used car market in these regions is set to grow significantly, driven by enhanced accessibility and consumer convenience.

Factors Impeding the Market

Economic Instability and Inflation

Economic instability and inflation can restrain the used car market in the Middle East, and Africa.

In countries like Egypt, and Nigeria, fluctuating currencies and rising living costs reduce consumers' disposable income, making it harder for them to afford used cars and dampening market growth.

Limited Infrastructure and Regulatory Challenges

Limited infrastructure and regulatory challenges hinder the used car market's growth. For example, in Ethiopia, inadequate road networks and weak enforcement of vehicle standards create barriers to market expansion.

Similarly, in Kenya, inconsistent regulations and high import taxes on used cars make it difficult for consumers to access affordable, quality vehicles.

Future Opportunities for Used Car Dealers in MEA

Expansion of EV Market

The expansion of the electric vehicle (EV) market presents a significant future opportunity for the used car sector in the Middle East and Africa.

With increasing environmental awareness, countries like the UAE are investing in EV infrastructure, making used electric cars more viable and attractive to consumers.

Similarly, South Africa's growing focus on renewable energy sources supports the adoption of EVs, creating a new segment within the used car market.

As EV technology becomes more affordable and widespread, the availability of pre-owned electric cars is expected to rise.

The shift not only meets the demand for sustainable transportation but also offers consumers cost-effective options in the long term. The development of EV markets in these regions is poised to drive substantial growth in the used car industry.

Enhanced Cross-Border Trade

Enhanced cross-border trade within the Middle East and Africa offers promising growth opportunities for the used car market.

The African Continental Free Trade Area (AfCFTA) agreement aims to reduce trade barriers, facilitating easier and more cost-effective movement of used cars between countries. This initiative can significantly boost market accessibility and variety for consumers across the region.

Improved trade routes between Kenya, and neighboring countries can increase the availability of diverse used car options, benefiting both buyers and sellers.

Similarly, GCC countries can leverage streamlined trade processes to import and export pre-owned vehicles more efficiently. By fostering regional trade cooperation, the used car market can experience increased growth and diversity, meeting varied consumer demands more effectively.

Category-wise Analysis


Projected CAGR through 2031

Car Type - SUV


Sales Channel - Online


SUVs Stand the Strongest Among Used Car Sales in MEA

In the Middle East and Africa (MEA) region, the SUV segment dominates the used car market, holds a significant share of total market value, estimated at US$15.7 Bn in 2023, and exhibits a notable CAGR of 9.0%.

The trend is particularly prominent in countries like the UAE, where the popularity of SUVs among consumers is driven by factors such as spaciousness, off-road capability, and luxury features.

Additionally, in markets like South Africa, SUVs are favored for their versatility and ability to navigate diverse terrains, from urban streets to rugged landscapes.

Alongside SUVs, sedans also hold a considerable share of the MEA used car market. These vehicles are sought after for their fuel efficiency, affordability, and comfort, making them popular choices among urban commuters and families.

In countries such as Nigeria, and Kenya, sedans remain a preferred option due to their practicality and suitability for city driving.

Furthermore, hatchbacks and compact cars constitute another significant segment in the Middle East and Africa used car market, appealing to budget-conscious consumers and city dwellers.

These vehicles offer maneuverability in congested urban areas and are often favored by first-time car buyers or individuals seeking affordable transportation solutions.

In countries with dense urban populations like Egypt, and Morocco, hatchbacks are particularly favored for their compact size and fuel efficiency, making them ideal for navigating crowded city streets.

Online Sales Hold a Sizeable Revenue Share

In the MEA used car market, online sales channels have become dominant, with an estimated market value of US$31.3 Bn in 2023 and a significant CAGR of 7.8%.

This surge in online sales channels is reshaping the automotive retail landscape, offering consumers convenient access to a wide range of pre-owned vehicles from the comfort of their homes.

Countries like the UAE, and South Africa have witnessed rapid adoption of online platforms such as DubiCars, and WeBuyCars, which provide comprehensive digital services including virtual showrooms, online financing, and doorstep delivery.

Traditional brick-and-mortar dealerships still play a significant role in the Middle East and Africa used car market, catering to consumers who prefer a hands-on approach to car shopping or value the assurance of physically inspecting vehicles before purchase.

These dealerships often offer personalized customer service and additional perks such as warranty options, attracting a loyal customer base. In countries like Saudi Arabia, and Kenya, traditional dealerships remain popular due to established networks and a strong presence in local communities.

Additionally, auction houses, and wholesale markets serve as key sales channels in the Middle East and Africa used car market, facilitating bulk transactions between dealers, fleet operators, and rental companies.

Channels like these offer a cost-effective way to liquidate excess inventory or acquire vehicles in bulk, driving efficiency in the automotive supply chain.

Countries with thriving automotive industries like Egypt, and Nigeria often see robust activity in auction houses and wholesale markets, contributing to the overall vibrancy of the used car market ecosystem.

Country-wise Analysis


CAGR through 2031

GCC Countries


South Africa


GCC Countries Leading their Way in MEA’s Used Car Industry

GCC countries are the most significant shareholders in the MEA used car market and is expected to grow at a CAGR of 7.8% during the forecast period. The growth is driven by economic diversification, digitalization, and increasing consumer spending power.

In the UAE, and Saudi Arabia, economic reforms and strong digital platforms like DubiCars, and Syarah have streamlined the buying and selling process, making pre-owned vehicles more accessible and appealing.

Qatar, Kuwait, Oman, and Bahrain are also seeing similar trends, with digital marketplaces enhancing market efficiency and consumer convenience.

Government initiatives across these countries, such as support for electric vehicle (EV) adoption and sustainability efforts, indicate a promising future for used EVs in the region.

As EV infrastructure improves, the market for used electric cars is expected to expand, catering to environmentally conscious consumers and further driving growth in the GCC used car market.

South Africa to Exhibit a Notable CAGR

The South African used car market is experiencing significant growth, with a CAGR of around 8.3% during the forecast period. This growth is driven by economic stability, a robust financial sector, and digital transformation.

The country's established banking infrastructure provides accessible financing options, making pre-owned vehicles more affordable for a broader population.

Platforms like WeBuyCars, and Autotrader South Africa enhance the buying and selling process through comprehensive online services, including virtual showrooms and detailed vehicle history reports.

Government initiatives supporting renewable energy and sustainability are also shaping the market. With a growing focus on electric vehicles (EVs), South Africa is gradually developing the infrastructure needed to support used EVs.

This shift towards sustainability presents a promising future for the used car market, attracting environmentally conscious consumers and driving further market expansion.

Competitive Landscape Analysis

The competitive landscape of the MEA used car market is shaped by dynamic digital advancements and strategic business manoeuvres.

Players in this sector are increasingly leveraging cutting-edge technologies to enhance user experience and streamline operations.

Mergers, acquisitions, and partnerships are common strategies employed to strengthen market presence and broaden service offerings.

Moreover, the emphasis on quality assurance, diverse financing solutions, and user-friendly online platforms underscores the fierce competition to capture market share and meet evolving consumer demands.

Recent Industry Developments


WeBuyCars (South Africa) Acquired by Transaction Capital, boosting its operational capacity and market reach, thereby enhancing its ability to offer a wider range of services and vehicles to customers.


DubiCars (UAE) Expanded its virtual showroom capabilities, integrating augmented reality (AR) technology to provide customers with immersive vehicle tours and enhanced online purchasing experiences.


Syarah (Saudi Arabia): Launched a comprehensive digital platform enhancement, introducing features like AI-driven vehicle recommendations and advanced financing options to streamline the buying process.

MEA Used Car Market Report Scope



Forecast Period

2024 to 2031

Historical Data Available for

2018 to 2023

Market Analysis

US$ Billion for Value

Key Countries Covered

  • GCC Countries
  • South Africa
  • North Africa
  • Rest of Middle East & Africa

Key Market Segments Covered

  • Car Type
  • Fuel Type
  • Sales Channel
  • Country

Key Companies Profiled in the Report

  • DubiCars (UAE)
  • CarSwitch (UAE)
  • Syarah (Saudi Arabia)
  • Qatar Living Cars (Qatar)
  • Q8Car (Kuwait)
  • OLX Oman (Oman)
  • Bahrain Car Sale (Bahrain)
  • WeBuyCars (South Africa)
  • Autotrader South Africa
  • Cars45 (Nigeria)
  • Cheki (Kenya)
  • Yallamotor (UAE)
  • Carmudi (Nigeria)

Report Coverage

  • Market Forecast and Trends
  • Company Share Analysis
  • Competitive Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives  

Customization & Pricing

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MEA Used Car Market Segmentation

By Car Type

  • Hatchback
  • Sedan
  • SUV
  • MUV
  • Others

By Fuel Type

  • Petrol
  • Diesel
  • Others

By Sales Channel

  • Online
  • Offline

By Countries

  • GCC Countries
  • South Africa
  • North Africa
  • Rest of Middle East & Africa

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Companies Covered in This Report

Frequently Asked Questions

The surging demand for used cars in the MEA region is driven by economic constraints, affordability concerns, rapid urbanization, a growing middle class, favorable import regulations, and the increasing availability and convenience of online marketplaces.

Some of the key players operating in the market are DubiCars (UAE), CarSwitch (UAE), Syarah (Saudi Arabia), and WeBuyCars (South Africa).

The SUV segment recorded a significant market share in the MEA used car market.

The MEA used car market players could have the opportunity to capitalize on online marketplaces to expand their reach, simplify the buying process, and boost sales and market share.

GCC Countries to account for the significant share in the market.

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