Arthur D. Little (ADL) has released the fourth edition of its influential Future of Automotive Mobility (FOAM) report, offering an in-depth analysis of current and future trends in the automotive industry. This year’s report, based on insights from over 16,000 respondents across 25 countries, places a special focus on the United Arab Emirates (UAE). It explores key areas such as car ownership, electric vehicles, autonomous driving, and emerging mobility services within the UAE.
The UAE is leading the way in automotive innovation and consumer readiness for new mobility solutions,” said Alan Martinovich, Partner and Head of Automotive Practice for the Middle East and India at Arthur D. Little. “Our research reveals the UAE’s strong interest in electric vehicle adoption, positive attitudes toward autonomous driving technologies, and a growing preference for digital car purchases. These insights are crucial for automotive manufacturers and policymakers adapting to the rapidly changing UAE market.
Key Findings for the UAE:
Car Ownership:
- Over half of UAE respondents believe that the importance of owning a car is increasing, with the growth outpacing other major regions, including China.
- Around 80% of UAE respondents expressed a preference for buying new cars, significantly higher than in Europe and the USA, where the used car market is more mature.
Shift to Electric and Hybrid Vehicles:
- Although many UAE respondents currently own internal combustion engine (ICE) vehicles, over half plan to buy their next vehicle with an alternative powertrain, showing strong interest in electric and plug-in hybrid (PHEV) options. However, less than 15% plan to opt for pure battery electric vehicles (BEVs).
Emerging Mobility Trends:
- Ride-hailing services are the most popular new mobility option among UAE residents, surpassing traditional car sharing and ride-sharing services. The study shows an openness to alternative transport modes, driven by high service quality.
Autonomous Vehicles:
- UAE consumers are among the most open globally to adopting autonomous vehicles, with favorable attitudes rising from 32% in previous years to 60% this year, compared to around 30% in more mature markets. Concerns about safety, both human- and machine-related, remain key barriers to broader adoption.
Car Purchasing Behavior and Sustainability:
- The internet has become a dominant platform for UAE consumers throughout the car buying process, from researching vehicles to arranging test drives and completing transactions. On average, UAE buyers visit dealerships 3.9 times before making a purchase, more than any other region, highlighting the importance of integrating online and offline experiences.
- More than 53% of UAE respondents expressed a preference for completing their car purchase online, the highest percentage of any region in the world.
- Sustainability plays an important role in car choice, with UAE consumers ranking environmental considerations among the top factors influencing their decisions.
“Our study highlights the immense market potential for car manufacturers (OEMs) and distributors in the UAE,” said Philipp Seidel, Principal at Arthur D. Little and co-author of the Global Study. “Consumers in the Emirates demonstrate a growing appetite for vehicles while being among the most demanding globally when it comes to the latest technologies and a seamless purchase experience.”
The full report, The Future of Automotive Mobility 2024, co-authored by Richard Parkin and Philipp Seidel, provides valuable insights into global automotive trends and their implications for various regions, including the UAE. It serves as an essential resource for industry stakeholders navigating the dynamic shifts shaping the future of mobility.
