Arthur D. Little (ADL) has unveiled the fourth edition of its influential report, Future of Automotive Mobility (FOAM), offering a detailed analysis of trends shaping the automotive industry. This year’s study, which includes insights from over 16,000 respondents across 25 countries, places significant emphasis on the United Arab Emirates (UAE). It explores topics such as car ownership, electric vehicles, autonomous driving, and new mobility services.
Alan Martinovich, Partner and Head of Automotive Practice in the Middle East and India at Arthur D. Little, remarked, “The UAE is at the forefront of automotive innovation and consumer readiness for new mobility solutions. Our findings highlight the UAE’s strong interest in transitioning to electric vehicles, favorable attitudes toward autonomous technologies, and a notable shift towards digital car purchases. These insights are crucial for automotive manufacturers and policymakers navigating the evolving UAE market.”
Key Findings for the UAE:
Car Ownership:
- Over half of UAE respondents believe the significance of owning a car is increasing, surpassing all other major regions, including China.
- Approximately 80% expressed interest in buying new cars, a higher percentage compared to Europe and the USA, which have more established used vehicle markets.
Shift to Electric and Hybrid Vehicles:
- Although many UAE respondents currently own internal combustion engine (ICE) vehicles, more than half plan to choose an alternative powertrain for their next vehicle, showing significant interest in electric and plug-in hybrid (PHEV) options. Less than 15% intend to opt for pure battery electric vehicles (BEVs).
Emerging Mobility Trends:
- Ride-hailing services are the most popular new mobility option among UAE residents, with higher usage than traditional car-sharing and ride-sharing services. The study reveals a strong willingness to switch to alternative transport modes based on service quality and availability.
Autonomous Vehicles:
- UAE consumers are among the most receptive globally to adopting autonomous vehicles, with favorable attitudes rising from 32% in previous years to 60% this year—much higher than the approximately 30% seen in mature markets. However, safety concerns, both human and machine-related, remain significant barriers to wider adoption.
Car Purchasing Behavior and Sustainability:
- The internet has become the primary channel for UAE residents throughout the car-buying journey, from vehicle research to test drives and deal closures. UAE car buyers visit dealerships an average of 3.9 times before finalizing a purchase, the highest frequency in the world, underscoring the need for effective online and offline integration.
- Over 53% of respondents prefer to finalize their car purchases online, the highest rate globally.
- Sustainability significantly influences car choices, with the UAE ranking in the top half of regions for environmental considerations.
Philipp Seidel, Principal at Arthur D. Little and co-author of the Global Study, commented, “Our study confirms the promising market opportunities for car manufacturers (OEMs) and distributors in the UAE. Consumers in the Emirates show a growing appetite for cars and are among the most demanding globally regarding the latest vehicle technologies and a seamless purchase and service experience.”
The comprehensive report, “The Future of Automotive Mobility 2024,” authored by Richard Parkin and Philipp Seidel, explores global automotive trends and their regional impacts, particularly in the UAE. This study serves as a valuable resource for industry stakeholders aiming to navigate and leverage the dynamic changes shaping the future of mobility.
