UAE Automotive Aftermarket Service Market-Kenresearch

Driving Towards a booming Future: UAE Automotive Aftermarket Projected to Skyrocket at 7% CAGR by 2025 Amid Rising number of Cars on the road: Ken Research

1.The number of automobiles in UAE has substantially grown with the introduction of electric vehicles.

UAE Automotive Aftermarket Service Industry

  • The aspiration of reaching climate goals will further accelerate the market for oil-alternative transportation.
  • The Middle-East electric vehicle market was valued at USD 35 million in 2020.

Apart from the traditional automotive aftermarket, the UAE is also witnessing the emergence of new technologies and services, such as electric vehicle (EV) charging stations, connected car services, and online marketplaces for automotive parts and accessories. These trends are expected to shape the future of the UAE automotive aftermarket, as the market moves towards a more connected, sustainable, and digital ecosystem.

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2.Consumers prefer availing vehicle service and maintenance facilities offered by multi-brand workshops post warranty period of vehicles; attributed to the lower service fee charged

UAE Automotive Aftermarket Service Industry

OEM/Authorized Car Service Centers

  • High spare part cost, due to genuineness of parts & high labour cost.
  • Limited level of supervision allowed as these workshops follow strict rules and procedures while servicing a vehicle.
  • ~90% of cars in pre-warranty period avail vehicle servicing facility at authorized service centres.
  • Only ~5-10% of post-warranty cars are serviced by authorized centres.

Multi-Brand Car Service Centers

  • ~40-50% lower service cost as compared with that in authorized centres.
  • Advantage of bundling small services together without charging extra for the same.
  • High level of customization & personal service.
  • Buyers opting to utilize low price point of garages for post-warranty cars.

They offer a wide range of services, including mechanical repairs, electrical repairs, air conditioning service, and more like loyalty program that rewards customers with discounts and free services. Nowadays mobile apps are introduced that allows you to book appointments and track the progress of your car’s service. Access to exclusive discounts and perks are attracting customers to opt more for muti – brand Car Service Centres, thereby fostering growth of Automotive Aftermarket Service Industry.

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3.Rising demand for car customization by the new generation in UAE

One of the key factors contributing to the growth of the UAE automotive aftermarket is the high demand for car customization. UAE car owners are known for their love of luxury and high-end cars, and they often customize their vehicles with aftermarket parts and accessories to enhance their performance, style, and comfort. This has led to the emergence of a thriving aftermarket industry, offering a wide range of customization options, from engine upgrades to body kits, rims, and exhaust systems.

To cater to the growing demand for automotive aftermarket services, several international and local companies have established their presence in the UAE market. Some of the major players include Bosch, Denso, Valeo, and Magneti Marelli, which provide a wide range of automotive parts and systems, such as batteries, brakes, lighting, and air conditioning.

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