KSA Automotive Aftermarket Market Outlook to 2030

KSA Automotive Aftermarket Market Overview

• The KSA Automotive Aftermarket Market is valued at USD 3 billion based on a detailed five-year analysis. This market is primarily driven by the increasing demand for vehicle maintenance services and replacement parts, as the number of vehicles in operation continues to grow. Factors such as rising disposable incomes, increasing vehicle ownership, and the age of the vehicle parc contribute significantly to this growth.
• The KSA Automotive Aftermarket Market sees dominance in regions like Riyadh and Jeddah. These cities are the economic and commercial hubs of Saudi Arabia, where the majority of vehicle owners reside, contributing to the demand for automotive services and parts. Riyadh, being the capital, has a higher concentration of new vehicle sales, which drives the need for OEM (original equipment manufacturer) services, while Jeddah, a major port city, has a flourishing trade in automotive components, both OEM and aftermarket.
• In 2023, the Saudi Standards, Metrology and Quality Organization (SASO) updated safety regulations to ensure that all aftermarket parts comply with strict safety standards. These regulations apply to critical vehicle components such as braking systems, steering parts, and safety devices. The crackdown on non-compliant parts has led to a significant reduction in accidents caused by faulty aftermarket installations, contributing to safer road conditions across the country.

KSA Automotive Aftermarket Market Segmentation

By Component Type: The KSA Automotive Aftermarket Market is segmented by component type into engine components, electrical parts, tires and wheels, lubricants and fluids, and batteries. The engine components segment is currently dominating the market share due to the high demand for replacement parts as vehicles age.

By Vehicle Type: The market is also segmented by vehicle type into passenger vehicles, light commercial vehicles (LCVs), heavy commercial vehicles (HCVs), and two-wheelers. Passenger vehicles dominate the market due to the increasing number of private vehicle owners seeking maintenance and repair services.

KSA Automotive Aftermarket Market Competitive Landscape

The KSA Automotive Aftermarket Market is highly competitive, with a mix of local and international players dominating the scene. Companies like Al Jomaih Automotive, Petromin Corporation, and Bridgestone Middle East are major players. These companies benefit from a wide distribution network and strong partnerships with global OEM brands.

KSA Automotive Aftermarket Industry Analysis

Growth Drivers

• Increasing Vehicle Ownership: The increase in vehicle ownership in the KSA automotive market is directly driving the demand for aftermarket services. As of 2024, Saudi Arabia has seen vehicle registrations exceed 12 million, with the growth in the population and expanding middle class leading to increased car ownership. The IMF reports a GDP per capita of approximately $27,000 in 2023, fueling disposable income growth and higher consumer demand for personal vehicles.
• Rising Demand for Maintenance and Replacement Parts: As vehicles age, maintenance and replacement part demands grow. Saudi Arabias average vehicle age has now surpassed 8 years, increasing the need for repair services. The Saudi Ministry of Transport estimates that older vehicles require more frequent maintenance, and with an average annual vehicle usage of over 20,000 kilometers per vehicle, the frequency of part replacement has seen an uptick.
• Expanding Distribution Networks: Saudi Arabias retail and e-commerce markets are expanding rapidly, with over 85% internet penetration supporting a significant shift towards online retail of automotive parts. The countrys e-commerce market reached $6 billion in 2023, with aftermarket parts playing a crucial role. Additionally, retail expansion has seen companies like Al-Futtaim and Abdullah Abdulghani enhance their presence with over 300 physical retail outlets across major cities.

Market Challenges

• Price Sensitivity Among Consumers: Despite increasing incomes, KSA consumers remain price-sensitive, particularly within the aftermarket industry. The Saudi Ministry of Commerce reported that over 40% of consumers opt for non-branded or cheaper alternatives due to the higher costs associated with original equipment manufacturer (OEM) parts.
• Lack of Skilled Technicians: Saudi Arabias technical workforce in the automotive aftermarket is facing challenges. The National Labor Observatory notes that fewer than 25% of auto technicians have undergone certified technical training. The scarcity of skilled professionals hampers the ability of workshops to handle advanced diagnostic and repair work, particularly for newer vehicle models and electric vehicles.

KSA Automotive Aftermarket Market Future Outlook

Over the next five years, the KSA Automotive Aftermarket Market is expected to exhibit steady growth, driven by a growing vehicle parc, advancements in repair and diagnostic technologies, and the increasing digitalization of services. The market will see more adoption of e-commerce platforms for purchasing automotive parts and a rising trend toward the use of connected technologies in vehicles, which will enhance the need for advanced diagnostics and repair services.

Market Opportunities

• Growth in Electric Vehicles: The adoption of electric vehicles (EVs) is slowly accelerating in Saudi Arabia, with over 10,000 EVs on the roads as of 2023. With the Public Investment Funds plan to invest $6 billion into EV infrastructure, the demand for EV-specific aftermarket products is expected to grow. Charging infrastructure is also expanding, with over 1,000 charging stations across major cities, further incentivizing EV adoption.
• Technological Advancements in Diagnostics and Repairs: Saudi Arabia's automotive workshops are increasingly adopting advanced diagnostic tools and technologies. The Ministry of Industry and Mineral Resources reports that over 2,000 service centers have adopted state-of-the-art diagnostic tools in 2023. This has improved efficiency in identifying vehicle issues, reducing downtime, and enhancing customer satisfaction.