UAE AUTOMOTIVE AFTERMARKET MARKET

UAE Automotive Aftermarket Market Size & Insights

UAE Automotive Aftermarket Market size is project to add an incremental market revenues of over USD 1.7 billion between 2025 and 2032 growing at robust CAGR during the forecast period. The aftermarket offers substantial opportunities, with over millions of passenger vehicles are currently out of warranty in 2024.

UAE Automotive Aftermarket Overview

The automotive aftermarket parts market includes automotive services and replacement parts. It is concerned with the manufacturing, remanufacturing, distribution, retailing, and installation of all vehicle parts, equipment, and other accessories, after the sale of the automobile by the original equipment manufacturer (OEM) to the consumers. The automotive aftermarket provides a variety of vehicle parts, equipment, devices, and other at various price ranges and qualities.

Major UAE Automotive Aftermarket Industry Drivers

Major factors driving the UAE Automotive Aftermarket are rise in the robust economic growth, increase in sales of new vehicles, vehicle safety concerns, localized production of parts by the OEMs, growing demand for spare parts for vehicle modification, increasing investment in new distribution channels.

Robust Economic Growth 

Strong growth in the UAE economy, rising household spending, growing second-hand auto spare part markets and easy vehicle financing in the country, are fuelling the growth of the automotive industry in the country. As per the report published by International Monetary Fund, the overall GDP of UAE is projected to grow more than 4% in 2025 due to robust growth in non-oil sectors such as tourism, financial, construction and technology which is projected to have a positive impact on market’s growth. Moreover, increasing population of the country, growing GDP per capita, will further strengthen the demand in the automotive sector, which in turn, will accelerate the growth of UAE automotive aftermarket industry.

Increase in New Vehicle Sales

Sales of new vehicles in United Arab Emirates have increased rapidly in recent years. In 2024 passenger car sales stood 268 thousand units an all-time high sales figures ever witnesses in UAE, the sales increased by 19.3% over 2023. As the sales of new vehicles rise, the vehicles in operation in UAE will increase, which will create more demand for automotive replacement parts like tire, battery and filter in UAE.

Increase in  Disposable Income

Increase in disposable income will empower consumers to upgrade their new car models more frequently and also drive demand for vehicle modification and upgrading to higher specifications and other luxury equipment and devices, are some other factors that are expected to boost the growth of the market. Modern road infrastructure in the UAE and low fuel cost also makes it an attractive market for the automotive sector. Major automotive companies are focussing on establishing regional hubs in UAE, which will further propel the growth of the UAEs automotive aftermarket.

Government Focusing on Diversifying Economy from Oil based to Non-Oil Based Economy

UAE government is taking initiatives to reduce its dependence from oil and gas sector, by investing in various sectors like tourism, education and healthcare. As per the National Tourism Strategy, government of UAE will invest USD 27 billion in tourism sector to attract 40 million hotel guest in the country by 2031, which will encourage investments in travel, hospitality and aviation by international company. UAE is well known-hub for tourism, in 2024 travel and tourism sector in the country contributed to approximately 112% to the total GDP. With increasing investments by government in tourism sector, demand for new vehicles and taxi services is expected to increase in the future, which will create lucrative growth opportunities for UAE automotive aftermarket.

UAE Automotive Aftermarket Market Segment Analysis 

Vehicle Type Insights: Passenger vehicle dominated the aftermarket market revenues

The passenger vehicle dominated the market revenues owing to its large vehicle in operation base in UAE. As passengers cars are the most preferred mode of transportation in the country and use extensively for travel, it will continue to dominate the revenue during the forecast period.

Replacement Parts Insights: Tire segment forecast to dominate during the forecast period

Based on the replacement part, the tire segment is expected to dominate the market revenues during the forecast period owing to the harsh climate condition of the country, which is leading to a relatively shorter lifespan of tires, thus encouraging the consumers to replace tire on regular basis.

Parts Certification Type Insights: Genuine segment is anticipated to grow at a faster CAGR during the forecast period

Based on the Certification, the genuine segment is anticipated to grow at a faster CAGR during the forecast period owing to the growing demand for high-quality products at low cost, coupled with increasing per capita income. Genuine parts are manufactured by OEMs and car manufacturers, which provide manufacturing warranty and offer a better-quality product.

Based on the Distribution Channel, the retailer segment is expected to grow at a higher CAGR in the market during the forecast period owing to the rising demand for automotive parts by the end-users in the country. In addition to this, the easy availability of a wide range of spare parts, batteries, tires, among others in automotive aftermarket retail shops and fast service is further fuelling the market growth. Increasing adoption of e-commerce among users due to the exceptional benefits offered by it, such as one-day delivery, multiple payment option, and variety of products in a discounted price range.

UAE Aftermarket Automotive Parts Market Major Players & Competitive Landscape

Major players operating in the market are Toyota, 3M UAE, Continental ME, Delphi Technologies, DENSO Corporation, Federal-Mogul Corporation, Magneti Marelli S.p.A., Robert Bosch Middle East FZE, Goodyear Middle East FZE, ZF Services Middle East LLC, and Cooper Tire & Rubber Company, among others.

UAE Automotive Aftermarket Market Scope of the Report

UAE Automotive Aftermarket Market Report Segmentation

The UAE Automotive Aftermarket has been segmented on the basis of vehicle type, certification, replacement part. Based on the vehicle type, the market has been segmented into commercial vehicles and passenger vehicles. By replacement parts, the market is segmented into tire, battery, brake parts, filters, Lighting Components, Electronic components, Lubricants, Clutch Parts, Engine Components and others. Based on certification, the market has been segmented into Genuine Parts, Certified Parts, Counterfeit Parts, Others.

UAE Automotive Aftermarket by Vehicle Type

• • Commercial Vehicles
  • Passenger Vehicles

UAE Automotive Aftermarket by Replacement Parts

• • Tire
  • Battery
  • Brake Parts
  • Filters
    • Air Filter​
    • Oil Filter​
    • Others​
  • Lighting Components​
  • Electronic components​
  • Lubricants​
  • Clutch Parts​
  • Engine Components
    • Timing Belt​
    • Spark Plugs​
    • Others​
  • Others

UAE Automotive Aftermarket by Certification

• • Genuine Parts
  • Certified Parts
  • Counterfeit Parts
  • Others

 UAE Automotive Aftermarket Leading players

• • Toyota
  • 3M UAE
  • Continental ME
  • Delphi Technologies
  • DENSO Corporation
  • Federal-Mogul Corporation
  • Magneti Marelli S.p.A.
  • Robert Bosch Middle East FZE
  • Goodyear Middle East FZE
  • ZF Services Middle East LLC
  • Cooper Tire & Rubber Company