UAE Automotive Aftermarket is expected to grow at a solid CAGR during the forecast period, 2023-2030 owing to strong economic growth, increase consumer spending and growing second hand car sales market.

Introduction

The aftermarket is he part of the automotive industry sector, which includes automotive services and business 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 parts at different price ranges and qualities.

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Key UAE Automotive Aftermarket Drivers

Major factors driving the UAE Automotive Aftermarket are rise in the 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. Sales of new vehicles in United Arab Emirates have increased rapidly in recent years. As per recent estimate, around 217,244 units of light vehicles were sold in UAE in 2022, which indicates a 2% increase, as compared to 2021. As the sales of new vehicles rise, vehicles in operation will increase, which will create more demand for automotive replacement parts like tire, battery and filter in UAE.

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 6% in 2022 due to increasing global crude oil prices, which is projected to have a positive impact on market’s growth. Moreover, increasing population of the country, growing GDP per capita, along with continuous infrastructure development to host Expo 2020, will further strengthen the demand in the automotive sector, which in turn, will accelerate the growth of UAE automotive aftermarket industry.

High disposable income in the country will encourage the consumers to upgrade their new car models on more frequently, along with increasing demand for high specifications such as electric windows, enhanced engine power, locks and mirrors, 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. On the other hand, the counterfeiting of auto components is restraining market growth.

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 2019 travel and tourism sector in the country contributed to approximately 11.6% 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.

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Based on the replacement part, the tire segment is expected to grow at a faster CAGR in the market 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.

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.

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.

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Various notable players operating in the UAE Automotive Aftermarket market include 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.

Segments covered in the Report:

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.

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Key questions answered in this research report:

• • At what pace is the UAE Automotive Aftermarket market growing? What will be the trend in growth in the future?
  • What are the key drivers and restraints in the UAE Automotive Aftermarket market? What will be the impact of drivers and restraints in the future?
  • What are the various distribution channels of the UAE Automotive Aftermarket market, and how are they poised to grow?
  • Which Replacement Part generated maximum revenues in 2022 and identify the most promising Replacement Part during the forecast period?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

Market Segmentation

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

Leading market players (Option 1: As a part of free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • 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