Middle East Auto Component Market Research Report: Forecast (2023-2028)
The Middle East Auto Component Market is expected to grow at a CAGR of around 7% during the forecast period, i.e., 2023-28. Most of the market expansion would be driven by the high-income population and the mounting influx of migrants & tourists, especially in the UAE. Consequently, the ever-increasing vehicle production & sales are augmenting the demand for different auto components, such as brake parts, batteries, lubricants, tires, & filters, among others, across the entire Middle East.
Besides, various ongoing & upcoming infrastructural development projects in the region, owing to rising government focus on diversifying the economy away from the oil & gas sector, are leading to the expansion of the building & construction sector, i.e., augmenting the sales of OTR & commercial vehicles and, in turn, promulgating auto component sales.
|Study Period||Historical Data: 2018-21|
|Base Year: 2022|
|Forecast Period: 2023-28|
|Country Covered||UAE, Saudi Arabia, Kuwait, Oman, Iran, Israel and Qatar|
|Key Companies Profiled||Johnson Control International Plc, Goodyear Middle East FZE, Robert Bosch Middle East, ExxonMobil Middle East Marketing Corp., Shell Markets Middle East, AC Delco Middle East and Africa, Amaron Batteries, Michelin AIM FZE, The Yokohama Rubber Co. Ltd., Bridgestone Middle East and Africa FZE|
|Unit Denominations||USD Million/Billion|
Moreover, the continuously expanding e-commerce sector owing to and, subsequently, the logistics & transportation industry is another prominent aspect boosting the auto component market in the region. It ascribes to the burgeoning utilization of heavy commercial vehicles that results in frequent wear & tear of automotive components like brake parts & tires.
More & more consumers are showing a greater inclination toward purchasing their desired spare parts through online platforms, i.e., another factor boosting the e-commerce sector and, in turn, promoting the auto component market growth. Aftermarket is the largest end-user of the Middle East Auto Component Market, owing mainly to the rising consumer interest in used vehicles, which require proper repairs & replacement of old & outdated automotive spare parts.
The young population of the region is spurring growth in the demand for modified & customized vehicles, i.e., leading to the increasing production & imports of various auto components, especially in countries like Oman, the UAE, Iran, and Saudi Arabia, where spare parts of imported vehicles are being increasingly modified in order to enhance the vehicle performance. Hence, these aspects indicate notable expansion of the Middle East Auto Component Market during 2023-28, which eventually would create profitable opportunities for both automakers & spare part manufacturers to yield significant profits in the coming years.
Based on Vehicle Type:
Of them all, passenger cars dominate the Middle East Auto Component Market with the largest share. It owes to the increasing passenger vehicle fleet size to cater to the ever-growing consumer inclination toward private vehicle ownership, the high living standards of people, and the ease of commute that comes with private vehicles. Besides, the increasing number of automotive production plants and the upliftment of the ban on female driving in Saudi Arabia are other prominent aspects driving the demand for passenger vehicles and, in turn, amplifying the production & sales of automotive components across the Middle East.
The leading automakers are actively working on bringing innovative features into their product offerings to cater to the emerging trend of customization in vehicles for enhanced comfort & technological amenities. Moreover, the mounting influx of migrants & tourists, especially in Qatar, the UAE, & Saudi Arabia, is another notable aspect promulgating the demand for passenger cars and, consequently, stimulating the Middle East Auto Component Market.
On the other hand, OTR (Off-the-Road) vehicles are also witnessing burgeoning demand in the Middle East, mainly due to its booming building & construction sector, as governments of various countries are making active efforts toward diversifying their economies away from the oil & gas sector. The recent FIFA World Cup has played a phenomenal role in spurring growth in various construction activities and cited an ever-increasing utilization of OTR vehicles, such as road-rollers, excavators, bulldozers & trucks, at different construction sites, alongside frequent replacement of their spare parts & components due to their increased wear & tear.
Based on Component Type:
Here, tires hold a significant market share among all auto components. It owes to the increasing availability of various tires in different price categories, ranging from Budget, Economy, to Premium, all of which exhibit high performance & excellent driving experiences on varied terrains, coupled with the growing focus of manufacturers on developing high-end tires in order to meet evolving consumer demands for better efficiency & durability. As more & more automakers are establishing their manufacturing units in the Middle East, several tire manufacturers are entering the market and revving up their production capacities to meet the burgeoning end-user requirements for different vehicles.
Moreover, active efforts of governments toward economic diversification, i.e., leading to substantial investments in infrastructure developments and an ever-increasing number of construction projects, are amplifying the demand for heavy commercial vehicles, thereby instigating tire production & sales across the region. In addition, the booming tourism sector in the UAE is propelling the demand for commercial vehicles for public transportation, along with sports vehicles for adventure & off-roading activities, which, in turn, is augmenting the demand for tires and driving the Middle East Auto Component Market.
Geographically, the Middle East Auto Component Market expands across:
Of all countries in the Middle East, the UAE has the brightest future in the Auto Component Market during 2023-28. Auto parts, including but not limited to Filters, lubricants, filters, brake components, batteries, and tires, are being increasingly sold in the country, mainly on account of significant technological advancements in the entire automotive industry, a massive surge in used car sales post the covid-19 pandemic, ever-increased focus on technologies to optimize processes, and shifts in consumer preferences.
In addition, innovations & digitalization trends are also playing a phenomenal role in spurring growth in the auto component industry of the UAE. Online platforms are aiding in connecting auto component suppliers with garages, workshops, fleet owners, & operators, thereby promoting high aftermarket demand and stimulating the overall UAE Auto Component Market expansion.
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Frequently Asked Questions
A. The Middle East Auto Component Market is projected to grow at a CAGR of around 7% during 2023-28.
A. The booming building & construction and tourism sectors and the ever-increasing vehicle production & sales, especially in the UAE, are the prime factors projected to drive the Middle East Auto Component Market during 2023-28.
A. Johnson Control International Plc, Goodyear Middle East FZE, Robert Bosch Middle East, ExxonMobil Middle East Marketing Corp., Shell Markets Middle East, AC Delco Middle East and Africa, Amaron Batteries, Michelin AIM FZE, The Yokohama Rubber Co. Ltd., Bridgestone Middle East and Africa FZE are the key companies participating in the Middle East Auto Component Market.
A. Tires would provide profitable opportunities to the Middle East Auto Component Market during 2023-28.
A. The UAE would generate remunerative prospects for the Middle East Auto Component Market during 2023-28.