The Middle East Auto Components market is expected to boost in the years to come, largely due to the growing construction and infrastructural activities in the region. Growth in tourism and an increasing population in Saudi Arabia is projected to intensify the demand for passenger cars during 2020-25. Moreover, the continuous increase in the e-commerce activities by the Middle Eastern population amplifies the need for a greater number of vehicles, which would, in turn, create a replacement demand. Aftermarket is the largest end-user of the auto components market as used vehicles need proper repairing and replacement of the old and outdated auto parts.
According to MarkNtel Advisors’ research report titled “Middle East Auto Components Market Analysis, 2020”, the CAGR of the Middle East Auto Components market is estimated to reach around 7% during 2020-25. The rising number of OEMs coupled with the number of the vehicle fleet is anticipated to positively impact the demand for auto components in the Middle East. In addition, the increasing construction activities and the rapid growth of the e-commerce sector in the region would strongly contribute to the growth of the Middle East auto components market in the forthcoming period.
Increasing Demand can be seen for Vehicle Modification and Improved Sales Channel
The need for the auto spare parts is boosting the regional growth of this market. The countries such as Oman, UAE, Iran, and Saudi Arabia are the main markets for the auto spare parts manufacturing. Spare parts of the imported vehicles are modified which enhances the performance of the vehicle. The major demand for vehicle modification and customization is largely seen from the youth of the Middle East. Moreover, there is a growing preference of customers to purchase spare parts through e-commerce platforms. In Saudi Arabia, auto components are sold through online platforms which establish sales channels for online distribution. For instance, AC Delco and Awok are one of the companies selling spare parts on their websites.
Off-the-Road Vehicles are Generating a Replacement Demand
The construction industry is currently on the revival mode post economic slowdown due to the declining crude oil prices. Qatar would host Football World Cup 2022, which is a key factor leading to persistent initiatives toward economic diversification in other countries such as Saudi Arabia, Kuwait, and Bahrain. Therefore, the ME region is witnessing growing construction activities, thereby inducing demand for Off-the-Road (OTR) vehicles, such as road-rollers, excavators, bulldozers and trucks at construction sites. Due to the nature of the work done by these vehicles, the automotive components undergo great levels of wear and tear. As a result, the replacement of components is quite frequent. This factor acts as an attractive growth opportunity for the Middle East Auto Components market.
Emerging Second-Hand Auto Parts in the Market
The UAE is currently amongst the largest markets for the auto components and is considered a trade hub for GCC and the Middle East. The UAE is also the epicenter for the second-hand auto parts and exports the auto parts within the Gulf region and other Asian Countries. Iran is also a prominent auto spare parts hub. Iran imports the spare parts as well as manufactures auto components such as batteries, tires, and filters.
According to MarkNtel Advisors’ research report “Middle East Auto Components Market Analysis, 2020”, the Middle East Auto Components market is predominantly import-driven. The region imports auto components from various countries such as China, United States, Germany, France, India, etc. Major leading players operating in the market are 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., and Bridgestone Middle East and Africa FZE, among others.
Key Questions Answered in the Market Research Report
Market Outlook, Segmentation and Statistics
Frequently Asked Questions
Q. What would be the growth rate or CAGR Middle East Auto Component Market during 2020-25?
A. The market size of Middle East Auto Component Market during 2020-25 is forecast to be around 7%.
Q. Which region would grab the highest market share during 2020-25?
A. It is forecast that UAE will dominate the market with majority market share, with market size registering considerably higher CAGR.
Q. Who are the key competitors or players operating in Middle East Auto Component Market?
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., and, Bridgestone Middle East and Africa FZE and few others are the leading players in the Middle East Auto Component Market.
Q. Does the report scope cover country wise market statistics also?
A. Yes, the scope of the report encompass detailed country statistics such as market size, market segmentation based on various subcategories.
Q. Which end user segment would emerge as an opportunity area for players in Middle East Auto Components Market?
A. Aftermarket is the largest end-user of the auto components market as the used vehicles need repairing and replacement of the old worn-out auto parts therefore, this segment becomes as an opportunity area for players in Middle East Auto Components Market.
