Growth of Saudi Arabia Automotive Aftermarket Marke

What are the factors propelling the growth of Saudi Arabia Automotive Aftermarket Market?

Saudi Arabia Automotive Aftermarket Market:

The automotive aftermarket is the secondary parts market that encompasses parts for collision, replacement, appearance, and performance. The aftermarket provides a wider category of parts of different qualities and prices for almost all vehicles. Automotive parts manufacturers have been working intensively to improve design, materials, capacity, feel, look, functionality, and enhance user experience. The constant innovations sustain automotive manufacturers to stay relevant in the market and considerably grow with time.

Major drivers and constraints of the market:

Saudi automotive aftermarket market is positively driven by the increasing use of personal transportation. Saudi’s significant population prefers to travel longer distances through road networks. The availability of developed road infrastructure boosting the usage of automotives by the residents and tourists in Saudi, is predicted to positively influencing the growth of automotive aftermarket market. Moreover, the increasing awareness of vehicle safety is driving the demand for regular replacement and maintenance of automotive parts including brake pads, headlamps, tires, lubricants, and others, to reduce the accident rates by ensuring safety of the vehicles. In addition, the harsh climatic conditions in Saudi such as sandstorms have resulted in increasing replacement of automotive components including air filters and oil filters, thereby propelling the Saudi Arabia Automotive Aftermarket market growth.

Additionally, the rising government initiatives to support the automotive industry is among the major drivers of Saudi Arabia automotive aftermarket market. For instance, in 2017, the Saudi government ended the legal ban on female drivers and promoted female drivers to use vehicles. This resulted in a significant rise in vehicles in operation, thus creating lucrative growth opportunities for Saudi Arabia automotive aftermarket market.

The increasing adoption of e-business platforms and the implementation of advanced software applications to connect with wider range of customers is creating lucrative growth opportunities for the Saudi Arabia automotive aftermarket market players. Due to the high disposable income and stable fuel prices in Saudi, there is an increasing demand for private vehicles with additional features among customers. Customers are moving towards improved comfort and convenience and are availing themselves of aftermarket components. Constant evaluation and modernization of automotive parts by manufacturers to meet the customer preferences in Saudi is expected to boost the market growth.

Furthermore, a growing desire of today’s consumers to customize and modify their vehicles is propelling the demand for aftermarket components such as specialized alloy wheels, performance upgrades, interior renovations, aesthetic alterations, and audio systems, is positively contributing to the growth of Saudi Arabia automotive aftermarket market. However, Saudi’s strict & regulations and quality concerns about aftermarket automotive parts are factors that may hinder the Saudi Arabia automotive aftermarket market.

Market segmentation:

Saudi automotive aftermarket market is segmented in vehicle type, replacement parts, and certification. Based on vehicle type, the market is segmented into commercial vehicles and passenger vehicles. The passenger vehicles segment is expected to grow with the highest CAGR in the forecast period due to their huge fleet, increasing use of automotives by working population for office commuting, growing rental services to accommodate the tourism industry, and superior fuel efficiency.