In 2020, over 100 exhibitors from 12 countries showcased cutting-edge automotive aftercare products across six sections. The market is highly fragmented, with around 3,000-4,000 independent/unorganized workshops contributing to industry revenue.
STORY OUTLINE
- The Saudi Arabia automotive aftersales service market is expected to experience significant growth driven by increased sales of passenger vehicles and the rise of online automotive service providers.
- Longer vehicle lifespans resulting from the use of quality materials and manufacturing processes contribute to the growing demand for automotive repair and maintenance services.
- Road safety and environmental concerns are driving vehicle owners to seek regular maintenance and servicing, boosting the demand for aftersales services.
- E-commerce platforms and digitalization have revolutionized the market, allowing customers to conveniently compare prices, find spare parts, and access automotive services online.
- The market is expected to witness further expansion with the growing number of online service providers, offering opportunities for the automotive repair and maintenance services sector in Saudi Arabia.
The Saudi Arabia automotive aftersales service market is expected to experience significant growth with a strong CAGR from 2022 to 2027. Factors such as the rise of online automotive service providers and increased sales of passenger vehicles are driving the demand for automotive repair and maintenance services in Saudi Arabia.
1. Driving Market Growth: Increased Passenger Car Sales
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The sales of passenger vehicles in Saudi Arabia are experiencing a significant boost due to increased consumer spending capacity and a preference for private vehicle ownership. Longer vehicle lifespans, resulting from the use of quality materials and manufacturing processes, are driving the demand for automotive repair and maintenance services. The Saudi Arabian automotive repair service market reached a value of USD ~980 million in 2021, with market players focusing on providing flexible, affordable, and high-quality services to cater to the growing demand and gain a competitive edge.
2. Growing Concerns Drive Market Demand for Vehicle Safety
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With an increasing emphasis on road safety and environmental concerns, vehicle owners are more conscious of keeping their vehicles in optimal condition. Regular servicing and maintenance become crucial for ensuring safety, fuel efficiency, and reduced emissions, driving the demand for aftersales services.
From 2017, the Saudi Standards, Metrology and Quality Organization (SASO) mandated automobile manufacturers to adhere to stringent safety guidelines and measures for newly manufactured cars. Saudi Arabia has implemented over 480 standards, including 102 items pertaining to tires and spare parts, aligning with global regulations in the automotive industry as practiced in developed countries.
3. On the Fast Track: Online Channel Fuels Market Expansion
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E-commerce platforms and digitalization have revolutionized the automotive aftersales service market, offering convenient price comparisons, spare parts availability, and easy access to services, driving the growth of online providers. There were ~34 million internet users in Saudi Arabia in January 2022. Companies like Morni, Ezhalha offer roadside assistance services to customers and provide convenient access to quotes for automotive repair and maintenance services, garnering significant customer interest.
The growing number of market players offering services on online platforms is expected to create lucrative opportunities for the Saudi automotive repair and maintenance services market in the next five years. The commission charged by Ezhalha, a digital platform for car spa services, ranges from 15% to 20%. According to a report by Ken Research, the Saudi Arabia automotive crash repair market is projected to reach SAR ~2.5billion valuation by 2025, supported by factors such as increased passenger vehicle sales and the emergence of online service providers. The report highlights the rising demand for repair and maintenance services, driven by vehicle safety concerns and the convenience offered by e-commerce platforms. This growth potential underscores the opportunities in the market for industry players to capitalize on.
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