According to a recent report by TechSci Research, the demand for automobile parts and components in the Middle East is expected to raise at a Compound Annual Growth Rate (CAGR) of 5.12 percent in volume terms extending to $39.59 billion in 2024, up from $28.14 billion in 2018.
Likewise, demand for auto parts and components in Africa will increase from $33.17 billion in 2018 to $47.73 billion in 2024.
Africa and The Middle East are among the most thrilling marketplaces for the automobile aftermarket in the world.
TechSci Research found that tyres make up the largest segment of the regional aftermarket with a 26 per cent share in 2018. This was followed by lubricants at 11 per cent; axle and transmission components at 3 per cent; air and oil filters – 2 per cent; followed by suspension systems, batteries; brake pads and brake shoes. Others, including radiator, exhaust and electric components made up the rest of the market share.
The key growth factors for the automotive aftermarket in the region include increasing demand for spare parts used in modification of vehicles, growing investments being made in new channels of customer engagement such as quick delivery modes and online spare parts sales.
In the Middle East, the second hand auto spare parts market has developed into a full-fledged multi-million dollar industry, possessing more than 100 small and medium-sized enterprises that are spread across the region. The UAE is the main distributor of automotive spare parts within the Gulf region as well as for Iran, CIS, Africa and Indian sub-continent.
It is anticipated that with three million plus women drivers hitting the roads in Saudi Arabia, a major growth in demand is to be generated for spare parts and components in the automotive sector.
Another factor expected to boost the market growth is the raise in localisation of auto spare parts in the Middle East to control the import costs and activate local investments.