Report Overview

Saudi Arabia Spare Parts Market - Industry Trends & Forecast Report, 2028

Saudi Arabia Spare Parts Market size was estimated to be USD 4.35 billion in 2021. During the forecast period between 2022 and 2028, Saudi Arabia spare parts market size is expected to grow at a CAGR of 7.5%. By 2028, the market size is forecast to reach a value of USD 7.13 billion. Saudi Arabia spare parts market is being driven by growing vehicle customization, increasing vehicle average age and the increasing adoption of emerging advanced technologies in automotive spare parts manufacturing. Furthermore, the increasing popularity of e-commerce platforms and a greater emphasis on ensuring vehicle and passenger safety while driving are expected to contribute to the overall market growth. Saudi Arabians can afford to acquire private vehicles because of their high per capita income and superior living conditions in cities. One of the primary reasons Saudi Arabia prioritizes automotive development is that most of the global automotive market is driven by imports. Added to it, increased consumer awareness of vehicle safety and maintenance, as well as the entry of local market players, is expected to further boost the growth of Saudi Arabia spare parts market.

Saudi Arabia Spare Parts Market – Overview

Saudi Arabia's spare parts market is predominantly a replacement market due to a lack of car production capabilities in the country and its heavy reliance on imports. Manufacturers of automotive spare parts and components engage local suppliers in Saudi Arabia to manage their product demand. These distributors function as a middleman between the manufacturer of the automobile spare parts component and the end user. Bridgestone, for example, appointed Al-Talayi Company Limited as its official Saudi Arabian dealer. Hankook Tire chose Bin-Shihon Group of Companies as their supplier.

Spare parts distributors are constantly being extended by spare part manufacturers to acquire penetration in the country's aftermarket. As new companies emerge, the distribution network continues to develop to improve their consumer base. Saudi Arabia has scorching weather, with an average high temperature of more than 100°F (38°C). The country is also 34% covered in sand. The lack of vegetation in the country's sandy parts causes the soil to become more permeable, resulting in more sandstorm activity and higher summer temperatures. As a result, vehicle air conditioners are frequently turned on during the trip. Continuous air conditioner use degrades the lifespan of air conditioning systems and the parts that comprise them, necessitating more frequent car part replacement. Furthermore, due to sandstorms, filter elements, such as air filters and oil filters must be changed on a regular basis. Hence, these two factors create a window of lucrative growth opportunities for major players in Saudi Arabia spare parts market during the period in analysis.

Saudi Arabia Spare Parts Market

Growth Drivers

Growing preference to vehicle customization

Over the years, the demand for spare parts in Saudi Arabia has accelerated because of consumers focus on modifying their vehicles to improve the efficiency and amplify the aesthetics of their vehicles. Furthermore, the rising youth population is also accelerating the demand for vehicle modification trend resulting in increasing engine torque or horsepower, transforming cabin and dash lighting to various shades and window rinsing. This, in turn, is expected to propel the growth of Saudi Arabia spare parts market during the forecast period.

Rising awareness of vehicle safety

Saudi Arabia's growing awareness of automobile safety is driving the demand for vehicle spare parts. Automotives with faulty replacement parts are a major contributor to high fatality rates. A significant number of fatalities can be avoided if automotive parts, such as brake pads, brake shoes and headlamps, are continually updated. In addition, fleet owners have begun installing brake pads with wear sensors in their vehicles to ensure safety in such situations. Hence, increasing focus on vehicle and passenger safety is projected to drive Saudi Arabia spare parts market during the forecast period.

Restraints

High fluctuations in raw material prices

Saudi Arabia spare parts market is prone to uncertainties occur in the major automotive and spare parts manufacturing countries across the regions, as it does not have automobile and spare parts manufacturing industries. As a result, the country is highly dependent on imports for automobiles and their spare parts. Saudi Arabia spare parts market is considered as majorly a replacement market. Consequently, the market is vulnerable to fluctuations in the prices of spare parts and their raw materials used for producing them. Hence, high volatility in raw material prices and their availability may affect the growth of Saudi Arabia spare parts market during the forecast period.

Impact of COVID – 19 on Saudi Arabia Spare Parts Market

COVID-19 pandemic adversely affected Saudi Arabia spare parts market, due to the closure of manufacturing units across major manufacturing countries, such as China and India, caused by imposition of lockdown related regulations and travel ban. The entire automobile industry's supply chain was disrupted, affecting the production of the replacement parts. The primary challenge for the spare parts business changed from disruptions in the global supply chain to a general reduction in demand for automotive components. The suspension of all non-essential services reduced the demand for commercial vehicle components, hamper the growth of the spare parts industry.

During the post-pandemic period, the spare parts market, however, is expected to grow consistently as the demand for automobile components is inextricably linked to automakers' profitability, as they are the primary customers of industry products. The benefits of original replacement components are one of the primary factors driving the expansion of the spare parts market in the post COVID-19 period. The surging demand for hybrid and all-electric vehicles, as well as greater availability of automotive components on e-commerce platforms, could fuel the market growth throughout the forecast period. The increase in used automotive sales is expected to create several opportunities for large corporations in the spare parts market in the post-pandemic era.

Saudi Arabia Spare Parts Market

Segmental Coverage

Saudi Arabia Spare Parts Market - By Vehicle Type

Based on vehicle type, Saudi Arabia spare parts market is bifurcated into Passenger cars and commercial vehicles segments. The passenger cars segment is estimated to account for the majority of market share. Consumers' growing preference for vehicle ownership and increasing disposable income are both contributing to the market expansion.

Saudi Arabia Spare Parts Market - By Component

Based on component, Saudi Arabia spare parts market is divided into Tires, Batteries, Air Filter, Brake Shoe, Spark Plugs, Brake Pad, and Brake Caliper segment. The tires component segment is predicted to hold the market highest share in the Saudi Arabia spare parts market as automotive tires have a limited replacement cycle and life, automotive sales and affordability.

Saudi Arabia Spare Parts Market - By Service

Based on service, Saudi Arabia spare parts market is segmented into DIFM (Do it for Me), OE (Delegating), and DIY (Do it Yourself) service categories.

Competitive Landscape

Saudi Arabia spare parts market is fiercely competitive. Major companies in the market include Robert Bosch GmbH, 3M Company, Bridgestone Corporation, Denso Corporation, The Goodyear Tire & Rubber Company, The Yokohama Rubber Co., Ltd., Continental AG, Hankook & Company Co., Ltd., GS Yuasa International Ltd., and Michelin Group. To further enhance their market share, these players are primarily focused on the development of innovative and efficient products, new product releases, market initiatives, mergers and acquisitions, and other collaborative activities.

Recent Developments

• In October 2022 - Petromin Corp., a lubricants and automotive services company based in Saudi Arabia, established a new subsidiary named National Auto Parts Co., to sell multi-brand automotive spare parts to wholesalers and independent garages in the country through an online platform.

Scope of the Report

By Vehicle Type

• Passenger Cars

• Commercial Vehicles

By Component

• Tires

• Batteries

• Air Filter

• Brake Shoe

• Spark Plugs

• Brake Pad

• Brake Caliper

By Service

• DIFM (Do it for Me)

• OE (Delegating)

• DIY (Do it Yourself)

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia Spare Parts Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Increase in customization of vehicles
         2. Rising awareness of vehicle safety
      2. Restraints
         1. Volatile raw material prices
      3. Opportunities
         1. Harsh climate leading to increasing spare parts replacement ratio
      4. Challenges
         1. Increasing competition
   3. Technology Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Saudi Arabia Spare Parts Market Overview
   1. Market Size & Forecast, by Value, 2018–2028
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Vehicle Type
         1. Passenger Car
         2. Commercial Vehicle
      2. By Component
         1. Tires
         2. Batteries
         3. Air Filter
         4. Brake Shoe
         5. Spark Plugs
         6. Brake Pad
         7. Brake Caliper
         8. Others
      3. By Service
         1. DIFM (Do it for Me)
         2. OE (Delegating)
         3. DIY (Do it Yourself)
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Saudi Arabia Spare Parts Company Market Share Analysis, 2021
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
6. Impact of Covid-19 on Saudi Arabia Spare Parts System Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Robert Bosch GmbH                        
   2. 3M Company                       
   3. Bridgestone Corporation                 
   4. Denso Corporation
   5. The Goodyear Tire & Rubber Company
   6. The Yokohama Rubber Co., Ltd.
   7. Continental AG
   8. Hankook & Company Co., Ltd.
   9. GS Yuasa International Ltd.
   10. Michelin Group
   11. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5. Assumptions & Limitations

*Financial information of case of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List Of Figures

Figure 1        Saudi Arabia Spare Parts Segmentation

Figure 2        Saudi Arabia Spare Parts Market Value Chain Analysis

Figure 3        Company Market Share Analysis, 2021

Figure 4        Saudi Arabia Spare Parts Market Size, By Value (USD Billion), 2018–2028

Figure 5        Saudi Arabia Spare Parts Market Share, By Vehicle Type, By Value, 2018–2028

Figure 6        Saudi Arabia Spare Parts Market Share, By Component, By Value, 2018–2028

Figure 7        Saudi Arabia Spare Parts Market Share, By Service, By Value, 2018–2028

List Of Tables

Table 1         Saudi Arabia Spare Parts Market Size, By Value (USD Billion), 2018–2028

Table 2         Saudi Arabia Spare Parts Market Share, By Vehicle Type, By Value, 2018–2028

Table 3         Saudi Arabia Spare Parts Market Share, By Component, By Value, 2018–2028

Table 4         Saudi Arabia Spare Parts Market Share, By Service, By Value, 2018–2028

Table 5         Robert Bosch GmbH Company Overview

Table 6         Robert Bosch GmbH Financial Overview

Table 7         3M Company Overview

Table 8         3M Company Financial Overview

Table 9         Bridgestone Corporation Company Overview

Table 10        Bridgestone Corporation Financial Overview

Table 11        Denso Corporation Company Overview

Table 12        Denso Corporation Financial Overview

Table 13        The Goodyear Tire & Rubber Company Overview

Table 14        The Goodyear Tire & Rubber Company Financial Overview

Table 15        The Yokohama Rubber Co., Ltd. Company Overview

Table 16        The Yokohama Rubber Co., Ltd. Financial Overview

Table 17        Continental AG Company Overview

Table 18        Continental AG Financial Overview

Table 19        Hankook & Company Co., Ltd. Company Overview

Table 20        Hankook & Company Co., Ltd. Financial Overview

Table 21        GS Yuasa International Ltd. Company Overview

Table 22        GS Yuasa International Ltd. Financial Overview

Table 23        Michelin Group Company Overview

Table 24        Michelin Group Financial Overview