UAE Automotive Aftermarket {2028} Comprehensive Report on Size, Share, and Forecast

September 13, 2024

The UAE automotive aftermarket is set to experience steady growth between 2024 and 2028, driven by several key factors including vehicle customization demand, rising consumer expenditure, and increased awareness of vehicle maintenance.

According to TechSci Research's report titled “UAE Automotive Aftermarket By Region, Competition Forecast & Opportunities, 2028,” original equipment manufacturers (OEMs) are working diligently to improve automotive parts and enhance the aftermarket value chain. This report explores the key trends, drivers, and challenges in the UAE automotive aftermarket, along with a detailed segmentation analysis.

UAE Automotive Aftermarket Overview

Rising Demand for Vehicle Customization

Consumers and automotive enthusiasts in the UAE have shown a growing interest in vehicle customization. Customization, ranging from aesthetic modifications to performance enhancements, has become increasingly popular, especially among younger generations. This trend is significantly driving the UAE automotive aftermarket as consumers seek to personalize their vehicles, adding custom components like high-performance tires, sound systems, and aesthetic accessories.

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Increased Consumer Expenditure

As the UAE continues to maintain its strong economic position, consumer expenditure on automotive repairs and upgrades is on the rise. This trend is supported by the country's growing middle and upper-middle-class populations, who have higher disposable incomes and prioritize comfort and convenience in their vehicles. With an increasing number of people able to afford aftermarket products and services, the demand for vehicle repair, customization, and maintenance continues to grow.

Key UAE Automotive Aftermarket Drivers

Awareness of Vehicle Maintenance

Growing awareness of the importance of regular vehicle maintenance is another significant driver of the UAE automotive aftermarket. Consumers are increasingly realizing the benefits of maintaining their vehicles to optimize performance, fuel efficiency, and longevity. Regular servicing helps reduce the likelihood of costly breakdowns and ensures that the vehicle remains reliable over the long term.

OEM Efforts in the Aftermarket

Original equipment manufacturers (OEMs) have been focusing on improving the automotive aftermarket by optimizing supply chains and introducing new service offerings. Their efforts to reach a broader customer base include the adoption of automation technology in repair and service processes. This ensures quicker and more efficient repairs, meeting the rising demand for faster, high-quality services.

Growth in the E-commerce Sector

The UAE’s booming e-commerce industry has contributed to the rising demand for commercial vehicles, which are essential for goods transportation. As e-commerce continues to expand, the demand for reliable and well-maintained commercial vehicles increases, boosting the aftermarket for parts and services such as brake systems, tires, and batteries.

UAE Automotive Aftermarket Segmentation Analysis

By Vehicle Type

The UAE automotive aftermarket is divided into two primary segments based on vehicle type: passenger cars and commercial vehicles.

Passenger Cars: While passenger cars account for a substantial portion of the market, the rapid growth of commercial vehicles is set to outpace them in the coming years.
Commercial Vehicles: Due to the UAE's growing e-commerce, construction, and logistics sectors, commercial vehicles are expected to hold a significant market share throughout the forecast period. The steady rise in light, medium, and heavy commercial vehicles operating within the UAE is generating a sustained demand for aftermarket products.

By Component

The UAE automotive aftermarket can be further broken down by components such as tires, spark plugs, air filters, fuel filters, brake pads, batteries, and others.

Tires: Tires hold the dominant position within the component segment, largely due to the high wear and tear caused by the UAE's hot and arid climate. Vehicle owners frequently replace tires as the country’s high temperatures accelerate tire degradation. Additionally, the launch of high-performance tire models by key market players is expected to bolster growth in this segment.
Brake Pads and Shoes: As safety regulations become stricter, consumers are placing a greater emphasis on high-quality braking systems. Aftermarket brake pads and shoes have become essential in maintaining vehicle safety standards.
Air and Fuel Filters: Regular replacement of air and fuel filters is crucial for maintaining optimal vehicle performance. The increased awareness among consumers regarding vehicle maintenance drives demand for these components in the aftermarket.

By Service Channel

The market is segmented by service channel into three categories: Do It For Me (DIFM), Do It Yourself (DIY), and OE (Delegating to OEMs).

DIY (Do It Yourself): The DIY segment is gaining popularity as more vehicle owners opt to perform basic maintenance tasks themselves. This segment is projected to capture the largest market share due to the high demand for vehicle customizations and affordable repair options.
DIFM (Do It For Me): While DIY is gaining traction, the DIFM segment still represents a substantial share of the market. Customers who prefer professional assistance for repairs and upgrades continue to rely on service centers for aftermarket needs.
OE (Delegating to OEMs): Some vehicle owners prefer using OEMs for their aftermarket needs, particularly when it comes to specialized services and components that are critical for maintaining vehicle warranties.

By Regional Distribution

Dubai: Dubai is expected to be the leading region in terms of market growth during the forecast period. The region's strategic location as a commercial hub and its affluent population drive high demand for automotive services. Dubai is home to more than two million light, medium, and heavy commercial vehicles, creating a substantial market for spare parts and aftermarket services.
Abu Dhabi and Northern Emirates: Other regions, such as Abu Dhabi and the Northern Emirates, are also expected to witness growth, albeit at a slower pace than Dubai. However, the expansion of infrastructure projects and the transportation sector in these areas will contribute to the overall demand for automotive aftermarket services.

Emerging Trends of UAE Automotive Aftermarket

Growth in DIY Customer Base

The rise in do-it-yourself (DIY) enthusiasts is one of the most prominent trends in the UAE automotive aftermarket. DIY culture has been fueled by the increasing availability of online resources and video tutorials that teach car owners how to perform basic maintenance tasks and minor repairs. As a result, many consumers now prefer purchasing aftermarket kits and parts to complete these jobs independently.

Automation in Aftermarket Services

Automation technology is transforming the automotive aftermarket in the UAE. From automated diagnostics tools to advanced repair equipment, workshops are adopting technology to improve the efficiency and accuracy of their services. Automation not only speeds up repair and maintenance processes but also enhances the overall customer experience by reducing wait times.

Increased Focus on Sustainability

As environmental concerns grow globally, the UAE automotive aftermarket is also seeing a shift towards sustainability. Customers are becoming more conscious of the environmental impact of their vehicles and are seeking aftermarket components that offer improved fuel efficiency, reduced emissions, and longer lifespans. Additionally, there is growing interest in the use of recyclable and eco-friendly materials in aftermarket parts.

Challenges to UAE Automotive Aftermarket Growth

Rise in Electric Vehicle Sales

One of the key challenges facing the UAE automotive aftermarket is the increasing adoption of electric vehicles (EVs). Unlike traditional internal combustion engine vehicles, EVs have fewer mechanical parts, reducing the demand for aftermarket components such as spark plugs, air filters, and fuel filters. As the UAE government continues to promote electric mobility, the market for EVs is expected to grow, potentially limiting the growth of the automotive aftermarket.

Integration of Vehicle Sensors

The integration of advanced sensors and electronic components in modern vehicles poses a challenge for the traditional aftermarket. Modern vehicles, especially those equipped with autonomous driving features, require highly specialized maintenance and repairs that often need to be performed by certified professionals at OEM service centers. As vehicles become more complex, independent aftermarket service providers may struggle to keep up with the technological advancements.

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Competitive Landscape of UAE Automotive Aftermarket

The UAE automotive aftermarket is characterized by intense competition among both domestic and international players. Major companies are continuously innovating and expanding their product offerings to stay competitive in the rapidly evolving market.

Key UAE Automotive Aftermarket Players

Robert Bosch GmbH: A global leader in automotive technology, Bosch offers a wide range of aftermarket products, including batteries, brakes, and electronics.
Bridgestone Corporation: Bridgestone is a dominant player in the tire market, providing high-performance tires designed for the harsh climate of the UAE.
Denso Sales Middle East & North Africa FZE: Denso focuses on automotive components, including spark plugs, fuel filters, and electronic systems, and has a strong presence in the Middle East.
AISIN Middle East: Specializing in automotive parts like brake systems and transmissions, AISIN is a key player in the UAE aftermarket.
Continental AG: Known for its premium tires and automotive systems, Continental AG has a growing presence in the UAE.
The Goodyear Tire & Rubber Company: Goodyear is a major player in the UAE’s tire market, offering a variety of tires suitable for both passenger cars and commercial vehicles.
ZF Friedrichshafen AG: ZF is a global leader in driveline and chassis technology and has a significant foothold in the UAE automotive aftermarket.

Conclusion

The UAE automotive aftermarket is poised for steady growth over the next five years, driven by the demand for vehicle customization, increased consumer expenditure, and a rising awareness of vehicle maintenance. While challenges such as the rise of electric vehicles and technological advancements in modern cars may restrain growth, the market remains vibrant and competitive, with major players continuing to innovate.

By capitalizing on emerging trends such as the DIY culture, automation in repair services, and a focus on sustainability, companies can thrive in this dynamic market.