Middle East Auto Components Market to Grow with a CAGR of 6% through 2030
Rising vehicle production, growing aftermarket demand, and increased
localization of component manufacturing are the factors driving the market in
the forecast period 2026–2030.
According to TechSci Research report, “Middle East Auto
Components Market – By Country, Competition, Opportunities and Forecast,
2020-2030F”, The Middle East Auto Components Market was valued at USD
36.61 Billion in 2024 and is expected to reach USD 51.94 Billion by 2030 with a
CAGR of 6% during the forecast period.
The Middle East auto components market is experiencing dynamic growth
driven by rising automotive demand, regional manufacturing advancements, and a
shift toward electric vehicle (EV) adoption. As countries within the region
prioritize automotive self-sufficiency, there has been a steady increase in the
local production of critical auto components, including chassis, suspension
systems, and electrical parts. This shift is being fueled by favorable
government policies, including subsidies for local manufacturing and the push
for diversifying economies away from oil dependence. With the automotive sector
rapidly evolving, demand for high-performance components that cater to emerging
technologies, such as hybrid vehicles and autonomous driving systems, is rising.
Another significant driver is the growing emphasis on enhancing vehicle
performance and safety. OEMs are increasingly focused on integrating advanced
materials, such as lightweight composites and high-strength steel, to meet fuel
efficiency standards and improve vehicle safety. This demand is complemented by
the expansion of the aftermarket sector, where vehicle owners are increasingly
seeking enhanced performance parts and maintenance services to keep their cars
in optimal condition. The rise of e-commerce platforms and digital tools for
auto parts purchasing is also reshaping the aftermarket landscape, making it
easier for consumers to access a broader range of components.
However, the market faces several challenges. The ongoing geopolitical
instability in certain parts of the region presents risks to supply chain
continuity and costs. Dependence on imports for specialized components and raw
materials is another significant issue, which exposes manufacturers to
international trade disruptions. The shift towards EVs also presents a
challenge, as manufacturers must adapt to new technologies and establish
expertise in producing components for electric drivetrains and batteries.
Moreover, while the region is investing in developing a skilled workforce,
there remains a gap in the availability of highly specialized labor,
particularly in advanced manufacturing techniques, which can limit the
scalability of local auto component production. Despite these challenges,
opportunities exist for growth, particularly in areas such as the expansion of
regional EV manufacturing, which will require substantial investments in the
development of components like battery management systems, electric motors, and
charging infrastructure.
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Middle East Auto Components Market Is
Segmented by Vehicle Type, Component, Distribution Channel, and By Country.
In 2024, the passenger car
segment is expected to be the fastest-growing in the Middle East auto
components market. This growth is primarily driven by the rising demand for
personal mobility, urbanization, and increasing disposable incomes. Consumer
preference for passenger cars, particularly compact and fuel-efficient models,
is pushing the need for diverse components such as advanced engine parts,
suspension systems, braking systems, and electrical components. With
technological innovations like autonomous driving systems and enhanced safety
features, OEMs are increasingly integrating cutting-edge technologies into
passenger vehicles. This has led to a significant rise in the demand for specialized
components such as sensors, high-performance tires, and lightweight materials
designed to improve fuel efficiency and vehicle performance. Moreover, the
expansion of vehicle leasing and financing options has made passenger cars more
accessible, further fueling demand for components needed in both original
equipment and aftermarket services.
The growth in the passenger
car market is also supported by a shift toward environmentally conscious
consumers. The rising adoption of electric and hybrid vehicles, particularly in
urban areas, has led to an increased demand for components such as batteries,
powertrain systems, and electric drivetrains. These changes are aligned with
regional efforts to diversify energy sources and reduce reliance on fossil
fuels. Furthermore, as consumers opt for connected vehicles, the demand for
infotainment systems, sensors, and electronic control units (ECUs) has surged.
This has created opportunities for suppliers to provide specialized products
tailored to the evolving needs of passenger car manufacturers.
In 2024, Saudi Arabia is
expected to be the fastest-growing country in the Middle East for auto
components. This growth is attributed to the Kingdom's strategic initiatives to
develop a robust automotive manufacturing ecosystem, supported by its Vision 2030
plan. As part of this vision, the government has been investing in
infrastructure, promoting local manufacturing, and creating favorable business
conditions for automotive companies. With the automotive market witnessing a
surge in both passenger car sales and production, Saudi Arabia has become a key
hub for the production of components such as engine systems, transmission
parts, and vehicle electronics. Furthermore, the Kingdom's focus on expanding
electric vehicle infrastructure, including charging stations, is driving the
demand for specialized EV components. These initiatives have positioned Saudi
Arabia as the fastest-growing market in the region, making it a critical player
in the Middle East auto components sector.
Major Market Players
Operating in Middle East Auto Components Market Are:
- Bridgestone Middle East & Africa FZE
- Michelin AIM FZE
- Goodyear Middle East FZE
- The Yokohama Rubber Co. Ltd.
- ACDelco Middle East & Africa
- Johnson Controls International Plc.
- Robert Bosch Middle East
- Total
Marketing Middle East
- ExxonMobil Middle East Marketing Corp
- Shell Markets Middle East
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Looking at the Middle East auto components market,
it's clear that the region is evolving quickly. The demand for passenger cars,
especially with new technologies like electric vehicles, is really driving
growth. With countries like Saudi Arabia making big moves to boost local
production, there's a huge opportunity for both manufacturers and suppliers.
It’s an exciting time for the industry, as more people look for advanced,
efficient vehicles, and the market adapts to meet those needs", said Mr. Karan
Chechi, Research Director of TechSci Research, a research-based global
management consulting firm.
“Middle East Auto Components Market By Vehicle Type (Passenger Car, Commercial Vehicle, Two-Wheeler), By Component (Engine Parts, Body & Chassis, Suspension & Brakes, Drive Transmission & Steering Parts, Electrical Parts and Equipment), By Distribution Channel (OEM, Aftermarket), By Country, Competition, Opportunities and Forecast, 2020-2030F”, assesses the market's
future growth potential and provides data on market size, trends, and
forecasts. It aims to offer comprehensive market insights, helping
decision-makers make informed investment choices. The report also highlights
emerging trends, key drivers, challenges, and opportunities in the Middle East Auto
Components Market.
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