Saudi Arabia Automotive Components Market to Grow with a CAGR of 7.8% through 2030

The Saudi Arabia automotive components market is expanding rapidly, driven by rising vehicle ownership, aftermarket demand, localization initiatives, digitalization of services, and a strong push toward industrial diversification under Vision 2030.

According to TechSci Research report, “Saudi Arabia Automotive Components  Market – By Region, Competition, Forecast & Opportunities, 2030F”, Saudi Arabia Automotive Components  Market was valued at USD 6.51 Billion in 2024 and is expected to reach USD 10.24 Billion by 2030 with a CAGR of 7.8% during the forecast period. The Saudi Arabia automotive components market is undergoing a pivotal transformation driven by the Kingdom’s strategic economic diversification and evolving mobility ecosystem. With the government pushing for domestic industrial growth under Vision 2030, there is an increasing focus on localizing component production and attracting global Tier-1 and Tier-2 suppliers. This shift is fostering an ecosystem conducive to innovation, technical partnerships, and supply chain restructuring. Additionally, growing awareness among consumers regarding quality servicing and preventive maintenance is changing the nature of demand from merely reactive replacement to value-added aftermarket services. The rise of digitally enabled workshops, diagnostics platforms, and e-commerce channels for auto parts is reshaping customer behavior and opening new revenue models across both urban and semi-urban areas. At the same time, the expanding focus on sustainability and clean mobility is driving component manufacturers to invest in lighter materials, energy-efficient systems, and modular designs suitable for electric vehicles and hybrids, indicating a long-term structural shift.

However, this transformation is not without its complexities. One of the core challenges is the persistent reliance on imported automotive components, which exposes the market to currency fluctuations, shipping delays, and geopolitical risks. While localization is a goal, the current absence of a robust domestic manufacturing base and skilled labor in precision component production is a major constraint. In parallel, the fragmented nature of the aftermarket, dominated by unorganized garages and counterfeit products, undermines quality control and consumer trust. The lack of uniform standards and certification mechanisms further impedes the smooth functioning of the component supply chain. Moreover, rapid technological advancements in vehicle electronics and drivetrain systems are outpacing the capabilities of many local workshops and distributors, leading to skill mismatches and underutilization of advanced components. These challenges must be addressed through coordinated industrial policy, capacity building, and greater collaboration between OEMs, suppliers, and training institutions.

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The Saudi Arabia Automotive Components market is segmented into vehicle type, component, demand category and region.

Based on vehicle type, commercial vehicles which include trucks, vans, and buses—are critical to the logistics, oil & gas, and public transportation sectors is emerging as a fastest-growing segment. As the government pushes for logistics infrastructure development and boosts e-commerce, light and heavy commercial vehicles are seeing growing fleet adoption. These vehicles typically operate under harsher usage conditions and higher mileage, resulting in accelerated component wear and greater demand for robust replacement parts, such as suspension systems, brake assemblies, and drivetrain components. Additionally, fleet operators seek cost-effective and high-durability parts to reduce maintenance downtime. While commercial vehicles represent a smaller overall market share compared to passenger cars, their contribution to the replacement market is disproportionately high due to frequent service intervals.

Based on region, The Western region, anchored by Jeddah, Mecca, and Medina, is emerging as the fastest-growing region in the automotive components market. Driven by religious tourism (Umrah and Hajj), a rising population, and infrastructure modernization, this region is witnessing a surge in mobility needs—fueling demand for both OEM and aftermarket components. Jeddah, being a major commercial hub and port city, is experiencing a rising number of passenger vehicles, taxis, and ride-sharing fleets, all of which require regular servicing. With Mecca and Medina drawing millions of visitors annually, transportation operators invest heavily in vehicle upkeep, driving high demand for filters, brake pads, AC parts, and batteries. The ongoing urban transformation under Vision 2030, including the Jeddah Central Project and transport integration, is increasing the inflow of vehicles and aftermarket business. As car ownership and infrastructure grow, component demand—particularly in electrical and body & chassis parts—is accelerating, positioning the Western region as the fastest-growing in Saudi Arabia.

Major companies operating in Saudi Arabia Automotive Components  market are:

• Robert Bosch GmbH
• DENSO Corporation
• ZF Friedrichshafen AG
• Toyota Boshoku Corporation
• Magna International Inc.
• Valeo
• Hyundai Mobis
• A Mazda Motor Corporation
• Faurecia SE
• Lear Corporation

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“In recent years, growing number of joint ventures, technology transfer agreements, and strategic alliances with global and regional players. The government’s clear prioritization of the automotive sector under Vision 2030 has created a favorable environment for foreign investment and collaboration. As a result, multinational companies specializing in drivetrain systems, suspension technologies, engine parts, and electric vehicle components are actively engaging with Saudi industrial entities, such as the National Industrial Development Center (NIDC) and the Public Investment Fund (PIF), to explore production and assembly ventures in the Kingdom. These partnerships allow local firms to gain access to international-grade production techniques, quality control protocols, and product design methodologies. In parallel, regional trade ties within the Gulf Cooperation Council (GCC) are enabling cross-border collaboration in sourcing and distribution, helping Saudi-based companies reduce lead times and improve component availability.” Said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

"Saudi Arabia Automotive Components Market, By Vehicle Type (Passenger Car, Commercial Vehicle), By Component (Engine Parts, Body & Chassis, Suspension & Brakes, Drive Transmission & Steering Parts, Electrical Parts and Equipment), By Demand Category (OEM, Replacement), By Region, Competition, Forecast & Opportunities,2020-2030F”, has evaluated the future growth potential of Saudi Arabia Automotive Components  market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the Saudi Arabia Automotive Components  market.

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