Saudi Arabia Automotive Components Market to Grow with a CAGR of 7.64% in India through to 2028
The expanding automotive sector, driven by population growth
and urbanization, results in higher demand for vehicle components.
According
to TechSci Research report, “Saudi Arabia Automotive Components Market -
Industry Size, Share, Trends, Competition Forecast & Opportunities, 2028”,
the Saudi Arabia Automotive Components Market stood at USD 5.62 Billion in 2022
and is anticipated to grow with a CAGR of 7.64% in the forecast period, 2023-2028.
The Saudi Arabia Automotive Components
Market is a vital sector within the nation's automotive industry. As one of the
largest automobile markets in the Middle East, Saudi Arabia's automotive
component market is characterized by its considerable size and strategic
importance. Here's a comprehensive overview of this market: The Saudi Arabia
Automotive Components Market benefits from the country's large and expanding
automotive sector. With a strong consumer base and a growing demand for
vehicles, both passenger and commercial, the market has exhibited steady
growth. This expansion is fueled by factors such as population growth,
urbanization, and increased industrial activities.
The Saudi government has been actively promoting the
development of the automotive industry, which includes encouraging local
manufacturing and assembly of vehicles and their components. Incentives for
local production, reduced import duties, and other policies have fostered a
favorable environment for automotive component manufacturers. The Saudi Arabian
market features a mix of local and international automotive component
manufacturers and suppliers. While local companies have a significant presence,
international players also see the country as a promising market. These
international companies often enter into partnerships with local entities to
enhance their market reach.
Browse
over XX market data Figures spread through XX Pages and an in-depth TOC on
"Saudi
Arabia Automotive Components Market.”
Saudi
Arabia's automotive industry has been rapidly expanding in recent years, and
automotive components play a crucial role in this growth. With a focus on
achieving greater self-sufficiency, the Saudi government has been promoting the
development of a robust automotive manufacturing sector, making automotive
components a key area of interest. This has led to significant investments,
partnerships, and advancements in the production of various automotive
components within the country. The Saudi Arabian automotive components market
encompasses a wide range of products, including engines, transmissions, brakes,
suspension systems, electronics, and more. These components are used in the
assembly and maintenance of vehicles, both for domestic consumption and export.
One
area where Saudi Arabia has shown substantial progress is in engine component
manufacturing. Local companies have been partnering with international
manufacturers to produce engine components such as cylinder blocks, cylinder
heads, and crankshafts. This represents a significant step towards reducing the
country's dependency on imported components and promoting domestic
manufacturing capabilities. Furthermore, it aids in job creation and technology
transfer.
Another
important aspect of the automotive components market in Saudi Arabia is the
production of electronic components and systems. The modern vehicle relies
heavily on electronic systems, ranging from engine control units to
infotainment systems. Saudi Arabia has been investing in the development of its
electronics industry, resulting in the manufacturing of various automotive
electronic components within the country. This not only enhances the domestic
supply chain but also contributes to advancements in automotive technology.
The
government's commitment to developing the automotive industry is evident in
various initiatives and policies. The "Saudi Vision 2030" plan, for
instance, outlines the country's ambition to have a thriving automotive
industry, with a focus on producing at least 70% of vehicle components
domestically. This vision aims to reduce the reliance on imports, create jobs,
and boost the economy. To achieve this, the government has implemented various
incentives for automotive component manufacturers, including tax breaks,
subsidized land, and access to funding. One of the significant developments in
the Saudi automotive components market is the establishment of industrial zones
and clusters that are specifically designed to support the automotive
manufacturing sector. These zones provide a conducive environment for component
manufacturers, offering infrastructure, logistical support, and a network of
suppliers. For example, the King Abdullah Economic City (KAEC) hosts a
dedicated automotive cluster, attracting investments from numerous automotive
component manufacturers.
The
country's automotive components market also benefits from its strategic
geographic location. Saudi Arabia serves as a gateway to the Middle East and
North Africa (MENA) region. This geographical advantage makes it an ideal
location for automotive component manufacturers to establish their operations,
serving not only the domestic market but also catering to the wider MENA
region.
Saudi
Arabia's commitment to sustainable practices is reflected in the automotive
components sector. There is a growing emphasis on the development of
eco-friendly components and systems, such as electric vehicle components and
lightweight materials to improve fuel efficiency and reduce emissions. As
global automotive trends shift towards electric and hybrid vehicles, Saudi
Arabia is positioning itself to be a key player in this transition. The
automotive components market in Saudi Arabia has not been without its
challenges. The need for skilled labor and expertise in advanced manufacturing
processes has been a hurdle, but the government and industry stakeholders have
been investing in training programs and collaborations with international
experts to bridge this gap. Additionally, competition with established global
component manufacturers remains a challenge, but the focus on specialization
and niche markets provides opportunities for growth.
In
conclusion, the Saudi Arabia automotive components market is experiencing
significant growth and transformation. The government's commitment to fostering
a robust automotive industry, along with strategic investments and
partnerships, has resulted in the development of a competitive and dynamic
automotive components sector. With a focus on innovation, sustainability, and
self-sufficiency, Saudi Arabia is well-positioned to become a prominent player
in the global automotive components market, and its journey towards achieving
the ambitious goals outlined in "Saudi Vision 2030" is gaining
momentum.
Major
companies operating in India 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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“Saudi
Arabia's automotive components industry is on a remarkable trajectory,
bolstered by strategic government initiatives and a burgeoning automotive
sector. The nation's commitment to achieving self-sufficiency and fostering
domestic manufacturing is driving substantial growth in engine and electronic
component production. With partnerships and investments, the country is
reducing its reliance on imports and promoting technological advancements. The
"Saudi Vision 2030" plan outlines ambitious goals, targeting at least
70% local production of automotive components, offering incentives to manufacturers.
This vision has also led to the development of dedicated automotive clusters
and zones, such as the King Abdullah Economic City (KAEC), providing a
supportive environment for component production. Saudi Arabia's strategic
location further enhances its appeal as a regional hub, propelling its
automotive components industry forward.” said Mr. Karan Chechi, Research
Director with TechSci Research, a research-based management consulting firm.
“Saudi Arabia Automotive
Components Market By Vehicle Type (Passenger Car, Commercial Vehicle), By Part
Type (Brake System, Air Intake System, Auto Body Parts, Body Electricals, Air
Condition System, Cooling System, Driveshaft & Axle, Others), By Channel
(DIFM (Do it for Me), OE (Delegating)), Regional, Competition, Forecast &
Opportunities, 2018-2028”,
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 Saudi Arabia Automotive
Components Market.
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