|
Forecast
Period
|
2025-2029
|
|
Market
Size (2023)
|
USD
1.51 Billion
|
|
CAGR
(2024-2029)
|
7.28%
|
|
Fastest
Growing Segment
|
Maintenance
|
|
Largest
Market
|
Northern
& Central
|
|
Market
Size (2029)
|
USD
2.31 Billion
|
Market Overview
Saudi
Arabia Automotive Repair and Maintenance Services Market has valued at USD 1.51
Billion in 2023 and is anticipated to project robust growth in the forecast
period with a CAGR of 7.28%.The Saudi Arabia Automotive Repair and Maintenance
Services Market forms a crucial component of the nation's automotive industry,
offering a spectrum of services that cater to the upkeep and longevity of
vehicles. This market has experienced significant growth due to the country's
burgeoning automotive sector, which includes a diverse range of vehicles, from
passenger cars to commercial fleets. The Saudi Arabian market's repair and maintenance
services encompass a broad array of offerings, including routine maintenance,
diagnostics, mechanical and electrical repairs, bodywork, and painting. These
services are designed to ensure the safety, performance, and reliability of
vehicles, a fundamental concern for both personal and commercial
transportation. The market is characterized by its adaptability to
the evolving automotive landscape. With Saudi Arabia's growing focus on
sustainability and the emergence of electric vehicles (EVs), repair and
maintenance services are expanding to accommodate the unique needs of these
vehicles, encompassing battery diagnostics, EV-specific components, and
charging infrastructure. The market is driven by a combination of
factors, including an increasing vehicle parc, which boosts the demand for
regular servicing and maintenance. Additionally, the harsh desert climate and
road conditions in Saudi Arabia make vehicle upkeep and maintenance a top
priority to ensure longevity and optimal performance.The Saudi Arabian automotive sector is poised for significant growth, with the establishment of OEMs like Lucid Motors and Ceer Motors catalyzing the production of passenger vehicles. The Cluster's vision is to have 3-4 OEMs producing over 400,000 passenger vehicles in Saudi Arabia by 2030, with a target of achieving a local gross value add (LGVA) of 40%. The Vision 2030 program's emphasis on clean and autonomous mobility is expected to propel the industry forward, with an anticipated growth rate of 12% by 2030. As the number of vehicles increases, so does the demand for maintenance and repair services. The market is diversifying, with services extending beyond traditional repair to include advanced paint protection, vehicle care, and quick services. The rise in vehicle ownership and the growing popularity of off-road activities in the desert landscapes further drive this demand.
The automotive repair and maintenance market in
Saudi Arabia is highly competitive, with a range of service providers, from
independent garages to authorized service centers. As the nation continues to
invest in its automotive infrastructure and consumer awareness regarding
vehicle maintenance grows, the market is poised for further expansion and
innovation. This industry not only supports the longevity and safety of
vehicles but also plays a vital role in the overall health of the automotive
sector in Saudi Arabia, contributing to its ongoing growth and development.
Key Market Drivers
Expanding Vehicle Parc
The growing number of vehicles on Saudi Arabian
roads is a primary driver of the repair and maintenance services market. As the
vehicle parc increases, there is a rising demand for routine servicing,
repairs, and diagnostics, creating a robust market for these services.The substantial increase in public bus passengers and domestic road freight in Saudi Arabia for the year 2022, as reported by GASTAT, indicates a robust expansion in the use of road transport within the kingdom. It revealed that the number of passengers transported by public buses within and between cities during 2022 reached 43.5 million, an increase of 233.9% compared to 2021. This growth is a positive indicator for the automotive repair and maintenance services market, suggesting an upsurge in demand for vehicle servicing due to higher usage rates. The surge in public transportation usage alone could lead to an increased need for regular maintenance and repair services, ensuring that the fleet remains operational and safe for passenger use. Additionally, the rise in road freight volume points to a greater number of commercial vehicles on the roads, which typically require more frequent servicing. This scenario presents a significant opportunity for service providers in the automotive repair and maintenance sector to expand their operations and offerings to meet the growing market demand. Strategic investments in service capacity, technology, and skilled personnel could position these businesses to capitalize on the increasing need for vehicle maintenance and repair services in Saudi Arabia.
Road Infrastructure Development
Saudi Arabia has made substantial investments in
expanding its road infrastructure, including the construction of new highways
and transport networks. The resulting increase in road usage and long-distance
travel contributes to greater wear and tear on vehicles, necessitating more
maintenance and repair services. For instance, in 2024, The Makkah region in Saudi Arabia is undertaking a major infrastructure development initiative by launching 20 road projects worth SAR1.4 billion (373 USD million). These projects aim to enhance connectivity, improve accessibility, and facilitate travel within the region, particularly during the Hajj and Umrah seasons. The initiative includes the construction of a direct road linking Jeddah to Makkah, the expansion of existing roads, and the addition of lighting and other improvements to reduce traffic congestion.
Growing Commercial Fleet
The nation's thriving logistics and transportation
industry relies on a substantial commercial vehicle fleet, including trucks and
delivery vans. This sector's growth fuels the demand for maintenance and repair
services, as timely upkeep is critical to their operational efficiency.
Electric Vehicle (EV) Adoption
Saudi Arabia's interest in sustainable and electric
mobility solutions is on the rise. The advent of electric vehicles introduces a
new segment for repair and maintenance services, focusing on battery
diagnostics, EV-specific components, and charging infrastructure, adding to the
market's diversity. Saudi Arabia's automotive sector is undergoing a revolution as electric cars (EVs) are introduced and local manufacturing units are established. Lucid Motors, a California-based EV manufacturer, is one of Saudi Arabia's Public Investment Fund's (PIF) largest U.S. investments, with a peak production capacity of up to 155,000 vehicles per year. Ceer Motors, a joint venture between PIF and Hon Hai Precision Industry Co. (Foxconn), is Saudi Arabia's first national automotive brand, with the goal of designing, manufacturing, and selling an innovative portfolio of EVs that will set the standard in e-mobility, connectivity, and autonomous driving technology.
Authorized Service Centers
Automotive manufacturers and dealerships have
established authorized service centers to maintain brand quality and adhere to
warranties. These centers offer specialized and reliable repair and maintenance
services, contributing to the market's professionalism and customer trust.
Consumer Awareness
There is a growing awareness among Saudi Arabian
consumers about the importance of regular vehicle maintenance to ensure safety,
performance, and longevity. This awareness drives demand for services that go
beyond repair, encompassing preventive maintenance.
Government Regulations
The Saudi Arabian government's stringent
regulations on vehicle safety and emissions compliance reinforce the need for
regular vehicle inspection and maintenance. This results in an increased demand
for services that ensure vehicles meet the necessary standards.
In conclusion, the Saudi Arabia Automotive Repair
and Maintenance Services Market is buoyed by a confluence of factors, including
a growing vehicle parc, environmental conditions, road infrastructure
development, the rise of electric vehicles, and increasing consumer awareness.
These drivers collectively underscore the market's vitality and importance in
supporting the nation's automotive sector and ensuring the safety and longevity
of its vehicles.
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Key Market Challenges
Shortage of Skilled Labor
One of the prominent challenges is the shortage of
skilled automotive technicians and mechanics. A well-trained workforce is
essential for providing high-quality repair and maintenance services. The
industry requires ongoing efforts to attract and train skilled professionals to
meet the increasing demand for services.
Environmental Regulations
The government's emphasis on environmental
regulations and emissions standards presents a significant challenge. Service
providers need to invest in tools, equipment, and technologies that ensure
vehicles comply with stringent environmental norms, adding operational costs.
Rising Operational Costs
As vehicles become more advanced with complex
technologies, the cost of maintaining and repairing them also rises. The need
for specialized tools, diagnostic equipment, and training to address modern
vehicles' issues places financial pressure on repair and maintenance
businesses.
Competition from Authorized Service Centers
service centers established by automotive
manufacturers have a stronghold on the market, offering specialized services
and leveraging brand recognition. Independent service providers face
competition in offering comparable quality and reliability to attract
customers.
Import Dependency
The automotive repair and maintenance sector is
often reliant on imported spare parts, which can be costly and subject to
supply chain disruptions. The need for a stable and efficient supply chain for
spare parts is crucial.
Consumer Trust
Building and maintaining consumer trust is a
challenge in the industry. Service providers need to demonstrate transparency,
reliability, and integrity to establish long-term relationships with customers.
Trust is essential for repeat business and word-of-mouth referrals.
Vehicle Complexity
The increasing complexity of modern vehicles,
including advanced electronics and computer systems, poses a challenge for
repair and maintenance technicians. Staying up to date with the latest vehicle
technologies and diagnostic methods is essential but can be demanding.
Market Fragmentation
The Saudi Arabian repair and maintenance market is
fragmented, with numerous small and medium-sized service providers. This
fragmentation can make it challenging to maintain consistent quality standards
and customer experiences across the industry.
In conclusion, the Saudi Arabia Automotive Repair
and Maintenance Services Market faces various challenges, including workforce
shortages, environmental regulations, rising operational costs, competition
from authorized service centers, import dependency, consumer trust concerns,
vehicle complexity, and market fragmentation. Addressing these challenges
requires a combination of skilled labor development, investment in modern
technology, and a commitment to transparency and quality in service delivery.
Key Market Trends
Digitalization and Diagnostics
The adoption of digital technologies and diagnostic
tools is becoming increasingly prevalent in the industry. Repair and
maintenance providers are incorporating advanced scanning and diagnostic
equipment to identify and address vehicle issues more efficiently, enhancing
service quality and customer satisfaction.
EV Service Expertise
With the growing adoption of electric vehicles
(EVs), repair and maintenance services are expanding to include specialized EV
training and repair capabilities. This trend ensures that service providers are
equipped to handle the unique needs of EVs, including battery diagnostics and
charging infrastructure.
Sustainability Initiatives
The automotive sector in Saudi Arabia is embracing
sustainability practices. Repair and maintenance providers are gradually
incorporating eco-friendly measures, such as the proper disposal of hazardous
materials, recycling, and energy-efficient operations, to align with global
environmental goals.
Advanced Vehicle Technologies
Modern vehicles are equipped with advanced
technologies, including ADAS (Advanced Driver Assistance Systems) and complex
computer systems. Repair and maintenance services are keeping pace by training
technicians to work on these technologies and providing the necessary tools and
equipment.
Preventive Maintenance Programs
There is a growing emphasis on preventive
maintenance programs. Service providers are offering routine check-ups and
maintenance schedules to help vehicle owners proactively address issues, extend
the lifespan of their vehicles, and reduce the risk of unexpected breakdowns.
Mobile Repair Services
Mobile repair services, where technicians travel to
the customer's location for minor repairs and routine maintenance, are becoming
more popular. This convenient and flexible approach caters to busy lifestyles
and reduces downtime for vehicle owners.
Online Booking and Transparency
Repair and maintenance services are increasingly
offering online booking and transparent pricing models. Customers can schedule
appointments and receive cost estimates online, enhancing convenience and trust
in the service provider.
Diversification of Services
Many repair and maintenance providers are
diversifying their service offerings. In addition to traditional repair and
maintenance, services like vehicle detailing, customization, and aftermarket
part installations are on the rise, expanding the range of services available
to customers.
These trends collectively reflect the industry's
adaptability to technological advancements, environmental considerations, and
evolving customer preferences. Service providers are investing in skills and
technologies to meet the changing demands of a modern and dynamic automotive
market in Saudi Arabia.
Segmental Insights
By Service Type
The Saudi Arabia Automotive Repair and Maintenance
Services Market is multifaceted, encompassing various service types that cater
to the diverse needs of vehicle owners. The primary service types are repair
and maintenance, each playing a unique role in ensuring the reliability and
longevity of vehicles.
Repair services address the specific issues and
malfunctions that may arise in a vehicle's various components. These services
encompass a wide range of specialized repairs, including mechanical,
electrical, and bodywork. Mechanical repairs address engine, transmission, and
suspension issues, while electrical repairs target electrical systems,
including wiring and components. Bodywork repairs encompass the restoration of
a vehicle's exterior in cases of accidents, dents, and corrosion. Repair
services are essential for addressing unexpected problems, restoring vehicles
to their optimal condition, and ensuring the safety and performance of
vehicles.
In the Saudi Arabia Automotive Repair and Maintenance Services Market, repair services are typically the leading service requested over maintenance services. The increasing average age of vehicles on the road leads to higher incidences of component failure and breakdowns, necessitating repair services. Older vehicles are more prone to mechanical issues, which drives the demand for repair services. Despite advancements in vehicle safety, road accidents remain a reality. Collisions often result in the need for significant repair services, including bodywork and mechanical repairs, thereby boosting the demand for such services. Harsh weather conditions, such as extreme heat and sandstorms, can accelerate vehicle wear and tear. These conditions often result in more frequent repairs needed for components like air conditioning systems, brakes, and engine parts. The demand for automotive repair services in Saudi Arabia is driven by vehicle aging, high usage, accidents, economic factors, and harsh environmental conditions, making repair services the leading category in the automotive repair and maintenance market. The Saudi Arabian market for repair and maintenance
services is characterized by a blend of both types, with a strong focus on
preventive maintenance to ensure the reliability of vehicles under the nation's
harsh climate conditions. By offering a comprehensive range of repair and
maintenance services, service providers in the kingdom support the safety,
performance, and durability of vehicles, catering to the diverse needs of both
individual and commercial vehicle owners. These services, whether addressing sudden
issues or providing ongoing maintenance, are pivotal in upholding the quality
and safety of vehicles on Saudi Arabia's roads.
By Vehicle Type
In the Saudi Arabia Automotive Repair and Maintenance Services Market, Passenger Cars are the leading vehicle type. This dominance is attributed to several factors, including the high number of passenger cars in the country, driven by increasing urbanization, rising income levels, and the growing demand for personal mobility. Saudi Arabia's automotive market is characterized by a substantial proportion of passenger vehicles, which naturally translates to a higher need for repair and maintenance services. The extensive use of passenger cars for daily commuting and long-distance travel contributes significantly to the wear and tear of these vehicles, necessitating regular maintenance and occasional repairs. Additionally, the harsh climatic conditions in Saudi Arabia, including high temperatures and sandstorms, further accelerate the need for frequent servicing to ensure vehicle reliability and longevity. Another critical factor is the comprehensive network of service centers and garages specializing in passenger car maintenance across the kingdom. This widespread availability of specialized services encourages car owners to opt for regular maintenance, thereby boosting the market. The increasing adoption of advanced automotive technologies in passenger cars, such as sophisticated electronic systems and hybrid engines, has escalated the demand for skilled repair and maintenance services, reinforcing the dominance of passenger cars in the market. This trend is expected to continue as the population and vehicle ownership rates grow, ensuring sustained demand for passenger car repair and maintenance services in Saudi Arabia.
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Regional Insights
The Northern & Central region of Saudi Arabia is the leading market for automotive repair and maintenance services. This dominance is attributed to several key factors. The region is home to major cities like Riyadh, the capital, which is the largest city in the country with a high population density and significant economic activities. The high number of vehicles in Riyadh leads to increased demand for repair and maintenance services. The region's robust infrastructure and well-developed road networks facilitate the growth of automotive services. The presence of numerous automotive dealerships and service centers enhances the accessibility and availability of repair services for a large customer base. Additionally, the high disposable income and greater awareness of vehicle maintenance among residents contribute to the region's market leadership. The Northern & Central region also benefits from government initiatives and investments aimed at improving transportation infrastructure, further boosting the automotive sector. The concentration of businesses and industries in this region, requiring regular maintenance of commercial and fleet vehicles, also plays a crucial role in driving the demand for automotive repair and maintenance services. Overall, the combination of population density, economic activity, infrastructure, and government support positions the Northern & Central region as the leading market for automotive repair and maintenance services in Saudi Arabia.
Recent Developments
- In 2023, SAMI-AEC, a subsidiary of Saudi
Arabian Military Industries (SAMI), unveiled a strategic collaboration with
Lockheed Martin. This partnership marked a significant milestone, designating
SAMI-AEC's Sniper Advanced Targeting Pod (ATP) Repair Center as the Middle
East's foremost facility for Line-Replaceable Units (LRUs) repair, providing an
advanced level of maintenance and repair services.
- In 2023, The Carefer company has launched the first cloud-based car maintenance and repair workshop in Saudi Arabia, in cooperation with Cloud Workshops Company. This innovative solution aims to improve the quality of services in the vehicle maintenance and repair sector, enabling service providers to launch virtual brands and expand their geographical reach at lower costs. Carefer intends to leverage its technology infrastructure and partnerships to create new opportunities and contribute to the Kingdom's vision of improving the quality of life for its citizens.
- Saudi automotive services firm Petromin Corp. has launched a hybrid and electric vehicle maintenance network in the country to promote electric vehicles (EVs) and reduce dependence on fossil fuels. The EV AUTO CARE system will provide reliable maintenance solutions for hybrid and EV owners, with technicians holding certifications from the UK-based Institute of the Motor Industry. The launch aligns with Saudi Arabia's Vision 2030, promoting environmental preservation and sustainable development. The launch of Petromin's network has revolutionized the automotive service industry and set new benchmarks for a greener future. The Saudi government's Vision 2030 focuses on renewable energy and eco-friendly transportation, with EVs playing a crucial role in achieving these goals.
Key Market Players
- Abdul Latif Jameel IPR Company Limited
- Morni KSA
- Ezhalha
- E.A. Juffali & Brothers (Juffali Automotive Company)
- Al Jazirah Vehicles Agencies Co. Ltd.
- The Petromin Corporation
- Aljomaih group (ACDelco Service Centers)
- Haji Husein Alireza & Co. Ltd.
- Mohamed Yousuf Naghi & Brothers Group
- Aljabr Group
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By Service Type
|
By Vehicle Type
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By Service Provider
|
By Region
|
|
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- Two-Wheeler
- Passenger Car
- LCV
- M&HCV
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- Automobile Manufacturers
- Franchise General Repairs
- Locally Owned Repair Shops
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- Northern & Central
- Eastern
- Western
- Southern
|
Report Scope:
In this report, the Saudi Arabia Automotive Repair
and Maintenance Services Market has been segmented into the following
categories, in addition to the industry trends which have also been detailed
below:
- Saudi Arabia Automotive
Repair and Maintenance Services Market, By Service Type:
o Repair
o Maintenance
- Saudi Arabia Automotive
Repair and Maintenance Services Market, By Vehicle Type:
o Two-Wheeler
o Passenger Car
o LCV
o M&HCV
- Saudi Arabia Automotive
Repair and Maintenance Services Market, By Service Provider:
o Automobile Manufacturers
o Franchise General Repairs
o Locally Owned Repair Shops
- Saudi Arabia Automotive
Repair and Maintenance Services Market, By Region:
o Northern & Central
o Eastern
o Western
o Southern
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents
in the Saudi Arabia Automotive Repair and Maintenance Services Market.
Available Customizations:
Saudi Arabia Automotive Repair and Maintenance
Services Market report with the given market data, Tech Sci Research
offers customizations according to a company's specific needs. The following
customization options are available for the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
India Saudi Arabia Automotive Repair and
Maintenance Services Market is an upcoming report to be released soon. If you
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please contact us at [email protected]