|
Forecast Period
|
2026-2030
|
|
Market Size (2024)
|
USD 1.62 Billion
|
|
CAGR (2025-2030)
|
7.28%
|
|
Fastest Growing Segment
|
Maintenance
|
|
Largest Market
|
Northern & Central
|
|
Market Size (2030)
|
USD 2.47 Billion
|
Market
Overview
Saudi Arabia Automotive Repair and Maintenance Services Market was
valued at USD 1.62 Billion in 2024 and is expected to reach USD 2.47 Billion by
2030 with a CAGR of 7.28% during the forecast period. 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.
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 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.
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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.
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.
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.
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.
Segmental
Insights
Service Insights
The automotive repair and maintenance services
market in Saudi Arabia is experiencing rapid growth, particularly in the
maintenance segment, due to a combination of factors. The increasing number of
vehicles on the road is a significant driver. As the vehicle fleet expands, the
demand for routine maintenance services, such as oil changes, tire rotations,
and brake inspections, grows proportionally. This trend is supported by the
rising disposable incomes of Saudi consumers, who are more willing to invest in
vehicle upkeep to ensure longevity and performance.
The Saudi government’s initiatives to enhance
road safety and extend vehicle lifespans have bolstered the maintenance sector.
Policies aimed at improving vehicle safety standards and regular inspection
requirements create a steady demand for maintenance services. The country's
Vision 2030 plan, which includes significant investments in infrastructure and
urban development, also contributes to this growth by increasing vehicle usage
and, consequently, the need for maintenance services.
Another contributing factor is the evolving
automotive landscape, which includes a shift towards more complex and advanced
vehicle technologies. As vehicles become more sophisticated, specialized
maintenance services are required. This has led to the growth of specialized
service centers that offer high-tech diagnostics and repair, catering to modern
vehicles' needs.
The increasing awareness among vehicle owners
about the benefits of regular maintenance, including improved fuel efficiency
and reduced risk of breakdowns, has further fueled demand. The expansion of
service networks and the introduction of innovative maintenance solutions, such
as mobile services and digital platforms for booking appointments, have also
made it easier for consumers to access maintenance services, thus accelerating
market growth.
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Region 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), formed a strategic partnership
with Lockheed Martin. This collaboration marked a key achievement, positioning
SAMI-AEC’s Sniper Advanced Targeting Pod (ATP) Repair Center as the leading
facility in the Middle East for Line-Replaceable Units (LRUs) repair, offering
advanced maintenance and repair services.
- In 2023, Carefer introduced
Saudi Arabia’s first cloud-based car maintenance and repair workshop in
collaboration with Cloud Workshops Company. This innovative approach is
designed to enhance service quality in the automotive maintenance and repair
industry, allowing service providers to create virtual brands and expand their
geographic presence while minimizing costs. Carefer plans to capitalize on its
technological infrastructure and strategic alliances to create new
opportunities and support the Kingdom's vision of enhancing the quality of life
for its citizens.
- In November 2023, Petromin Corp.
launched a maintenance network for hybrid and electric vehicles (EVs) in Saudi
Arabia to promote EV adoption and reduce fossil fuel dependence. The EV AUTO
CARE system, with certified technicians, supports Saudi Arabia's Vision 2030
goals of sustainability and renewable energy, setting new standards for
eco-friendly automotive services.
- In 2023,
- Fix Auto has launched operations in Saudi Arabia, marking its entry into the Middle Eastern market. The new facility offers a full range of auto body repair services, including collision repair and paintwork. This expansion aligns with the brand’s global strategy to provide consistent, high-quality vehicle repair services worldwide. The company aims to serve growing customer demand for reliable and efficient automotive repair solutions in the region.
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
|
By Service
|
By Vehicle
|
By Provider
|
By Region
|
|
|
- Two-Wheeler
- Passenger Car
- LCV
- M&HCV
|
- Automobile Manufacturers
- Franchise General Repairs
- Locally Owned Repair Shops
|
- 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 Vehicle:
o
Two-Wheeler
o
Passenger
Car
o
LCV
o
M&HCV
- Saudi Arabia Automotive Repair and Maintenance Services Market, By Service:
o
Repair
o
Maintenance
- Saudi Arabia Automotive Repair and Maintenance Services Market, By 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, TechSci Research, offers customizations according
to the 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).
Saudi
Arabia Automotive Repair and Maintenance Services Market is an upcoming report
to be released soon. If you wish an early delivery of this report or want to
confirm the date of release, please contact us at [email protected]