Saudi Arabia Transmission Repair Market By Vehicle Type (Passenger Cars, Light Commercial Vehicles and Heavy Commercial Vehicles), By Repair Type (Transmission General Repair (TGRM) and Transmission Overhaul (TOM)), By Component (Gasket & Seal, Transmission Filter, O-Ring, Fluid, Flywheel, Pressure Plate, Oil Pump and Others), By Region, Competition, Forecast and Opportunities, 2020-2030F

Market Overview

Saudi Arabia Transmission Repair Market was valued at USD 1.21 Billion in 2024 and is expected to reach USD 2.1 Billion by 2030 with a CAGR of 7.2% during the forecast period. The Saudi Arabian automotive market is witnessing substantial growth, driven by factors such as increasing vehicle sales and the expanding automotive repair and service sector. As more people in the country invest in vehicles, the demand for transmission repairs and maintenance services has increased significantly. Additionally, the growing urbanization and economic expansion in Saudi Arabia have led to an increase in the number of vehicles on the road, further driving the demand for repair services. The rising consumer preference for high-performance and durable vehicles also promotes the need for regular transmission maintenance and repair services, creating a lucrative opportunity for service providers in the market. For instance, After years of recovery, Saudi Arabia’s total vehicle sales grew 8% in 2024, reaching 826,580 units, following a strong 22.8% rise in 2023 marking one of the fastest growth trajectories in the region.

Market Drivers

Increased Vehicle Ownership

The surge in vehicle ownership in Saudi Arabia is one of the key drivers for the transmission repair market. As more individuals and families invest in cars, the need for regular maintenance, including transmission repair, grows. With a rising population and an increasing number of vehicles on the roads, the automotive repair industry is poised to benefit from the heightened demand for services. This trend is expected to continue as vehicle ownership becomes more accessible to a larger segment of the population, particularly with favorable financing options.

Technological Advancements in Transmission Systems

The rapid evolution of automotive technology, particularly in transmission systems, has created new opportunities in the transmission repair market. Modern cars are now equipped with advanced transmission systems, including automatic, dual-clutch, and continuously variable transmissions (CVTs). These complex systems require specialized knowledge and tools for repair and maintenance, which has spurred demand for skilled repair services. As car manufacturers introduce newer technologies, the demand for transmission repair services that can handle these advancements is expected to rise significantly.

Urbanization and Economic Growth

Saudi Arabia’s ongoing urbanization and economic growth contribute significantly to the automotive sector’s expansion. As cities grow and infrastructure improves, more people are relying on vehicles for daily commuting and business activities. Economic factors such as increasing disposable income and a growing middle class have made car ownership more attainable. This urban expansion increases the need for transmission repair services to maintain vehicle performance, particularly in high-traffic cities where wear and tear on vehicles is more pronounced. For instance, Saudi Arabia’s urban population rose to 28.26 million in 2023, up 3.65% from 2022, continuing a strong growth trend after a brief dip in 2021. The steady rise reflects rapid urban expansion driven by infrastructure projects and economic diversification under Vision 2030.

Growing Awareness of Vehicle Maintenance

Consumers in Saudi Arabia are becoming more aware of the importance of regular vehicle maintenance, which includes transmission health. The rise in vehicle-related information availability through digital platforms has educated car owners on the significance of maintaining transmission systems. Regular servicing helps prevent costly repairs and enhances the vehicle's longevity. As consumers recognize the importance of preventative maintenance, the demand for transmission repair services is expected to increase. Saudi Arabia's Vision 2030 aims to diversify the economy by reducing oil dependency. For instance, the government has set a target to manufacture over 600,000 vehicles by 2035, with investments from companies like Lucid Group and Ceer contributing to this goal. These efforts are expected to stimulate the automotive repair market by increasing the number of vehicles requiring maintenance and repair services.

Government Regulations on Vehicle Standards

The Saudi government’s regulations concerning vehicle safety standards and emissions are pushing vehicle owners to adhere to regular maintenance schedules. These regulations often include ensuring that critical systems, such as the transmission, are in proper working order. As more stringent regulations are introduced, transmission repair businesses will benefit from the heightened need for repairs and inspections to meet legal requirements.  The NIDLP focuses on enhancing the industrial sector, including automotive manufacturing and repair services. By supporting local suppliers and promoting technological advancements, the program aims to strengthen the automotive repair market. This initiative aligns with Vision 2030's objectives of economic diversification and job creation.

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Key Market Challenges

Lack of Skilled Labor

A significant challenge facing the transmission repair market is the shortage of skilled labor capable of handling modern, technologically advanced transmission systems. As cars become more complex, repair shops require technicians with specialized training and experience to properly diagnose and fix issues. However, the supply of qualified technicians is not meeting the demand. This shortage of skilled workers can limit the capacity of repair businesses and affect service quality, hindering market growth.

High Repair Costs

The cost of transmission repair, particularly for advanced systems like CVTs and dual-clutch transmissions, can be prohibitively high. The expense of replacement parts, coupled with labor costs for specialized technicians, makes transmission repair an expensive service. This can deter some vehicle owners from seeking timely repairs, which may result in more severe damage to their transmissions and ultimately higher repair costs. High costs are a challenge for both service providers and consumers, impacting the overall profitability of the market.

Key Market Trends

Increasing Adoption of Electric Vehicles (EVs)

The gradual adoption of electric vehicles (EVs) in Saudi Arabia is reshaping the automotive landscape and driving new trends in the transmission repair market. While EVs do not have traditional transmissions, the rise of hybrid and plug-in hybrid vehicles has increased the demand for specialized transmission repair services. EVs and hybrids require different types of transmission systems, and as the market for these vehicles grows, repair shops will need to adapt by acquiring the skills and tools necessary for these new technologies. For instance, EV sales jumped to approximately 24,092 in 2024. This spike reflects Saudi Arabia’s national target of making 30% of Riyadh’s vehicles electric by 2030 and includes infrastructure goals like 5,000 fast chargers.

Integration of Advanced Diagnostic Tools

As vehicles become more complex, transmission repair shops are increasingly adopting advanced diagnostic tools and technology to accurately assess and repair issues. Computerized diagnostic equipment can help technicians quickly identify transmission faults, leading to faster and more accurate repairs. The use of diagnostic tools also allows repair shops to offer more comprehensive services, such as fluid checks, pressure testing, and system calibrations, all of which improve repair quality and customer satisfaction.

Shift Towards Preventative Maintenance

There is a growing trend towards preventative maintenance in the automotive sector, where vehicle owners are proactively addressing transmission issues before they become major problems. This trend is driven by increasing consumer awareness of the benefits of early intervention in maintaining vehicle performance. Repair shops that emphasize preventative maintenance, such as fluid changes and transmission inspections, are likely to attract customers who wish to extend the lifespan of their vehicles and avoid expensive repairs in the future. Recognizing the need for a skilled workforce, Saudi Arabia has introduced programs to enhance digital skills among students and teachers. These initiatives aim to provide over 600,000 students and 11,000 educators with programming training, thereby improving the quality of labor in the automotive repair sector. A well-trained workforce is crucial for the growth and efficiency of the industry.

Segmental Insights

Repair Type Insights

The Saudi Arabia transmission repair market is segmented into two primary categories based on repair type: Transmission General Repair (TGRM) and Transmission Overhaul (TOM). These segments reflect the range of services offered by repair facilities and the varying conditions of transmission systems in vehicles across the country. Transmission General Repair encompasses routine maintenance and minor repairs that prevent major failures. Services under this segment include transmission fluid replacement, filter cleaning or replacement, seal and gasket repairs, and diagnostics using electronic scanning tools. These services are typically sought when vehicles show early signs of transmission issues such as rough shifting, slipping gears, or minor fluid leaks. The increased awareness among vehicle owners about the importance of preventive maintenance has supported the need for general repair services. Technological enhancements in diagnostic tools have also improved the accuracy of early problem detection, encouraging timely general repairs before more complex problems arise.

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Regional Insights

In 2024, Saudi Arabia’s Western Region led the transmission repair market due to its dense urban development, high vehicle ownership, and diverse mix of passenger and commercial vehicles. Heavy city traffic, long-distance travel, and extreme heat increase wear on transmissions, driving steady demand for repairs. Service centers have expanded capacity and adopted advanced diagnostics to meet growing needs.

Widespread awareness of scheduled maintenance, rising used car sales, and a broad range of transmission technologies have fueled demand for skilled technicians and tailored service packages. Workshops are investing in training, tools, and customer-focused offerings, creating a competitive market driven by quality, speed, and convenience. The region remains a key hub for transmission repairs in the Kingdom.

Recent Developments

• In November 2023, Petromin launched "EV AUTO CARE," a specialized maintenance network for hybrid and electric vehicles, supporting Vision 2030's sustainability goals. The service includes certified technicians and EV-specific diagnostics, positioning Petromin as a key player in Saudi Arabia’s emerging EV service market.
• Carefer, in partnership with Cloud Workshops Company, introduced Saudi Arabia’s first cloud-based vehicle maintenance platform in 2023. The system allows workshops to operate virtual brands, expanding reach, reducing costs, and improving service quality through streamlined digital operations.
• SAMI-AEC partnered with Lockheed Martin in 2023 to establish a Sniper ATP Repair Center, now the Middle East’s top site for Line-Replaceable Units (LRUs) repair. This collaboration strengthens Saudi Arabia’s defense maintenance capabilities and supports its aerospace sector growth. 
• Kia registered a massive 67% year-on-year increase in vehicle sales in Q1 2025, moving up to third place in the Saudi automotive market, overtaking Nissan

Key Market Players

• Petromin Corporation
• Carefer International Company
• Bin-Shihon Group
• Al Jazirah Vehicles Agencies Co. Ltd.
• Haji Husein Alireza & Co. Ltd.
• Gulf Advantage Automobiles LLC
• Abdul Latif Jameel Motors
• United Motors Group 
• Aljomaih Automotive Company
• Mohamed Yousuf Naghi Motors Co.

Report Scope:

In this report, the Saudi Arabia Transmission Repair Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•       Saudi Arabia Transmission Repair Market, By Vehicle Type:

o    Passenger Cars

o    Light Commercial Vehicles

o    Heavy Commercial Vehicles

•       Saudi Arabia Transmission Repair Market, By Repair Type:

o    Transmission General Repair (TGRM)

o    Transmission Overhaul (TOM)

•        Saudi Arabia Transmission Repair Market, By Component:

o    Gasket & Seal

o    Transmission Filter

o    O-Ring

o    Fluid

o    Flywheel

o    Pressure Plate

o    Oil Pump

o    Others

•        Saudi Arabia Transmission Repair Market, By Region:

o    Western Region

o    Central Region

o    Southern Region

o    Eastern Region

o    Northern Region

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Saudi Arabia Transmission Repair Market.

Available Customizations:

Saudi Arabia Transmission Repair 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).

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