THE UAE automotive aftermarket is expected to reach a market size of AED 33 billion (US$9 billion) by 2025. Will UAE continue to foster automotive aftermarket service market: Ken Research

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1. Shift towards private transportation owing to the pandemic has led to increase in private vehicles in UAE

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As it stands, Japanese brands dominate the UAE market with a market share of 70%. Toyota has been the consistent market leader in the 2015 to 2020 period, followed by Nissan and Mitsubishi. South Korean car makers have meanwhile been gradually increasing their market share in the region over the past years.

In related news, a recent study found that the UAE ranks within the top ten countries worldwide for automated vehicles readiness. Having set up a regulatory framework for autonomous passenger transport in 2017, Dubai is seeking to lead the charge, and hopes to reach 25% self-driving penetration across its transportation landscape by 2030.

In total, the UAE has around 3.5 million cars on the road, 40% of which drive around in Dubai. Notably, the percentage of SUV’s in the UAE is relatively high compared to other countries in the world, at 43%. Over half of all cars (53%) are seven years or older.

2. 2020 Dubai Expo in 2021 "Connecting Minds, Creating the Future"

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• The Expo took place from Oct 1, 2021–March 31, 2022.
• It accelerated the UAE’s recovery in H2 with an additional boost for travel and tourism.
• Visitor activities increased the demand for transportation, which indirectly created more demand for the aftermarket services.
• There resulted an increase in the usage of taxi and cabs also.
• In the year 2020 the Chairman of the Board of Executive Directors of the Roads and Transport Authority (RTA) revealed that total number of electric/hybrid taxis account for around 4683 vehicles. Out of 4683 taxis the number of hybrid taxis were 4510, which is about 50% of the Dubai taxi fleet.

3. Normalization between Israel and UAE are expected to accelerate UAE Aftermarket Services Industry

Normalization between Israel and UAE can potentially have a positive impact on the UAE's Automotive Aftermarket Services Industry. This is because with the opening up of diplomatic and economic ties between the two countries, there may be an increase in trade and business opportunities, which could result in an increase in demand for automotive aftermarket services.

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With more cross-border trade and investment, there may be an increase in the number of vehicles being imported into the UAE from Israel, and vice versa. This could lead to an increase in demand for automotive aftermarket services such as repair and maintenance, parts and accessories, and other related services.

Moreover, with the potential increase in tourism and business travel between the two countries, there may also be an increase in the number of rental cars and fleet vehicles on the road, which could also drive demand for automotive aftermarket services.

UAE Automotive Aftermarket Service Market Trends Under COVID-19, Top Key Manufacturers, Future Strategies, Development Status, Competitive Landscape and Forecast to 2027: Ken Research

Automotive Spare Parts Landscape in UAE

Spare parts aftermarket industry in UAE was valued at USD xx in 2021 on the basis of revenue. Ideal location, increasing domestic demand for high-end cars and a robust logistics sector have turned the emirate into a major exporter and re-exporter of vehicles. Surging vehicle parc in UAE resulted in increased demand of parts and components, thus acting as a major catalyst for the growth of spare parts industry.

The market was broadly spread across the verticals of Engine components, Electricals and Electronic Components, Suspension and Braking, Consumables and Miscellaneous, Cooling Systems, Body & Chassis, and Drivetrain as of 2021. Oils & lubricants, filters, Wheels & Tires, Battery, Others come under Consumables category. There are around 378 Distributors of Spare Parts in UAE wherein Dubai leading the market with 165 suppliers followed by Abu Dhabi with 102 suppliers.

Competitive Landscape in UAE Four wheeler Aftermarket Service Industry

The competition structure in UAE four wheeler aftermarket service industry is fragmented in nature with no single player accounting for majority of the market share. There is High Competitive Rivalry as there are a lot of players in the market currently.

The competition in aftermarket industry is segregated between OEM/Authorized, and Multi Brand workshops. Both of these workshops compete on the basis of services offered, number of cars serviced, quality of service, sourcing of spare parts, and booking mode. Customer satisfaction level is high for Organized Multi-brand and highest for OEMs. Also, OEMs generally use a lot of technological platforms for their services while Organized Multi-brand uses some technology platforms. Key Players like AG Cars, Royal Swiss Auto Services, Gargashauto, Wheel fix, Alsa automotive, etc are providing car care services in UAE. Also there are more players coming in the market, especially the Chinese like Carcility, Mysyara.

Future outlook of Industry

The market size on the basis of revenue is expected to grow at a CAGR of XX% increasing from USD XX million in FY’21 to USD XX million in FY’26.

Increased vehicle production and sales and the growing used car market are playing a significant role in the growth of the UAE automotive aftermarket. Also, the rapid adoption of online platforms by the market players is anticipated to create lucrative growth opportunities for the UAE automotive aftermarket.

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The growing number of retailers providing automotive aftermarket services to meet the increasing consumer requirements is expected to accelerate the market demand in the next five years. It is expected that the increased penetration of electric vehicles and used car market will act as a catalyst for the UAE Aftermarket Industry.

Four Wheeler cars market unit sales are expected to reach xx vehicles in 2026. Four Wheeler aftermarket service industry in UAE is estimated to generate a revenue of USD xx in 2026. Four Wheeler Aftermarket Service Industry in UAE is estimated to expand at a CAGR of xx% in between 2021 and 2026E owing to increased used car market. XX% of the four wheeler vehicles are expected to get serviced through Multi Brands in 2026.

Key Topics Covered in the Report

• UAE Four Wheeler Aftermarket Service Industry Overview
• Ecosystem of Major Entities in UAE Four Wheeler Aftermarket Service Industry
• Comparison of UAE Automotive Industry with other Countries
• Market Size on the basis of Revenue and Number of Vehicles Serviced, FY’16-FY’21
• Market Size on the basis of Revenue and Number of Vehicles Serviced by Different Type of Workshops, FY’21
• Vehicle Parc in UAE, FY’16-FY’21
• UAE Four Wheeler Aftermarket Service Industry Segmentation, FY’21
• Competitive Landscape of UAE Four Wheeler Aftermarket Service Industry
• Cross Comparison of OEMs in UAE Four Wheeler Aftermarket Service Industry
• Cross Comparison of Multi-Brand in UAE Four Wheeler Aftermarket Service Industry
• Pricing Packages of Major OEM Automotive Service Companies
• Pricing Packages of Major Multi Brand Automotive Service Companies
• Trends in UAE Four Wheeler Aftermarket Service Industry
• Issues and Challenges in UAE Four Wheeler Aftermarket Service Industry
• SWOT Analysis of UAE Four Wheeler Aftermarket Services Industry
• Porter’s Five Forces Analysis of the UAE Four Wheeler Aftermarket Services Industry
• Government Regulations in the UAE Four Wheeler Aftermarket Services Industry
• Comparing Car Servicing Decision Parameters in UAE
• Analysis of Multi-Brand and OEM Workshops in UAE
• Spare Parts Landscape in UAE
• Operating Model of Spare parts in UAE
• Market Size of Spare Parts Aftermarket Industry and Classification by Different Type of Spare Parts
• Ecosystem by Different Type of Spare Parts and Consumables Market in UAE
• Future Outlook and Projections of the UAE Four Wheeler Aftermarket and Spare Parts Industry, 2021-2026E
• Future Market Size of UAE Four Wheeler Aftermarket Service Industry on the basis of Number of Vehicles Serviced, FY’21-FY’26E
• Future Market Size of UAE Four Wheeler Aftermarket Service Industry on the basis of Revenue, 2021-2026E
• Analyst Recommendation

Related Reports

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Malaysia Automotive Aftermarket Service Market Outlook to 2025: Surging Used Car Sales contributing to the Growth of Automotive Aftermarket Service Industry in Malaysia

Contact Us:-

Ken Research

Ankur Gupta, Head Marketing & Communications

support@kenresearch.com

+91-9015378249

UAE Four Wheeler aftermarket service Market Key Players, Size, Share & Trends Analysis Report By Application, By Region, And Segment Forecasts Till- 2026: Ken Research

Overview of UAE Four Wheeler aftermarket service industry

“UAE Automotive Aftermarket Service Industry Outlook to 2026: Driven by increasing number of startups and consumers' shifting preference towards online and organized sector” The Four Wheeler Aftermarket service industry in UAE recorded a CAGR of ~xx% on the basis of revenue in between 2016 and 2021. The Industry is currently in a Stagnant Growth phase, where neither much growth nor a decline has happened.

The market growth can be attributed to the rapidly expanding automobile industry and enhanced focus of the automobile drivers on boosting their vehicle performance and efficiency in terms of exhaust sound, speed, and appearance parameters. Rising consumer awareness regarding repair and proper maintenance of vehicles and growing need for long-distance vehicles are fuelling the market growth. 

The rapid adoption of online platforms by the market players and the use of advanced software and technologies create lucrative growth opportunities for the UAE automotive aftermarket. Due to the stable fuel prices and high disposable income, there is high demand for private vehicles among consumers. Consumers are moving towards increased convenience and comfort and are availing of the aftermarket services through the online sales platform.

There has been a shift towards usage of private transportation which can be seen from increased vehicle usage in 2021. Advent of online portal distributing aftermarket components and companies shifting to the digital platforms is one of the driving factors for the growth.

Due to the economic pressures, it is expected that consumers are postponing their new car purchases for the next few years which would increase the average age of a vehicle, this would result as a positive gain for the aftermarket service industry. People's behaviour is now shifting towards Online and Organised sector due to convenience, comfort and reliability, and more Startups are coming up with these solutions of providing services for four-wheeler Aftermarket.

UAE Four Wheeler Aftermarket Service Industry Size, 2016-2021

Four Wheeler aftermarket services industry in UAE generated a revenue of USD xx million in FY’21 growing at a CAGR of xx% during FY’16 and FY’21.

The Industry is currently in a Stagnant Growth phase, where neither much growth nor a decline has happened.

Overall, from an Organised to the unorganised sector, Industry has seen some growth where new Startups like Carcility, Mysyara are coming into picture

Traditional players like AG cars, Auto trust, Auto Central, Gargashauto, etc are being aggressive with their approaches too.

The number of vehicles serviced in UAE stood at xx Units in FY’21 with a growth rate of xx% from FY’20 growing at a CAGR of xx% during FY’16 and FY’21. People's behaviour is now shifting towards Online and Organised sector due to convenience, comfort and reliability, and more Startups are coming up with these solutions of providing services for four-wheeler Aftermarket.

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UAE Four Wheeler Aftermarket Service Industry segmentation, 2016-2021

By Type of Workshop: Multi-brand workshops dominated the aftermarket service industry in 2021 with a share of xx% as compared to OEMs. Consumers preferred multi-brand workshops for servicing and maintenance requirements of their vehicles due to its ease of access and general availability coupled with lower priced services they offer.

By Type of Vehicle: Revenue generated from aftermarket services by Sedans and SUVs accounted for a cumulative share of xx% in 2021 as compared to other type of vehicles

By Type of Multibrand: Revenue generated from aftermarket services through organized multi-brand workshops

By Age of Car: Revenue generated by cars within the age of 8-13 years contributed to a maximum share of XX% as compared to cars within other brackets

By Region: Dubai dominated the four wheeler aftermarket in UAE with a share of xx% in 2021 on the basis of revenue generated and with a share of xx% on the basis of number of workshops present. The northern emirates which include Fujairah, Ajman, Ras al-Khaimah, and Umm Al Quwain generated a revenue of USD xx Mn capturing a market share of xx%.

By Booking Mode: Due to the large presence of organized players in UAE, online booking mode was the preferred choice of consumers as they conducted workshops only through online booking as of 2021. The majority of the retailers are shifting towards the online sales platform to expand the consumer base and reach remote locations.

By Car Brand: Toyota dominates the UAE Four Wheeler Aftermarket Services by contributing xx% of the total revenue amounting to USD xx Mn. Toyota, Nissan and Mitsubishi capturing ~xx% of the total revenue generated from four wheeler aftermarket services in UAE.

By Service Split: Revenue generated from Non-Crash Repair Services stood at USD xx million, accounting for the highest share of xx% in 2021. Oil change, engine oil filter, tire and battery replacement among others form the major components of mechanical and electrical services. Unorganized Multi Brand workshops offer services like oil & filter change, lubricants etc. and other mechanical works like bumper fitting, A/C services, Accidental repair etc.

Related Reports

Indonesia Automotive Aftermarket Service Market Outlook to 2026: Influx of new players and car variants from abroad are contributing to the growth of automotive aftermarket service industry in Indonesia

Malaysia Automotive Aftermarket Service Market Outlook to 2025: Surging Used Car Sales contributing to the Growth of Automotive Aftermarket Service Industry in Malaysia

Contact Us:-

Ken Research

Ankur Gupta, Head Marketing & Communications

support@kenresearch.com

+91-9015378249