Middle East Auto Components Market size

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Middle East auto components market was valued at more than USD29 billion in 2019 and is projected to grow at CAGR OF about 6% by 2026.
Anticipated growth in the market can be attributed to increasing automobile vehicle fleet and rising construction and infrastructural activities across different countries of the region. Moreover, growing demand for vehicle modifications along with growth of allied industry is further pushing demand for auto components. Additionally, removal of ban over female driving in some Middle Eastern countries is anticipated to positively influence Middle East auto components market in the coming years.
Key Trends and Drivers
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Rising Vehicle Production and Sales
The increasing number of vehicles on the road, especially passenger vehicles, is a primary driver of demand for auto components.
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Infrastructure Development
Major infrastructure projects, particularly in countries like Saudi Arabia and the UAE, are boosting the demand for commercial vehicle components.
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Economic Diversification
Governments in the region are shifting away from reliance on oil and gas, leading to increased investment in sectors like building and construction, which in turn boosts demand for commercial vehicles and their components.
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Technological Advancements
The adoption of electric and autonomous vehicles is reshaping the component landscape and driving innovation in the industry.
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Sustainability
There's a growing focus on eco-friendly components and low-emission vehicles, influenced by regulatory standards and consumer preferences.
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E-commerce Growth
The rise of e-commerce is increasing the use of commercial vehicles for last-mile delivery, further boosting demand for components.
Middle East auto components market is segmented by vehicle type, by component type, by demand category, and by country. Based on vehicle type, the market is further segmented into passenger car, commercial vehicle, OTR, and two-wheelers. In the historical years, passenger cars have shown their dominance over the market and looking at the growth rate, it is expected to assert its dominance in the forecast years too. Easy financing options, increasing purchasing power parity and booming used passenger car market is further pushing sales of passenger cars in Middle East region. Furthermore, new car launches coupled with rise in number of tourists in Saudi Arabia, UAE, Qatar, and other countries is expected to increase the sales of passenger car in the coming years which is further likely to drive auto component market.

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The Middle East auto components market can be segmented by vehicle type (passenger cars, commercial vehicles, OTR, two-wheelers), component type (tires, brakes, batteries, etc.), demand category (OEM vs. replacement), and by country (UAE, Saudi Arabia, Iran, etc.). Passenger cars dominate the market, while tires hold a significant share in terms of component type.
Here's a more detailed breakdown
1. By Vehicle Type
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Passenger Cars
This segment dominates the market due to increasing private vehicle ownership and high living standards.
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Commercial Vehicles
Includes light and medium commercial vehicles, focusing on powertrain components and distribution channels like OEMs.
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OTR (Off-The-Road)
This segment includes components for vehicles used in construction, agriculture, and other off-road applications.
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Two-Wheelers
This segment includes components for motorcycles, scooters, and other two-wheeled vehicles.
2. By Component Type
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Tires
Hold a significant market share due to increasing availability and focus on high-performance tires.
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Brakes
Brake components are also a significant segment, with increasing demand for advanced braking systems.
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Batteries
Battery market is growing with the increasing popularity of electric vehicles and hybrid vehicles.
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Filters
Filters for engine oil, air intake, and cabin air are also a major component segment.
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Lubricants
Lubricants for engines, transmissions, and other vehicle components are also part of the market.
3. By Demand Category
- Original Equipment Manufacturers (OEM) Components supplied directly to vehicle manufacturers for assembly.
- Replacement Components supplied for vehicle maintenance and repair.
4. By Country
- UAE The UAE is considered to have the brightest future in the auto component market.
- Saudi Arabia A major market for auto components, with Northern and Central regions being the largest.
- Iran Iran is a significant market with a large car manufacturer, Iran Khodro.
- Israel Israel is also a part of the Middle East auto component market.
- Other Countries Oman, Kuwait, Qatar, and other countries also contribute to the regional market.
Some of the top players in Middle East auto components market
Bridgestone Middle East & Africa FZE,
Michelin AIM FZE,
Goodyear Middle East FZE,
The Yokohama Rubber Co. Ltd.,
ACDelco Middle East & Africa,
Amaron Batteries,
Robert Bosch Middle East,
Total Marketing Middle East,
ExxonMobil Middle East Marketing Corp.,
Shell Markets Middle East,