Gulf Industry News
In association with www.TradeArabia.com

ME automobile parts demand to reach $39bn by 2024

The Middle East demand for automobile parts and components is expected to grow at a compound annual growth rate (CAGR) of 5.12 percent in volume terms reaching $39.59 billion in 2024, up from $28.14 billion in 2018, according to a recent report by TechSci Research.

Automechanika Dubai 2019 is the Middle East’s largest automotive aftermarket trade fair and will see more than 1,800 exhibitors from 60-plus countries participate in the event from June 10 to 12, at the Dubai International Convention and Exhibition Centre, in Dubai, UAE.

Similarly, African demand for auto parts and components will rise to $47.73 billion in 2024 from $33.17 billion in 2018. This underlines the tremendous business potential of these regions, prime markets being targeted by Automechanika Dubai.

Mahmut Gazi Bilikozen, show director for Automechanika Dubai, said: “The Middle East and Africa are among the most exciting marketplaces for the automobile aftermarket in the world and Automechanika Dubai, with its trans-regional reach is the ideal platform to meet and interact with key players and buyers in this market.”

“With most of the leading market players being present in Dubai this year, the exhibition is a great place for buyers, industry professionals, distributors and government representatives to get a feel of market trends, developments and the way ahead,” he said.

Visitors pre-registering for the event, can also gain access their own personal copy of the TechSci Research report by clicking on a downloadable link, to have key market figures at their fingertips.

TechSci Research found that tyres make up the largest segment of the regional aftermarket with a 26 per cent share in 2018. This was followed by lubricants at 11 per cent; axle and transmission components at 3 per cent; air and oil filters – 2 per cent; followed by suspension systems, batteries; brake pads and brake shoes. Others, including radiator, exhaust and electric components made up the rest of the market share.

Going forward, key growth factors for the automotive aftermarket in the region include growing demand for spare parts for vehicle modifications, increasing investments being made in new channels of customer engagement such as quick delivery modes and online sales of spare parts.

The second hand auto spare parts market in the Middle East has developed into a full-fledged multi-million dollar industry, boasting more than 100 small and medium-sized enterprises spread across the region. The UAE is the major supplier of automotive spare parts within the Gulf region as well as for Iran, CIS, Indian sub-continent and Africa.

With an estimated three million plus women drivers hitting the roads in Saudi Arabia, significant growth in demand is expected to be generated for automotive spare parts and components. Another factor expected to drive market growth is the increasing localisation of auto spare parts in the Middle East to curb import costs and activate local investments

The exhibition will cover six product sections of parts and components; electronics and systems; accessories and customizing; repair and maintenance; car wash, care and reconditioning; and tyres and batteries. The 2019 edition will feature four new sub-sections of agricultural parts and equipment; body and paint; motorcycle parts and components; and oils and lubricants.

A key returning highlight is the Innovation Zone, a dedicated area at the centre of the show floor featuring presentations and product showcases that are steering the course for the regional and global automotive aftermarket.

Other features include the Truck Competence initiative, where more than 1,000 exhibitors will showcase their products dedicated to the entire value chain in the truck sector, from truck parts and accessories, to workshop equipment, body repairs and care.

The Automechanika Academy (AA) also returns, featuring key presentations such as Dubai’s auto parts and accessories trade in 2018 by the Dubai Customs, along with the findings of a survey exploring innovations in the Middle East automotive industry by global research company Explori. 

Other AA highlights include a series of sessions by AMENA and Tiqani, as well as AfriConnections, which explores rising opportunities in the African aftermarket, it stated. – TradeArabia News Service




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