GCC light vehicle aftermarket revenues to top $12 billion in 2027: Frost & Sullivan
Automechanika Dubai 2023 reveals main opportunities in the Gulf Cooperation Council including the digitalisation of parts trading and retail servicing, aftermarket branded parts, rise of mobile on-demand aftermarket service providers and the electrification of cars.
As the automotive aftermarket industry gathered at Automechanika Dubai 2023 this week, the latest market developments were shared during a series of sessions on the exhibition’s main stage.
Addressing the growth opportunities and changing trends in the GCC (Gulf Cooperation Council) aftermarket, Subhashree Ramarathnam, Principal Consultant, Mobility, Frost & Sullivan, also touched on the opportunities that electric vehicles (EVs), a key focus at the 2023 edition of Automechanika Dubai, represent for the aftermarket sector.
“The aftermarket revenue in the light vehicle sector in the GCC stood at $ 9.7 billion in 2022, predicted to grow at an annual rate of 4.4 percent over the next five years, reaching a forecasted $12 billion in 2027. This includes revenue from parts as well as labour,” she explained.
According to Frost & Sullivan research, the main growth driver for aftermarket revenue is the number of vehicles on the road, with the forecast for the number of light vehicles in the GCC expected to be 15.9 million this year. This figure is expected to rise to 17 million by 2027. The growing young population in the region, rising income levels, urbanisation and ease of financing were pinpointed as the key contributing factors to this upward trend. Cars are also staying on the road for longer, with a vehicle's average life span moving from 7.5 to eight years.
“Considering the growth predictions for the region’s automotive aftermarket, the main opportunities in the GCC aftermarket include the digitalisation of parts trading and retail servicing, aftermarket branded parts, the rise of mobile on-demand aftermarket service providers and the electrification of cars,” concluded Ramarathnam.
Frost & Sullivan estimates that by 2030, EVs will constitute 17% of new car sales in the MENA market, while in Africa, this figure is expected to stand at approximately 9 percent. The research also suggests 300,000 EVs on the road in the UAE and KSA by 2027. Aftermarket opportunities related to EVs include battery replacements and upgrades, speciality tyres, charging-related accessories, software updates and battery recycling.
Mahmut Gazi Bilikozen, Portfolio Director at Messe Frankfurt Middle East, the organiser of Automechanika Dubai, added: "This fascinating research paints an optimistic picture for the automotive aftermarket industry in the coming years. As we celebrate 20 years of Automechanika Dubai and look at our own growth and expansion plans, we are excited to announce the formation of a special advisory board for the exhibition. The board will combine their extensive industry knowledge and valuable insights to map out the next two decades of Automechanika Dubai.”
The board includes Sheerhan Jeeaudeen, Head of Region, Middle East and Africa, ZF Middle East; Amjed Kallan, General Manager Bilstein Group; and Dr Nima Mehrdadi, Managing Director, HELLA.
Automechanika Dubai, which is the foremost networking hub for automotive aftermarket professionals in the Middle East, Automechanika Dubai closed yesterday. Taking place at the Dubai World Trade Centre (DWTC), the exhibition spanned 14 halls and featured eight specialised Product Sections – Parts & Components, Electronics & Systems, Accessories & Customising, Tyres & Batteries, Car Wash & Care, Oils & Lubricants, Diagnostics & Repair, and Body & Paint.
The India pavilion, spread over 1,000 square metres, was the third largest country pavilion at Automechanika Dubai 2023 with over 120 companies.
ACMA & EEPC drive strong India aftermarket presence at Automechanika Dubai
The Automotive Component Manufacturers Association (ACMA), the apex body of the Indian auto component industry, together with the Engineering Exports Promotion Council of India (EEPC India) organised participation of their members at Automechanika Dubai.
The India pavilion, spread over 1,000 square metres, was the third largest country pavilion with participation of over 120 companies. The India Pavilion showcased excellence and innovation of Indian auto component manufacturers for the aftermarket, highlighting India's engineering strengths and capabilities on a global platform. The India Pavilion was inaugurated by K Kalimuthu, Consul (Economic, Trade & Commerce) from the Consulate General of India in Dubai.
Commenting on ACMA's significant presence at Automechanika Dubai 2023, Shradha Suri Marwah, President, ACMA and Chairperson and Managing Director, Subros, said, “ACMA's participation in the 20th edition of Automechanika Dubai is a testament to its commitment towards promoting India's auto components industry on international stage and facilitating export opportunities for its members. Dubai event is a gateway for trade to West Asia and North Africa and with India’s recent FTA with UAE, I am confident that our participation at the event will lead to increased export opportunities for our members.”
The aftermarket trade fair showcased a diverse range of innovative products, services and technologies in front of an international audience. Automechanika Dubai acts as the central trading link for markets that are difficult to reach connecting the wider Middle East, Africa, Asia, and key CIS countries. Organised by Messe Frankfurt, Automechanika Dubai 2023 saw 1,912 exhibitors from 61 countries and feature 20 official country pavilions, with visitor numbers expected to exceed 45,000.
All photos: Messe Frankfurt
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