Forecast Period | 2025-2029 |
Market Size (2023) | USD 1.51 Billion |
CAGR (2024-2029) | 7.28% |
Fastest Growing Segment | Maintenance |
Largest Market | Northern & Central |
Market Size (2029) | USD 2.31 Billion |
Market Overview
Saudi Arabia Automotive Repair and Maintenance Services Market was valued at USD 1.51 Billion in 2023 and is expected to reach USD 2.31 Billion by 2029 with a CAGR of 7.28% during the forecast period.
The Saudi Arabia Automotive Repair and Maintenance
Services Market forms a crucial component of the nation's automotive industry,
offering a spectrum of services that cater to the upkeep and longevity of
vehicles. This market has experienced significant growth due to the country's
burgeoning automotive sector, which includes a diverse range of vehicles, from
passenger cars to commercial fleets. The Saudi Arabian market's repair and maintenance
services encompass a broad array of offerings, including routine maintenance,
diagnostics, mechanical and electrical repairs, bodywork, and painting. These
services are designed to ensure the safety, performance, and reliability of
vehicles, a fundamental concern for both personal and commercial
transportation. The market is characterized by its adaptability to
the evolving automotive landscape. With Saudi Arabia's growing focus on
sustainability and the emergence of electric vehicles (EVs), repair and
maintenance services are expanding to accommodate the unique needs of these
vehicles, encompassing battery diagnostics, EV-specific components, and
charging infrastructure. The market is driven by a combination of
factors, including an increasing vehicle parc, which boosts the demand for
regular servicing and maintenance. Additionally, the harsh desert climate and
road conditions in Saudi Arabia make vehicle upkeep and maintenance a top
priority to ensure longevity and optimal performance.The Saudi Arabian automotive sector is poised for significant growth, with the establishment of OEMs like Lucid Motors and Ceer Motors catalyzing the production of passenger vehicles. The Cluster's vision is to have 3-4 OEMs producing over 400,000 passenger vehicles in Saudi Arabia by 2030, with a target of achieving a local gross value add (LGVA) of 40%. The Vision 2030 program's emphasis on clean and autonomous mobility is expected to propel the industry forward, with an anticipated growth rate of 12% by 2030. As the number of vehicles increases, so does the demand for maintenance and repair services. The market is diversifying, with services extending beyond traditional repair to include advanced paint protection, vehicle care, and quick services. The rise in vehicle ownership and the growing popularity of off-road activities in the desert landscapes further drive this demand.
The automotive repair and maintenance market in
Saudi Arabia is highly competitive, with a range of service providers, from
independent garages to authorized service centers. As the nation continues to
invest in its automotive infrastructure and consumer awareness regarding
vehicle maintenance grows, the market is poised for further expansion and
innovation. This industry not only supports the longevity and safety of
vehicles but also plays a vital role in the overall health of the automotive
sector in Saudi Arabia, contributing to its ongoing growth and development.
Key Market Drivers
Expanding Vehicle Parc
The growing number of vehicles on Saudi Arabian
roads is a primary driver of the repair and maintenance services market. As the
vehicle parc increases, there is a rising demand for routine servicing,
repairs, and diagnostics, creating a robust market for these services.The substantial increase in public bus passengers and domestic road freight in Saudi Arabia for the year 2022, as reported by GASTAT, indicates a robust expansion in the use of road transport within the kingdom. It revealed that the number of passengers transported by public buses within and between cities during 2022 reached 43.5 million, an increase of 233.9% compared to 2021. This growth is a positive indicator for the automotive repair and maintenance services market, suggesting an upsurge in demand for vehicle servicing due to higher usage rates. The surge in public transportation usage alone could lead to an increased need for regular maintenance and repair services, ensuring that the fleet remains operational and safe for passenger use. Additionally, the rise in road freight volume points to a greater number of commercial vehicles on the roads, which typically require more frequent servicing. This scenario presents a significant opportunity for service providers in the automotive repair and maintenance sector to expand their operations and offerings to meet the growing market demand. Strategic investments in service capacity, technology, and skilled personnel could position these businesses to capitalize on the increasing need for vehicle maintenance and repair services in Saudi Arabia.
Road Infrastructure Development
Saudi Arabia has made substantial investments in
expanding its road infrastructure, including the construction of new highways
and transport networks. The resulting increase in road usage and long-distance
travel contributes to greater wear and tear on vehicles, necessitating more
maintenance and repair services. For instance, in 2024, The Makkah region in Saudi Arabia is undertaking a major infrastructure development initiative by launching 20 road projects worth SAR1.4 billion (373 USD million). These projects aim to enhance connectivity, improve accessibility, and facilitate travel within the region, particularly during the Hajj and Umrah seasons. The initiative includes the construction of a direct road linking Jeddah to Makkah, the expansion of existing roads, and the addition of lighting and other improvements to reduce traffic congestion.
Growing Commercial Fleet
The nation's thriving logistics and transportation
industry relies on a substantial commercial vehicle fleet, including trucks and
delivery vans. This sector's growth fuels the demand for maintenance and repair
services, as timely upkeep is critical to their operational efficiency.
Electric Vehicle (EV) Adoption
Saudi Arabia's interest in sustainable and electric
mobility solutions is on the rise. The advent of electric vehicles introduces a
new segment for repair and maintenance services, focusing on battery
diagnostics, EV-specific components, and charging infrastructure, adding to the
market's diversity. Saudi Arabia's automotive sector is undergoing a revolution as electric cars (EVs) are introduced and local manufacturing units are established. Lucid Motors, a California-based EV manufacturer, is one of Saudi Arabia's Public Investment Fund's (PIF) largest U.S. investments, with a peak production capacity of up to 155,000 vehicles per year. Ceer Motors, a joint venture between PIF and Hon Hai Precision Industry Co. (Foxconn), is Saudi Arabia's first national automotive brand, with the goal of designing, manufacturing, and selling an innovative portfolio of EVs that will set the standard in e-mobility, connectivity, and autonomous driving technology.
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Key Market Challenges
Shortage of Skilled Labor
One of the prominent challenges is the shortage of
skilled automotive technicians and mechanics. A well-trained workforce is
essential for providing high-quality repair and maintenance services. The
industry requires ongoing efforts to attract and train skilled professionals to
meet the increasing demand for services.
Environmental Regulations
The government's emphasis on environmental
regulations and emissions standards presents a significant challenge. Service
providers need to invest in tools, equipment, and technologies that ensure
vehicles comply with stringent environmental norms, adding operational costs.
Rising Operational Costs
As vehicles become more advanced with complex
technologies, the cost of maintaining and repairing them also rises. The need
for specialized tools, diagnostic equipment, and training to address modern
vehicles' issues places financial pressure on repair and maintenance
businesses.
Competition from Authorized Service Centers
service centers established by automotive
manufacturers have a stronghold on the market, offering specialized services
and leveraging brand recognition. Independent service providers face
competition in offering comparable quality and reliability to attract
customers.
Import Dependency
The automotive repair and maintenance sector is
often reliant on imported spare parts, which can be costly and subject to
supply chain disruptions. The need for a stable and efficient supply chain for
spare parts is crucial.
Key Market Trends
Digitalization and Diagnostics
The adoption of digital technologies and diagnostic
tools is becoming increasingly prevalent in the industry. Repair and
maintenance providers are incorporating advanced scanning and diagnostic
equipment to identify and address vehicle issues more efficiently, enhancing
service quality and customer satisfaction.
EV Service Expertise
With the growing adoption of electric vehicles
(EVs), repair and maintenance services are expanding to include specialized EV
training and repair capabilities. This trend ensures that service providers are
equipped to handle the unique needs of EVs, including battery diagnostics and
charging infrastructure.
Sustainability Initiatives
The automotive sector in Saudi Arabia is embracing
sustainability practices. Repair and maintenance providers are gradually
incorporating eco-friendly measures, such as the proper disposal of hazardous
materials, recycling, and energy-efficient operations, to align with global
environmental goals.
Advanced Vehicle Technologies
Modern vehicles are equipped with advanced
technologies, including ADAS (Advanced Driver Assistance Systems) and complex
computer systems. Repair and maintenance services are keeping pace by training
technicians to work on these technologies and providing the necessary tools and
equipment.
Preventive Maintenance Programs
There is a growing emphasis on preventive
maintenance programs. Service providers are offering routine check-ups and
maintenance schedules to help vehicle owners proactively address issues, extend
the lifespan of their vehicles, and reduce the risk of unexpected breakdowns.
Mobile Repair Services
Mobile repair services, where technicians travel to
the customer's location for minor repairs and routine maintenance, are becoming
more popular. This convenient and flexible approach caters to busy lifestyles
and reduces downtime for vehicle owners.
Online Booking and Transparency
Repair and maintenance services are increasingly
offering online booking and transparent pricing models. Customers can schedule
appointments and receive cost estimates online, enhancing convenience and trust
in the service provider.
Segmental Insights
Service Type Insights
The automotive repair and maintenance services market in Saudi Arabia is experiencing rapid growth, particularly in the maintenance segment, due to a combination of factors. The increasing number of vehicles on the road is a significant driver. As the vehicle fleet expands, the demand for routine maintenance services, such as oil changes, tire rotations, and brake inspections, grows proportionally. This trend is supported by the rising disposable incomes of Saudi consumers, who are more willing to invest in vehicle upkeep to ensure longevity and performance.
The Saudi government’s initiatives to enhance road safety and extend vehicle lifespans have bolstered the maintenance sector. Policies aimed at improving vehicle safety standards and regular inspection requirements create a steady demand for maintenance services. The country's Vision 2030 plan, which includes significant investments in infrastructure and urban development, also contributes to this growth by increasing vehicle usage and, consequently, the need for maintenance services.
Another contributing factor is the evolving automotive landscape, which includes a shift towards more complex and advanced vehicle technologies. As vehicles become more sophisticated, specialized maintenance services are required. This has led to the growth of specialized service centers that offer high-tech diagnostics and repair, catering to modern vehicles' needs.
The increasing awareness among vehicle owners about the benefits of regular maintenance, including improved fuel efficiency and reduced risk of breakdowns, has further fueled demand. The expansion of service networks and the introduction of innovative maintenance solutions, such as mobile services and digital platforms for booking appointments, have also made it easier for consumers to access maintenance services, thus accelerating market growth.
The automotive maintenance segment in Saudi Arabia is expanding rapidly due to rising vehicle numbers, government policies, technological advancements, and increasing consumer awareness.
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Regional Insights
The Northern & Central region of Saudi Arabia is the leading market for automotive repair and maintenance services. This dominance is attributed to several key factors. The region is home to major cities like Riyadh, the capital, which is the largest city in the country with a high population density and significant economic activities. The high number of vehicles in Riyadh leads to increased demand for repair and maintenance services. The region's robust infrastructure and well-developed road networks facilitate the growth of automotive services. The presence of numerous automotive dealerships and service centers enhances the accessibility and availability of repair services for a large customer base. Additionally, the high disposable income and greater awareness of vehicle maintenance among residents contribute to the region's market leadership. The Northern & Central region also benefits from government initiatives and investments aimed at improving transportation infrastructure, further boosting the automotive sector. The concentration of businesses and industries in this region, requiring regular maintenance of commercial and fleet vehicles, also plays a crucial role in driving the demand for automotive repair and maintenance services. Overall, the combination of population density, economic activity, infrastructure, and government support positions the Northern & Central region as the leading market for automotive repair and maintenance services in Saudi Arabia.
Recent Developments
- In 2023, SAMI-AEC, a subsidiary of Saudi Arabian Military Industries (SAMI), formed a strategic partnership with Lockheed Martin. This collaboration marked a key achievement, positioning SAMI-AEC’s Sniper Advanced Targeting Pod (ATP) Repair Center as the leading facility in the Middle East for Line-Replaceable Units (LRUs) repair, offering advanced maintenance and repair services.
- In 2023, Carefer introduced Saudi Arabia’s first cloud-based car maintenance and repair workshop in collaboration with Cloud Workshops Company. This innovative approach is designed to enhance service quality in the automotive maintenance and repair industry, allowing service providers to create virtual brands and expand their geographic presence while minimizing costs. Carefer plans to capitalize on its technological infrastructure and strategic alliances to create new opportunities and support the Kingdom's vision of enhancing the quality of life for its citizens.
- In November 2023, Petromin Corp. launched a maintenance network for hybrid and electric vehicles (EVs) in Saudi Arabia to promote EV adoption and reduce fossil fuel dependence. The EV AUTO CARE system, with certified technicians, supports Saudi Arabia's Vision 2030 goals of sustainability and renewable energy, setting new standards for eco-friendly automotive services..
Key Market Players
- Abdul Latif Jameel IPR Company Limited
- Morni KSA
- Ezhalha
- E.A. Juffali & Brothers (Juffali Automotive Company)
- Al Jazirah Vehicles Agencies Co. Ltd.
- The Petromin Corporation
- Aljomaih group (ACDelco Service Centers)
- Haji Husein Alireza & Co. Ltd.
- Mohamed Yousuf Naghi & Brothers Group
- Aljabr Group
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By Service Type
|
By Vehicle Type
|
By Service Provider
|
By Region
|
|
|
- Two-Wheeler
- Passenger Car
- LCV
- M&HCV
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- Automobile Manufacturers
- Franchise General Repairs
- Locally Owned Repair Shops
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- Northern & Central
- Eastern
- Western
- Southern
|
Report Scope:
In this report, the Saudi Arabia Automotive Repair
and Maintenance Services Market has been segmented into the following
categories, in addition to the industry trends which have also been detailed
below:
- Saudi Arabia Automotive
Repair and Maintenance Services Market, By Service Type:
o Repair
o Maintenance
- Saudi Arabia Automotive
Repair and Maintenance Services Market, By Vehicle Type:
o Two-Wheeler
o Passenger Car
o LCV
o M&HCV
- Saudi Arabia Automotive
Repair and Maintenance Services Market, By Service Provider:
o Automobile Manufacturers
o Franchise General Repairs
o Locally Owned Repair Shops
- Saudi Arabia Automotive
Repair and Maintenance Services Market, By Region:
o Northern & Central
o Eastern
o Western
o Southern
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents
in the Saudi Arabia Automotive Repair and Maintenance Services Market.
Available Customizations:
Saudi Arabia Automotive Repair and Maintenance
Services Market report with the given market data, TechSci Research
offers customizations according to a 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).
Saudi Arabia Automotive Repair and
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