Digitalisation of part trading and retail the top trend in 2024 for GCC automotive aftermarket, says expert during Automechanika Dubai James Lakie
Top three trends in the GCC automotive aftermarket in 2024 identified as the digitalisation of part trading and retailing, higher demand for aftermarket branded parts and private labels, and rise of mobile on-demand aftermarket service providers
GCC light vehicle units in operation in 2024 was 16.2 billion, rising at a CAGR of 1.8% to 17 billion by 2027
Frost & Sullivan revealed these statistics at Automechanika Dubai 2024
The digitalisation of part trading and retailing, higher demand for aftermarket branded parts and private labels, and the rise of mobile on-demand aftermarket service providers were identified as the top three trends in GCC automotive aftermarket in 2024. This is according to leading mobility experts speaking at the Automechanika Dubai 2024 yesterday – the largest event for the automotive aftermarket industry in the wider Middle East region.
The top trends were revealed at the Automechanika Academy yesterday as part of Frost & Sullivan’s analysis of the GCC automotive aftermarket for 2024, where an estimated16.2 billion light vehicle units were in operation in 2024, forecast to rise at a CAGR of 1.8% to 17 billion by 2027.
Discussing the current trends and the outlook for the automotive aftermarket industry in the GCC, Sammy Krishnamurthy, Director – Mobility Practice, Frost & Sullivan, said: “A growing young population, rising income levels, urbanisation and the ease of financing are key growth drivers for the number of vehicles in operation in the GCC. Saudi Arabia and the UAE are frontrunners in terms of number of units in operation in 2023, with 51% and 22% respectively, followed by Kuwait (8.2%), Oman (8%), Qatar (6%) and Bahrain (4.8%).”
Meanwhile, Frost & Sullivan revealed that the GCC light vehicle aftermarket revenue reached US$10.7 billion in 2024, forecast to grow to US$12 billion by 2027. Key drivers for growth include ageing vehicle parts, advancements in vehicle technology, wider distribution networks and increasing demand for used cars.
During yesterday’s session, which focused on adapting to change and enhancing service in the automotive aftermarket, the Automechanika Academy audience also heard from Seggayi Ashiraf, CEO and Founder of PHAMON Automotives, on how digital innovation is reshaping the automotive aftermarket industry. Meanwhile, Mohit Agarwal, Category Lead – Automotive UAE, SEA and India at eBay, discussed how to reach new global markets through eCommerce, and Sebastian Fuchs, Managing Director at World Automotive Group, outlined how to harness service offerings for electric and hybrid vehicles.
The Automechanika Academy at Automechanika Dubai 2024 is a knowledge-sharing platform offering industry professionals insights into emerging trends, technologies, and strategies in the automotive aftermarket and service sector. With expert-led seminars and interactive workshops, it empowers businesses to innovate, grow, and adapt to the evolving automotive landscape.
The 21st edition of Automechanika Dubai, which ran from 10-12 December 2024 at the Dubai World Trade Centre, also hosted the Innovation4Mobility as a main feature, as well as the Lubricants and Base Oils Conference, Modern Workshop, PowerTread Workshop, Future Fleet & Telematics Workshop and other key show features, including AfriConnections, PitStop Challenge and Awards.