UAE’s Automotive Aftermarket Eyes $1.91 Billion Milestone as SE Asia Drives Growth

The UAE’s automotive aftermarket sector is set to reach a significant milestone, with projections indicating the industry will be valued at approximately USD 1.91 billion by 2028. This anticipated growth is attributed to an array of factors, including the rising number of vehicles on UAE roads, expanding aftermarket services, and the robust participation of Southeast Asian manufacturers, which collectively bring a surge in supply and competitive pricing. These trends signal a bright future for aftermarket businesses as they adapt to the region's dynamic automotive demands, despite mounting challenges posed by electric vehicle (EV) adoption and advanced vehicle technologies.

In a market landscape driven by high car ownership and a preference for premium brands, UAE’s consumers have consistently fueled demand for aftermarket products such as tires, batteries, and maintenance services. This inclination, coupled with the country’s emphasis on maintaining and servicing vehicles due to its harsh climate, has provided a resilient foundation for the aftermarket. Southeast Asian companies, especially manufacturers from Thailand and Malaysia, have become pivotal players, capturing a notable market share by providing affordable, high-quality automotive parts. These manufacturers are not only catering to direct consumer demand but are also establishing stronger distribution networks across the Gulf, enabling streamlined access to parts at competitive prices.

Yet, the UAE’s automotive aftermarket faces hurdles as the push toward sustainability accelerates. With the UAE government investing in EV infrastructure and incentivizing electric vehicle purchases, the need for traditional automotive components may see a gradual decline. EVs require fewer mechanical parts, thus diminishing the need for items like spark plugs and oil filters, staples of the traditional aftermarket. This shift poses a strategic challenge, compelling aftermarket players to diversify their offerings to include components specific to electric and hybrid vehicles. Furthermore, as new regulations and incentives encourage the adoption of cleaner vehicles, aftermarket providers will need to align their services with the evolving needs of the region’s vehicle landscape.

Advanced automotive technology integration is another factor reshaping the UAE’s aftermarket. Newer vehicles are increasingly outfitted with sophisticated electronics, autonomous driving capabilities, and connected systems, which demand specialized repair and maintenance. This advancement benefits authorized dealerships and original equipment manufacturers (OEMs) who possess the required technical expertise and equipment. Independent aftermarket providers, however, face the challenge of keeping pace with these innovations. As a result, many smaller businesses may find themselves in a difficult position, with the complexity of modern vehicles making it challenging to provide comprehensive services without significant investment in technical training and equipment.

Despite these challenges, the UAE’s automotive aftermarket remains highly competitive, with major international brands like Bosch, Bridgestone, and Continental actively expanding their footprint in the region. These companies, renowned for their tire, battery, and electronic components, have continuously adapted to market changes, often partnering with local distributors to optimize their reach. Moreover, Southeast Asian manufacturers are innovating to cater to the growing demand for high-performance and durable parts, as well as eco-friendly options that align with the UAE’s sustainability goals. These players are integrating environmental considerations, such as recyclable materials and energy-efficient products, to appeal to environmentally conscious consumers, especially within urban areas that have witnessed a higher adoption of EVs and hybrids.

Further propelling the market’s growth is the UAE’s affinity for luxury vehicles, which are prone to higher maintenance costs and frequent servicing. UAE consumers, who are more likely to purchase high-end brands, typically seek premium aftermarket services to maintain their vehicles. This trend is creating a niche segment within the aftermarket, focusing on customized and high-quality replacement parts designed specifically for luxury models. As the high-end market segment grows, opportunities for specialized aftermarket providers will likely increase, allowing them to cater to luxury brands by offering tailored services that are not typically available in general service centers.

Looking forward, the UAE’s automotive aftermarket may also see growth through the rise of do-it-yourself (DIY) culture among consumers. With more information and resources available online, vehicle owners are showing a greater interest in conducting basic maintenance themselves, fostering demand for accessible aftermarket tools and products. Furthermore, digital platforms are transforming how consumers interact with automotive services. Online marketplaces and mobile applications are making it easier to order parts, schedule maintenance, and access repair services, ultimately streamlining the aftermarket experience. This trend is especially beneficial for consumers in remote areas, who can access the same aftermarket services without having to visit physical locations, thereby enhancing convenience and expanding the market’s reach.