KSA Automotive Repair and Maintenance Market Outlook to 2028

KSA Automotive Repair and Maintenance Market Overview

• The KSA Automotive Repair and Maintenance Market is valued at USD 1.5 billion, based on a five-year historical analysis. This valuation reflects the countrys growing vehicle fleet, bolstered by a high rate of car ownership and increasing automotive aftermarket demand. The expansion of preventive and corrective maintenance services, alongside rising consumer preference for convenient and accessible auto repair solutions, fuels this market. In addition, the increasing presence of electric vehicles (EVs) is driving specialized repair services across KSA.

• The cities of Riyadh, Jeddah, and Dammam dominate the automotive repair and maintenance market in KSA. This dominance stems from their high vehicle density and the presence of a well-established automotive service infrastructure. These urban centers serve as hubs for major service providers, benefiting from high demand for regular and advanced automotive services, as well as proximity to distribution centers, which facilitates efficient repair and maintenance operations.
• The adoption of predictive maintenance tools, particularly IoT-enabled diagnostics, is becoming a major trend in Saudi Arabia's automotive repair market. These tools allow for real-time monitoring and analysis of vehicle performance, enabling proactive identification of potential issues before they lead to costly repairs or breakdowns. For instance, IoT-enabled sensors in vehicles can monitor critical components, sending data to workshops for predictive maintenance services. This technology has been increasingly integrated due to the Saudi governments push for digital transformation under Vision 2030, which aims to increase tech adoption across various sectors, including automotive repair. Predictive maintenance is expected to enhance service efficiency and reduce downtime, attracting customers seeking convenience and reliability.

KSA Automotive Repair and Maintenance Market Segmentation

By Service Type: The KSA Automotive Repair and Maintenance Market is segmented by service type into preventive maintenance, mechanical repairs, electrical repairs, body and paint services, and quick services (such as oil and tire changes). Preventive maintenance currently holds a dominant market share within the service type segment due to its critical role in extending vehicle lifespan and ensuring optimal performance. Consumers increasingly prioritize preventive services to avoid costly future repairs, a trend reinforced by growing awareness of the benefits of regular vehicle servicing.

By Vehicle Type: The market is further segmented by vehicle type into passenger vehicles, commercial vehicles, luxury vehicles, electric vehicles, and off-road vehicles. Passenger vehicles hold the dominant market share due to the extensive number of these vehicles on KSAs roads. With a growing trend of multi-car ownership in households and an increase in ride-hailing services, passenger vehicles require frequent maintenance, making this sub-segment the largest contributor to market growth in terms of repair demand.

KSA Automotive Repair and Maintenance Market Competitive Landscape

The KSA Automotive Repair and Maintenance Market is characterized by a mix of local and international players, with established brands like Petromin Corporation, Al Jomaih Automotive Company, and Al Futtaim Motors leading the market. This consolidation among top players highlights the strong brand presence and extensive service network of these companies, which enables them to cater effectively to the high demand across the country.

KSA Automotive Repair and Maintenance Industry Analysis

Growth Drivers

• Rising Vehicle Fleet: Saudi Arabia's vehicle fleet has been expanding steadily, with the total number of registered vehicles reaching approximately 12 million in 2023. This growth is driven by a population exceeding 35 million and a GDP per capita of around $23,000, indicating increased purchasing power and vehicle ownership. The surge in vehicle numbers necessitates more frequent maintenance and repair services to ensure roadworthiness and safety. The General Authority for Statistics (GASTAT) reported that in 2022, the number of passengers transported by public buses within and between cities reached 43.5 million, an increase of 233.9% compared to 2021, highlighting the growing
• Increased Demand for Aftermarket Services: The automotive aftermarket in Saudi Arabia has been experiencing significant growth, with the market for spare parts and accessories estimated at over $2 billion in 2023. This expansion is attributed to the aging vehicle population, with the average vehicle age now exceeding five years, leading to higher demand for replacement parts and maintenance services. Additionally, the harsh desert climate accelerates wear and tear, further driving the need for aftermarket services. The Saudi Standards, Metrology and Quality Organization (SASO) has implemented regulations to ensure the quality of imported spare parts, enhancing consumer confidence in aftermarket products.
• Technological Advancements in Repair Equipment: The adoption of advanced diagnostic tools and repair equipment has been on the rise in Saudi Arabia's automotive repair industry. Workshops are increasingly utilizing computerized diagnostic systems capable of interfacing with modern vehicle electronics, improving the accuracy and efficiency of repairs. The Saudi government has been promoting the integration of technology in various sectors, aligning with Vision 2030 objectives to modernize industries and enhance service quality. This technological shift not only improves repair outcomes but also reduces service times, benefiting both service providers and vehicle owners.

Market Challenges

• High Operating Costs: Operating costs for automotive repair businesses in Saudi Arabia have been escalating due to rising expenses in labor, equipment, and facility maintenance. The average monthly wage for skilled technicians has increased to approximately SAR 6,000 in 2023, reflecting a competitive labor market. Additionally, the cost of importing advanced diagnostic equipment has risen due to fluctuations in exchange rates and global supply chain disruptions. These factors contribute to higher service prices, which may deter some customers from seeking professional repair services.
• Shortage of Skilled Technicians: The automotive repair industry in Saudi Arabia faces a shortage of skilled technicians, with an estimated deficit of over 5,000 qualified professionals as of 2023. This gap is attributed to limited vocational training programs and a lack of interest among the local workforce in pursuing careers in this field. The Technical and Vocational Training Corporation (TVTC) has been working to address this issue by introducing specialized automotive training courses; however, the impact of these initiatives will take time to materialize.

KSA Automotive Repair and Maintenance Market Future Outlook

Over the next five years, the KSA Automotive Repair and Maintenance Market is expected to experience substantial growth, driven by the rising number of vehicles on the road, growing demand for electric vehicle repair solutions, and the proliferation of mobile repair services. Continued investments in service infrastructure and technological advancements in diagnostics will also play a significant role in the markets expansion.

Opportunities

• Expansion of Online Service Platforms: The digital transformation in Saudi Arabia has opened avenues for online automotive service platforms, offering services such as maintenance scheduling, mobile repairs, and parts procurement. With internet penetration exceeding 95% and a smartphone adoption rate of over 90% in 2023, these platforms have the potential to reach a broad customer base. Companies like Morni and Ezhalha have capitalized on this trend, providing convenient and efficient services that cater to the tech-savvy population.
• Growth of Electric Vehicle Maintenance: The Saudi government's commitment to environmental sustainability has led to increased adoption of electric vehicles (EVs), with over 5,000 EVs registered by 2023. This shift presents opportunities for specialized maintenance services tailored to EVs, including battery diagnostics and electric drivetrain repairs. The establishment of local EV manufacturing plants, such as the partnership between Lucid Motors and the Saudi Public Investment Fund, is expected to further boost the EV market and associated maintenance services.