KSA Automotive Repair and Maintenance Services Market Outlook to 2028

KSA Automotive Repair and Maintenance Services Market Overview

• The KSA Automotive Repair and Maintenance Services market is valued at USD 1.7 billion, based on a five-year historical analysis. This market growth is largely driven by the increasing rate of vehicle ownership, supported by rising disposable incomes and expanding urbanization. Additionally, as vehicles age, the need for repair and maintenance services increases, leading to a steady demand within the automotive aftercare industry.

• In the KSA market, Riyadh and Jeddah stand out as dominant cities in the automotive repair and maintenance sector. Riyadh, being the capital and largest city, has a high concentration of automotive service providers catering to both commercial and personal vehicles. Jeddah, with its significant economic activity and port connectivity, also has a dense population of vehicle owners, which translates to higher demand for repair and maintenance services.
• The Saudi government enforces regular vehicle inspections to improve road safety, with over 3.5 million inspections conducted annually. These regulations encourage vehicle owners to maintain their vehicles, thereby driving demand for routine maintenance and repair services across the country.

KSA Automotive Repair and Maintenance Services Market Segmentation

By Service Type: The market is segmented by service type into preventive maintenance, engine and transmission services, tire services, battery and electrical services, and general repair services. Among these, preventive maintenance holds a dominant share due to the increasing awareness among vehicle owners about the benefits of routine maintenance. With a focus on reducing long-term repair costs and extending vehicle life, preventive services are gaining traction. This includes oil changes, brake inspections, and routine check-ups, which are now considered essential by many car owners in the Kingdom.

By Vehicle Type: The market is also segmented by vehicle type into passenger vehicles and commercial vehicles. Passenger vehicles dominate this segment, primarily due to the high rate of personal vehicle ownership in urban centers like Riyadh and Jeddah. Passenger vehicles require regular maintenance to ensure safety and performance, and their owners often prioritize services such as tire changes, brake repairs, and battery replacements, which keeps demand high in this segment. Commercial vehicles, while essential, typically have a smaller market share due to fewer service intervals.

KSA Automotive Repair and Maintenance Services Market Competitive Landscape

The market is dominated by established players such as Abdullah Hashim Co., Petromin Corporation, and Olayan Group, which provide a range of services across the Kingdom. These companies leverage extensive networks and high-quality services to maintain their stronghold.

KSA Automotive Repair and Maintenance Services Market Analysis

Market Growth Drivers

• Rise in Vehicle Ownership: In 2024, the Kingdom of Saudi Arabia has seen an influx of over 12 million registered vehicles, attributed to factors like economic stability, an increasing number of expats, and improved lending conditions. This growing vehicle fleet has created a significant demand for repair and maintenance services to keep vehicles in optimal condition and prolong their lifecycle, driving growth in the automotive repair market.
• Government Initiatives for Road Safety: The Saudi governments Vision 2030 focuses heavily on enhancing road safety and vehicle standards, enforcing strict regulations on vehicle maintenance compliance. In 2024, approximately 5,000 inspections have been conducted monthly to ensure compliance with safety standards, motivating vehicle owners to regularly maintain and repair their vehicles, thus boosting the market.
• Expansion of Road Infrastructure: Saudi Arabia's infrastructure development, with over 3,000 kilometers of new highways planned for completion by 2025, has led to increased vehicle usage and a subsequent rise in repair and maintenance needs. With new roads facilitating more travel, demand for maintenance services is projected to grow, as vehicles endure more wear and tear due to longer and more frequent journeys.

Market Challenges

• Skilled Labor Shortages: As of 2024, there is a deficit of around 15,000 skilled automotive technicians in Saudi Arabia. The limited availability of certified professionals in the sector affects service quality and delays repair times, posing a challenge to service centers aiming to provide high-standard maintenance and repair services.
• Cost of Imported Parts: A significant reliance on imported automotive parts has led to rising costs, with parts importation costing the Kingdom over SAR 10 billion annually. High import costs for parts like engines, transmissions, and other critical components affect service providers' ability to offer affordable repair options, challenging market growth.

KSA Automotive Repair and Maintenance Services Market Future Outlook

Over the next few years, the KSA Automotive Repair and Maintenance Services industry is expected to experience steady growth, driven by the rising number of vehicles on the road, continued urbanization, and a growing emphasis on preventive maintenance.

Future Market Opportunities

• Integration of AI and Machine Learning in Diagnostics: AI-driven diagnostics are forecasted to become a standard in automotive repair in the next five years, with an anticipated 20% of repair centers integrating AI by 2028. These technologies will improve service accuracy and efficiency, reducing diagnostic time and enhancing customer satisfaction.
• Growth of Subscription-Based Maintenance Models: Subscription-based maintenance plans are projected to gain popularity, with over 200,000 subscribers anticipated by 2028. These plans offer customers regular maintenance for a monthly fee, providing predictable revenue for service centers and ensuring continuous vehicle upkeep for consumers.