Middle East Auto Components Market, By Country, Competition, Forecast & Opportunities, 2020-2030F

The Middle East Auto Components Market was valued at USD 36.61 Billion in 2024, and is expected to reach USD 51.94 Billion by 2030, rising at a CAGR of 6%. The Middle East auto components market is undergoing a structural transformation driven by increasing investments in manufacturing infrastructure, technological advancement, and growing demand for locally produced parts.

Rising automotive production volumes and a gradual shift towards domestic component sourcing have created robust demand for a wide range of auto parts, from engine systems to electronics. OEMs are increasingly seeking partnerships with local suppliers to ensure supply chain resilience and cost optimization. Furthermore, aftermarket component demand is growing steadily due to vehicle parc expansion, aging fleets, and a rising preference for do-it-yourself (DIY) maintenance, especially for light-duty vehicles. These factors are contributing to a more diversified and dynamic market ecosystem.

Market Drivers

Surge in Vehicle Production and Assembly Plants

The auto components market is experiencing heightened demand due to a notable increase in vehicle production volumes supported by rising investments in automotive assembly plants. Automakers are scaling up operations and localizing manufacturing, generating demand for a wide range of parts including powertrains, suspension systems, HVAC modules, and electrical systems. Localization of vehicle assembly triggers a parallel need for local sourcing of components to reduce logistics costs and shorten supply chains. This shift leads to strategic procurement of components, opening contracts for domestic and regional suppliers.

The expansion of CKD (Completely Knocked Down) and SKD (Semi Knocked Down) operations also encourages the use of regionally manufactured components. This transition presents lucrative opportunities for component manufacturers to scale up and standardize offerings to meet OEM specifications. As global automakers seek resilience and cost efficiency, the preference for establishing local supplier networks further strengthens the demand trajectory for auto parts across powertrain, chassis, and electronic segments. For instance, Saudi Arabia is building its automotive sector under Vision 2030, with Hyundai constructing its first regional plant set to produce 50,000 vehicles annually by 2026, and Lucid Motors expanding its facility to a 150,000-unit capacity.

Key Market Challenges

Heavy Dependence on Imported Raw Materials

Auto component manufacturers face substantial difficulties due to reliance on imported raw materials such as steel, aluminum, rare earth elements, and specialized polymers. This dependency exposes the industry to global supply chain volatility, delays, and fluctuations in raw material prices. Tariffs, freight charges, and geopolitical disruptions can significantly impact input costs, eroding profit margins and delaying order fulfillment. Domestic sourcing alternatives are often limited by the absence of local extraction, refining, or chemical processing facilities.

Manufacturers often lack bargaining power when sourcing materials from international vendors, leading to higher procurement costs and extended lead times. For smaller and mid-sized players, bulk importing becomes financially unfeasible, restricting their ability to meet large-scale OEM demand. Import licenses, customs procedures, and foreign exchange risks further compound these challenges. Without developing resilient and localized raw material supply chains or material substitution strategies, the industry remains vulnerable to external shocks that hinder its scalability and competitiveness.

Key Market Trends

Digitalization of Supply Chain Operations

The auto components industry is experiencing a rapid transition toward digital supply chain management, enhancing visibility, efficiency, and coordination across stakeholders. Component manufacturers are deploying ERP systems, digital inventory tools, and AI-based demand forecasting models to streamline procurement, production, and delivery processes. The adoption of digital twin technology allows for real-time simulation of supply networks, enabling proactive identification of bottlenecks and mitigation of risks. Integration with OEM and Tier 1 platforms through APIs and cloud-based solutions helps maintain synchronization of orders, production schedules, and quality documentation.

Barcode and RFID-based systems are being used to track inventory with precision, reducing losses and shrinkage. Predictive analytics powered by machine learning is improving forecasting accuracy, minimizing both understocking and overstocking issues. End-to-end digitization also improves customer service by offering transparency, shipment tracking, and just-in-time (JIT) delivery assurances. This digital backbone is becoming a necessity for component suppliers aiming to meet OEM agility expectations, reduce lead times, and improve operational resilience.

Key Market Players

• Bridgestone Middle East & Africa FZE
• Michelin AIM FZE
• Goodyear Middle East FZE
• The Yokohama Rubber Co. Ltd.
• ACDelco Middle East & Africa
• Johnson Controls International Plc.
• Robert Bosch Middle East
• Total Marketing Middle East
• ExxonMobil Middle East Marketing Corp
• Shell Markets Middle East

Report Scope:

In this report, the Middle East Auto Components Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Middle East Auto Components Market, By Vehicle Type:

• Passenger Car
• Commercial Vehicle
• Two-Wheeler

Middle East Auto Components Market, By Component:

• Engine Parts
• Body & Chassis
• Suspension & Brakes
• Drive Transmission & Steering Parts
• Electrical Parts and Equipment

Middle East Auto Components Market, By Distribution Channel:

• OEM
• Aftermarket

Middle East Auto Components Market, By Country:

• Saudi Arabia
• UAE
• Turkey
• Israel
• Qatar
• Kuwait

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Middle East Auto Components Market.

Available Customizations:

With the given market data, the publisher offers customizations according to the 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).

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