Saudi Arabia $10.2 Bn Automotive Components Markets, Competition, Forecast & Opportunities, 2030F

Dublin, Aug. 13, 2025 (GLOBE NEWSWIRE) -- The "Saudi Arabia Automotive Components Market, By Region, Competition, Forecast & Opportunities, 2020-2030F" report has been added to ResearchAndMarkets.com's offering.

The Saudi Arabia Automotive Components Market was valued at USD 6.51 Billion in 2024, and is expected to reach USD 10.24 Billion by 2030, rising at a CAGR of 7.80%. The Saudi Arabia automotive components market is experiencing robust growth driven by a combination of economic diversification initiatives, rising vehicle ownership, and increased local manufacturing capabilities under the Vision 2030 framework.



The government's push to localize automotive production and reduce import dependence is attracting significant foreign direct investment and encouraging joint ventures between global OEMs and local players. Additionally, the rising population, urbanization, and expanding middle class are fueling demand for personal mobility, which in turn drives the consumption of automotive components. The Kingdom's strategic focus on infrastructure development, logistics, and industrial zones is enhancing supply chain efficiency and distribution networks, thereby supporting the growth of both OEM and aftermarket segments.

Environmental sustainability and the global shift toward electric mobility are also beginning to influence the market, with early investments in electric vehicle (EV) infrastructure and green mobility initiatives. Technological advancements, such as the adoption of telematics, smart diagnostics, and advanced driver-assistance systems (ADAS), are increasingly reflected in the demand for high-performance and intelligent automotive components.

Moreover, the government's support for local SMEs and the introduction of favorable policies and incentives are fostering innovation and capacity building in the domestic component manufacturing ecosystem. The growing preference for high-end vehicles and SUVs, coupled with extreme climatic conditions in the region, is also influencing consumer demand for durable and high-performance parts. Lastly, the post-pandemic economic recovery and improved disposable income are reviving vehicle sales and service-related activities, thereby accelerating component replacement cycles and boosting market expansion.

Key Market Drivers

Government Vision 2030 and Localization Push

One of the most significant drivers of the Saudi Arabia automotive components market is the government's Vision 2030 initiative, which is reshaping the industrial landscape of the Kingdom. Vision 2030 places a strong emphasis on diversifying the economy away from oil dependency and fostering the development of non-oil sectors, including automotive manufacturing and its associated value chains. Saudi's Ministry of Industry reports a total of 160 automotive-related factories, including 33 auto-parts plants and 21 engine/structure units, with ambitions to scale production to 300,000 cars annually by 2030, aiming for 50% local content in domestic vehicle sales.

In line with this, the Saudi government has rolled out strategic programs such as the National Industrial Development and Logistics Program (NIDLP), which promotes domestic production, encourages technology transfer, and incentivizes global OEMs and component manufacturers to establish local operations. This localization push is further supported by incentives like tax exemptions, soft loans, free industrial land, and access to government-backed R&D facilities.

Moreover, the Public Investment Fund (PIF) is investing heavily in emerging mobility sectors, including electric vehicles and autonomous technologies, which has drawn international players to consider component manufacturing partnerships within the Kingdom. As a result, a domestic supplier ecosystem is gradually emerging, supporting not just OEM assembly plants but also independent aftermarket services. This long-term policy vision is creating a sustainable and resilient automotive component manufacturing base, reducing reliance on imports, and fueling demand for locally sourced parts.

Key Market Challenges

Heavy Dependence on Imports and Underdeveloped Local Manufacturing Ecosystem

One of the most pressing challenges facing the Saudi Arabia automotive components market is its continued dependence on imported components due to an underdeveloped domestic manufacturing ecosystem. Despite the government's push for industrial diversification and local content development under Vision 2030, the automotive components sector remains largely reliant on foreign suppliers, particularly from countries like China, Japan, South Korea, the United States, and Germany. This dependence poses multiple risks, including exposure to international supply chain disruptions, fluctuating foreign exchange rates, increased transportation costs, and geopolitical uncertainties that can impact availability and pricing.

In 2023, Saudi Arabia imported 117,565?kg of "Motor vehicle parts from India, followed closely by 113,324?kg from Thailand and substantial volumes from the UK, Mexico, Canada, France, Italy, and others. Moreover, the absence of a mature tier-1 and tier-2 supplier network within the Kingdom hampers the ability of OEMs and aftermarket service providers to access cost-effective, high-quality components locally.

While there have been early investments and policy efforts to build domestic capacity, the scale, technical know-how, skilled labor availability, and global competitiveness of Saudi Arabia's manufacturing sector are still in the developmental phase. High capital requirements, long gestation periods, and the lack of advanced R&D infrastructure also deter private-sector participation in component manufacturing. As a result, the market faces structural inefficiencies, and the goal of achieving significant localization remains a long-term rather than immediate prospect.

Key Market Trends

Growing Influence of Sustainability and Circular Economy Principles

Sustainability is rapidly emerging as a transformative trend in Saudi Arabia's automotive components market, reshaping how parts are manufactured, sourced, and disposed of. As part of the Kingdom's broader environmental goals under Vision 2030 and the Saudi Green Initiative, industries - including automotive - are being pushed toward reducing their carbon footprint and integrating eco-friendly practices. In the automotive components sector, this has translated into rising demand for parts made from recyclable or lightweight materials such as aluminum alloys, carbon fiber composites, and biodegradable polymers. These materials not only reduce vehicle weight - thereby improving fuel efficiency - but also align with global emissions standards.

Furthermore, there is an increasing focus on the remanufacturing and refurbishment of components like alternators, starters, clutches, and brake systems. This circular approach not only reduces waste but also offers cost-effective alternatives for end users. Workshops and fleet operators are gradually adopting component recycling practices to comply with sustainability requirements and to reduce operational costs. Local firms are also starting to collaborate with international recyclers and technology providers to establish eco-friendly dismantling and parts recovery facilities. Though still in its infancy, the push toward sustainability is expected to evolve from niche to mainstream, encouraging investments in green materials, cleaner production processes, and environmentally responsible disposal practices over the next decade.

Key Attributes:

Report Scope:

Key Market Players

• Robert Bosch GmbH
• DENSO Corporation
• ZF Friedrichshafen AG
• Toyota Boshoku Corporation
• Magna International Inc.
• Valeo
• Hyundai Mobis
• A Mazda Motor Corporation
• Faurecia SE
• Lear Corporation

Saudi Arabia Automotive Components Market, By Vehicle Type:

• Passenger Car
• Commercial Vehicle

Saudi Arabia Automotive Components Market, By Component:

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

Saudi Arabia Automotive Components Market, By Demand Category:

• OEM
• Replacement

Saudi Arabia Automotive Components Market, By Region:

• Northern & Central
• Eastern
• Western
• Southern

For more information about this report visit https://www.researchandmarkets.com/r/4lv1jt

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• Saudi Arabian Automotive Components Market