UAE Auto Aftermarket to Hit $1.91B by 2028 - Led by Southeast Asia

During a recent networking event themed “Strengthening Collaborations: Southeast Asia and UAE,” Automechanika Dubai announced a promising growth trajectory for the UAE’s automotive aftermarket industry. The sector is projected to reach a market size of $1.91 billion by 2028, positioning the UAE as a significant player in the global automotive industry.

UAE's Market Growth Fuelled by Rising Demand and Technological Innovation

Research from Glasgow Research & Consulting underscores the UAE's robust potential, highlighting how factors such as increasing vehicle ownership, technological advancements, and a strong demand for parts and services are driving industry growth. The UAE is set to benefit substantially as the automotive sector continues to develop, with advancements in technology enhancing both demand and industry capabilities across the region.

Southeast Asian Companies Catalyze Growth in the UAE's Automotive Sector

One of the critical factors contributing to this growth is the rising influence of Southeast Asian automotive companies. These companies now hold a 5% share of the UAE's aftermarket space, contributing expertise, cost-effective solutions, and high-quality products. Their participation is transforming the local industry, offering new efficiencies and innovations that are redefining the automotive landscape in the UAE.

The insights were revealed at an Automechanika Dubai Network event chaired by Vishal Pandey, Director of Glasgow Research & Consulting. Speaking at the event, Pandey said: “As vehicle ownership continues to rise in the UAE, driven by economic recovery and infrastructure development, the demand for aftermarket parts and services is expected to surge.

“With Southeast Asian companies playing a critical role, the market is well-positioned to address the needs of the evolving automotive landscape. The focus of these companies on sustainability and advanced technologies will also help shape the industry's future, aligning with the UAE’s vision for a greener, more efficient automotive sector.”

Strategic Keynotes and Presentations Set the Stage for Future Partnerships

Automechanika Dubai also featured insightful presentations that underscored the importance of UAE-Southeast Asia partnerships. Mohammad Al Kassim, Investment Attraction Director at Dubai Chambers, opened with a keynote on enhancing economic ties between the UAE and Southeast Asia. This was followed by Bakri Bin Alias, Senior General Manager of the Malaysian Automotive, Robotics & IoT Institute, who discussed Southeast Asia’s commitment to innovation and sustainability, positioning the region as a crucial contributor to the UAE's automotive market.

Immersive Southeast Asian Automotive Experience for Visitors

This year’s Automechanika Dubai exhibition offers visitors a unique opportunity to experience Southeast Asia’s automotive landscape. The regional focus event features over 100 exhibitors, showcasing a wide array of products and solutions, from manufacturing to cutting-edge technologies. Participants will have the chance to engage directly with industry experts and explore Southeast Asia's contributions to the automotive sector.

Commenting on the market, Mahmut Gazi Bilikozen, Portfolio Director at Automechanika Dubai organiser Messe Frankfurt Middle East, said: “Southeast Asian companies are renowned for their innovation and competitive pricing and have established a solid foothold in the UAE market.

“With strategic partnerships and regional synergies, they are enhancing the availability of automotive components, including tyres, batteries, and mechanical parts. Their presence caters to the growing demand for aftermarket services and contributes to the local economy by fostering job creation and skills development within the industry.”

Insights into Emerging Trends and Opportunities in the Automotive Market

Attendees at Automechanika Dubai will gain valuable insights into emerging market trends and business opportunities shaping the future of the automotive industry. The exhibition spans ten specialized categories, covering Parts & Components, Electronics & Connectivity, Accessories & Customizing, Tyres & Batteries, and more. This broad range offers a comprehensive look at the evolving landscape and the latest innovations driving the industry forward.

Co-Location with Logimotion Expands Reach to Global Logistics

Automechanika Dubai 2024 will be co-located with Logimotion, a new event under the Messe Frankfurt Middle East portfolio that focuses on the global logistics industry. This co-location provides attendees with a broader perspective on both automotive and logistics sectors, emphasizing the interconnected growth of these industries in the Middle East and beyond.