Middle East: Supply chain under construction and accelerated digitalisation

Driven by a rapidly growing vehicle fleet and climatic conditions that accelerate vehicle wear and tear, the Middle Eastern spare parts market is establishing itself as a new global hub. In 2024, parts sales were worth $45.2 billion and could reach $70.4 billion in 2030, equating to annual growth of 7.65%. In detail, the business driven by IAM players accounts for $36.6 billion of this total and is set to reach €52 billion five years from now.

The Gulf region is benefiting from a growing fleet, a direct result of population growth and rising living standards. But it is above all the environment – extreme heat, dust, mechanical constraints – that is driving strong demand for wear parts. The result is the expansion of distribution ecosystems to meet the needs of a market where maintenance is more frequent than elsewhere.

Another strong trend is the emergence of multi-make online sales platforms. For example, in the United Arab Emirates ($7.3 billion in parts sales in 2024 and +3.8% annual growth forecast to 2035), nearly 70% of workshops and dealerships now use digital platforms to manage orders, customer relations and repairs. The same trend can be seen in Saudi Arabia (parts market worth $6.2 billion in 2024, with 8% annual growth until 2033). Major players are focusing on digitisation: inventory management via AI, B2B platforms and multi-make online sales. For example, Saudi oil company Petromin, involved in car maintenance since 2013 through 800 sales outlets in five countries in the region, has acquired Indian digital start-up SpareIt, a digital platform dedicated to garages, suppliers and real-time logistics. Digitalisation is clearly becoming a necessity, driven by a connected customer base and the needs of professional fleets.

The aftermarket largely dominates the Saudi market, supported by the ageing fleet, competitive prices and increased accessibility thanks to online commerce. The opening of the market to new brands – such as the launch of China’s Kaiyi, accompanied by Motor FIX for maintenance and after-sales service – confirms a growing interest in local structuring of services and distribution. This development is accompanied by a strategic debate: how to build a true automotive hub in the Middle
East? During a round table organised at the Automechanika Dubai tradeshow, manufacturers, logisticians and public officials emphasised the need to harmonise certifications, strengthen local manufacturing and develop regional clusters capable of supporting a supply chain that is still under construction. This is an essential prerequisite for increasing confidence in locally produced or remanufactured parts and reducing dependence on imports.