The "Saudi Arabia Automotive Components Market, By Region, Competition, Forecast & Opportunities, 2020-2030F" 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 market is experiencing robust growth driven by economic diversification initiatives, rising vehicle ownership, and increased local manufacturing capabilities under Vision 2030.

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, reshaping the industrial landscape. Vision 2030 emphasizes 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 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.

The government has rolled out strategic programs such as the National Industrial Development and Logistics Program (NIDLP), promoting domestic production, technology transfer, and incentivizing global OEMs and component manufacturers to establish local operations. Incentives include tax exemptions, soft loans, free industrial land, and access to government-backed R&D facilities. The Public Investment Fund (PIF) is investing heavily in emerging mobility sectors, including electric vehicles and autonomous technologies, drawing international players to consider component manufacturing partnerships. A domestic supplier ecosystem is emerging, supporting OEM assembly plants and independent aftermarket services. This 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: A pressing challenge is the continued dependence on imported components due to an underdeveloped domestic manufacturing ecosystem. Despite the government's push for industrial diversification and local content development, the automotive components sector remains largely reliant on foreign suppliers, particularly from China, Japan, South Korea, the United States, and Germany. This dependence poses risks such as exposure to international supply chain disruptions, fluctuating foreign exchange rates, increased transportation costs, and geopolitical uncertainties affecting 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, with substantial volumes from the UK, Mexico, Canada, France, Italy, and others. 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. There have been early investments and policy efforts to build domestic capacity, but the scale, technical know-how, skilled labor availability, and global competitiveness of Saudi Arabia's manufacturing sector are still in development. High capital requirements, long gestation periods, and a lack of advanced R&D infrastructure deter private-sector participation in component manufacturing, resulting in structural inefficiencies and making significant localization a long-term prospect.

Key Market Trends

Growing Influence of Sustainability and Circular Economy Principles: Sustainability is emerging as a transformative trend, 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. This has translated into rising demand for parts made from recyclable or lightweight materials like aluminum alloys, carbon fiber composites, and biodegradable polymers, which not only reduce vehicle weight but also align with global emissions standards.

There is an increasing focus on the remanufacturing and refurbishment of components such as alternators, starters, clutches, and brake systems. This circular approach reduces waste and offers cost-effective alternatives for end users. Workshops and fleet operators are gradually adopting component recycling practices to comply with sustainability requirements and reduce operational costs. Local firms are 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 Market Players Profiled:

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

Report Scope

In this report, the Saudi Arabia Automotive Components market has been segmented into the following categories:

By Vehicle Type:

• Passenger Car
• Commercial Vehicle

By Component:

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

By Demand Category:

• OEM
• Replacement

By Region:

• Northern & Central
• Eastern
• Western
• Southern

Key Attributes

For more information about this report visit https://www.researchandmarkets.com/r/mh2ywc

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View source version on businesswire.com: https://www.businesswire.com/news/home/20251121770637/en/