The countries of the Middle East continue to be an extremely attractive market for the automobile sector, thanks to strong ongoing economic growth and a flourishing aftermarket trade.
In a recent report, research firm Frost & Sullivan estimated that the total consumption within the automotive aftermarket in the GCC countries reached as much as $7.5 billion in 2012. With consumption worth $2.01 billion last year, the UAE was the second largest consumer market within the aftermarket in the GCC after Saudi Arabia.
According to Ahmed Pauwels, CEO of Epoc Messe Frankfurt: "Thanks to its superior transport and logistics infrastructure, the region serves as a key import and trans-shipment hub for the aftermarket trade that reaches across the wider hinterland in the MENA region, Iran and Central Asia, South Asia and Eastern Africa."
According to the Frost & Sullivan report, parts and accessories make up the lion's share of the consumption, totaling $4.51 billion. Tires and inner tubes were the next most significant category of the aftermarket consumption, being worth $1.49 billion in 2012. Lubricants and batteries made up the next biggest sectors, at $816 million and $715 million respectively last year.
Going forward, the aftermarket is expected to maintain a healthy rate of growth, with Frost & Sullivan estimating that Parts and Accessories, Lubricants and Batteries would grow at a CAGR of around 13 percent between 2012 and 2017, while consumption of Tyres and Inner tubes would keep pace with a CAGR of 12 percent over the same period.