From Accidents to Solutions: Navigating KSA's Thriving Aftersales Service Market: Ken Research

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KSA's automotive repair industry, encompassing crash repair, mechanical repair, auto care, quick lube, spare parts, motor insurance, and rental & leasing, is projected to reach SAR ~2.5billion valuation by 2025, offering inter-related opportunities for growth and understanding.

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Growing Industry Valuation: KSA's automotive repair industry, including crash repair, mechanical repair, auto care, quick lube, spare parts, motor insurance, and rental & leasing, projected to reach SAR ~2.5 billion by 2025.
Diverse Product Sections: Over 100 exhibitors from 12 countries showcased aftercare products and solutions across six distinct sections, reflecting industry breadth.
Importance of Crash Repair: Vital for vehicle safety and functionality, driven by accident rates, vehicle ownership, and insurance coverage. 2019 saw around 1,897 fatal road accidents in KSA.
Technological Advancements: Investments in advanced tools and technologies like computerized diagnostics and automated repair processes are reshaping KSA's aftersales market, while aluminium repair expertise becomes crucial.
Insurance Penetration and Growth: With approximately 35% insurance penetration and 5 million motor insurance policyholders, significant growth in revenue from insurance claims for crash repair is anticipated.

In the year 2020, more than 100 exhibitors hailing from 12 different countries gathered to present cutting-edge automotive aftercare products and solutions across six distinct product sections. 7 Verticals Shaking up KSA's Automotive Aftersales Service Industry: Crash Repair Industry, Automotive Mechanical Repair Industry, Auto Care Industry, Quick Lube Industry, Spare Part Market, Motor Insurance Industry, Vehicle Rental & Leasing Industry.

1. The Vast Landscape of Aftersales Services and Crash Repairs in KSA

The crash repair market in KSA plays a crucial role in maintaining the safety and functionality of vehicles and is driven by factors such as the number of accidents, vehicle ownership, insurance coverage, and regulations pertaining to road safety. Road accidents are a significant contributor to the demand for crash repair services. In 2019, there were approximately 1,500+ fatal road accidents reported in Saudi Arabia, resulting in 2,106 fatalities.

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On an average, 65-70% of the crash repair charges are for spare parts, 5-10% for consumables and 15-20% for labour charges.

2. Revolutionizing KSA's Aftersales Service Market with Technological Upgrades

Investments are directed towards adopting advanced technologies and tools that improve the repair process and enhance the quality of repairs. This includes computerized diagnostics, precision measuring systems, advanced paint booths, and automated repair processes. The automotive industry is increasingly incorporating aluminium in vehicle panels to achieve lightweight designs. In 2017, The Saudi National Automobile Manufacturing Co. (SNAM) and the Saudi Arabian Mining Co. (Maaden) entered into a cooperation agreement to enhance the aluminium content in new vehicles.

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As a result, body shops need to develop capabilities for aluminium repair, which differs from steel panel repair in several aspects. For instance, traditional hammering techniques are ineffective for removing dents from aluminium panels, requiring the use of heat-based methods instead.

3.Ensuring Your Ride: Exploring Insurance Penetration in the KSA Automotive Market

Insurance coverage plays a vital role in the crash repair market. As of 2020, the insurance penetration rate for vehicles in Saudi Arabia was around ~35%. This means that a significant portion of vehicles on the roads is covered by insurance, which contributes to the demand for crash repair services.

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In 2020, the number of motor insurance policyholders in KSA reached approximately 5 million. Looking ahead, the revenue generated through insurance claims for crash repair is projected to exhibit rapid growth over the next five years. It is compulsory for all fleet companies to insure their vehicles and for vehicles older than 3-4 years majority prefer to repair the vehicle at non-agency in case of accident.

In conclusion, KSA's aftersales service market, including crash repairs, technological advancements, and insurance penetration, is a critical component of the automotive industry. With the growing importance of safety, advanced repair technologies are revolutionizing the sector. Additionally, insurance coverage plays a vital role in driving the demand for crash repair services. As the market continues to evolve, stakeholders must adapt to meet the diverse needs of vehicle owners and ensure a safe and efficient aftersales service landscape in KSA.

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Ken Research is a Market Research and Consulting Firm, based out of India, Indonesia and UAE. Since 2011, we have been assisting clients globally with our Syndicate and Bespoke Market Research and Advisory Services.

This release was published on openPR.