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Key Statistics and Trends of Auto Repair Services

Dubai is one of the most vibrant cities in the world, and it is no surprise that the automobile industry is thriving. However, owning a car also means that you have to take care of its maintenance and repair needs. This can be a costly affair, especially in a city like Dubai, where the cost of living is high.

Auto repair can be a daunting task for vehicle owners, as it requires time, money, and the right expertise. However, finding the right car service provider can also be a challenge, as it often involves physically visiting different shops to compare prices and the quality of service provided. If you are in Dubai and in need of car repair services, look no further than Alsewar Auto Tyres. Our team of experienced technicians is committed to providing high-quality repairs and maintenance services for all types of vehicles. We understand that car repairs can be costly and time-consuming, which is why we strive to offer affordable and efficient services to our customers.

Industry analysts have been closely watching Dubai’s rise as an international automotive hub, and many have noted the impressive growth that the sector has experienced in recent times. Despite the challenges posed by the Covid-19 pandemic, Dubai’s automotive industry has shown remarkable resilience, and the city is well-positioned to continue its upward trajectory in the years to come.

The automotive and auto repair industry is undergoing a period of significant disruption, driven by several trends and challenges that will transform the industry’s outlook in 2023 and beyond. To survive and thrive in this changing environment, auto repair shops must take proactive steps to prepare themselves and their staff for the challenges ahead.

 In this blog, we will explore the key statistics and trends of auto repair services


Global Trends That Affecting The Industry

The auto repair industry is poised for transformation due to new technology-driven trends that will revolutionize how automobiles are built, powered, and repaired. However, this also raises questions on how auto repair shops will respond to changing consumer needs for specific types of automobile repair, the technology required to deliver it, and the ability to develop new partnerships with tools, equipment, and replacement parts manufacturers. These changes are hastening the demise of low-tech auto repair shops. Here are some of the trends that are affecting the industry:


      • More reliable vehicles that require less maintenance and repair.

      • Increased vehicle leasing, resulting in less maintenance and repair work for auto repair shops.

      • Reduced demand for replacement auto parts due to higher quality components that last longer.

      • Growing preference for having dealerships handle repairs.

      • Digitization, increasing automation, and electrification.

      • Enhanced telematics and connectivity that require well-trained technicians and the right parts for repair.

      • Shortage of technicians due to the retirement of millions of shop techs.

      • Connectivity services, shared mobility, and feature upgrades.

      • Emerging markets creating more wear and tear and a greater need for automobile repair service chains.

      • Game-changing disruption that is uncertain but imminent, requiring auto repair shops to position themselves to take advantage of new opportunities.


    Global AutoMotive Repair and Maintenance Market

    The automotive repair and maintenance services market is expected to witness significant growth in the next few years. According to industry experts, the market is estimated to grow at a Compound Annual Growth Rate (CAGR) of 3.84% between 2022 and 2027. This growth is expected to result in an increase in market size by USD 93.19 billion.

    Several factors are contributing to the growth of the automotive repair and maintenance services market. First, there is a growing preference for road transportation among consumers, which is leading to an increase in the number of vehicles on the road. As a result, the demand for automotive repair and maintenance services is also increasing.

    Second, the availability of automotive repair financing and insurance is making it easier for consumers to access these services. This is particularly important for consumers who may not have the financial means to pay for repairs and maintenance upfront.

    Third, government regulations aimed at curbing pollution are driving the need for more frequent maintenance and repairs. Many countries have implemented strict emission standards, which require regular maintenance and inspection of vehicles. This has led to an increase in demand for automotive repair and maintenance services.

    Overall, the automotive repair and maintenance services market is poised for significant growth in the coming years. Factors such as the growing preference for road transportation, the availability of financing and insurance, and government regulations aimed at reducing pollution are all contributing to this growth. As the market continues to expand, there will be increasing opportunities for businesses to provide high-quality repair and maintenance services to consumers.


    UAE Market Trend

    The UAE vehicles market has experienced significant fluctuations in recent years, driven primarily by changes in the country’s economic conditions and government policies. Between 2010 and 2015, the market experienced rapid growth, more than doubling in volume from 213,072 units to 408,154 units, which is an all-time high. However, this growth was short-lived, and the market began to decline in 2016, partly due to the introduction of restrictive fiscal policies and a sharp decline in oil revenue.

    In 2018, the introduction of a 5% VAT duty further dampened the market, leading to a decline in annual volume to 247,652 units. However, in 2019, the market began to recover, with full-year sales reaching 263,001 units, representing a 6.2% improvement over the previous year.

    Unfortunately, the COVID-19 pandemic had a significant impact on the UAE vehicles market, leading to a significant decline in sales in 2020, the lowest since 2008. While the market experienced a 26% recovery in 2021, the outlook for the industry is not yet positive, with the global recession expected to impact the country’s oil revenues, leading to a potential reduction in purchasing power and demand for vehicles.

    Overall, the UAE vehicle market has been significantly impacted by changes in the country’s economic conditions and government policies. While the market has shown some signs of recovery in recent years, the outlook remains uncertain, with the global recession and other economic factors likely to continue to influence the industry’s performance.



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