KSA Bearing Market Expected to Reach $191.63 Million by 2032

The KSA bearing market size was estimated at $127.12 million in 2022, and is projected to garner $191.63 million by 2032, registering a CAGR of 4.3% from 2023 to 2032.

Bearing’s major function is to enable linear or rotational movement along with handling high stress. They are a vital component in automobiles, aerospace, and industrial applications, and are responsible for efficient and smooth running of the vehicle and industrial machineries. Furthermore, they allow the desired motion and compel relative motion, thereby ensuring high fuel efficiency and speed enhancement.

Saudi Arabia has witnessed diversification of revenue sources. The government in the country is actively participating and heavily investing in diversifying its revenue generation from an oil-based economy. This move resulted in the growth of various industries such as aerospace, automotive, construction, renewable energy, mining & mineral, and manufacturing. Thus, the growth of other industries resulted in increased demand for bearing in Saudi Arabia.

The growth of the KSA bearing market is majorly driven by surge in automobile production and sales, rise in investment in railways, and increase in emphasis on renewable power generation. However, fluctuation in raw material prices and high maintenance cost as well as increase in trend of vehicle electrification hinder the KSA bearing market growth. On the contrary, development of additive manufacturing technologies & materials to manufacture bearings and emergence of sensor bearing technology are anticipated to offer remunerative opportunities for the expansion of the market during the forecast period.

The KSA bearing market is segmented into type, distribution channel, end user, machine type, group, and size. Depending on type, the market is fragmented into ball bearing and tapered bearing. On the basis of distribution channel, it is bifurcated into original equipment manufacturers (OEMs) and aftermarket. By end user, it is segregated into automotive, industrial, aerospace, and others. As per machine type, it is classified into ICE vehicles, electric vehicles, industrial machinery, and aerospace machinery. According to group, it is categorized into group 1, group 2, and group 3. On the basis of size, it is divided into 30–40, 41–50, 51–60, 61–70, and 70 & above.

All moving parts of automobiles require bearings to function, which enhance the performance of vehicles, bear heavy loads, and reduce friction. Some major sub-systems where bearings are used include engines, gearboxes, transmissions, wheels, steering, electrical motors, and pumps. In addition, wipers, rear view mirrors, door, and bonnet hinges need bearings for smooth functioning. Moreover, the introduction of new models in the market is expected to considerably fuel the demand for bearings. Furthermore, exponential increase in middle-class population and rise in disposable income are expected to boost the automobile sale in the coming years, which, in turn, is expected to foster the growth of the KSA bearing market. In addition, with the growing inclination toward electric vehicle, automobile companies are planning to strengthen their presence in the Middle East.

For instance, on October 20, 2023, Hyundai Motor Co. and its sibling Kia Corp. announced their plan to acquire 20% of share in the Middle East by 2030, which is 70% more as compared to 2022 sales. The companies are aiming to sale 550,000 cars units annually by end of 2030. They are anticipating a sale of 350,000 units of Hyundai Motor by 2032 and 210,000 units of Kia by 2030. The automakers are further planning to add more electric vehicles (EVs) in their product offering to penetrate the market. For instance, Hyundai Motor aims to double its EV lineup from the current six models by 2027 to up its EV sales to over 15% of its total car sales in the Middle East by 2032. Similarly, Kia Corp. plans to release 15 EV models in the price range between $30,000 and $80,000 by 2027.  In the first 6 months of 2023, Hyundai Motor and Kia ranked second and fourth, respectively, in terms of sales volume in Saudi Arabia. With increasing consumer shift toward EV and growing car sales, the market for KSA bearing is anticipated to show strong growth rate during the forecast period.

KEY FINDINGS OF THE STUDY

• By type, the tapered bearing segment is anticipated to exhibit significant growth rate in the bearing market in the near future.
• By distribution channel, original equipment manufacturers (OEMs) segment is anticipated to exhibit significant growth in the bearing market in the near future.
• By end user, the automotive segment is anticipated to exhibit a significant growth rate in the bearing market in the near future.
• By machine type, the electric vehicle is anticipated to exhibit a significant growth rate in the bearing market in the near future.
• By group, the group 2 segment is anticipated to exhibit a significant growth rate in the bearing market in the near future.
• By size, the 30 - 40 segment is anticipated to exhibit a significant growth rate in the bearing market in the near future.