Automotive Aftermarket Size to Expand to USD 1167.09 BN by 2030

Ottawa, June 22, 2023 (GLOBE NEWSWIRE) -- According to Precedence Research, the global automotive aftermarket size was valued at USD 751.61 billion in 2022. The automobile aftermarket is expected to grow significantly in emerging countries. The industry is also expected to develop in the following years due to the growing practice of selling automotive aftermarket components online.

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The automobile aftermarket is about to undergo a significant transformation. Changes in competitive strength, quicker adoption of new technology, and shifting customer expectations are a few of them. These developments will also profoundly alter how value is created and the business models used in the automobile aftermarket. The pace of consolidation will quicken in the developed economies of Europe and North America, and competition will come from unexpected competitors like digital natives looking to enter the automobile aftermarket. Whole new facets of consumer demand will emerge in developing economies, putting pressure on the aftermarket industry to adapt. The digital gateway pattern significantly impacts the automotive aftermarket, and high R&D costs are predicted to restrain industry expansion. The customer trend toward intelligent and smart automotive parts has also increased the price of the components.

Growth Analysis

Manufacturers should protect their primary markets and bolster their position in the independent aftermarket. OEMs must improve their customer-centricity, customer segmentation, and experience strategies to maintain market share and sales volume. Multichannel methods will also aid in defending the top line against competitors who have digital genes. Another lever that has to be pushed is to turn attention to the aftermarket in emerging markets. Manufacturers must expand their focus beyond new-car sales and participate more actively in the established aftermarket as the percentage of older vehicles rises.

Regional Analysis

According to geography, North America held the top spot in the automotive aftermarket in terms of revenue in 2022 with a growth rate of 40.23%. Increased demand for passenger vehicles, the employment of cutting-edge technology in the manufacture of automotive components, and the digitization of component delivery services are all expected to drive market expansion in the area. In the projected period, there will be a significant increase in demand for automotive aftermarkets due to the growing trend of used car sales. Also, after a given number of years of use, cars or parts of vehicles need to be replaced, which is one of the main drivers driving the growth of the industry in the United States. Also, rising consumer spending and the existence of well-established industries are contributing to the expansion of the regional market as a whole.

Automotive Aftermarket Market Snapshot: Production (USD Billion) (2016-2020)

Due to the fact that it is the location of many automobile OEM manufacturers, Europe is a significant source of income for the global automotive aftermarket. High buying power and the green revolution, which is transforming transportation into an environmentally friendly industry, are other important drivers of market expansion. In the next years, market growth is anticipated to be driven by Germany, one of the most important countries in the world for the production of automobiles. Germany's strong automobile sales and demand are projected to fuel the industry.

Automotive Aftermarket Market Snapshot: Consumption (Market Share) (2016-2020)

Automotive Aftermarket Market Snapshot: Capacity (Top Countries) (2016-2020)

Competitive Landscape

There are several big and small firms in the highly competitive global automobile aftermarket. Government rules significantly contribute to the players' increased competition. The incorporation of disruptive technology into the automobile components business and shifting customer expectations are two additional major reasons that drive aftermarket players' level of competition.

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Many of the leading companies in the automotive aftermarket are:

• P.A.
• 3M Company
• Continental AG
• Robert Bosch GmbH
• Federal-Mogul Corporation
• Denso Corporation

Covid-19 Impact on the market

The ongoing COVID-19 epidemic has one of the highest exposure rates across sectors, and the automotive and transportation sector is now experiencing unprecedented uncertainty. The automobile aftermarket industry's supply chain and product demand are anticipated to be significantly impacted by COVID-19. Concern in the industry has shifted from China's disruption of the supply chain to the general decline in aftermarket product demand. With the termination of all non-essential services, it is anticipated that demand for commercial vehicle parts would drastically decline.

Market Dynamics

Market Drivers: An increase in technical progress

Aftermarket firms are being compelled to evaluate their positions and be strategic about preserving positions of strength in a rapidly changing environment through the introduction of new technologies and the market developments that go along with them. We know from previous disruptions in other sectors that failing to have the necessary strategies to deal with these disruptions can result in a decline for whole subindustries as well as for individual, established firms. Although experts generally concur that there will be huge changes in the future, a comprehensive picture of all trends and solutions to these changes still needs to be created.

Distributors of parts will expand their selection of digital services. Adopting digital and analytics is a crucial commitment to make in order to prevent new companies with digital DNA from dislodging established parts distributors. A digital and analytics strategy for distributors may involve enhancing their own web platforms, utilizing big data studies, and playing the platform game for client data. Distributors are also encouraged to pick an effective development plan. Although larger firms must concentrate on organic and inorganic expansion to reach scale and maintain high entry barriers, smaller players may occupy lucrative niches.

Market Restraints: Failed to achieve the goal of retaining customers through improved service

In most areas, service demand per vehicle will decrease due to improvements in vehicle quality and the focus on active warranty cost management. Remote services will become more accessible thanks to connected cars, which will cost manufacturers and dealers some of their current service and parts income. Several manufacturers continue to see a reduction in customer retention, particularly among those who own older vehicles and frequently migrate to independent service providers in pursuit of cheaper services. The service industry is still being steered away from automakers' workshops and toward less expensive independent service facilities by existing and new middlemen. The desire for a piece of the spare parts market by major internet firms like eBay, Amazon, Alibaba, and Tencent will probably result in diminishing margins once they have adequate purchasing power.

Market Opportunities: Both new and existing enterprises will be crucial to the market potential

Both new entrants and established industry players will be responsible for disruptions along the value chain. Manufacturers of software and electric vehicle (EV) parts will join the chain. Also, the conventional parts distribution industry will be disrupted by e-commerce and digital companies, and specialist players will proliferate in workshops. Both new businesses and established ones will play the intermediary role, taking advantage of opportunities to link products and services in novel ways.

Report Highlights

Product Insights

Due to its relatively short replacement cycle compared to its competitors, tires now dominate the global automotive aftermarket when it comes to replacement parts. The aftermarket selling of tires to improve safety features in the vehicle has also benefited from the development of intelligent tires and tire monitoring systems. The expansion of the industry is being greatly accelerated by rising disposable income in emerging nations and a shift in customer preference toward the appealing and aesthetically pleasing appearance of the vehicle.

Automotive Aftermarket Market Revenue (USD Billion), By Application

Application Insights

Original Equipment (assigned to OEMs) is predicted to have a 75% revenue share in the automotive aftermarket by 2022. Brand recognition and customer loyalty are the main drivers of market expansion for the OE category. In addition, Do It Yourself (DIY) will increase profitably throughout the predicted period. This is attributable to consumers' growing technical expertise and growing interested in maintaining, repairing, and upgrading their automobiles on their own.                                
Automotive Aftermarket Market Revenue (USD Billion), By Application

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Personalization in Aftermarket - The global automotive electronics market was valued at US$ 274.49 billion in 2021 and is expanding around US$ 528.71 billion by 2030 with a CAGR of 7.64% from 2022 to 2030.

Recent Development of the automotive aftermarket

• In order to become Hitachi Astemo, Ltd., a pioneer in technical innovation, four car components producers—Hitachi Automotive Systems, Keihin Corporation, Showa Corporation, and Nissin Kogyo Co., Ltd. merged on January 1, 2021. This new business will supply mobility solutions to the global automotive and motorbike sectors.
  
  
• Cooper Tire & Rubber Company was purchased by Goodyear Tire & Rubber Company in February 2021 in order to integrate the brand portfolio and offer complete services across the market's value range.
  
  

Market Segmentation

By Product

• Battery
• Tire
• Filters
• Brake Parts
• Turbochargers
• Lighting & Electronic Components
• Body Parts
• Exhaust Components
• Wheels
• Others

By Application

• DIFM (Do it for Me)
• DIY (Do it Yourself)
• OE (Delegating to OEM’s)
  
  

By Distribution Channel

• Wholesalers & Distributors
• Retailers
  • OEMs
  • Repair Shops

By Certification

• Certified Parts
• Genuine Parts
• Uncertified Parts
  
  

By Regional Outlook

• North America
• Europe
• Asia Pacific
• Rest of the World

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