The automobile aftermarket is a significant industry that plays an essential role in the global automotive sector. It includes the distribution and sale of replacement parts, accessories, and other components and services for all types of vehicles. Replacement parts are the most crucial segment of the aftermarket, and it includes engine components, brakes, transmission parts, and others. Accessories are the second most significant segment which includes car stereos, GPS navigation systems, wheels, tires, and others. Automobile aftermarket also includes chemicals such as lubricants, coolants, and others, while the services include repair and maintenance services, installation services, and others.
The aftermarket industry is essential because it provides consumers with a wide range of options when it comes to repairing, customizing, and maintaining their vehicles. Aftermarket parts and accessories are often less expensive than OEM parts, making them an attractive option for consumers. Moreover, aftermarket parts and accessories are often produced at higher standards than OEM parts which leads to better performance and durability.
Forecast Analysis of the Global Automotive Aftermarket
According to the report published by Research Dive, the global automotive aftermarket is anticipated to garner a revenue of $837.0 million and rise at a CAGR of 6.5% during the analysis timeframe from 2022 to 2031.
The enhanced participation of original equipment manufacturers in the aftermarket activities and their increasing emphasis on the automotive parts aftermarket value chain are expected to bolster the growth of the automotive aftermarket over the estimated timeframe. Besides, the increasing investments made by OEMs in customer experience optimization efforts and providing a differentiated aftermarket service offering are expected to boost the growth of the market during the forecast period. Moreover, the increasing use of smartphone e-commerce technologies and the surge in complicated automotive parts are expected to provide ample growth opportunities for the market over the estimated timeframe. However, the rising application of numerous motor vehicle safety systems in the automotive aftermarket may impede the growth of the industry in the coming years.
The major players of the market include Ford Motor Company, Denso Corporation, Harman International (SAMSUNG ELECTRONICS), Continental AG, Hella KGaA Hueck & Co., Bridgestone Corporation, Hyundai Mobis, Auto Zone, Inc., Michelin, Alpine Electronics, Inc., and many more.
Key Market Developments
The key companies operating in the industry are adopting various growth strategies & business tactics such as partnerships, collaborations, mergers & acquisitions, and launches to maintain a robust position in the overall market, which is subsequently helping the global automotive aftermarket to grow exponentially. For instance:
- In November 2022, Castrol India Limited (CIL), a leading automotive and industrial lubricant manufacturing company announced its collaboration with Ki Mobility Solutions Pvt. Ltd. (KMS), India’s largest independent automotive aftermarket player. With this collaboration, the companies are aimed to support the strengths of each other and expand the automotive aftermarket ecosystem across the country through a digitally integrated multi-brand service platform for two and four-wheelers.
- In November 2021, AutoZone, an American retailer of aftermarket automotive parts and accessories, launched a new media platform powered by Quotient. Through this platform, AutoZone aimed to expand its consumer base by offering a convenient source to find automotive replacement parts and accessories for cars, trucks, sports utility vehicles, and many more.
- In March 2023, Milton Industries, a recognized leader and manufacturer of air accessories and equipment serving both professional and D-I-Y markets announced its acquisition of Steck Manufacturing Co., a developer, and manufacturer of specialty tools for the automotive aftermarket. With this acquisition, Milton aimed to expand its reach into Steck’s automotive and truck specialty tool offerings and market space.
Most Profitable Region
The North America region of the automotive aftermarket held the highest market share in 2021. The rising use of advanced technologies in the fabrication of auto parts, and the increasing digitization of automotive component delivery services, are expected to drive the regional growth of the market over the forecast timeframe. Moreover, the rising consumer and passenger vehicle manufacturing & sales in this region is expected to thrive the growth of the market during the analysis period.
Covid-19 Impact on the Global Automotive Aftermarket
The outbreak of the Covid-19 pandemic caused severe economic losses across various businesses globally. It has also devastated the automotive aftermarket. The disruptions in the supply chain, closure of manufacturing plants, and economic slowdown across various countries have decreased the demand for the aftermarket products during the pandemic period. Moreover, the elimination of non-essential services and the modifications in the consumer purchasing trend have further declined the growth of the market throughout the crisis.