Automotive Aftermarket by Product Type (Electrical Products, Batteries, Wear & Tear Parts, Filters, Collision Body, Starters & Alternators, Lighting, Exhaust Components, Tyres, and Others), Distribution Channel (OEM and Third Party), Vehicle Type (Two-Wheeler, Passenger Vehicle, and Commercial Vehicle), and Region (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2022-2031

Global Automotive Aftermarket Analysis

The Global Automotive Aftermarket Size was $457.2 million in 2021 and is anticipated to grow with a CAGR of 6.5%, by generating a revenue of $837.0 million by 2031.

Global Automotive Aftermarket Synopsis

The demand for automotive parts is being driven primarily by rising in consumer awareness of maintenance and repair to improve vehicle age due to surge in consumer disposable income and demand for new vehicles with reduced fuel utilization owing to rise in government initiatives with stricter emission norms. Vehicles' average lifespan has grown due to developments in materials and manufacturing techniques. Vehicles' uncompromising quality has also increased. These factors are anticipated to boost the automotive aftermarket industry growth in the upcoming years. In addition, customers benefit from increased supplier diversity and pricing transparency as a result of the digitalization of automotive component delivery services. The surge in digitization of automotive component delivery services is expected to boost global automotive aftermarket growth.

Most consumers consider the cost of modifying a vehicle to be high. The consumers that choose to purchase the parts of the vehicles at a premium price are typically from high income group. However, the cost needs to decrease   Making it more affordable for the average person. These factors hinder the automotive aftermarket growth.

Electric vehicle sales are rising globally as a result of surge in demand and stringent emission regulations for autos. The selection of electric vehicles being produced by many manufacturers is being expanded. Demand for fuel-efficient, high-performance, and low-emission automobiles has increased as a result of the increasing use of electric vehicles, and the automotive aftermarket has opportunities due to strict government emission regulations.

By region, the North America automotive aftermarket is expected to account for a dominant market share during the forecast period. Increased demand for passenger cars, the use of innovative technology in the manufacturing of auto components, and the digitization of component delivery services are all expected to drive market expansion in the region.

Automotive Aftermarket Overview

The automotive aftermarket is the industry that develops after the selling of original parts or components. It is sometimes known as non-OEM, generic, or competitive replacement components. While using aftermarket components might be less expensive than using OEM parts. Replacement parts and accessories are the two most frequent categories of aftermarket products. Replacement parts are real pieces of equipment that are not manufactured by the producer. Aftermarket parts are used to repair broken parts in autos and other equipment; however, they have the potential to affect the range of an insured item.

COVID-19 Impact on Global Automotive Aftermarket

The COVID-19 pandemic has brought several uncertainties leading to severe economic losses as various businesses across the world were standstill. This has ultimately lowered the demand for automotive aftermarket had to disruptions in supply chain, closure of manufacturing plants, as well as economic slowdown across several countries. In addition, The COVID-19 pandemic was affecting several industries, however the automotive and transportation sector is among those most susceptible. The automobile aftermarket industry's supply chain and product demand are expected to be significantly impacted by COVID-19. Concern in the industry has switched from China's disruption of the supply chain to the general decline in aftermarket product demand. With the elimination of all non-essential services, it was expected that demand for commercial vehicle parts would significantly decrease. Additionally, modifications in consumer purchasing trends brought on by the pandemic's uncertainty may had a significant impact on the industry's expansion in the near future. People are now more likely to keep onto their vehicles despite economic challenges. The automotive aftermarket players are already feeling the effects of a liquidity and cash crunch that is expected to exacerbate in the next few years.

However, in February 2021, the Cooper Tire & Rubber Company took new initiative to manufacturer automotive aftermarket vehicle tyres. Cooper Tire & Rubber Company was acquired by Goodyear. In order to build a more potent U.S.-based leader in the global tire business, the combination merged two top tire firms with complementary product portfolios, services, and skills.

Growing Demand for OEM (Original Equipment Manufacturers) of Aftermarket Activities to Drive Market Growth

Original equipment manufacturers have progressively enhanced their degree of participation and emphasis inside the automotive parts aftermarket value chain. For example, they have created their own networks of repair shops that do not specialize in repairing a particular brand of automobile. In order to compete with independent aftermarket players and keep customers within their network for a longer period of time, major market players have introduced second service format and second brand such as VW direct express or remanufactured parts in an effort to keep up with the markets shift toward older vehicles. OEMs are also investing in customer experience optimization efforts and introducing differentiated aftermarket service offering.

Surge in Application of Numerous Motor Vehicle Safety Systems Over the Automotive Aftermarket to Restrain Market Growth

The sensors installed in vehicles reduce the amount of wear and tear suffered by vehicles over time, particularly by the tyres and brakes that are exposed to tough driving conditions on a regular basis. This component decreases the need for replacement components, which may be damaging to the sector's growth. Furthermore, the constant R&D for new raw materials to stop the degradation of automobile components and accessories is another factor that is expected to hinder the growth of the automotive aftermarket.

Increasing Use of E-commerce and Components Complexity Have Driven the Excellent Opportunities for Automobile Aftermarket

The method that a consumer makes a purchase has changed due to digitization or digital influence. Customers that acquire aftermarket products read all they can, including reviews and videos. Customers are bombarded with online advertising on desktops and mobile devices every year. The industry's two fastest expanding areas are websites for wheels, tyres, and aftermarket touch-up paint. Through the use of smartphone e-commerce technologies, the aftermarket industry is thus catching up to the rest of the globe. They cost more and typically require specialists to install them properly, requiring fewer do-it-yourself mechanics (DIY). Thus, as auto parts get more complicated, there is a greater need for automotive aftermarket products.

Global Automotive Aftermarket, by Product Type

By product type, the market has been divided into electrical products, batteries, wear & tear parts, filters, collision body, starters & alternators, lighting, exhaust components, tyres, and others. Among these, the electrical products segment accounted for the highest market share in 2021 and is estimated to show the fastest growth during the forecast period.

Global Automotive Aftermarket Size, by Product Type, 2021

Source: Research Dive Analysis

The electrical products segment accounted for the highest market share in 2021 and is estimated to show the fastest growth during the forecast period. The use of automotive electrical products is increasing as a result of improved vehicle safety. In order to prevent accidents, lane assist systems and adaptive cruise control are becoming prevalent and contribute for over three-tenths of all vehicle costs. The global market for automotive electrical products is also expected to rise as more consumers use infotainment systems for recreational activities. The market for automotive electrical products has been affected by makers' commercial activity due to a lack of semiconductors. The consumer electronics and personal computer industries have record-high demand, which have led to a chip scarcity in the automotive industry. Stakeholders are taking advantage of this opportunity to review their long-term supply chains.

Global Automotive Aftermarket, by Distribution Channel

By distribution channel, the market has been bifurcated into OEM and third party. Between the two, the OEM segment accounted for highest revenue share in 2021.

Global Automotive Aftermarket Share, by Distribution Channel, 2021

Source: Research Dive Analysis

The OEM segment is estimated to show the fastest growth during the forecast period. OEMs have included extra equipment in vehicles that may be upgraded in the aftermarket to suit consumers' desires for comfort and ease in transportation, which encourages the expansion of the automotive aftermarket. OEMs are enhancing and extending their aftermarket activity inside the automotive aftermarket parts value chain. The development of diverse aftermarket service options assists OEMs in improving their service repair decision-making and customer retention. OEMs' rapid development of aftermarket activity is expected to drive market expansion in the coming years.

Global Automotive Aftermarket, by Vehicle Type

By vehicle type, the market has been divided into two-wheeler, passenger vehicle, and commercial vehicle. Among these, the passenger vehicle segment accounted for highest revenue share in 2021.

Global Automotive Aftermarket Growth, by Vehicle Type, 2021

Source: Research Dive Analysis

The passenger vehicle segment accounted for the dominant market share in 2021. Customers should change various components of their vehicles at frequent intervals such as Passenger vehicles, for instance, require tire replacement every four years, depending on driving conditions. As a result, vehicle components have a sizable aftermarket. Furthermore, the aftermarket is gaining pace as a result of customer preference for installing innovative components in vehicles to improve product appearance and assure safety while driving. This increasing consumer interest leads to a rise in aftermarket servicing, which is likely to contribute to expansion in the automotive aftermarket in the near future.

Global Automotive Aftermarket, Regional Insights

The automotive aftermarket was analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Global Automotive Aftermarket Market Size & Forecast, by Region, 2021-2031 ($ Million)

Source: Research Dive Analysis

The Market for Automotive Aftermarket in North America to be the Most Dominant

The North America automotive aftermarket accounted a dominating market share in 2021. The increasing use of advanced technologies in the fabrication of auto parts, a rise in consumer and passenger vehicle manufacturing & sales, and increased digitization of automotive component delivery services are all factors driving the Automotive Aftermarket's growth in North America. The U.S. is anticipated to be one of the most attractive markets for aftermarket parts during the forecast period, owing to rising vehicle production and the presence of tier-1 manufacturers. Manufacturers in the U.S. concentrate on technological advances in order to produce new goods or enhance existing products for aftermarket parts, which is also one of the key factors driving market growth in North America.

Competitive Scenario in the Global Automotive Aftermarket

Investment and agreement are common strategies followed by major market players. For instance, in October 2020, Bosch Rexroth announced a new e-commerce portal aimed to give consumers with the simplest access to select authorized Bosch Rexroth goods, including the opportunity to pay with a credit card and arrange rapid delivery.

Source: Research Dive Analysis

Some of the leading automotive aftermarket players are Alpine Electronics, Inc., Auto Zone, Inc., Bridgestone Corporation, Continental AG, Denso Corporation, Ford Motor Company, Harman International (SAMSUNG ELECTRONICS), Hella KGaA Hueck & Co., Hyundai Mobis, and Michelin.