Automotive Aftermarket Size is Projected to Generate a Revenue of $837 Mn by 2031Download Sample Reports Overview
The Global Automotive Aftermarket Size is predicted to be valued at $837 million by 2031, surging from $457.2 million in 2021, at a noteworthy CAGR of 6.5%.
Impact Analysis of COVID-19 on the Automotive Aftermarket
The COVID-19 pandemic has led to severe disruptions that have affected the demand, supply, import-export, and availability of automotive aftermarket across end-use industries. Changes in client purchasing behavior as a result of the pandemic's uncertainty may have serious implications for the industry's near-term growth. In addition, consumers prefer private transportation in the aftermath of the pandemic. However, financial disparities are likely to hinder the acquisition of new vehicles; hence, commuters are expected to opt for secondhand cars owing to economic concerns. Increased used car sales are anticipated to drive demand for aftermarket auto components for vehicle maintenance. On a wider scale, the pandemic is projected to be a catalyst for the return of certain entry-level automotive aftermarket players in developing nations. The market is projected to differ as per client demand, since each class segment has various preferences for vehicle repair and maintenance.
Global Automotive Aftermarket Analysis
The demand for electronic chips and catalytic converters has increased as more environmentally aware drivers want more fuel-efficient vehicles. One of the key elements driving the expansion of the automotive aftermarket is consumers' preference for integrating new features in old cars. Changing lifestyles, growing standards of living, and rise in disposable income are the main factors driving the demand for aftermarket. A more luxurious lifestyle and a desire for luxury cars may result from more disposable income. The need for automotive aftermarket is being driven by the rising number of billionaires and millionaires who like to design or modify their unique vehicles and who need the automotive parts that aftermarket manufacturers provide. These are the major factors anticipated to boost the automotive aftermarket market share during the forecast period.
The automotive aftermarket is gaining huge popularity with accelerated adoption of new technologies such as electronic chips and catalytic converters that are high in demand. Owing to huge investments in the automotive sector, the automotive companies are constantly evolving to launch fuel-efficient and environment friendly vehicles. Additionally, stringent regulations have put regulations on manufacturers for the production of environment friendly and highly efficient vehicles. These factors are anticipated to boost the automotive aftermarket share in the coming years.
The increase in use of sensors in automobiles due to technology advancements leads to more efficient driver behavior, which saves the wear & tear on brakes and other components of the vehicle. The growth of the automobile aftermarket is hindered by this aspect, which also makes it difficult to replace components. In addition, in some countries, eco-friendly parts are incorporated into the vehicles to regulate the atmosphere and protect the environment from carbon emissions. Customers cannot opt to frequently change out parts that produce more carbon emissions and damage the environment. This restricts the automotive aftermarket.
The automotive aftermarket includes vehicle manufacturing, remanufacturing, distribution, redistribution, end-retail, reselling, and installation. The Aftermarket” includes vehicle parts, equipment, replacement tires, service repair, collision repair and accessories, sold after the sale of the original vehicle. The adoption of sophisticated technology has resulted in the digitalization of vehicle maintenance and component sales, which has enhanced the appeal of the automotive aftermarket. Digital-driven products and services are establishing new trends and driving market growth.
Global Automotive Aftermarket, Segmentation
The automotive aftermarket market is segmented on the basis of product type, distribution channel, vehicle type, and region.
By product type, the market is classified into electrical products, batteries, wear, and tear parts, filters, collision body, starters & alternators, lighting, exhaust components, tires, and others. Among these, the electrical product segment had a dominant market share in 2021 and it is anticipated to show the fastest growth during the forecast period. The use of automotive electrical equipment has expanded as vehicle safety has improved. Lane assist systems and adaptive cruise control have become more common in order to reduce accidents, and they account for more than three-tenths of all car costs. As more consumers use infotainment systems for recreational purposes, the global market for automobile electrical goods is expected to expand.
By distribution channel, the market is bifurcated into OEM and third party. Between the two, the OEM segment is had a dominant market share in 2021. OEM investment in customer experience improvement has increased in recent years. The development of diverse aftermarket service options assists OEMs in retaining customers and improving service repair decision-making. OEMs' rapid development of aftermarket activity is expected to drive market expansion in the coming years.
By vehicle type, the market is divided into two-wheeler, passenger vehicle, and commercial vehicle. Among these, the passenger vehicle segment had a dominant market share in 2021. The passenger car aftermarket uses 3D printing technology, also known as Additive Manufacturing, to produce high-quality off-the-shelf automobile components utilizing 3D printers capable of printing in metals and alloys. 3D printing works by creating a virtual 2D item in software and then utilizing the printer to build the 3D framework. The use of 3D printing in the manufacturing of vehicle parts boosts efficiency and raises company production standards.
The automotive aftermarket market in Asia-Pacific is projected to show the fastest growth. Owing to several important factors, such as market expansion, the automotive aftermarket business is expanding in Asia-Pacific, where it is also anticipated to grow at the fastest rate. With the increasing penetration and acceptance of gas and hybrid electric vehicles, the number of specialist repair shops dedicated to the maintenance of specific vehicles is likely to expand. The global automotive aftermarket is expected to develop significantly due to an increase in the frequency of vehicle crashes and owners' propensity to restore their vehicles.
Key Players in the Global Automotive Aftermarket
Some of the leading automotive aftermarket market 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
On May 1, 2018, the National Highway Traffic Safety Administration (NHTSA) mandated that all new vehicles be equipped with a backup rearview camera. Customers' increased understanding of vehicle safety technologies is likely to drive the expansion of the automotive aftermarket.