The global automotive aftermarket size was valued at US$ 381.4 billion in 2019 and projected to reach US$ 513.1 billion by 2027 with a CAGR of 3.8% from 2020 to 2027.
Regulatory bodies including the U.S. Environmental Protection Agency and the JASMA monitor the environmental impact and built standards related to automotive components such as noise emission level from mufflers and resonators in automotive exhaust systems expected to trigger advancement in the automotive parts. In addition, digitization of sales and service of component delivery and online distribution portals for aftermarket components in synchronization with global automotive suppliers, expected to bring prominent investment from the market players. Because of online and digitized delivery gateways, the automotive aftermarket expected to witness significant growth in the developing countries. In addition, rising trend for online sale of automotive aftermarket parts projected to further boost the market growth in the coming years.
Though, the automotive aftermarket is highly influenced by the digitized gateway pattern, high cost of research & development expected to hamper the market growth. Additionally, the consumer shift towards smart and intelligent automobile parts also uplift the overall cost of the components.
Replacement Part Insights
By replacement part, tire dominated the global automotive aftermarket and anticipated to continue its dominance over the forecast period due to small replacement cycle compared to its counterparts. In addition, introduction of intelligent tires and tire monitoring system has also impacted positively on the aftermarket sale of tire to enhance safety features in the vehicle. Rising disposable income in the developing countries along with shift in consumer preference towards attractive and aesthetic look of the vehicle is significantly propelling the market growth. Further, rising adoption of electric and battery-powered vehicles influence the automotive component manufacturers to incorporate advanced safety features for tire pressure monitoring and other control units such as speed control and engine monitoring. The aforementioned factors prominently fuel the aftermarket demand for tires.
Service Channel Insights
In terms of revenue, Original Equipment (delegating to OEMs) analyzed to dominate the automotive aftermarket in the years to come. Brand name and consumer loyalty are the prime factors that uplift the market growth for OE segment. Besides this, Do It Yourself (DIY) experience lucrative growth over the forecast period. This is attributed to the increasing technical knowledge of consumers along with their rising interest to repair, maintain, and upgrade their cars by their own. Some of the aftermarket service providers charge higher than the requirement for instance, aftersales service centers of the automobile manufacturers charge higher compared to other market participants, this insist consumers to self-service their vehicle. Further, easy availability of the automotive parts online also offer an opportunity to the drivers to self-assist their vehicles.
Based on region, the Asia Pacific led the automotive aftermarket in in terms of revenue in 2019 and analyzed to witness prominent growth over the forecast period. Surge in demand for passenger cars, use of advanced technology while fabrication of auto parts, and digitalization of component delivery services projected to spur the market growth in the region. Strict emission rules in the region have forced component manufacturers to make necessary upgradation in automotive components to meet the government rules and norms. Rising environment degradation from automotive emission has significantly spurred the need for high efficiency and environment-friendly automotive components for global as well as native markets.
On the contrary, Europe is a prominent revenue contributor in the global automotive aftermarket owing to a regional home for several automotive OEM manufacturers. In addition, high purchasing power coupled with green revolution to transform the transportation into environment-friendly is some of the major factors that spur the market growth.
Key Companies & Market Share Insights
The global automotive aftermarket is highly competitive with the presence of several large and small players. Government regulations play major role in the rising competition among players. Changing consumer expectation along with integration of disruptive technologies in the automotive components industry are the other prime factors that trigger the competition level among aftermarket players. In the wake of same, market participants are investing significantly on research & development to implement advancement and innovative technologies in the existing products and the development of new products specific to the consumer need. In addition, the automotive aftermarket is a matured market, yet expected to foresee competition from unexpected players. Some of the new entrants are grabbing prominent consumer attention and upholding their market position. Innovative product offering and technology advancement are the key strategies adopted by these players.
Few of the prominent players in the automotive aftermarket include:
Segments Covered in the Report
This research study comprises complete valuation of the market revenue with the help of widespread quantitative and qualitative insights, and prognoses of the market. This report presents breakdown of market into forthcoming and niche segments. Additionally, this research study gauges market revenue growth and its drift at global, regional, and country from 2016 to 2027. This report includes market division and its revenue assessment by categorizing it depending on replacement part, service channel, distribution channel, certification, and region:
By Replacement Part
By Service Channel
By Distribution Channel
By Regional Outlook
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