Published Date : 30 Mar 2023
The North America market was valued for US$ 245.11 billion in 2020 and it is expanding growth at a CAGR of 4.20%. The expansion of the automotive aftermarket is driven by consumers desires to enhance their cars performance in terms of speed, exhaust sound, and aesthetic features, among many other areas.
The global automotive aftermarket has held a current business value of USD 751.61 billion in 2022 and it is anticipated to grow at 5.49% annually to around USD 1167.09 billion by 2030.
The automotive aftermarket, which comes after the original equipment manufacturer (OEM) to the consumer, deals with the production, distribution, reprocessing, retailing, and assembly of all car parts as well as materials, accessories, and chemicals. The use of integrating cutting-edge technologies is the outcome of the digitalization of component sales and repair, and it has enhanced the popularity of the automotive aftermarket. Digitally driven products and services have created a new trend and boosted market expansion.
The digital gateway pattern has a significant impact on the automotive aftermarket, and it is expected that the high cost of R&D will limit market expansion. The overall cost of the components has increased due to consumers' shift toward intelligent and smart automotive parts. Furthermore, the automotive aftermarket is anticipated to benefit from the expansion of automotive e-commerce and the rise in demand for technologically advanced features soon.
According to the region, North America dominated the automotive aftermarket in terms of revenue in 2022, and it was predicted that this region would continue to lead during the projected period. An increase in the manufacture of new automobiles, together with the advancement of both old and new cars, is what fuels the global auto market. The automotive sector is seeing new technical developments that are creating commercial expansion opportunities for aftermarket trading organizations. Manufacturers of vehicle components have been driven to upgrade their products in order to comply with the region's strict emission regulations.
The demand for high-efficiency and eco-friendly vehicle components for both domestic and international markets has been greatly increased by the rising environmental deterioration caused by automotive emissions. In the projection period, there will be a significant increase in demand for the automotive aftermarket as pre-owned car sales continue to trend upward.
On the other hand, Europe is a significant source of revenue in the worldwide automotive aftermarket due to the presence of numerous automobile OEM manufacturers. High purchasing power and the "green revolution," which is making transportation more eco-friendly, are two other important drivers of industry expansion. The most important country in the world for the production of automobiles is Germany, and it has also driven the market for this sector in the upcoming years since Germany's strong automobile sales and demand are predicted to fuel the industry.
Automotive Aftermarket Report Scope:
|Market Size in 2022||USD 751.61 Billion|
|Projected Forecast Value in 2030||USD 1167.09 Billion|
|Growth Rate||5.49% from 2022 to 2030|
|Largest Market||North America|
|Forecast Period||2022 to 2030|
|Segments Covered||By Product, By Application, By Distribution Channel, and By Certification|
|Regions Covered||North America, Europe, Asia-Pacific, Latin America and Middle East & Africa|
Rise in technological advancement
The need for more fuel-efficient, environmentally friendly vehicles has increased demand for aftermarket components. People are also constantly looking for new amenities to add to their older cars. Catalytic converters and electronic chips are in high demand as owners upgrade their older automobiles to make them more environmentally friendly and fuel-efficient.
High operating expenses
For the majority of people, the cost of vehicle modification is prohibitive. The comparatively upper-class consumers who prefer to pay a premium price for them are offered the parts of automobiles as a premium option. However, the majority of the population is in an average grade and unable to afford the expensive parts of the vehicles, so the cost of the equipment needs to decrease and make it affordable for every class of the population. As a result it helps this sector to grow in the forecast period.
E-commerce altered the aftermarket for automobiles.
New acquisitions along with the online platform will increase growth and complement the automotive aftermarket industry. Recently, online shopping trends or digitalization have modified the way of purchasing. On online platforms, customers can read everything related to products and also watch reviews and videos, and then by being satisfied and comparing, consumers can take the best product from the automotive aftermarket.
Efficient industrial transition to electric vehicles
In the next five to ten years, one of the biggest challenges for this market will be a smooth transition to the electronic powertrain. The minor business in this segment would be to technologically shift to EVs, which is the largest problem in this sector in the forecast period. Professional predictions suggest that manufacturers who supply engine parts will experience the most pressure as the focus shifts from drive motors and batteries to drive motor efficiency and engine control.
Major Key Players:
By Distribution Channel
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