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Global automotive aftermarket market size is estimated to grow at a CAGR of 6.26% between 2022 and 2027. The size of the market is forecast to increase by USD 164.58 billion. The growth of the market depends on several factors, including the high adoption of vehicle parts, the convenience of purchasing automotive products online, and the growing demand for vehicle customization.
This report extensively covers market segmentation by vehicle type (passenger cars and commercial vehicles), distribution channel (retailer, wholesale, and distribution), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
Automotive Aftermarket Market shows accelerated growth during the forecast period
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Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing demand for vehicle parts is notably driving the aftermarket automotive parts and components market growth. The demand for automotive spare parts is increasing due to various factors, such as the increasing service life of vehicles. This is increasing the number of vehicles in most major automobile countries. The rising vehicle population leads to increased demand for spare parts for the aftermarket, thereby driving market growth.
Moreover, passenger vehicles and utility vehicles, such as SUVs, MPVs, crossovers, and pickup trucks, are very popular in the automotive market. These vehicles require regular service and maintenance to function properly as they are used for longer periods of time. This creates a high demand for aftermarket parts to replace old, worn-out parts and components. Therefore, these factors are anticipated to drive the growth of the automotive aftermarket industry during the forecast period.
Aftermarket e-retailing gaining popularity is the primary trend in the aftermarket automotive parts and components market growth. The automotive aftermarket is undergoing a paradigm shift towards online platforms. This is evidenced by the annual growth rate of online retail parts sales. In recent years, sales of automotive spare parts via e-commerce websites have outgrown sales in traditional brick-and-mortar stores due to digitization. The advantages and benefits of using e-commerce platforms are driving revenue generation in the aftermarket.
Furthermore, buyers have access to detailed specifications, provided by vendors online, of products before purchase. Some of the popular automotive aftermarket parts bought online are brake parts, filters (oil and air), lighting parts, tires, lubricants, and batteries. The market also has the presence of specialized automotive aftermarkets such as Allopneus (allopneus.com), which is a French online tire e-retailer. Hence, such factors are expected to fuel the growth of the automotive aftermarket industry during the forecast period.
The high price sensitivity leading to margin pressure on e-retailers is a major challenge impeding the automotive aftermarket industry growth. Due to the high quality of modern vehicles, the average vehicle age is increasing. In addition, repair costs are also constantly increasing. This leads to higher average repair costs for modern vehicles compared to older vehicles. Therefore, from the customer's point of view, cost-effectiveness is negated by rising repair costs. The increase in repair costs was primarily due to an increase in labor costs, vehicle complexity, and rising prices of auto parts such as steel and aluminium parts. Therefore, customers are price sensitive when purchasing automotive products.
Automotive aftermarkets must incorporate value-based pricing while offering discounts and offers to maintain margins on automotive products sold on their website. A fragmented market leads to fierce price competition among players. Adopting an optimal pricing strategy is critical for players to build a sustainable business. Therefore, the aftermarket must balance part prices with discounts and offers. Therefore, such factors are expected to hamper the growth of the automotive aftermarket industry to some extent during the forecast period.
The market share growth by the passenger cars segment will be significant during the forecast period. Passenger vehicles, including hatchbacks, sedans, and estates, are highly popular globally, and therefore, the segment witnesses high volume sales. These vehicles require periodical service and maintenance, wherein the old, worn-out parts are replaced with new ones. In addition, the growing volume of sales of plug-in hybrid vehicles (PHEVs) and battery electric vehicles (BEVs) globally is further driving the growth of the passenger segment.
The passenger cars segment was valued at USD 249.68 billion in 2017 and continue to grow by 2021.
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Passenger vehicles in the mid-and small-size segments dominate the market share of passenger vehicles, followed by the luxury segment. Furthermore, the investments in research and development of vehicles and testing, compliance with standards, or standardization, have increased over the years. All these cumulative factors have increased the product lifecycle of passenger vehicles, which has invariably increased the time span of vehicles among consumers. This is positively driving the growth of the market globally, as a higher average age of vehicles means higher frequencies of parts replacement. Hence, the above-mentioned factors are expected to fuel the growth of the passenger vehicle segment in the global aftermarket automotive parts and components market during the forecast period.
APAC is estimated to contribute 39% to the growth of the global automotive aftermarket industry during the forecast period.
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Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
APAC is the fastest-growing region in the global market. APAC is a high-volume adopter of automobiles and has the presence of countries, such as China and Japan, that have a large number of vehicles in use. These countries also lead the e-commerce industry. Therefore, the region is ideal for the growth of the aftermarket automotive parts and components market during the forecast period.
APAC has many price-conscious customers who hold cars for longer periods of time. This creates the need for proper repair and maintenance services. As a result, the demand for auto parts through the aftermarket is expected to increase significantly in APAC. Moreover, bad road conditions and poor infrastructure in emerging economies also contribute to the high wear and tear of auto parts. This results in an increase in demand for auto parts. Hence, the growing adoption of vehicles in emerging economies, such as India and Indonesia, is expected to drive the growth of the regional market during the forecast period.
Additionally, APAC has the presence of dominant e-commerce players such as Alibaba Group Holding Ltd (Alibaba Group). Alibaba Group has contributed significantly to making China a dominant country in the global e-commerce industry. Emerging economies, such as India, are witnessing fast growth in the e-commerce industry. This is because of homegrown players, such as Flipkart Pvt Ltd. (Flipkart), and the entry of dominant global players, such as Amazon.com Inc (Amazon). The growth in the e-commerce industry is a positive factor for the growth of the regional automotive aftermarket industry during the forecast period.
The COVID-19 outbreak had a negative influence on the regional automobile industry in 2020, which, in turn, led to a decline in demand for automotive aftermarket services in this region. However, in 2021, the success of vaccination campaigns across the region, as well as increased investment in the auto sector, enabled the plants and service units to reopen and resume operations, further leading to a surge in demand for automotive aftermarket services in APAC. As a result, the market in focus will expand faster in this region during the forecast period.
The report includes the adoption lifecycle of the aftermarket automotive parts and components market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Automotive Aftermarket Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the automotive aftermarket industry.
3M Co. - The company ?focuses on advanced ceramic solutions, attachment tapes, films, sound and temperature management for transportation vehicles, and premium large-format graphic films for advertising and fleet signage. The company's key offerings include automotive aftermarkets.
The report also includes detailed analyses of the competitive landscape of the market and information about 14 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, robust, tentative, and weak.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Automotive Aftermarket Market Scope |
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Report Coverage |
Details |
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Page number |
196 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.26% |
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Market growth 2023-2027 |
USD 164.58 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
5.62 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 39% |
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Key countries |
US, China, Japan, India, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
3M Co., Aisin Corp., Akebono Brake Corp., ALCO Filters Ltd., Aptiv PLC, BASF SE, BorgWarner Inc., Bridgestone Corp, Continental AG, DENSO Corp., Faurecia, HELLA GmbH and Co. KGaA, JK Tyre and Industries Ltd., LCI Industries, MAP MotoRad Automotive Parts Ltd., NGK SPARK PLUG Co. Ltd., Pioneer Corp., Robert Bosch GmbH, Samsung Electronics Co. Ltd., Tenneco Inc., The Goodyear Tire and Rubber Co., Valeo SA, and ZF Friedrichshafen AG |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Historic Market Size
6 Historic Market Size
7 Five Forces Analysis
8 Market Segmentation by Vehicle Type
9 Market Segmentation by Distribution Channel
10 Customer Landscape
11 Geographic Landscape
12 Drivers, Challenges, and Trends
13 Vendor Landscape
14 Vendor Analysis
15 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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