Enjoy complimentary customisation on priority with our Enterprise License!
The automotive aftermarket market size is forecast to increase by USD 412.55 billion at a CAGR of 6.26% between 2022 to 2027. Market growth relies on several key factors, notably the widespread adoption of vehicle components, driven by the increasing demand for automotive products and the convenience of online purchasing. As consumers seek greater customization options for their vehicles, the market responds by offering a diverse range of aftermarket parts and accessories. This trend is further fueled by the growing popularity of vehicle customization, driven by a desire for personalization and enhanced performance. Additionally, the shift towards online retail channels provides consumers with greater accessibility and convenience in sourcing automotive products, thereby driving market growth. With these factors influencing consumer preferences and purchasing behavior, stakeholders in the automotive industry must adapt their strategies to meet evolving demands and capitalize on opportunities for expansion in this dynamic market landscape.
Market shows accelerated growth during the forecast period
To learn more about this market report, Request Free Sample
The market thrives on catering to automobile drivers' needs, offering aftermarket components via online portals. Concerns like exhaust sound and noise emission levels drive demand for mufflers and aftermarket filters. Digital platforms and Internet-of-Things (IoT) solutions enhance service enablers and service enhancements, ensuring connected vehicles meet regulatory factors and environmental standards. Amid changing consumer preferences, the market embraces alternative mobility solutions, reflecting new business models and market concentration.
This market analysis 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.
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.
Get a glance at the market contribution of various segments Request a PDF Sample
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.
For more insights on the market share of various regions Request PDF Sample now!
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.
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.
In the market, the speed of innovation is matched by the convenience of online portal, connecting consumers with a diverse value chain. R&D expenditures drive advancements in electric components, enhancing market reach and fostering operational synergies. Compliance with safety regulations and intellectual property laws ensures quality while stimulating R&D initiatives. Amid evolving consumer needs, service substitutes like ride-sharing platforms are reshaping the industry, demanding agility from automobile manufacturers and addressing concerns like production cost. 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 growth of the Aftermarket Automotive Parts and Components Market size. 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 market. The market 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 industry during the forecast period.
The high price sensitivity leading to margin pressure on e-retailers is a major challenge impeding market 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.
Additionally, 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 Aftermarket Automotive Parts and Components Market share to some extent during the forecast period.
The market forecasting 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 market forecast report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
3M Co. - The company ?focuses on Automotive Aftermarket services.
The report also includes detailed analyses of the competitive landscape of the market and information about 14 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, robust, tentative, and weak.
The market growth and trends report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2022 for the following segments.
The market caters to a diverse array of end-users across various market segments. It encompasses both the genuine parts segment and the uncertified parts segment, where concerns regarding counterfeit parts persist. Key components like tires have a significant impact, with factors like the replacement cycle influencing demand. Accessories suppliers, tire suppliers, and repair service providers play pivotal roles in this ecosystem, alongside entertainment service providers catering to modern consumer needs. With the rise of hybrid electric cars and fluctuating petrol prices, consumers' disposable incomes are increasingly influential. 3D printing is revolutionizing automotive parts manufacturing, impacting both the retail segment and wholesale & distribution segment. From original equipment to DIY enthusiasts, the aftermarket engages wholesalers, insurers, and repair shops, ensuring a robust service channel supported by raw material suppliers and tier 1 distributors.
Further, the market exhibits a dynamic landscape driven by the concentration of end-users across diverse sectors. Among these, the tire segment stands out, influenced by factors like the replacement cycle of tires and evolving car safety standards. Furthermore, technological advancements such as 3D printing of automotive parts are reshaping the market, impacting both the original equipment segment and the DIY segment. Workshops, aftermarket units, jobbers, and collision repair centers form the backbone of the aftermarket ecosystem, providing essential services and parts. Additionally, auto insurance companies play a crucial role in facilitating repairs and replacements. This dynamic market thrives on innovation, regulatory compliance, and meeting the diverse needs of vehicle owners and operators.
Market Scope |
|
Report Coverage |
Details |
Page number |
196 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.26% |
Market growth 2023-2027 |
USD 164.58 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.62 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 39% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
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 |
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. |
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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
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
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.