Automotive Aftermarket Market Size to grow by USD 164.58 billion between 2023-2027
According to a research report “ Automotive Aftermarket Market” by Distribution Channel (Retailer, Wholesale, distribution) Geography (APAC, Europe, North America, South America, Middle East and Africa)- Global Forecast to 2027 published by Technavio, the market size is estimated to grow by USD 164.58 billion, at a CAGR of 6.26% during the forecast period. The global automotive aftermarket parts industry is experiencing significant growth due to several key factors. One of the primary drivers is the increasing lifespan of vehicles, resulting in a larger vehicle population in major automotive markets. For instance, in the United States, the average age of passenger vehicles and light trucks surpassed 11 years in 2021, according to the Department of Energy (DOE). This trend is leading to a substantial increase in demand for automotive aftermarket parts, thereby fueling market expansion.
Browse market data tables, figures, and in-depth TOC on “Automotive Aftermarket Market” by Distribution Channel (Retailer, Wholesale, distribution) Geography (APAC, Europe, North America, South America, Middle East and Africa) Global Forecast to 2027. Download Free Sample
By Distribution Channel, the Retailer segment is projected to dominate the market size in 2024
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By Geography, APAC segment is expected to hold the largest market size for the year 2024
The global automotive aftermarket market experiences significant growth due to the high demand for passenger vehicles, such as hatchbacks, sedans, and estates. These vehicles undergo regular servicing and maintenance, necessitating the replacement of worn-out parts with new ones. Furthermore, the increasing sales volumes of plug-in hybrid vehicles (PHEVs) and battery electric vehicles (BEVs) are propelling the expansion of the passenger segment. Europe, with its robust automotive industry, hosts several established automakers, both domestic and international, catering to the diverse consumer preferences in the passenger vehicle segment.
APAC is forecasted to hold the largest market size by region in 2024
The Asia Pacific (APAC) region is currently the fastest-growing market in the global automotive aftermarket sector. This trend is expected to continue, solidifying APAC's position as a significant contributor to the industry's expansion. Key contributors to the region's growth include China, India, Japan, and South Korea, which boast high volumes of automobile adoption and a large number of vehicles in use. Moreover, these countries are at the forefront of the e-commerce industry, making APAC an optimal region for the growth of the automotive aftermarket market during the forecast period. Notably, new vehicle sales in APAC are projected to increase at a faster rate than other regions, further fueling market growth.
The Automotive Aftermarket Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
The automotive aftermarket is undergoing significant changes due to new business models, changing consumer preferences, and the emergence of alternative mobility solutions. Ride-sharing platforms and service substitutes are disrupting traditional aftermarket sales channels. Intellectual property laws and safety regulations are key regulatory factors shaping the market. Environmental standards are driving demand for electric components and connected vehicles, which offer service enhancements and operational synergies. Market concentration is increasing as automobile manufacturers invest in R&D expenditures and digitization. Aftermarket filters, mufflers, and other components are being sold online through digital platforms, with noise emission levels and speed becoming key considerations for automobile drivers. The Internet-of-Things (IoT) is transforming the aftermarket by enabling real-time monitoring and predictive maintenance. Market reach is expanding as aftermarket components become more accessible to consumers through various channels. Production cost and operational efficiency are critical factors for aftermarket players as they navigate this dynamic and complex market landscape.
Market Research Overview
The Automotive Aftermarket Market is a dynamic and diverse industry, encompassing various stakeholders such as auto insurance companies, collision repair centers, repair shops, jobbers, aftermarket units, Tier 1 distributors, raw material suppliers, workshops, insurers, wholesalers, and more. The market can be segmented into the Original Equipment (OE) segment, Wholesale & Distribution segment, and Retail segment. Car safety standards, disposable incomes, petrol prices, and the rise of hybrid electric cars are key factors influencing the market. Repair service providers, tire suppliers, lubricants, accessories suppliers, and aftermarket filters are essential components of the Tire Segment. Counterfeit parts and uncertified parts in the Uncertained parts segment pose a challenge to the market. The Genuine parts segment, however, benefits from the concentration of end-users seeking quality and safety. New business models, changing consumer preferences, alternative mobility solutions, ride-sharing platforms, and service substitutes are disrupting traditional market dynamics. Regulatory factors, including intellectual property laws, safety regulations, and environmental standards, play a crucial role in shaping the market. Operational synergies, market reach, electric components, connected vehicles, and service enhancements are driving growth in the market. The market concentration is high, with automobile manufacturers investing heavily in R&D expenditures and digitization through the Internet-of-Things (IoT) and digital platforms. Mufflers, noise emission levels, speed, exhaust sound, and automobile drivers are specific considerations for the aftermarket industry. The market for aftermarket components is vast, with various service enablers, including online portals, catering to the needs of consumers. Overall, the Automotive Aftermarket Market is a complex and evolving ecosystem, requiring continuous adaptation to changing market conditions and consumer demands.
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Technavio Research
Jesse Maida
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Email: media@technavio.com
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