Automotive Aftermarket Industry Analysis, Size And Share

(MENAFN- Straits Research) Introduction

The global market for Automotive Aftermarket industry was valued at USD 406.32 billion in 2021 and is expected to reach USD 2292.94 billion in 2030 expanding at a compound annual growth rate (CAGR) of 3.38 % from 2022 to 2030.

The automotive aftermarket is the secondary market of the automotive industry. It is associated with the manufacturing, remanufacturing, distribution, retailing, and installation of all vehicle parts, chemicals, equipment, and accessories, after the sale of the automobile by the original equipment manufacturer (OEM) to the consumer. The original equipment manufacturer (OEM) could or might not have made the components, accessories, and other items that are for sale.

Market Dynamics Increased consumer interest in electric vehicles

There has been an important increase in both the demand for and manufacturing of electric vehicles. This may be attributed to the several benefits that electric vehicles possess over gasoline-powered vehicles. Fuel-powered cars do not need to have their oil and air filters, fan belts, timing belts, head caskets, or spark plugs replaced, making them more cost-effective and efficient. Because of this, electric vehicles are quickly becoming the method of transportation of choice, which is slowing the expansion of the business that produces vehicles fueled by petroleum. In addition, as a consequence of advancements made in vehicle dynamics and traction control, automotive manufacturers are concentrating their efforts on the creation of electric vehicles that are outfitted with the most advanced technologies.

Original equipment manufacturers have progressively enhanced their degree of participation and emphasis inside the automotive parts aftermarket value chain. For example, they have created their own networks of repair shops that do not specialise in repairing a particular brand of automobile. In order to compete with independent aftermarket players and keep customers within their networks for a longer period of time, major market players have introduced second service formats and second brands (such as VW Direkt Express) or remanufactured parts in an effort to keep up with the market's shift toward older vehicles.

There are a number of reasons that are projected to support the expansion of the market from 2021 to 2028, one of which is the growing consumer awareness about the repair and appropriate maintenance of cars in order to preserve their efficiency and performance. In addition, the growing demand for crossover cars and long-distance trip automobiles contributes further to an increase in the frequency with which vehicle components need to be serviced and replaced.

The deterioration of vehicles and the terrible road conditions that accompany them will be beneficial to the aftermarket components since they will see an increase in demand for repairs and upkeep. The market is expanding because of several factors, including the relatively low costs of production as well as an increase in the number of accidents that occur on the roads. As a direct consequence of this, the growing need for replacement parts is producing fruitful chances for the expansion of the automotive aftermarket during the course of the time under consideration.

Regional Overview of Automotive Aftermarket Industry

With a share of 28.2 percent in 2021, Asia Pacific led the market in terms of size. From 2022 to 2030, the sector is anticipated to experience substantial expansion. Automobile sales in the area are expected to increase as a result of increased consumer and passenger vehicle production and sales, the use of advanced technologies in the manufacturing of auto components, and the digitization of automotive component delivery services. To improve their market share in the sector, several businesses are concentrating on acquisitions. For instance, Cooper Tire & Rubber Company was bought by Goodyear Tire & Rubber Company in February 2021 in order to consolidate the brand portfolio and offer thorough services across the industry's value range.

Key Highlights

• The global market for Automotive Aftermarket Industry was valued at USD 406.32 billion in 2021 and is expected to reach USD 2292.94 billion in 2030 expanding at a compound annual growth rate (CAGR) of 3.38 % from 2022 to 2030.
• Rise consumer interest in electric vehicles will drive the market.
• Expansion of Original Equipment Manufacturers (OEM) into Aftermarket Activities to Drive Market Growth
• The automotive aftermarket is segmented into the following categories: Replacement Part, Distribution Channel, Service Channel, Certification and Region.
• Based on Replacement part the market is divided into the following: Tire, Battery, Brake Parts, Filters, Body parts, Lighting & Electronic Components, Wheels, Exhaust components, Turbochargers and Others. With a share of 48.7% in 2021, the others sector led the market in terms of size.
• With a share of 56.6 percent in 2021, the retail sector led the market in terms of size.
• Based on service channel the market is divided into: DIY (Do it Yourself), DIFM (Do it for Me), OE (Delegating to OEM's). With a share of 72.0 percent in 2021, the original equipment category led the market in terms of size.
• Based on certification the market is divided into the following: Genuine Parts, Certified Parts and Uncertified Parts. With a share of 52.0% in 2021, the genuine parts category led the market in terms of size.
• With a share of 28.2 percent in 2021, Asia Pacific led the market in terms of size.