Automotive aftermarket market size is set to grow by USD 164.58 billion from 2022 to 2027, Aftermarket e-retailing gaining popularity is an emerging trend

NEW YORK, June 20, 2023 /PRNewswire/ — The automotive aftermarket market is estimated to grow by USD 164.58 billion from 2022 to 2027, growing at a CAGR of 6.26%. APAC is estimated to account for 39% of the global automotive aftermarket industry during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC is a high-volume adopter of automobiles and the countries involved, such as China and Japan, have a large number of vehicles in use. These countries also lead the e-commerce industry. Thus, the region is ideal for the growth of the aftermarket automotive parts and components market. APAC has numerous price-conscious customers who hold cars for longer periods of time. This builds the need for proper repair and maintenance services. Hence, In APAC, the demand for auto parts through the aftermarket is anticipated to grow significantly. 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 expansion in demand for auto parts. Hence, the growing adoption of vehicles in emerging economies, such as India and Indonesiais expected to drive the growth of the regional market during the forecast period. For Comprehensive details on the market size of historic period (2017 to 2021) and forecast period (2023-2027) – View Sample report

Landscape Vendors

The automotive aftermarket market is fragmented; the vendors are competing with competitors and are trying to get a greater market share. The market is growing, and the chances of new entrants cannot be overlooked. The major vendors have well-established economies of scale and market presence and generally rely on positioning technological advances, and the price of the products –The report provides a full list of key vendors, their strategies, and the latest developments. Buy Now

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Market Dynamics

Major Drivers & Challenges-

The increasing demand for vehicle parts is driving the automotive aftermarket market growth. Due to various factors, such as the increasing service life of vehicles, the demand for automotive spare parts is increasing. The increasing number of vehicles leads to increased demand for spare parts for the aftermarket, thereby driving market growth. However, passenger vehicles and utility vehicles, such as SUVs, MPVs, crossovers, and pickup trucks, are very popular in the automotive market. These vehicles need regular service and maintenance to work properly as they are used for longer periods of time. Such factors create a high demand for aftermarket parts to replace old, worn-out parts and components. Therefore, these factors are expected to propel the growth of the automotive aftermarket market during the forecast period.

The high price sensitivity leading to margin pressure on e-retailers is a major challenge hindering the automotive aftermarket market growth. The average vehicle age is increasing due to the high quality of modern vehicles. Furthermore, repair costs are also continuously increasing. This leads to more elevated average repair costs for modern vehicles compared to older vehicles. Hence, from the customer’s point of view, cost-effectiveness is negated by increasing repair costs. The rise in repair costs was primarily due to a rise in labor costs, vehicle complexity, and increasing prices of auto parts such as steel and aluminum parts. Hence, customers are price sensitive when purchasing automotive products. Adopting an optimal pricing strategy is essential for players to build a sustainable business. Therefore, the aftermarket must balance part prices with discounts and offers. Thus, these factors are expected to hinder the growth of the automotive aftermarket industry to some extent during the forecast period.

Key Trends–

Aftermarket e-retailing gaining popularity is the primary trend in the automotive aftermarket market growth. The automotive aftermarket is undergoing a paradigm shift towards e-commerce platforms. This is proven by the annual growth rate of online retail parts sales. Sales of automotive spare parts via e-commerce websites have outgrown sales in traditional brick-and-mortar stores due to digitization in recent years. The advantages and applications of using e-commerce platforms are driving revenue generation in the aftermarket. Additionally, 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. However, the market also has the presence of specialized automotive aftermarkets such as Allopneus (allopneus.com), which is a French online tire e-retailer. Therefore, such factors are expected to drive the growth of the automotive aftermarket industry during the forecast period.

Technavio has identified key trends, drivers, and challenges in the market, which will help clients improve their strategies to stay ahead of their competitors. – View Sample Reports

Company Profiles

The automotive aftermarket market report includes information on the product launches, sustainability, and prospects of leading vendors including 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 Tire 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.

Competitive Analysis

The report includes competitive analysis, a proprietary tool to analyze and evaluate the position of companies based on their industry position score and market performance score. The competitive scenario categorizes companies based on various performance indicators. Some of the factors considered include the financial performance of companies over the past few years, growth strategies, product innovations, new product launches, investments, and growth in market share, among others.

Market Segmentation

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 Americaand the Middle East and Africa).

• The market share growth by the passenger cars segment will be significant during the forecast period. Globally, passenger vehicles, including hatchbacks, sedans, and estates, are highly popular, and therefore, the segment witnesses high-volume sales. Furthermore, the increasing volume of sales of plug-in hybrid vehicles (PHEVs) and battery electric vehicles (BEVs) globally is also driving the growth of the passenger segment. However, the investments in research and development of vehicles and testing, compliance with standards, and standardization, have advanced over the years. All these combined factors have improved the product life cycle 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 frequency of parts replacement. Therefore, these factors are expected to drive the growth of the passenger vehicle segment in the global aftermarket automotive parts and components market during the forecast period.

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Table of Contents

1 Executive Summary

2 Market Landscape

3 Market Sizing

4 Historic Market Sizes

5 Historic Market Sizes

6 Historic Market Sizes

7 Five Forces Analysis

8 Market Segmentation by Vehicle Type

9 Market Segmentation by Distribution Channel

10 Customer Landscape

11 Geographic Landscapes

12 Drivers, Challenges, and Trends

13 Landscape Vendors

14 Vendor Analysis

15 Appendices

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