Asia Pacific Automotive Aftermarket Size By Vehicle Part (Linkages, Suspensions, Transmission, Braking, Powertrain Components), By Sales Outlet (Independent Professional, DIY, OEM), By Vehicle (Passenger Car, Light Commercial Vehicle, Heavy Commercial Vehicle, Off-Highway Vehicle) Industry Analysis Report, Country Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2018 – 2024
Published Date: Jan 2019 | Report ID: GMI3076 | Authors: Kiran Pulidindi
Asia Pacific Automotive Aftermarket size was valued at over USD 115 billion in 2017 and is estimated to exhibit over 5% CAGR from 2018 to 2024.
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Growing necessity for scheduled servicing and periodic maintenance to enhance the service life of aging vehicles will propel the Asia Pacific automotive aftermarket over the forecast timeframe. Proliferating customer expectations, ongoing technical innovation, and rising competition are among the major factors fueling the business expansion. Surging penetration of automobile manufacturers into industrial activities coupled with the consolidation of aftermarket parts distributors is providing a positive outlook for the market expansion.
Key factors including lower price, wide alternatives for brand selection and higher quality components are boosting the market growth. Moreover, shifting consumer focus towards electric & hybrid vehicles owing to increasing digitalized services and products will further augment the business share. Additionally, strong demand for automobiles from emerging economies will favor the Asia Pacific automotive aftermarket expansion. For instance, according to International Organization of Motor Vehicle Manufacturers (OICA), Asia Pacific registered over 46 million units of passenger cars and LCVs sales in 2017.
Shifting consumer preferences towards upgradation of existing vehicles with innovative technologies is anticipated to expand the Asia Pacific automotive aftermarket size. Increasing demand for electrification and communication-based hardware installation in vehicles will create new avenues for suppliers and workshops. An upsurge in the popularity of ADAS, connectivity/telematics, infotainment, and entertainment systems among youth will further support business expansion.
Rising competition among automotive industry players is driving the exponential development of online sales platform for the sales of components. Manufacturers are expected to offer convenient shipping alternatives, with greater flexibility, and a seamless web experience to boost their product sales. Consumers are anticipated to compare products and prices prior to purchase decision. Improved convenience along with no-cost ship-to-store pricing are among the major factors proliferating the Asia Pacific automotive aftermarket over the projected timeframe.
Favorable FDI policies on aftermarket parts manufacturing along with stringent government regulations focused on reducing carbon emissions will expand the Asia Pacific automotive aftermarket industry share till 2024. Additionally, new legislative developments across China pertaining to the abolishment of SAIC record-filing for Auto Brand Authorized Dealers will further improve the automotive distribution network across the region. However, sales of counterfeit or forged car parts may hamper the industry profitability over the forecast period.
|Base Year:||2017||Market Size in 2017:||115 Billion (USD)|
|Historical Data for:||2013 to 2017||Forecast Period:||2018 to 2024|
|Forecast Period 2018 to 2024 CAGR:||5%||2024 Value Projection:||165 Billion (USD)|
|Pages:||700||Tables, Charts & Figures:||458|
|Geographies covered (15):||China, Hong Kong, Australia, New Zealand, India, South Korea, Japan, Indonesia, Malaysia, Thailand, Taiwan, Singapore, Philippines, Vietnam, Myanmar|
|Segments covered:||Vehicle Part, Sales Outlet, Vehicle and Region|
|Companies covered (23):||Lear Corporation, Sumitomo Electric Industries, Ltd., AISIN SEIKI Co. Ltd., Toyota Motor Corporation, Robert Bosch GmbH, Denso Corporation, Delphi Technologies, Bridgestone Corporation, HELLA GmbH & Co. KGaA, Shandong Zhengnuo Group Co. Ltd, Continental AG, ACDelco, Faurecia, Magneti Marelli S.p.A, ALCO Filters Ltd., Federal-Mogul LLC, WOT Analysis, ASIMCO, Akebono Brake Corporation, YAZAKI Corporation, Hitachi Automotive Systems, JTEKT Corporation, Mando Corporation, ZF Friedrichshafen AG|
|Pitfalls & Challenges:||
Asia Pacific Automotive Aftermarket, By Vehicle Part
Suspension will grow significantly exhibiting CAGR at around 5% over the projected timeframe due to its high replaceability rate. Suspensions majorly consists of air spring, axle shock absorber, cabin shock absorber, coil spring, and strut mounts. Rapid technological advancements along with significant R&D investments by major market players providing cost-effective solutions to the consumers will further propel the segment demand over the forecast timeframe.
In 2017, transmission accounted for more than 45% in the overall Asia Pacific automotive aftermarket share. It provides smooth changing of gears in a vehicle for the effective transfer of torque generated by the engine to the tires. Government regulations & policies pertaining to carbon emission control and less fuel consumption will promote electrification of vehicle systems, positively influencing the industry share till 2024. Furthermore, rising number of road accidents in the emerging economies including China and India will boost the usage of brake parts in vehicles that will further stimulate the industry growth.
Asia Pacific Automotive Aftermarket, By Sales Outlet
Independent professional is projected to surpass USD 112 billion over the forecast period. Continuous investments by independent garages and service stations for training of new mechanics is majorly driving the segment demand. Besides, increasing adoption of advanced equipment by leading industry players to manage growing technical complexity of next-generation vehicles will boost the segment growth till 2024.
OEM sales outlet is anticipated to witness gains exceeding 5% over the projected timeframe. This growth is attributed to the high-quality auto parts coupled with the extended warranty plans offered by the automobile companies. Additionally, rapid innovations and advancements in the automobile technology as per consumer preferences for comfort, luxury, and high-performance systems will promulgate the Asia Pacific automotive aftermarket expansion over the projected timeframe.
Asia Pacific Automotive Aftermarket, By Vehicle Segment
PCV segment accounted for more than 65% in the overall Asia Pacific automotive aftermarket share in 2017. This can be credited to the availability of multiple models across a wide price range including hatchbacks, crossovers, sedans, and SUVs. In addition, enhanced safety measures, reliability, comfort level, and improved fuel efficiency will fuel product demand over the projected timeframe. Rapid development in the road infrastructure and growing population are among the key factors propelling the segment growth.
LCV segment is projected to surpass USD 30 billion over the forecast period. Key factors including expanding storage capacities of several firms coupled with a significant rise in the e-commerce industry will proliferate the segment demand. The availability of multiple commercial vehicles of varied engine and storage capacities catering to a wide customer base will support the Asia Pacific automotive aftermarket growth till 2024.
Asia Pacific Automotive Aftermarket, By Country
China automotive aftermarket will witness gains at around 5% over the projected timeframe. The growing presence of online platforms to provide wide range of passenger car spare parts at lower cost will propel business growth in the country. Additionally, strategic partnership between e-commerce companies and vehicle parts suppliers will further support in market penetration across China. For instance, in July 2018, Alibaba formed a new joint venture with Zhejing Jingu Co. Ltd. that aided over 80,000 auto spare parts vendors for digitally transforming their business and improve their market share.
Competitive Market Share
The market share is highly fragmented comprising of large number of global and regional players in the organised and unorganised sector. Major players in the Asia Pacific automotive aftermarket include Sumitomo Electric Industries Ltd., Toyota, Denso Corporation, Delphi Automotive PLC, Bridgestone, 3M Company, Magneti Marelli SpA, Continental AG, Lear Corp, and Robert Bosch GmbH. Other notable participants include Aisin Sei, HELLA GmbH & Co. KGaA, Shandong Zhengnuo Group Company, ACDelco, Faurecia SA, ALCO Filters, Federal Mogul Corporation, ASIMCO Technologies Ltd., Akebone Brake Corporation, and Yazaki.
Technological advancements and product launches are among the key strategies observed in the industry. The major players are adopting mergers and acquisitions along with joint ventures for enhancing their market share. For instance, in August 2018, Aisin Seiki Co., Ltd. and DENSO Corporation signed an agreement for the establishment of a new joint venture company for the development and sales of vehicle electrification modules.
The Asia Pacific automotive aftermarket industry is majorly driven by factors including improved fuel efficiency, increasing affordability, rising disposable incomes, urbanization, technological advancements, stringent emission norms, and growing competitiveness. An aftermarket part for a vehicle is not sourced from vehicle manufacturers. These are produced in bulk quantities and are made to fulfill the specifications of a variety of vehicles. Their performance and quality can be similar, lower or higher than OEM parts. Aftermarket provides high-performance parts as well as cost-effective solutions. As per the recent industry trends in 2018, it is estimated that approximately 80% of the independent workshops use aftermarket parts.
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