Automotive Aftermarket Size By Vehicle Part (Replacement Parts [Belt, Brake, Clutch, Lighting, Electrical, Engine & AC, Exhaust, Filters, Suspension, Transmission, Wiper], Accessories), By Sales Outlet (Professional [Garages & Service Stations, Automobile Dealerships, Government], DIY, OEM), By Region (U.S., Canada, Germany, UK, Russia, China, India, South Korea, Japan, Indonesia, Thailand, Brazil, Mexico, Argentina, South Africa, GCC), Industry Analysis Report, Regional Outlook, Application Growth Potential, Price Trends & Forecast, 2016 – 2024
Published Date: February 2017 | 200 Pages | Report ID: GMI1166 Report Format: PDF
Automotive Aftermarket Size was valued at over USD 450 billion in 2015, increasing at CAGR over 4.5% from 2016 to 2024.
U.S Automotive Aftermarket Size, by Product, 2013-2024 (USD Billion)
Strong automotive outlook coupled with surge in manufacturing of auto components will drive the automotive aftermarket industry demand by 2024. This can be attributed to increasing buyer’s awareness about periodic maintenance, safety, convenience and add-on services like installation of exterior & interior accessories, exhaust components, extended warranty covers and 24/7 breakdown assistance will fuel the market growth. The industry offers a wide range of parts and accessories at varied prices and qualities for vehicles.
Additionally, changing lifestyle and need for travelling long distance has led to increased average distance driven per vehicle. This has resulted in increase in maintenance and replacement of automotive parts driving the automotive aftermarket industry growth.
Technological advancement in telematics industry will drive automotive aftermarket share through the forecast timeline. The electrical parts are the maximum profit generator for these industrial players. Usage of plastic auto-parts leads to weight reduction in vehicle which increase fuel efficiency. Hence, usage of plastic based auto parts has been a recent trend in the market.
Growing internet penetration has bolstered growth of online sales resulting into easy availability of vehicle parts leading to frequent purchase. For instance, Amazon (an e commerce market player) recently launched its automotive aftermarket division on its online platform, which intends to compete with traditional auto part retail chains. Amazon has tried creating USP in market through offering better convenience and lower prices. It offers same day delivery of auto parts in 40 cities of U.S. Additionally, it prices products almost 30% cheaper as compared to traditional brick and mortar stores.
Latin America automotive aftermarket production is expected to witness significant gains owing to increased business tie-ups coupled with growth of FDI in Mexico. Stringent regulations by CAFÉ and European Legislation aimed at improving fuel efficiency of vehicle may have strong impact on automotive aftermarket size. Indian automotive aftermarket has introduced stringent regulations to encourage healthy competition in the automotive marketplace and strengthen the buyers power. International manufacturers and regional service providers are equally competing to acquire the market demand. Regulations are laid in Europe for release of electronic data enabling exact identification number of replacement parts resulting in benefits to independent operators.
Replacement parts and accessories used in vehicle are made from metals like aluminum, steel and Iron. Surge in prices of these materials may influence prices of automotive aftermarket during the forecast period.
Automotive Aftermarket Industry, By Product
Replacement parts segment contributed maximum revenue for automotive aftermarket industry accounting for USD 350 billion in 2015. These parts are used as replacement to original auto parts after damage, wear & tear and reduction in performance of vehicle.
Growing technological advancements has resulted into increased usage of composite materials and lightweight replaceable parts requiring less repairs. These parts are cost effective and enhance the operational utilization of the vehicle.
Accessories are used to improve appearance, performance and safety function of vehicle parts. These includes parts like graphics, spoilers, wings, styling seats and alloy wheels. Upsurge in demand for aesthetically pleasant and comfort feature in vehicle is expected to drive the accessories market segment of automotive aftermarket industry.
Growing trend of vehicle customization is expected to drive the market demand for accessories segment. These are used in addition to functional parts to add enhance the function of the parts. These are further segmented as per requirement in terms of exterior and interior accessories. Constant evolution in these parts with change in design should drive the market growth.
Automotive Aftermarket Industry, By Sales Outlet
Professional channel is the key segment accounting market size over USD 300 billion in 2015. Attractive revenues and profit margins are the driving factor for professional segment. Aftersales service provided by auto manufacturer is driving the market demand. Advanced facilities such as pick and drop coupled with discounted service provided has resulted in customer satisfaction over 85% of end users. Superior quality, product warranty and reliability are the key factors for driving the professional channel for new vehicle owners.
DIY is another channel driving the automotive aftermarket share in the global automotive industry. Cost saving along with easy availability of aftermarket parts are the key factors driving the market growth. This channel is trending in young generation of developed countries. Increasing technological growth for solving queries through online portals resulting in rise in this segment. DIY is done for easy parts such as timely cleaning and replacement of small parts which require less tools.
Automotive Aftermarket Industry, By Region
Europe, led by Germany, UK and Russia will witness CAGR over 4% up to 2024. Large customer base coupled with presence of OE manufactures are key factors driving regional market demand. Increasing number of authorized service providers along with rise in industry participants will result increased competition in this region.
North America automotive aftermarket industry was worth over USD 165 billion in 2015. New technological developments along with constant R&D efforts towards manufacturing parts are the key factors triggering the automotive aftermarket industry growth.
Asia Pacific automotive aftermarket driven by China and India market generated over USD 90 billion in 2015, with over 6% CAGR by 2024. Favorable FDI policies for manufacturing of automotive aftermarket parts is the major factor for the market growth. Additionally, increasing spending capacity in this region has resulted in growth in sale of these parts.
Poor road infrastructure in major parts of India is leading to frequency in wear and tear of automotive parts. This has led to increase in vehicle maintenance spending which will further drive the market demand.
Latin America automotive aftermarket is estimated to grow at CAGR over 5% by 2024. More than 50% of total vehicles in Mexico are older than 10 years resulting in more repair, thus propelling the market demand.
Increasing vehicle population in MEA along with favorable foreign investment are the major factors driving automotive aftermarket industry growth. Rising infrastructural development along with growing disposable income has resulted in increased sale of luxury cars.
Competitive Market Share
Global automotive aftermarket industry market share is moderately fragmented owing to the presence of numerous regional industry participants. To maintain productivity, players should consider additional methods for improving the quality of product, including growing service networks, creating branded parts, forward integration, and building scale.
As per GMI analysis, 87% of the customers are highly satisfied with the service provided by aftermarket service providers.
Some of the key industry players include Continental AG, 3M Company, Akebone Brake corporation, Delphi, Federal-Mogul, Denso, Magneti Marelli, Robert Bosch, ACDElco and ASIMCO Technologies ltd. Other notable companies Shandong Zhengnuo Group Co., Ltd., ALCO Filters and Cooper tire and rubber company.
In January 2017, Continental AG entered into a joint venture with Nexteer Automotive for innovation in advanced steering and driver assistance for automated driving.
During the last few years, both organized players which include automotive non-vehicle manufacturers and OEM well as unorganized player’ small garages and independent part dealers have registered huge profits in automotive aftermarket. Presence of domestic manufacturer especially in developing countries, where vehicle age is comparative higher may act as a challenge for market growth.
Automotive Aftermarket Industry Background
In the automotive industry, aftermarket is the secondary market concerned with manufacturing, distribution, retailing, remanufacturing, and installation of all vehicle parts, after the sale of vehicles by OEMs to consumers. Global automotive market is led by increase in vehicle sales coupled with favorable manufacturing policies in developing countries. Increasing foreign trade besides technological development are the major factors driving automotive manufacturing industry. China is largest automobile producer, manufactured over 24 million automobiles in 2015.
Growing use of ecofriendly techniques in automotive manufacturing due to stringent environmental regulations will drive the market demand. This can be attributed to rising pollution resulting in need to find alternative materials for auto parts.
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