Automotive Aftermarket Size & Share 2024-2032
Market Size by Vehicle Powertrain (Internal combustion engine (ICE) vehicles, Battery electric vehicles (BEV)), Consumer (D2B {B2bigB, B2smallB}, B2C, D2C) Product (Replacement Parts, Lifestyle), by Channel & Forecast.
Report ID: GMI1166
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Published Date: July 2024
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Report Format: PDF
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Authors:
Kiran Pulidindi, Akshay Prakash
Automotive Aftermarket Size
Automotive Aftermarket size was valued at USD 922 billion in 2023 and is expected to grow at 12.6% CAGR from 2024 to 2032, due to increasing necessity for maintenance & scheduled servicing requirements to enhance the aging vehicle’s lifetime. The increasing customer expectations, ongoing technological innovations, and rising competition across the automotive industry are the major factors fueling the industry expansion. The increasing penetration of OEMs into aftermarket activities along with the consolidation of parts distributors is providing a positive outlook for market expansion.
Automotive Aftermarket Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
Factors, such as crash repair and wear & tear, are supporting the aftermarket components demand. The consumer preferences for aftermarket parts instead of Original Equipment Manufacturer (OEM) parts owing to their cost-saving attributes are likely to boost the key manufacturers’ revenue. The generic or aftermarket parts are also easily available than the original manufacturer’s parts, thus saving time & money for both consumers and insurance companies. The automotive aftermarket component manufacturers are expected to form strategic partnerships with insurance agencies to gain a competitive edge.
The strong demand for automobiles from the emerging economies is likely to favor automotive aftermarket industry growth. The increase in demand was supported by the rapid expansion of global players in Asian countries, majorly in China, India, Australia, and Indonesia. The rising eco-friendly techniques in automotive manufacturing owing to the stringent environmental regulations will result in a surge in the demand for alternative automotive parts.
The increasing competition among the automotive industry is driving the exponential development of online sales platforms for automotive components. Manufacturers are expected to offer convenient shipping options, flexibility, and a seamless online experience to boost their product sales. Consumers are anticipated to compare products and prices before the buying decision. The increased convenience coupled with no-cost ship-to-store pricing is the major factor supporting the automotive aftermarket product sales.
Automotive Aftermarket Trends
The growing digitization of distribution channels and the emergence of additional sales channels are prominently driving the automotive aftermarket industry share. The improvement in e-commerce platforms and supply chain services are providing potential opportunities for the increased revenue generation. The availability of numerous varieties of car models and accessories will drive the market size. The shifting consumer inclination toward vehicle customization and upgrading with additional accessories will positively impact product adoption. The increasing number of aftermarket service providers along with the penetration of new market entrants will significantly augment the product demand over the forecast timeframe.
Automotive Aftermarket Analysis
The ICE segment will capture around USD 789 billion in 2023 and will record a CAGR of 8.1% through 2032. For ICE vehicles, the market remains robust due to the large existing vehicle population and the extensive network of repair shops. However, there is a gradual decline in demand for traditional ICE components such as exhaust systems and fuel injection parts, driven by increased environmental regulations and the rise of BEVs. Maintenance and replacement parts like filters, brakes, and belts continue to sustain the ICE aftermarket.
BEVs are gaining significant traction. The growing adoption of electric vehicles, spurred by advancements in technology, government incentives, and increasing consumer awareness of environmental impacts, is reshaping the aftermarket landscape. BEV aftermarket growth is primarily driven by the need for specialized components such as battery packs, electric motors, and charging infrastructure.
The B2C segment will capture 87% of automotive aftermarket market share in 2023 and will garner a 9.4% CAGR from 2024 to 2032, owing to the growing adoption of electric vehicles (EVs) and hybrid vehicles worldwide. In the B2C segment, e-commerce is revolutionizing how consumers purchase automotive parts. Online platforms offer convenience, competitive pricing, and a wide range of products, driving significant growth. Consumer preference for DIY (Do It Yourself) repairs is increasing, supported by the availability of online tutorials and resources.
Personalization and customer service are key differentiators, with businesses investing in customer experience to build loyalty. D2B is witnessing growth driven by technological advancements and increased demand for high-quality parts. Distributors are focusing on expanding their digital platforms to streamline operations and enhance the supply chain. There is a trend towards forming strategic alliances with manufacturers to ensure a steady supply of parts and leverage economies of scale.
The automotive aftermarket from replacement parts segment is experiencing steady growth, driven by the increasing average age of vehicles and rising vehicle ownership worldwide. Consumers are keeping their vehicles longer, leading to higher demand for replacement parts to maintain performance and reliability. The trend toward DIY repairs and the growth of e-commerce platforms also contribute to this segment's expansion.
The braking segment is seeing advancements in technology with the introduction of electronic brake systems (EBS) and regenerative braking, especially in electric and hybrid vehicles. Safety regulations and consumer demand for enhanced safety features are driving the development and adoption of advanced braking systems. There's also a notable increase in the use of ceramic brake pads for their durability and performance.
The offline channel remains robust due to the need for physical inspections, immediate availability, and the hands-on expertise provided by brick-and-mortar stores and workshops. Traditional auto parts stores, dealerships, and service centers continue to thrive, particularly for complex repairs and maintenance services requiring professional installation. There is a notable trend toward the integration of digital tools within offline stores, such as advanced diagnostic equipment and electronic inventory management systems, enhancing customer service and operational efficiency.
Europe automotive aftermarket will expand at 11% CAGR during 2024 to 2032, driven by robust industrialization, technological advancements, and substantial investments in automotive sectors. The Europe market is driven by the increasing new vehicle production coupled with enhanced performance of old vehicles that are still in use.
The ongoing technological innovations in the automotive sector will create new opportunities for aftermarket companies to grow globally. The improved fuel economy is likely to increase the average miles driven by the customer. This has led to more wear & tear in vehicle parts, augmenting the demand for automotive aftermarket products.
Automotive Aftermarket Share
The automotive aftermarket industry share is highly competitive owing to the presence of major players including Bridgestone Corporation, Continental AG, Magna International, Inc., Robert Bosch GmbH, Toyota Motor Corporation, and ZF Friedrichshafen AG. Product design and configuration according to the changing vehicle part regulations along with the increasing distribution networks are the major areas for industry players that will drive the market growth.
The industry is going to witness high competition owing to the adoption of new strategies including long-term contracts, partnerships, and new product developments to gain high visibility in the market. Competitive pricing is another detrimental factor affecting the success of the brand in the global market. The cost optimization initiatives adopted by manufacturers include continuously optimizing and upgrading their products, expanding their distribution network, and conducting trials.
Product innovations and portfolio expansion are the key strategies for industry players to enhance their market share over the forecast period. Industry participants are constantly focusing on enhancing their production facilities, upgrading their solutions, and investing in new production plants to enhance their market presence.
Automotive Aftermarket Companies
Top companies operating in the automotive aftermarket industry include:
Automotive Aftermarket Industry News
The automotive aftermarket research report includes in-depth coverage of the industry, with estimates and forecasts in terms of revenue and volume (USD Million) (Tons) from 2021 to 2032, for the following segments:
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Market, By Vehicle Powertrain
Market, By Consumer
Market, By Product
Market, By Channel
The above information is provided for the following regions and countries:
Research methodology, data sources & validation process
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