Market Analysis

Automotive AfterMarket Analysis

The replacement parts segment dominates the market and will capture nearly 80% of the revenue share by 2028. In revenue, the segment in anticipated to generate a revenue of about USD 700 billion by 2028.Growing vehicle registrations across various regions are significantly spurring the demand for replacement automotive parts & components. The introduction of technologically advanced spare parts providing improved vehicle efficiency will prominently drive the industry growth. The shifting consumer inclination toward utilizing refurbished & pre-owned cars will showcase positive growth prospects in the market size. The requirement for customization, repair, and maintenance of refurbished vehicles will provide a positive outlook for the automotive aftermarket share.

Electrical systems improve vehicle performance & efficiency and also provide better fuel efficiency, horsepower, and faster starts. To gain more engine power and trouble-free starts in all weather conditions, electrical systems must be well maintained which is another factor attributing to the product demand

The accessories segment is projected to witness significant growth owing to the rising demand for vehicle customization, which provides aesthetic look, lightness, high standards of design, engineering, and safety functions.

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The automotive aftermarket from professional stores segment is set to account for USD 550 billion by 2028. Consumer preferences for economic services, close-to-home benefits, and personalized services are likely to increase the growth rate of garages, service stations, and car dealerships. Service quality, high-quality components, and technical skills are the major factors enhancing the market size from professional stores.

The garages & service stations segment is poised to register a growth rate of above 6% through 2028. This segment includes authorized service stations & workshops that provide a series of maintenance procedures, which are carried out when a vehicle has traveled a certain distance.

North America is predicted to reach USD 275 billion by 2028. The regional car market is driven by an increase in the production of new cars coupled with the development of older & used cars. New technological advancements in the automotive sector are creating growth opportunities for aftermarket trading companies to develop their businesses.

Asia Pacific automotive aftermarket is slated to observe 7% gains till 2028. Increased sales of electric, hybrid, and gas vehicles due to growing interest in energy-efficient vehicles are fueling product entry in the region. Digital installation & customization of vehicles and the growing demand for Bluetooth & various other electronic devices will propel the car market in Japan, South Korea, and Australia.

Europe is expected to provide lucrative opportunities as the region has a significant need for advanced technologies, engine heaters, custom-made accessories, old car parts, and rear truck market items. Moreover, the presence of major automobile manufacturers in the region shall further augment the market demand.