Automotive Aftermarket industry in APAC to exceed $190 Bn by 2027
Published Date: September 7, 2021 Authors: Kiran Pulidindi, Akshay Prakash
Asia Pacific Automotive Aftermarket size is estimated to cross USD 190 billion by 2027, according to a new research report by Global Market Insights Inc.
Rising vehicle sales in emerging nations will propel the regional industry revenue. The high disposable income in emerging countries will lead to the replacement market expansion. Growing e-commerce platforms for automotive parts and accessories are positively influencing the industry growth. The shifting preference of consumers toward comfortable buying & trading options with cost-effective prices is further augmenting the demand.
The shifting consumer preferences toward the customization of existing vehicles with technologically advanced components and accessories are significantly impacting vehicle efficiency. The stringent vehicle safety regulations mandated by several governments across the globe are pressurizing vehicle manufacturers to incorporate new safety technologies including ADAS in vehicles. The adoption of ADAS in vehicles has resulted in decreasing vehicle collision incidents, in turn, reducing the automotive aftermarket revenue generation. The decrease in human control and rising autonomous vehicle trends are further lowering vehicle collision rates.
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Increasing requirements for repair & maintenance of old vehicles will flourish aftermarket growth
The replacement part segment is projected to witness 6.5% CAGR through 2027. Products from suspension, transmission, and wiper parts are one of the major sub-products in this segment. Failure in original products and wear & tear of products are leading to increasing demand for replacement parts.
Browse key industry insights spread across 220 pages with 175 market data tables & 22 figures & charts from the report, “Asia Pacific Automotive Aftermarket Size Estimates By Product (Replacement Parts [Belt, Brakes, Clutch, Electrical Parts, Lighting, Electrical & AC Parts, Exhaust, Filters, Suspensions, Transmission, Wiper Parts], Accessories [Car Exteriors, Car Interiors]), By Sales Outlet (Professional [Quick Lubes, Garages & Service Stations, Automobile Dealerships, Government, Commercial Fleets & Other Professional Outlets], DIY [Discount Department Stores, Auto Parts Stores], OEM Factory Fill), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
The accessories segment will capture significant share in Asia Pacific automotive aftermarket by 2027. The major role of car accessories is to protect the car. They also provide a stylish look on the outside and in the interior by using various interior accessories. Car accessories in the aftermarket are crucial since there are various accessories, which are not provided by the manufacturer.
The OEM factory fill sales outlet is anticipated to register growth rate of over 7.5% in Asia Pacific automotive aftermarket during 2021 to 2027. An increasing passion for automobiles and shifting preferences toward authentic parts for automobiles is boosting the segment growth. Factors including easy replacement as the parts fit perfectly, reliability of distribution, the durability of products, compatibility with the system, and product compliance with warranty are driving the market revenue.
Indian market is set to generate nearly USD 14.5 billion by 2027 and provide lucrative opportunities as the country holds a noteworthy demand for advanced technologies, engine heaters, customization items, vintage car parts, and truck aftermarket items. South Korea is expected to observe the fastest growth on account of increasing consumer preferences for high-performance and aesthetics in their vehicles. This will create a positive business outlook for distributors, who offer high-performance solutions such as brakes, suspensions & transmission, and high-end audio systems.
The key companies in the Asia Pacific automotive aftermarket industry are Lear Corporation, Federal-Mogul Holdings LLC, 3M, Robert Bosch GmbH, Denso Corporation, Hyundai Mobis Co., Ltd., ACDelco, Lear Corporation, ALCO Filters Ltd., Akebono Brake Corporation, Aisin Seiki, Toyota Motor Corporation, and Delphi Automotive PLC, ZF FRIEDRICHSHAFEN AG, and many more.
The industry is highly fragmented with the presence of several small to medium-scale aftermarket part suppliers in APAC. The top companies are adopting various strategic initiatives including mergers & acquisitions, capacity expansion, new product launches, etc., to remain competitive in the industry.