APAC Automotive Aftermarket Industry Size to exceed $165bn by 2024
Published Date: January 11, 2019 Authors: Kiran Pulidindi
APAC Automotive Aftermarket size is estimated to surpass USD 165 billion by 2024; according to a new research report by Global Market Insights, Inc.
Increasing demand for modifications in cars with respect to technologically and mechanically advanced components will fuel the APAC automotive aftermarket industry growth. Rising average distance travelled per vehicle will provide strong outlook for replacement parts thereby driving the business growth. In addition, low cost and easier availability of aftermarket parts compared to OEM parts will further propel the business expansion.
Shifting consumer focus towards digital sales platform offered by manufacturers will provide myriad of opportunities in the APAC automotive aftermarket. Consumers can directly access the product information and compatibility with the vehicle which in turn will proliferate product sales through e-commerce platforms. The emergence of new generation vehicles including electric vehicles and connected cars will provide new growth opportunities in the industry. For instance, according to the International Energy Agency, China and Japan are the top ten countries for electric vehicle sales registering over 579,000 and 54,100 units respectively in 2017.
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OEM sales outlet in the overall automotive aftermarket industry in Asia Pacific will observe gains of more than 5% over projected timeframe. Increasing consumer preference for automotive parts provided by the OEMs owing to superior quality assurance and extended warranty coverage will fuel the segment demand. Additionally, a wide range of alternatives in choosing the parts along with proper system compatibility, ease of part replacement, and adequate customer support will further proliferate the business expansion.
Browse key industry insights spread across 700 pages with 444 market data tables & 14 charts & figures from the report, “Asia Pacific Automotive Aftermarket Size By Vehicle Part (Linkages, Suspensions, Transmission, Braking, Powertrain Components), By Sales Outlet (Independent Professional, DIY, OEM), By Vehicle Segment (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” in detail along with the table of contents:
PCV vehicle segment valued at over USD 75 billion in 2017. Shifting consumer preferences towards upgrading existing cars with advanced technologies & replacing old components will further spur the business growth. High disposable income and easier credit facility is positively influencing passenger cars sales, further promulgating the business expansion over the projected timeframe.
Expansion of the travel & tourism sector resulting into increased average distance driven per car is anticipated to positively influence the aftermarket growth. Rising number of road accidents along with increasing adoption of insurance policies will further support the automotive aftermarket industry growth. For instance, in India, the third-party insurance cover for new cars has been made compulsory for a period of three years from September 2018. However, improved OEM fittings along with the provision for extended warranty period may impact the overall APAC automotive aftermarket profitability.
Steering segment is expected to surpass USD 37 billion in the overall automotive aftermarket in APAC region. Key factors including increasing vehicle production, improved service life, and innovative manufacturing capacities of the leading players will augment the industry landscape. Additionally, rising consumer awareness pertaining to vehicle crashes on road is increasing the demand for recirculating and nut steering systems, thereby driving the segment growth till 2024.
Vietnam will observe gains exceeding 9% over the projected time period in overall APAC automotive aftermarket industry. An upsurge in the automobile sales coupled with rising spending power of citizens in the country will spur the industry size. For instance, as per IPSI of Trade and Industry Ministry, the automotive vehicle market will reach around 800,000 units by 2025. The prediction was based on three factors including income per head, average number of cars per 1,000 people, and population size.
The APAC automotive aftermarket industry share is highly fragmented comprising of many global and regional players in the organised and unorganised sector. Key market participants include Continental AG, Aisin Seiki Co Ltd, Denso, Robert Bosch GmbH, Hitachi Automotive Systems, YAZAKI Corporation, Sumitomo Electric Industries, Ltd. and ZF Friedrichshafen AG. Major manufacturers are increasing their raw material supplier range to limit the reliance on a single supplier. In addition, technological advancements and product launches are among the key strategies observed in the industry. For instance, in September 2018, Delphi Technologies launched a new ultra-high-precision fuel injector for medium and heavy-duty diesel applications. It enabled the company to increase its market share in the commercial vehicles segment.
Automotive aftermarket research report in APAC includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2013 to 2024, for the following segments:
APAC Automotive Aftermarket Industry, By Vehicle Part
- Powertrain Components
APAC Automotive Aftermarket Industry, By Sales Outlet
- Independent Professional
APAC Automotive Aftermarket Industry, By Vehicle Segment
- Passenger Car
- Light Commercial Vehicle
- Heavy Commercial Vehicle
- Off-Highway Vehicle
The above information is provided on a country basis for the following:
- Hong Kong
- New Zealand
- South Korea