Automotive Aftermarket industry worth over $1,100 Bn by 2026
Published Date: December 29, 2020 Authors: Kiran Pulidindi, Akshay Prakash
Automotive Aftermarket industry size will likely exceed USD 1,100 billion by 2026; according to a new research report by Global Market Insights, Inc.
Increasing vehicle ownership and advent of e-commerce to drive demand
With increasing vehicle ownership, the necessity for scheduled servicing and maintenance also arises to enhance aging vehicles lifetime and functionality, ultimately driving the automotive aftermarket industry growth. The evolving consumer expectations coupled with ongoing technological innovation and surging competition across the automotive sector are also considered major contributory factors fueling the market expansion. The ever-increasing penetration of major OEMs into the aftermarket through consolidation of parts distributors is providing a positive market outlook.
However, in the wake of the ongoing COVID-19 pandemic, the negative impact on the industry compounded as the global automotive sector was already going through weak demand since 2019 due to a slew of geopolitical uncertainties such as U.S.-China trade war, uncertainty over Brexit, economic slowdown in China & India, and various other factors. The imposition of stringent nationwide lockdown followed by complete disruption of raw material supply chain is also expected to contribute to market downturn.
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Supportive government initiatives and reforms to curb CO2 emissions have manifested the demand for a new range of automotive accessories catering to emerging new energy vehicles. With rapid rise in the electric vehicle segment, the aftermarket has quickly responded to fulfil arising consumer needs with the new powertrain platform. For instance, in November 2020, Splivolt announced the launch of its family of EV charging products. The product line comprises affordable splitter switches and high-performance portable EV chargers.
Browse key industry insights spread across 250 pages with 264 market data tables & 14 figures & charts from the report, “Automotive Aftermarket Size 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 ), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
The accessories segment is poised to account for a sizeable automotive aftermarket share with the increasing presence of manufacturers offering innovative solutions and fulfilling emerging market needs. The segment contributed more than 14% of the total aftermarket product share and is anticipated to witness significant growth. With the advent of rapid prototyping and innovative manufacturing techniques, new products are introduced quickly and reliably at low costs, fueling market toward growth trajectory.
The DIY segment is projected to observe over 6.5% CAGR through 2026 driven by the increasing trend and rising service and labor prices especially in Asia Pacific. The discount department in DIY sales outlet held significant share and is attributed to low prices offered by the stores. The consolidation of small-scale retailers and expansion from large-scale players is set to dynamically close the gap between discount department and auto part stores in terms of share.
North America to bank upon the increasing service industry
North America automotive aftermarket held above 30% share in 2019 impelled by proliferating automotive service industry. The U.S. has high per capita vehicle ownership along with high average vehicle age. The ageing vehicle fleet in the region is expected to drive the aftermarket service sector as vehicles utilize more replacement parts and other components. The ageing fleet driving aftermarket demand and rapid surge in sales of electric vehicles has provided the accessory aftermarket with an opportunistic scenario.
Key automotive aftermarket players include BASF, Cooper Tire & Rubber Company, ZF Friedrichshafen AG, Denso Corporation, Magnetic Marelli, Lear Corporation, Magna International, Robert Bosch, and among others.