Automotive Aftermarket industry to exceed $800 BN by 2027
Published Date: August 27, 2021 Authors: Kiran Pulidindi, Akshay Prakash
Automotive Aftermarket size is estimated to cross USD 800 billion by 2027; according to a new research report by Global Market Insights Inc.
Rising vehicle sales in the emerging nations of Asia Pacific will be driving the share of global automotive aftermarket. Growing repair and maintenance activities of vehicles coupled with shifting consumer preferences toward vehicle ownership will enhance the product penetration in the sector. The coronavirus pandemic has put a halt in the automotive industry development, negatively impacting the market. Emerging nations have experienced a rise in the passenger car & two-wheelers sales, which can be credited to the changing customer sentiment related to safety & hygiene.
Although the industry is gaining significant attention around the globe, the challenges associated with the stringent regulatory requirements may restrict new entrants by 2027. Rising concerns toward counterfeiting products have created a need for establishing standardized systems & high-quality certifications over the recent years. Such trends will reduce the penetration of players offering fake parts in the sector, further driving the popularity of genuine aftermarket parts in the sector.
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Browse key industry insights spread across 220 pages with 280 market data tables & 13 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), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
Proliferation in personalized vehicle solutions will flourish aftermarket growth
The accessories segment is set to witness 7.8% CAGR in automotive aftermarket through 2027. The vehicles’ interior and exterior parts require regular maintenance at service stations or workshops. The rising need for customized components and consumer inclination toward enhanced driving experience will boost industry development.
The DIY segment is forecast to register growth rate of around 7.4% over 2021 to 2027. During the pandemic, this segment is projected to gain significant attention from Asian vehicle owners, which can be attributed to the growing work-from-home culture and shortage of labors. Some of the projects, including body repair and paints, are expected to grow continuously, further enhancing the industry demand.
North America automotive aftermarket industry is estimated to observe 6% CAGR till 2027 on account of the proliferation in automotive servicing in the U.S. Rising number of car care centers and increasing dependency on road transport in the country will fuel the industry growth in the country. Trending replacement of ageing vehicle fleet coupled with a surge in electric car demand in the U.S. is poised to partially hinder the aftermarket growth.
The key companies in the industry are Lear Corporation, Continental AG, YAZAKI Corporation, Bridgestone Corporation, Federal-Mogul Holdings LLC, Magnetic Marelli, Robert Bosch, ZF FRIEDRICHSHAFEN AG, and many more. The industry is highly fragmented with the presence of a large number of small to medium scale aftermarket part suppliers in Asia Pacific. The top companies can adopt various strategic initiatives, including mergers & acquisitions, capacity expansion, new product launches, etc., to remain competitive in the industry.