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Europe Automotive Aftermarket Market Size, Trends & Growth (2020 - 2026)
The European Automotive Aftermarket industry is valued at $256 billion in 2021 and is expected to grow to $369.2 billion in 2026 at a CAGR of 3.1%.
The automotive aftermarket business is committed to reprocessing, retailing, distributing, and installing car components and equipment after a vehicle has been sold. The European automotive aftermarket business is predicted to grow at a constant rate due to the rising car demand and production around the continent. Consumers are critical to the car aftermarket, which relies largely on them. The automotive aftermarket industry is constantly evolving to suit shifting consumer expectations as a result of substantial technological advancements in automotive.
Recent Developments in Europe Automotive Aftermarket Market
BMW and Bosch have now unveiled a technology solution that allows independent workshops to access connected car data and deliver the services required. The first practical use case is the transfer of BMW vehicle data in the event of a first indication of servicing necessity (FNOS). The purpose of Bosch and BMW's FNOS project was to demonstrate the technical feasibility of automatically sending vehicle data related to the need for service or repair to independent workshops.
ZF Friedrichshafen AG, a German automotive supplier, will invest in Oxbotica, a British autonomous vehicle software firm, to work on developing driving systems for pod-like shuttles that can transport people and products.
Delphi Technologies, an auto parts manufacturer, has introduced new aftermarket steering and suspension components for the Tesla Model S electric automobile. The components are the foundation for a complete chassis solution that will cover 165,000 Model S EVs in North America and 77,000 in Europe.
Frost & Sullivan has awarded Valeo the 2021 European New Product Innovation Award based on its recent analysis of the European commercial vehicle wiper blades aftermarket. Valeo's SWF brand is the first and only Original Equipment Supplier (OES) in the independent aftermarket to offer a specially designed wiper blade for the Mercedes-Benz (MB) Actros MP5 (IAM). Its innovative connectors handle the wiper blade's fitting requirements, and its design differs from OE versions to prevent counterfeiting.
Europe Automotive Aftermarket Market Drivers
Over the last decade, new vehicle sales in Europe's consolidated market grew at a rate of less than 2% per year. At the same time, the average car age in Europe increased from 8.4 to 9.7 years. These developments underscore the overall necessity to address older car categories. Customers are also using online review sites and other digital platforms to help them formulate their purchasing judgments. There are already a slew of online parts sales and servicing platforms. Component manufacturers, automakers, aftermarket distributors, and workshop chains will continue to expand their online presence and develop new platforms.
By 2026, e-commerce sales of automotive components are expected to climb to 20% to 30% of total sales. Digital-driven products and services, on the other hand, are establishing a new trend and will be the primary growth drivers for the market over the projection period. The digital services segment, which includes telematics, vehicle diagnosis, and fleet management, is expected to grow rapidly from 12 per cent to 28 per cent throughout the projected period.
Newmarket participants are entering this arena with digitally-linked business strategies to capitalise on market opportunities. On the distribution side, internet channels are proven to be the most compelling business strategy, attracting significant aftermarket companies to offer unique products and services through the internet.
Europe Automotive Aftermarket Market Restraints
As technology progresses, vehicles become more integrated with sensors, resulting in better driving behaviour and reduced wear and tear on brakes and other vehicle components. This makes component replacement difficult, and the automotive aftermarket's expansion is hampered as a result.
For the vast majority of the population, the expenditure on vehicle modification is outrageously costly. Premium customers are those who are generally upper-class and willing to pay a higher price for vehicle parts. If this service is utilised more frequently, however, the price will have to drop for it to be affordable to the average person.
To limit carbon emissions and manage the climate, automobiles are equipped with environmentally friendly components in a variety of countries. Consumers have little say in whether or not they want to replace parts that emit more carbon and hurt the environment frequently. As a result, the aftermarket for automobiles is confined by these factors.
Europe Automotive Aftermarket Market Segmentation
Replacement Part: The market is segmented into Battery, Tyre, Filters, Brake Parts, Turbochargers, Body Parts, Wheels, and Others.
Due to their shorter replacement cycle than their competitors, tyres led the market and are expected to continue to do so during the projection period. Furthermore, the introduction of intelligent tyres and tyre monitoring systems has had a significant impact on tyre aftermarket sales as a means of improving car safety features. The market is being propelled forward by rising disposable income in developing countries, as well as a shift in customer demand for appealing and aesthetic vehicle design.
Service Channel: The market is segmented into DIFM (Do it for Me), DIY (Do it Yourself), and OE (Delegating to OEMs).
With a market share of 72.9 per cent in 2020, the Original Equipment (OE) sector is expected to continue to dominate the market throughout the study period. Brand recognition and consumer loyalty are the major drivers of market growth in the OE sector. Aside from that, over the projection period, Do It Yourself (DIY) is predicted to grow at a respectable rate. This could be attributed to consumers' increasing technical knowledge and willingness to fix, maintain, and modify their vehicles themselves.
Distribution Channel: The market is segmented into Wholesalers & Distributors and Retailers (OEMs and Repair Shops).
In 2020, the retail segment dominated the market in terms of size, accounting for 57.2 per cent of the total. In terms of size, the retail segment is predicted to dominate the market by 2026. The wholesale and distribution category is predicted to grow at a moderately rapid rate in terms of revenue from 2021 to 2026. Automotive aftermarket economies are essential components of the overall automotive production and maintenance scheme, as automotive components must be replaced regularly to maintain the vehicle's overall performance.
Certification: The market is segmented into Certified Parts, Genuine Parts, and Uncertified Parts.
Genuine components, with a market share of 52.2 per cent in 2020, dominated the market in terms of market size. In terms of scale, the genuine components market will have exceeded the aftermarket by 2026. In terms of revenue, the uncertified segment is likely to grow at a rapid pace. Counterfeit components are illegal, haven't been tested, and come with no warranty. Car manufacturers or OEMs, often known as subcontractors, make genuine components. Genuine replacement parts are more diverse, easier to find and come with a warranty. The disadvantage is that these parts are expensive and only available through select retailers.
Europe Automotive Aftermarket Market Regional Analysis
According to Frost & Sullivan, the European automotive aftermarket is a €100 billion sector for components suppliers from Ireland to Russia, with overall sales increasing by 2.4 per cent yearly. Routine maintenance parts like tyres and lighting will grow faster than the market as a whole. The year-over-year increase for electrical parts, such as position and pressure sensors, will be as high as 10 per cent. Remanufactured items are also becoming more popular, since successful cross-border core collection schemes allow for lower-cost starters/alternators and clutch parts, among other things.
The majority of these vehicles are sold in mature Western European markets such as the United Kingdom, Germany, France, Italy, and Spain (about 166 million). The number of cars in use in these countries, on the other hand, is only increasing by 1% every year. Low economic growth has limited new vehicle purchases, resulting in fewer cars and light trucks being added to the parking lot. Eastern Europe's growth rates are substantially higher. The vehicle fleet in Russia is predicted to grow three times faster than the rest of Europe. Poland's new car sales rose by 6.4 per cent, the most since 2013, boosting the country's automobile population.
Around 40% of cars are over nine years old, making them excellent candidates for pricey maintenance replacement. New vehicle sales will take several years to recover to pre-recession levels in the major Western European countries, increasing the likelihood that owners will pay for repairs rather than sell in their vehicle.
Germany is one of the most significant automotive vehicle manufacturers, with high demand and sales for automobiles, resulting in a rise in the need for replacement of many automotive parts, which is likely to fuel market expansion over the projection period. Moreover, during the forecast period, the market is likely to be boosted by innovative business strategies and online customised services. When the linkages between GDP growth rates are taken into account, this German industry is expected to continue to be home to some of the world's most technologically advanced aftermarket companies, assisting the country in maintaining a strong position in the future.
The automotive aftermarket in the United Kingdom is prospering, ranking fourth in Europe and tenth in the world in terms of revenue, with an annual turnover of £21.1 billion. The industry employs 345,600 people and generates £12.2 billion in revenue each year. Between 2021 and 2026, the sector's worth is expected to reach £28 billion, in step with the UK's rising car fleet. The UK also has a strong trading relationship with the rest of Europe, with Germany being the largest market, followed by France and Spain.
Europe Automotive Aftermarket Market Leader
Bosch is the largest automotive aftermarket company in Europe. The world's largest service provider employs 400,000 people and operates 440 companies in 60 countries, generating $91.8 billion in revenue.
Europe Automotive Aftermarket Market Key Players
Impact of COVID-19 for Europe Automotive Aftermarket Market
During the reign of COVID-19 pandemic, the roads across Europe became hauntingly deserted in many areas, and cities were devoid of people. According to data supplied by TomTom, a navigation system maker, private and corporate travel, including commuting, has decreased dramatically. In February and March, Italy and Spain were particularly heavily struck. As of March 20, car density in Bergamo and Milano was 17 percent lower than a year ago, and 18 percent lower in Madrid. By the end of March in Germany, where curfews are in place in some areas, the traffic load on city highways had dropped by over 40%.
Many people are postponing inspections or making discretionary repairs, and several government transportation organisations are easing mandated technical controls and inspections deadlines. Consumers with lower means are likewise putting off maintenance that could be avoided. Even while garages, service stations, and repair shops are normally allowed to remain open and may still easily get components from distributors, these changes are substantially lowering visits to them. For example, German garages claim a 50 percent drop in sales. Such a scenario paved a path for digital channels and e-commerce vendors to prosper in the automotive aftermarket.
1.1 Market Definition
1.2 Scope of the report
1.3 Study Assumptions
1.4 Base Currency, Base Year and Forecast Periods
2. Research Methodology
2.1 Analysis Design
2.2 Research Phases
2.2.1 Secondary Research
2.2.2 Primary Research
2.2.3 Data Modelling
2.2.4 Expert Validation
2.3 Study Timeline
3. Report Overview
3.1 Executive Summary
3.2 Key Inferencees
4. Market Dynamics
4.1 Impact Analysis
4.2 Regulatory Environment
4.3 Technology Timeline & Recent Trends
5. Competitor Benchmarking Analysis
5.1 Key Player Benchmarking
5.1.1 Market share analysis
5.1.3 Regional Presence
5.2 Mergers & Acquistion Landscape
5.3 Joint Ventures & Collaborations
6. Market Segmentation
6.1 Automotive Aftermarket Market, By Replacement Type
6.1.4 Brake Parts
6.1.6 Body Parts
6.1.9 Market Size Estimations & Forecasts (2021-2026)
6.1.10 Y-o-Y Growth Rate Analysis
6.1.11 Market Attractiveness Index
6.2 Automotive Aftermarket Market, By Service Channel
6.2.4 Market Size Estimations & Forecasts (2021-2026)
6.2.5 Y-o-Y Growth Rate Analysis
6.2.6 Market Attractiveness Index
6.3 Automotive Aftermarket Market, By Distribution Channel
6.3.1 Wholesalers & Distributors
6.3.3 Market Size Estimations & Forecasts (2021-2026)
6.3.4 Y-o-Y Growth Rate Analysis
6.3.5 Market Attractiveness Index
6.4 Automotive Aftermarket Market, By Certification
6.4.1 Certified Parts
6.4.2 Genuine Parts
6.4.3 Uncertified Parts
6.4.4 Market Size Estimations & Forecasts (2021-2026)
6.4.5 Y-o-Y Growth Rate Analysis
6.4.6 Market Attractiveness Index
7. Geographical Landscape
7.1 Global Automotive Aftermarket Market, by Region
7.2 North America - Market Analysis (2021 - 2026)
7.2.1 By Country
7.2.2 By Replacement Type
7.2.3 By Service Channel
7.2.4 By Distribution Channel
7.2.5 By Certification
7.3.1 By Country
126.96.36.199 Rest of Europe
7.3.2 By Replacement Type
7.3.3 By Service Channel
7.3.4 By Distribution Channel
7.3.5 By Certification
7.4 Asia Pacific
7.4.1 By Country
188.8.131.52 South Korea
184.108.40.206 South East Asia
220.127.116.11 Australia & NZ
18.104.22.168 Rest of Asia-Pacific
7.4.2 By Replacement Type
7.4.3 By Service Channel
7.4.4 By Distribution Channel
7.4.5 By Certification
7.5 Latin America
7.5.1 By Country
22.214.171.124 Rest of Latin America
7.5.2 By Replacement Type
7.5.3 By Service Channel
7.5.4 By Distribution Channel
7.5.5 By Certification
7.6 Middle East and Africa
7.6.1 By Country
126.96.36.199 Middle East
7.6.2 By Replacement Type
7.6.3 By Service Channel
7.6.4 By Distribution Channel
7.6.5 By Certification
8. Key Player Analysis
8.1 Continental AG
8.1.1 Business Description
8.1.4 SWOT Analysis
8.1.5 Recent Developments
8.1.6 Analyst Overview
8.2 ZF Friedrichshafen AG
8.3 HELLA KGaA Hueck & Co.
8.4 Denso Corp
8.8 DRiV Inc
8.9 Federal-Mogul Corp
8.10 Cooper Tire
8.11 Delphi Tech
8.12 Valeo Group
9. Market Outlook & Investment Opportunities
List of Tables
List of Figures