The global automotive aftermarket market was valued at USD 257.85 billion in 2023 and is anticipated to reach a valuation of USD 390.6 billion by 2029 from USD 276.3 billion in 2024, growing at a CAGR of 7.17% between 2024 to 2029.
The automotive aftermarket market is responsible for remanufacturing, retailing, distributing, and installing car components and equipment following the sale of a vehicle.
Consumers are the lifeblood of the automotive aftermarket, which relies largely on them. The automotive aftermarket industry is constantly developing to fulfill changing consumer expectations because of rapid technological advancements in automobiles. As a result, developments in automobile technology are projected to favor the global automotive aftermarket market. In response to the desire for environmentally sustainable vehicles, the demand for aftermarket items such as catalytic converters and electronic chips to improve fuel economy on older vehicles has increased. Owners are especially keen on adding new amenities to their older vehicles, which is a major driver of the automotive aftermarket market growth.
In many countries, the government has imposed strict car emission regulations, putting pressure on manufacturers to produce environmentally friendly and high-efficiency automobile parts for both domestic and international markets, boosting demand for automotive aftermarket parts, which is expected to grow rapidly in the coming years. OEMs have offered additional accessories in vehicles that may be modified in the aftermarket to suit consumer needs for comfort and convenience in automobiles, which serves to fuel the growth of the automotive aftermarket. Aftermarket demand is driven by changing lifestyles, rising standards of living, and increased disposable income. Increased disposable money may lead to a more lavish lifestyle, necessitating the purchase of luxury vehicles. Due to the growing demand for automobile aftermarket products, an increasing number of millionaires around the world are designing or remodeling their distinctive vehicles.
The massive increase in global vehicle registrations has put pressure on OEMs to employ global platforms and modular architecture more quickly. As a result, the number of vehicles manufactured will rapidly increase, boosting the demand for spare parts and other auto-service facilities. This expands the market for automotive aftermarket companies.
Vehicles are becoming more equipped with sensors as technology advances, resulting in better driving behavior and less wear and tear on brakes and other vehicle components. This makes component replacement difficult and hinders the growth of the automotive aftermarket. The cost of vehicle modification is excessively exorbitant for the bulk of the population. Consumers who are comparatively upper-class and prepared to pay a premium price for vehicle parts are sold as a premium option. However, if this service is used more regularly, the price will have to drop for it to be affordable to the average person. Automobiles are supplied with ecologically friendly components in various countries to reduce carbon emissions and maintain the climate. Consumers are unable to select whether to replace parts that generate more carbon and harm the environment regularly. As a result, the vehicle aftermarket is constrained by these reasons.
One of the most vulnerable sectors to the ongoing COVID-19 spread is the automobile and transportation industries, which are currently experiencing unprecedented uncertainty. COVID-19 is expected to have a significant impact on the supply chain and product demand in the sector. The industry's main issue has changed from supply chain interruptions in China to a general reduction in demand for aftermarket products. Demand for commercial vehicle parts is expected to drop as all non-essential services are shut down.
Furthermore, changes in consumer purchasing behavior because of the pandemic's uncertainty could have a significant impact on the industry's near-term growth. Meanwhile, the aftermarket players have already been hampered by a liquidity shortage and cash crisis, which is projected to worsen in the coming months. Furthermore, consumers are predicted to choose private transportation in the aftermath of the pandemic. However, financial discrepancies are projected to stymie the purchase of new vehicles; commuters are likely to opt for second-hand cars due to price concerns.
The demand for aftermarket auto components for vehicle maintenance is predicted to rise as used car sales increase. On a larger scale, the epidemic is projected to prompt several entry-level aftermarket players to resurface in emerging countries. The market is also projected to fluctuate based on demand from different consumer categories, as each class section has its preferences for car repair and maintenance.
REPORT METRIC |
DETAILS |
Market Size Available |
2023 to 2028 |
Base Year |
2022 |
Forecast Period |
2023 to 2028 |
CAGR |
7.17% |
Segments Covered |
By Replacement, Service, Distribution, Certification and Region |
Various Analyses Covered |
Global, Regional and Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
Market Leaders Profiled |
Continental AG (Germany), ZF Friedrichshafen AG (Germany), HELLA KGaA Hueck & Co. (Germany), Denso Corp (Japan), Marelli (Japan), 3M (US), Goodyear (US), DRiV Inc (US), Federal-Mogul Corp (US), Cooper Tire (US), Delphi Tech (UK), Valeo Group (France), and Others. |
Tires dominated the market and are projected to continue to do so during the forecast period due to their shorter replacement cycle than their competitors. In addition, the introduction of intelligent tires and tire monitoring systems has had a considerable impact on tire aftermarket sales to increase vehicle safety features. Rising disposable wealth in developing countries, as well as a shift in consumer desire for appealing and artistic vehicle design, are propelling the market ahead. Furthermore, as the use of electric and battery-powered vehicles grows, auto component makers are increasing including advanced safety features such as tire pressure monitoring and other control units like speed control and engine monitoring.
The Original Equipment (OE) sector dominated the market in 2020, with a share of 72.9 percent, and is predicted to continue to do so throughout the study period. The primary drivers of market growth in the OE sector are brand recognition and consumer loyalty. Aside from that, Do It Yourself (DIY) is expected to increase at a healthy rate over the projection period. This can be due to consumers' growing technical expertise as well as their growing desire to repair, maintain, and modify their vehicles on their own.
The retail segment dominated the market in terms of share in 2023, with a share of 57.2%. By 2029, the retail segment is expected to dominate the market in terms of size. During the forecast period, the wholesale and distribution category is expected to develop at a moderately fast rate in terms of revenue. Automotive aftermarket economies are critical components of the overall automotive manufacturing and maintenance scheme, as automotive components must be changed on a timely basis to preserve the vehicle's overall performance.
The genuine components segment dominated the market with a share of 52.2% in 2023. By the end of the forecast period, the genuine components market will have surpassed the aftermarket in terms of size. During the forecast period, the uncertified segment is expected to develop at a relatively fast rate in terms of revenue. Counterfeit components are unlawful, haven't been tested, and aren't covered by a guarantee. Genuine components are made by car manufacturers or OEMs, often known as subcontractors. Genuine replacement parts have a higher level of quality assurance, are more diverse, are easier to find, and come with a warranty. The disadvantage is that these parts are expensive and sold in exclusive outlets only.
In terms of market size, Asia Pacific dominated the market in 2023, accounting for 28.0 percent of total revenue. The Asia Pacific market is predicted to increase significantly during the forecast period. The regional market penetration is being boosted by an increase in the sales of electric, hybrid, and gas-powered vehicles, leading to a shift in consumer preference toward energy-efficient automobiles. The market statistics are being driven by car digitization and personalization, as well as rising demand for Bluetooth devices and other electronic accessories.
The Asia Pacific accounts for more than 42% of total global automobile production. China is the world leader in passenger automobiles, commercial vehicles, and electric vehicles. According to China's Ministry of Commerce, China's aftermarket business was worth more than US$ 153 billion in 2020, surpassing the aftermarket sectors in the United States, Germany, France, and the United Kingdom. Automobile production is also increasing in other APAC countries such as Malaysia, Thailand, Japan, Indonesia, South Korea, and India. The Asia Pacific currently accounts for a sizable percentage of the worldwide automotive aftermarket industry.
In 2023, North America dominated the automotive aftermarket in terms of revenue. The region's market is expected to rise due to an increase in demand for passenger automobiles, the employment of modern technologies in auto part fabrication, and the digitization of component delivery services. Strict pollution regulations in the region have compelled component makers to upgrade vehicle components to comply with government regulations. The requirement for high-efficiency and environmentally friendly vehicle components for worldwide as well as domestic markets has grown dramatically as a result of the rising environmental deterioration caused by vehicular emissions.
Europe is a big revenue contributor in the global automotive aftermarket due to the presence of several automotive OEM manufacturers in the region. Additionally, strong purchasing power, combined with the green revolution's goal of making transportation more environmentally friendly, are two major factors driving the market growth. Between 2021 and 2026, the European area retained a 24.15 percent market share.
Continental AG (Germany), ZF Friedrichshafen AG (Germany), HELLA KGaA Hueck & Co. (Germany), Denso Corp (Japan), Marelli (Japan), 3M (US), Goodyear (US), DRiV Inc (US), Federal-Mogul Corp (US), Cooper Tire (US), Delphi Tech (UK), Valeo Group (France). Are playing a dominant role in the global automotive aftermarket. The Bosch Group is the world's largest automotive aftermarket company. The leading service provider has 400,000 employees and 440 subsidiaries in 60 countries, generating $91.8 billion in revenue.
By Replacement Part
By Service Channel
By Distribution Channel
By Certification
By Region
Frequently Asked Questions
The size of the global automotive aftermarket market is expected to be valued at USD 257.85 billion in 2023.
The size of the global automotive aftermarket market will grow at a valuation of USD 364.53 billion by 2028
Continental AG (Germany), ZF Friedrichshafen AG (Germany), HELLA KGaA Hueck & Co. (Germany), Denso Corp (Japan), Marelli (Japan), 3M (US), Goodyear (US), DRiV Inc (US), Federal-Mogul Corp (US), Cooper Tire (US), Delphi Tech (UK), Valeo Group (France). Are playing a dominant role in the global automotive aftermarket market.
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