The worldwide automotive aftermarket market was valued at USD 224.50 billion in 2022, and it is expected to grow at a CAGR of 7.17 per cent to USD 340.25 billion by 2027. Rising client demands, continuing technology innovations, and more competition are the main drivers of the automobile industry's expansion.
Automotive Aftermarket Market Overview:
The automotive aftermarket industry is responsible for remanufacturing, retailing, distributing, and installing car components and equipment following the sale of a vehicle. The global automotive aftermarket business is predicted to grow at a constant rate due to growing car demand and production around the world. Consumers are the lifeblood of the automotive aftermarket, which relies largely on them. The automotive aftermarket industry is constantly developing to fulfil changing consumer expectations as a result of rapid technological advancements in automobiles. As a result, developments in automobile technology are projected to help the global automotive aftermarket industry.
Recent Developments in Global Automotive Aftermarket Market
In October 2021, 3M Co, reduced its full-year earnings forecast and announced that it will start raising product pricing to offset inflationary and supply chain pressures negatively affecting American manufacturers.
Continental AG has reduced its revenue and EBIT estimates for the year lower due to "uncertainties in the supply chain and customer demand." Continental expects consolidated net sales of 32.5 billion to 33.5 billion euros, down from a previously predicted range of 33.5 billion to 34.5 billion euros. The company's total adjusted EBIT margin "is projected to be in the range of roughly 5.2 per cent to 5.6 per cent," down from a previously forecast range of 6.5 per cent to 7%. Rubber Technologies is predicted to earn $17.2 billion to $17.5 billion in revenue, with an adjusted EBIT margin of 12.3% to 12.7 per cent.
The acquisition of Cooper Tire & Rubber Company by Goodyear Tire & Rubber Company has been completed, bringing the merger agreement reached on February 22, 2021, to a close. The merger unites two leading tyre companies with complementary product portfolios, services, and capabilities to become a stronger global tyre industry leader with headquarters in the United States.
Denso, a worldwide mobility firm, has announced a reorganisation of its North American engineering and research and design divisions to better integrate the company's electrification, thermal, and safety systems. The company believes this decision will place them in a better position to fulfil changing client expectations while also advancing its ambitions to power society's move to green, safe, and seamless mobility by 2035 and achieve carbon neutrality.
Global Automotive Aftermarket Market Drivers
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 industry's 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 remodelling 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.
Global Automotive Aftermarket Market Restraints
Vehicles are becoming more equipped with sensors as technology advances, resulting in better driving behaviour 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 or not to replace parts that generate more carbon and harm the environment regularly. As a result, the vehicle aftermarket is constrained by these reasons.
Market Size Available
2022 – 2027
2022 - 2027
By Application, Type and Region
Various Analyses Covered
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities
North America, Europe, APAC, Latin America, Middle East & Africa
Market Leaders Profiled
Global Automotive Aftermarket Market Segmentation
Replacement Part: The market is segmented into Battery, Tyre, Filters, Brake Parts, Turbochargers, Body Parts, Wheels, and Others.
Tyres dominated the market and are projected to continue to do so during the forecast period due to their shorter replacement cycle than its competitors. In addition, the introduction of intelligent tyres and tyre monitoring systems has had a considerable impact on tyre 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 tyre pressure monitoring and other control units like speed control and engine monitoring.
Service Channel: The market is segmented into DIFM (Do it for Me), DIY (Do it Yourself), and OE (Delegating to OEMs).
The Original Equipment (OE) sector dominated the market in 2020, with a share of 72.9 per cent, 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.
Distribution Channel: The market is segmented into Wholesalers & Distributors and Retailers (OEMs and Repair Shops).
The retail segment dominated the market in terms of size in 2020, with a share of 57.2 per cent. By 2026, the retail segment is expected to dominate the market in terms of size. From 2022 - 2027, 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.
Certification: The market is segmented into Certified Parts, Genuine Parts, and Uncertified Parts.
Genuine components dominated the market in terms of the market size in 2020, with a share of 52.2%. By 2026, the genuine components market will have surpassed the aftermarket in terms of size. From 2022 - 2027, 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.
Automotive Aftermarket Market Regional Analysis
In terms of market size, Asia Pacific dominated the market in 2020, accounting for 28.0 per cent of total revenue. From 2022 - 2027, the Asia Pacific market is predicted to increase significantly. By 2026, the Asia Pacific automotive aftermarket is expected to grow at a rate of more than 7%. 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 2020, North America dominated the automotive aftermarket in terms of revenue, accounting for more than $180 billion. 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 per cent market share.
Global Automotive Aftermarket Market Leader
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.
Global Automotive Aftermarket Market Key Players
Impact of COVID-19 for Global Automotive Aftermarket Market
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 behaviour as a result 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 secondhand 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.
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 (2022 - 2027)
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 (2022 - 2027)
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 (2022 - 2027)
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 (2022 - 2027)
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 (2022 - 2027)
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
220.127.116.11 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
18.104.22.168 South Korea
22.214.171.124 South East Asia
126.96.36.199 Australia & NZ
188.8.131.52 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
184.108.40.206 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
220.127.116.11 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
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