Automotive Aftermarket: Current Analysis and Forecast (2022-2028)

Automotive Aftermarket: Current Analysis and Forecast (2022-2028)

The global automotive aftermarket is expected to grow at a significant rate of around 5% during the forecast period. The automotive aftermarket provides various services with a choice over how to repair, maintain and service their vehicles. The automotive aftermarket is the secondary market of the automotive sector, concerned about the assembling, remanufacturing, distribution, retailing, and installation of all vehicle parts, chemicals, and extra equipment, after the offer of the automobile by the original equipment manufacturer (OEM) to the customer. Additionally, services such as the replacement of vehicle parts, repair, and maintenance of a vehicle are also part of the automotive aftermarket industry. These all services are boosting the market growth during the forecast period. For instance, Certified Automotive Parts Association (CAPA), offers test programs to verify and guarantee the quality and suitability of automotive replacement parts. Certified parts are cost-effective alternatives to costly genuine parts.

Continental AG, ZF Friedrichshafen AG, Dana Inc., Robert Bosch GmbH, Valeo SA, Tenneco Inc., Meritor Inc., AISIN SEIKI Co. Ltd., DENSO CORPORATION, HELLA GmbH & Co. KGaA. are some of the key players in the market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.

Insights Presented in the Report
"Amongst component, equipment category to witness robust CAGR during the forecast period”

Based on component, the market is segmented into engine parts, drive transmission and steering parts, suspension and braking parts, equipment, electrical parts, and others. Among these, the equipment category to witness a higher CAGR during the forecast period owing to the strong automotive industry of developing nations such as China, India, and Brazil, among others. Furthermore, because of the strict government regulations and policies regarding vehicular emissions and the surge in the number of vehicles in operation (VIO) across the globe propel the market growth during the forecast period. Additionally, key stakeholders are concentrating on launching new features & services with enhanced features in order to increase sales and strengthen their position in the highly competitive automotive aftermarket. For instance, in December 2019, BorgWarner Inc. announced the portfolio expansion of its original-aftermarket products. In January 2020, the company became the exclusive aftermarket distributor of Beru glow plugs, glow plug controllers, and ignition coils.
"Amongst distribution channel, the online distribution channel to hold a significant share in the market in 2020”

On the basis of distribution channel, the market is categorized into offline distribution channel and online distribution channel. Among these, the online distribution channel holds a significant share in the market during the forecast period. This is mainly due to the growing availability of products such as gearboxes, wheels, steering systems, axles, clutch assembly systems, and other engine parts on the online platforms is expected to drive the market growth at an exponential rate during the forecast period. Moreover, the rapid advancements in the quality of automobiles, rising vehicle manufacturing, and the increasing incorporation of technologically advanced components in the automobile sector. For instance, according to the Society of Indian Automobile Manufacturers (SIAM), around 3,424,564 passenger vehicles and 756,725 commercial vehicles were manufactured in 2019-20.
"APAC to hold the fastest growth rate in the market”

APAC grabbed the leading market share of the global automotive aftermarket during the forecast period. This is mainly attributed to the increasing recreational expenditure and the rising demand for vehicles globally. Moreover, rising penetration of parts manufacturers, low cost of production, and increasing accidents will further open opportunities for aftermarket parts & services, the presence of a large pool of skilled & semi-skilled workforce, and cost-effective manufacturing in countries like India and China along with the presence of a vast number of automobile manufacturing businesses and OEMs in the region is further expected to drive the market. In addition, China is considered the largest producer and seller of automotive aftermarket products. For instance, as per the China Passenger Car Association, 2.53 million luxury vehicles were sold in China in 2020, an increase of 14.7% compared to 2019, this represented a 13% market share among total passenger vehicles sold in the country. Hence these factors are further contributing to the growth of the market.

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• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
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• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
• The study comprehensively covers the market across different segments.
• Deep dive regional level analysis of the industry.