The rapidly increasing international trade in vehicles and advanced technological developments have been propelling automotive aftermarket industry
growth in the recent years. Aftermarket, essentially the market for
accessories, spare parts, and other related components of motor
vehicles, deals with the production, installation, distribution,
marketing, and sale of these vehicle components. The expansion of the
automotive sector has subsequently led to a wider demand for suitable
and high-grade aftermarket parts and accessories, consequently
generating a growth avenue for the automotive aftermarket industry.
The robustly increasing requirement for
effective automotive components for regular maintenance has been majorly
responsible for driving automotive aftermarket industry growth. Lately,
with increasing disposable incomes, consumer lifestyles have undergone a
massive change, leading to a shift in the affordability factor and the
demand for stylish accessories. More importantly, major advancements in
the electrical sector are also expected to fuel the growth of the
automotive aftermarket industry. Lately, the increasing use of the
internet has prompted the automotive sector to tap online channels and
establish its presence in the e-commerce domain, resulting in increased
sales of exhaust components and other vehicle spare parts. Indeed,
e-commerce automotive aftermarket industry size has been touted to exceed USD 30 billion by 2025.
Accessories like spoilers, wings,
polished seats, and graphics are primarily used to enhance the
appearance as well as overall performance of vehicles. With the rising
requirement for sleek and sophisticated-looking vehicles and
aesthetically pleasing car interiors, the demand for customized vehicles
is expected to surge, thereby driving the commercialization potential
of automotive aftermarket industry.
While traditionally, there have been a
suitable number of outlets for the sales of automotive aftermarket
industry parts, a lot of other sales channels have cropped up in the
recent years, DIY being one of the most prominent ones. Numerous
automakers have been specially working toward creating
easy-to-understand DIY repair and maintenance kits that have been
gaining prominence. OEMs are another sales channel accounting for a
substantial portion of the industry expansion. However, undeniably,
professional outlets are anticipated to remain one of the most
profitable growth avenues for automotive aftermarket industry.
As per Global Market Insights, Inc.,
professional sales outlets held a lucrative 65% of the total industry
demand. Professional aftermarket services are inclusive of government
services, garages & services, quick lubes, commercial fleets,
dealers, and other professional outlets. One of the primary reasons for
the growth of this segment of the rising consumer preference for
cost-effective services and the advantage of being closer to home. The
lure for customized, personalized services has also been augmenting the
demand for service stations automobile dealerships, and garages. As the
requirement for state-of-the-art service quality and technical expertise
increases, not to mention, high quality parts and components, the
growth of automotive aftermarket industry from professional sales
outlets is bound to traverse alongside a profitable growth path.
North America is touted to be one of the
most lucrative growth grounds for automotive aftermarket industry,
primarily on account of the rising production levels of new automobiles
in conjunction with the improved performance of older vehicles.
Seemingly, North America accounted for a modest 30% of the overall
automotive aftermarket industry share in the year 2017. Not to mention,
the region is a hub of technological innovation in the automotive
industry, that would come to generate novel growth opportunities for the
aftermarket companies.
North America is also remnant of rising
demand for Bluetooth devices, customized vehicles, and digitization,
apart from innovative accessories for luxury vehicles. With enhanced
fuel economy, the average miles driven by consumers is bound to
increase, thereby leading to more wear and tear in auto parts. This is
expected to further fuel North America automotive aftermarket industry
in the ensuing years.
Global automotive aftermarket industry
share is dominated by a multitude of regional players. Key industry
participants include ACDElco, Magneti Marelli, ASIMCO Technologies,
Akebono Brake Corporation, Continental AG, Delphi, Denso, Robert Bosch,
3M Company, and Federal-Mogul. Other companies include ALCO Filters,
BASF, Yazaki, Johnson Controls, Lear Corporation, and Magna
International.
Owing to the fierce competition,
companies have now been resorting to measures such as high product
quality, brand build-up, forward integration, and prompt maintenance
services for consumer satisfaction. In fact, the automotive aftermarket
industry thrives essentially on customer support and demand.
Rising pollution levels, strict
government regulations, and the implementation of eco-friendly
techniques in automobile manufacturing are expected to catapult the
automotive aftermarket industry to greater heights in the future. As per
Global Market Insights, Inc., automotive aftermarket industry size is
anticipated to cross USD 1,420 billion by 2024.
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