The aftermarket automotive parts market refers to products and components that are used to repair or maintain vehicles after the sale of new vehicles by manufacturers. It includes products such as tires, batteries, lighting components, engine components, suspension and braking components, and other accessories. The growing vehicle parc and increasing need for vehicle repair and maintenance are driving the demand for aftermarket automotive parts worldwide. Advancements in 3D printing technologies are enabling customized and cost-effective production of aftermarket parts, fueling market growth.
Global aftermarket automotive parts market is estimated to be valued at USD 474.12 Bn in 2024 and is expected to reach USD 704.63 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.8% from 2024 to 2031.
Key Takeaways
Key players: Key players operating in the aftermarket automotive parts market include Robert Bosch GmbH, Denso Corporation, Magna International Inc., Continental AG, ZF Friedrichshafen AG, 3M Company, Tenneco Inc., Delphi Technologies, Keystone Automotive Industries Inc., and Faurecia S.A.
Key opportunitiesAftermarket Automotive Parts Market Demand forUsed vehicles and independent garages areexpected to create significant opportunities for aftermarketparts suppliers.Advancements in e-commerce are enabling easier access andavailability ofparts for consumers.
Technologicaladvancements: Growing adoption of 3D printing is allowing cost-effective production of complex and customized aftermarket parts on demand.Development of sensors and telematics isfacilitating predictive maintenance and reducing vehicledowntime.
Market drivers: Rising vehicle age and average miles driven are increasing wear and tear of components, fueling repairs and part replacements. Stringent emission regulations are necessitating frequent upgrades of emissions control systems.
Market Key drivers:
1. Growing vehicle parc- As the number of vehicles on road increases worldwide, the demand for replacement of old parts also rises significantly over time. A larger vehicle parc fuels steady demand for aftermarket components.
2. Increasing vehicle age- With consumers holding onto their vehicles for longer durations, the average age of vehicles on road has risen globally. Older vehicles require more frequent repairs and replacements, benefitting aftermarket parts suppliers.
Challenges in Aftermarket Automotive Parts Market
The aftermarket automotive parts industry faces several challenges. With technological advancements, parts are getting more complex which increases maintenance costs for consumers. stricter emission regulations necessitate upgraded parts which adds to the costs. Aftermarket parts also need to prove their quality and durability equivalent to original parts to gain consumer trust. Part availability across a vehicle's lifespan ranging over a decade remains a challenge.
SWOT Analysis
Strength: Large pre-existing customer base due to size of automotive industry presents significant opportunities. Wide distribution networks allow easy accessibility.
Weakness: Pressure to reduce costs impacts profit margins. Needs extensive R&D to replicate advances in original equipment parts.
Opportunity: Growth in electric vehicles opens up opportunities for different types of aftermarket parts. Increased vehicle usage and mileage expands replacement part needs.
Threats: Original equipment manufacturers exerting control over diagnostics and repairs threatens independent aftermarket. Stricter environmental norms raise compliance costs.
The United States represents the largest market for aftermarket automotive parts, accounting for over 30% of the global value, led by the size of its vehicle parc. China is the second largest and fastest growing market attributed to rising vehicle ownership and an established aftermarket industry catering to ab replacement needs. Western Europe is another major region concentrated with Germany, United Kingdom and France among the leading country markets. The aftermarket industry is also well developed in countries like Japan and South Korea in Asia Pacific. Growth in the global vehicle fleet, rising vehicle usage and mileage is driving the need for replacement of parts, presentong opportunities for aftermarket parts suppliers across major automotive markets.
The Asia Pacific region excluding Japan and China is emerging as the fastest growing regional market for aftermarket automotive parts. Countries like India, Indonesia, Thailand and Vietnam are witnessing strong growth in both vehicle sales and usage. As the fleet ages in coming years, the need for replacement of wear and tear parts will rise significantly presenting lucrative opportunities for aftermarket suppliers to tap into the needs of both organized and unorganized aftermarkets in these developing nations. OEMs are also increasingly focusing on these high growth potential markets by strengthening their pan-Asia Pacific networks of dealers, workshops and parts distribution.
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About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
