| Published | Report Code | Available Format | Pages |
|---|---|---|---|
| February 2020 | AT11861 | 208 |
Valued at $803.22 billion in 2019, the global automotive aftermarket is projected to advance with a CAGR of 5.07% during the forecast period (2020–2030), to generate revenue of $1,370.17 billion in 2030.
Geographically, the Asia-Pacific (APAC) aftermarket is expected to witness the fastest growth during the forecast period. APAC is the largest passenger car market in the world, which makes it attractive for aftermarket players. Japan, China, India, and South Korea are the important countries offering lucrative opportunities to the key players in the APAC region.
Fundamentals Governing Automotive Aftermarket
One of the major trends in the automotive aftermarket is the market consolidation and increasing number of joint ventures among the major players, original equipment manufacturers (OEMs), vehicle repair service providers, and other stakeholders. This allows players to transfer the technology, manufacture new aftermarket products, and enter emerging economies. For instance, in July 2019, DENSO CORPORATION entered into a joint venture with Smiths Manufacturing (Pty.) Ltd., a subsidiary of Metair Investments Ltd., under the name DENSO Sales South Africa (Pty.) Ltd. The joint venture was formed with the intention to sell aftermarket products and services in the South African market.
With the increase in the average age of vehicles, the automotive aftermarket is expected to witness significant progress in the predominantly developing regions, including APAC and Latin America, Middle East, and Africa (LAMEA). For instance, the average age of vehicles in China was 4 years in 2010, which is expected to increase to ~6 years by the end of 2020. This increase is mainly due to the stretched car loans for 4-5 years, coupled with the improvements in the quality of the vehicles being manufactured and integration of technologically advanced products. Several developing countries in the world, such as China, India, and Brazil, are expected to witness a rise in the average age of vehicles, during the forecast period, thereby creating tremendous growth opportunities for the key players. Aftermarket component manufacturers will compete to gain new customers, with varying methods, such as e-commerce presence and a wide product portfolio.
Additionally, the demand for electric vehicles is increasing globally, owing to their eco-friendly nature. With the rising green consciousness and electrification of vehicles and powertrain systems, driven by government initiatives, the automotive aftermarket is expected to witness ample opportunities for growth during the forecast period.
Automotive Aftermarket Segmentation Analysis
The engine parts category, based on component, accounted for the major share in the automotive aftermarket, during the historical period (2015–2019). This was owing to the stringent government regulations regarding vehicular emissions and rise in the number of vehicles in operation (VIO), globally. Among all types of engine parts, powertrain components and other parts are expected to witness the highest CAGR during the forecast period.
The equipment category would witness the highest CAGR in the automotive aftermarket, throughout the forecast period. This category includes headlights and lighting components, wiper and washer systems, dashboard instruments, and other equipment.
The automotive aftermarket is expected to attain the fastest growth in the online category, based on distribution channel, during the forecast period. This can be attributed to advantages such as the easy payment options, increasing time poverty, heavy discounts, and door-step delivery of heavy parts offered by online retailers, to attract consumers.
Geographical Analysis of Automotive Aftermarket
In 2019, APAC held the largest share in the automotive aftermarket, and it is expected to continue dominating the market throughout the forecast period. The market in the region is majorly driven by the rapid increase in VIO, especially in India and China. Therefore, with the rise in the total number of VIO and presence of major tier-1 suppliers, the APAC aftermarket is expected to grow at the highest CAGR, of 5.64%, during the forecast period.
Competitive Landscape of Automotive Aftermarket
The global automotive aftermarket is fragmented in nature, with multiple players operating independently in different countries and cities across the world. Some of the major players in the market are Robert Bosch GmbH, DENSO CORPORATION, Delphi Technologies PLC, Continental AG, ZF Friedrichshafen AG, Valeo SA, Meritor Inc., Tenneco Inc., BorgWarner Inc., and HELLA GmbH & Co. KGaA.
Recent Strategic Developments of Major Automotive Aftermarket Players
In recent years, the major players in the automotive aftermarket have taken several strategic measures, such as product launches, partnerships, and facility expansions, to gain a competitive edge in the industry. 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. This will provide more streamlined distribution to its aftermarket customers in Europe. In addition, the company plans to expand its aftermarket portfolio for all-wheel drive (AWD) couplings.
In addition, in September 2019, DENSO CORPORATION announced the expansion of the DENSO Hokkaido Corporation plant. The company will invest about $101.2 million (JPY 11 billion) by 2025, to complete the expansion and increase the production. The construction is scheduled to start in July 2020 and complete in June 2021, after which the increased production will begin in stages, by October 2021. Moreover, the expansion will increase the production of semiconductor sensors, in line with the automotive aftermarket company’s efforts to strengthen its manufacturing system.
Automotive Aftermarket Size Breakdown by Segment
The automotive aftermarket report offers comprehensive market segmentation analysis along with market estimation for the period 2015–2030.
Based on Component
Based on Distribution Channel
Based on Geography
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