Wholesale and Distribution Automotive Aftermarket Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Wholesale and Distribution Automotive Aftermarket Size

Wholesale and Distribution Automotive Aftermarket Trends & Drivers

Digital Transformation Is Biggest Trend in Automotive Aftermarket

In recent years, digital transformation has emerged as a key trend in the wholesale and distribution automotive aftermarket. Digital transformation leads to the integration of digital tools such as electronic catalogs, video tutorials, and online ordering platforms.

The increasing demand for vehicles has resulted in technological advancements. Thus, automotive aftermarket players are now providing online platforms for information, guidance, and instruction. This helps in spreading awareness among consumers and shifting their interest toward this secondary market.

E-commerce is also a product of this digital transformation, which has been changing the way companies selling parts at wholesale rates operate, presenting numerous opportunities for the business.

Expansion of OEMs and Increase in Manufacturing of Auto Components Drive Market

• The automotive market is expanding significantly, leading to a rise in the demand for aftermarket components. This is encouraging OEMs and component suppliers to expand their physical and online reach and widen their portfolios.
• In tune, many OEMs have established repair shops that deal with a wide range of automobile brands. This has helped them to compete in the market and target a large number of customers over long periods.
• The extent of auto component manufacturing depends on many factors, one of which is customers’ awareness of them. Consumers are increasing becoming aware of the repairs and maintenance required to maintain the efficiency of vehicles. Hence, they are seeking out OEM and other aftermarket companies in place of the primary market.

Advancement in Vehicle Technology and Complexity Is Major Restraining Factor

• The continuously changing trends in the automotive industry are a result of technological advancements and the increase in the overall complexity of vehicle systems. While this is beneficial for vehicle performance and efficiency, it poses challenges for automotive aftermarket.
• Companies are using advanced technologies in vehicles, which require special knowledge and tools while performing diagnosis and repairs. This results in increasing challenges for aftermarket distributors and wholesalers in keeping up with the evolving technology.
• The upcoming electric and autonomous vehicles consist of even more complex driving mechanisms and software. Without a proper course in these technologies, aftermarket entities might not be able to provide appropriate servicing for such high-tech automobiles.

Wholesale and Distribution Automotive Aftermarket Industry Outlook

Part Insights

• Filters are the fastest-growing category as they must be replaced after every 3,000–5,000 miles. If not replaced, they get clogged by dirt, which results in sparking in the engine and affects the mileage of the vehicle.
• Tires are the largest category as they handle the huge amounts of stress, shouldering the weight of the entire vehicle and experiencing friction as they roll on paved and unpaved roads. Therefore, tires must be replaced after every 5,000–7,500 miles to avoid running vehicles tires with no treads.
• Tires also puncture frequently, which is another reason they witness high replacement rates.

During the study, we have analyzed the following parts:

• Tires (Largest category)
• Batteries
• Brake Parts
• Filters (Fastest-Growing category)
• Body Parts
• Lighting & Electronic Components
• Wheels
• Exhaust Components
• Turbochargers

Vehicle Type Insights

• Passenger vehicles are dominating the global market due to an increase in the demand for luxury cars.
• This category is predicted to grow by 4.9% by 2030 due to the new government regulations for safety and emissions, customization trends, advancements in technology, and a host of other factors.
• Passenger vehicles also outsell commercial vehicles, as people look at them as a status symbol, especially in developing countries.

Below are the vehicle types covered in the wholesale and distribution automotive aftermarket:

• Passenger Vehicles (Larger and Faster-Growing Category)
• Commercial Vehicles

Certification Insights

• Genuine certified parts hold the largest share of the market, of 45%. They are the most trusted and reliable certifications; hence, they are widely used.
• Uncertified replacement parts are predicted to be the fastest-growing category during the forecast period, with a CAGR of 5.0%.
• Genuine certified parts have a high cost and are majorly purchased by dealers, which are their major drawbacks. Uncertified parts can help people overcome these challenges, which is why many prefer them over genuine parts.

Below are the certification types covered in the report:

• Genuine Parts (Largest Category)
• Certified Parts
• Uncertified Parts (Fastest-Growing Category)

End Use Insights

• OEMs are predicted to acquire the largest portion of the market by 2030 due to their reliability and the strong trust consumers put in them while choosing service channels.
• DIY is expected to be the fastest-growing category, with a CAGR of 5.1%, during 2024–2030. This will be because this model provides the privilege of modifying the vehicles according to consumers’ needs.

The following end use have been covered in the report:

• DIY (Fastest-Growing Category)
• DIFM
• OEMs (Largest Category)

Regional Insights

• Geographically, North America had the largest market share, of around 50%, in 2024. This is because of the high vehicle ownership rate, presence of numerous established OEMs, wide internet access, and parts replacement awareness among the populace.
• The evolving industry is launching vehicles equipped with complex electronics, which need specialized knowledge for installation, removal, diagnosis, repairs, and replacement.
• The technical grasp of the aftermarket entities in the region allows them to efficiently service high-tech vehicles.
• APAC region is predicted to be the fastest-growing market, with a CAGR of 5.2%, during 2024–2030. This is credited to the fast-paced technological advancements in the automotive industry, high utilization of automobiles, and increase in population.
• China, Japan, India, and South Korea are leading the market. China is the largest manufacturer and buyer of automotive components because it has the largest automobile market.

The regions and countries analyzed for this report include:

• North America (Largest Regional Market)
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Largest Country Market)
  • U.K. (Fastest-Growing Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China (Largest and Fastest-Growing Country Market)
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia
  • South Africa
  • U.A.E. (Largest Country Market)
  • Rest of MEA

Competitive Analysis

The market has a high degree of fragmentation because of the presence of many domestic and international players. The continual appearance of innovative technologies and new government regulations for vehicle efficiency, passenger safety, and high pricing of automotive parts are the key influences on the competition.

Wholesale and Distribution Automotive Aftermarket Industry News

• In July 2023, General Motors Co. acquired ALGOLION Ltd. The latter’s battery software identifies anomalies in cells’ performance and ensures the good health of vehicles.
• In June 2023, Continental AG presented its Ultra Contact NXT. It is made of 65% of recycled, bio-based silica, and renewable waste material.