The increase in the number of private-label brands by various automotive component manufacturers results in the optimization of their bottom-line profits as well as enhancements in the visibility of their products and brands. Moreover, with a continuous rise in the number of vehicles, globally, the global automotive aftermarket has huge potential for growth, during the forecast period (2020–2030). In 2015, the total number of vehicles in use was 1.28 billion, which increased to 1.57 billion by the end of 2018. Due to these factors, the market is expected to generate $1,370.17 billion revenue by 2030, advancing at a CAGR of 5.07% during the forecast period (2020–2030).
Engine Parts to Hold the Largest Share in the Market throughout the Forecast Period
On the basis of component, the automotive aftermarket is classified into engine parts, drive transmission and steering parts, suspension and braking parts, equipment, electrical parts, and other miscellaneous parts. The engine parts category is expected to maintain its dominance during the forecast period. Even after the recent slowdown in the automotive industry, the global sale of passenger cars was over 65 million units in 2018. The continuous rise in the vehicles in operation and launch of new aftermarket components by key players are expected to further drive the market for these components during the forecast period.
Based on distribution channel, the automotive aftermarket is bifurcated into offline distribution channels and online distribution channels. The offline distribution channel category dominated the market during the historical period (2015–2019). Factors such as the easy availability of original equipment suppliers (OES) and independent aftermarket repair/replacement service providers helps keep vehicles on the roads, by providing consumers with the choice of where they want their vehicles serviced, maintained, or customized.
Globally, the automotive aftermarket in Asia-Pacific (APAC) is expected to witness the fastest growth, as a result of the rising average vehicle age. Moreover, customers’ price sensitivity is high, while choosing replacement or aftermarket parts, especially in developing countries, including China and India. Therefore, the availability of less-costly private-label brands in the regional market is further expected to boost its growth during the forecast period.
Mergers and Acquisitions, Divestures, and Partnerships are the Strongest Strategic Measure Taken by the Players in the Market
To enhance their presence, the key players in the automotive aftermarket are focused on activities such as mergers and acquisitions, divestures, and partnerships. For instance, in July 2019, Meritor Inc. announced that it has completed the acquisition of AxleTech International LLC, which will now operate within Meritor’s Aftermarket, Industrial & Trailer segment. This would enhance the company’s growth, with the addition of a complementary product portfolio, including a full line of independent suspensions, axles, braking solutions, and drivetrain components.
Browse report overview with detailed TOC on "Automotive Aftermarket Research Report: By Component (Engine Parts, Drive Transmission and Steering Parts, Suspension and Braking Parts, Equipment, Electrical Parts), Distribution Channel (Offline Distribution Channel, Online Distribution Channel) - Industry Size, Trend, Growth and Demand Forecast to 2030" at:https://www.psmarketresearch.com/market-analysis/automotive-aftermarket
Similarly, in June 2019, Aisin World Corporation of America — a consolidated subsidiary of Aisin Seiki Co. Ltd. — and Leon Import S.A. (an aftermarket imports and sales company) announced a joint venture, with the establishment of Aisin Sales Latin America S.A., an automotive aftermarket company in Panama.
The major players operating in the global automotive aftermarket are Robert Bosch GmbH, DENSO CORPORATION, Delphi Technologies PLC, Continental AG, ZF Friedrichshafen AG, Mando Corporation, Dana Inc., Knorr-Bremse AG, Valeo SA, Meritor Inc., Tenneco Inc., BorgWarner Inc., and HELLA GmbH & Co. KGaA.