Automotive Aftermarket Overview

The global automotive aftermarket had a valuation of $803.22 billion in 2019 and is predicted to progress at a CAGR of 5.07% between 2020 and 2030. Furthermore, the market will reach a valuation of $1,370.17 billion by 2030, as per the estimates of the market research firm, P&S Intelligence. The increasing age of automobiles, the rising prevalence of road accidents, and the surging number of automobiles on roads are the major factors driving the advancement of the market.

With the rising average age of automobiles, the industry is predicted to demonstrate rapid expansion in the coming years, especially in the developing regions such as Latin America, Middle East, and Africa (LAMEA) and Asia-Pacific (APAC). For example, in China, the average age of automobiles will rise from 4 years in 2010 to 6 years by the end of 2020. This increment is because of the availability of stretched car loans for as many as 4-5 years in the country.

Automotive Aftermarket Size

Additionally, the rapid improvements being made in the quality of the manufactured automobiles are fueling the demand for aftermarket parts and components. Many emerging economies such as India, Brazil, and China are predicted to witness a sharp surge in the average age of automobiles in the coming years. This will create lucrative growth opportunities for the industry players. Due to the growing popularity of e-commerce, the aftermarket component manufacturing companies are witnessing a rapid expansion in their customer pools.

Besides the aforementioned factors, the increasing deployment of electric vehicles is also driving the progress of the automotive aftermarket across the world. Due to the increasing concerns being raised in several countries over the escalating pollution levels because of the emission of harmful gases from the oil and gas-powered vehicles, the governments of these countries are rapidly enacting policies for encouraging the adoption of electric vehicles. This is fueling the boom of the market.

Automotive Aftermarket Share

Based on component, the automotive aftermarket is divided into drive transmission and steering parts, electrical parts, equipment, suspension and braking parts, engine parts, and various other miscellaneous parts and components. Out of these, the engine parts category is predicted to register the highest growth in the market in the forthcoming years. According to industry experts and reports, more than 65 million passenger cars were sold all over the world in 2018.

Geographically, the automotive aftermarket is predicted to record the fastest growth in the Asia-Pacific (APAC) region in the upcoming years. This would be a result of the increasing average age of automobiles. In addition to this. The growing price sensitivity of customers while purchasing aftermarket parts or replacements, especially in the emerging economies such as India and China, is boosting the demand for aftermarket parts and components in the regional countries.

Automotive Aftermarket Trends

Hence, it can be safely said that the market will demonstrate huge expansion all over the world in the coming years. Primarily due to the rising average age of automobiles and the soaring requirement for more affordable vehicle parts and components.

With the rise in the average age of automobiles, the demand for automotive parts and components manufactured by aftermarket companies is growing rapidly across the world. This is fueling the sales of these components, especially in the Latin America, Middle East, and Africa (LAMEA) and Asia-Pacific countries. For example, the average age of automobiles in China grew from 4 years in 2010 to 6 years by the end of 2020.

Automotive Aftermarket Growth

This increment was primarily because of the provision of stretched car loans for around 4–5 years and the rapid improvements. Advancements being made in the manufacturing processes of automobiles in the country. Moreover, the adoption of technologically advanced and innovative products in vehicles has also contributed toward the increased lifespan of vehicles in the country. Apart from China, the average age of automobiles is also rising in Brazil and India.

This is, in turn, driving the expansion of the automotive aftermarket. Additionally, the growing deployment of electric vehicles in several countries is also propelling the sales of these parts and components across the world. Due to the escalating air pollution levels and the rising consumer preference for environment-friendly modes of transportation. The sales of electric vehicles are surging sharply, which is subsequently creating lucrative growth opportunities for aftermarket companies around the world.

Automotive Aftermarket Outlook

Due to the above-mentioned factors, the global automotive aftermarket is registering huge growth. As a result, the value of the market is predicted to grow from $803.22 billion in 2019 to $1,370.17 billion by 2030. Furthermore, the market is predicted to advance at a CAGR of 5.07% between 2020 and 2030. Drive transmission and steering parts, engine parts, suspension and braking parts. Electrical parts, and equipment are the major aftermarket components sold across the world.

Out of these, the demand for engine parts is predicted to surge all over the world in the coming years. This is attributed to the mushrooming sales of passenger cars and the launch of advanced parts and components by major aftermarket companies across the world. Geographically, the automotive aftermarket will demonstrate the fastest growth in the Asia-Pacific (APAC) region in the coming years. As per the estimates of P&S Intelligence, a market research company based in India.

Automotive Aftermarket Growth

The APAC market is being driven by the increasing age of automobiles in the region. Moreover, the price sensitivity of customers regarding aftermarket or replacement parts and components. Especially in the emerging economies such as India and China, is massively boosting the popularity of aftermarket components in the region. Furthermore, the availability of highly affordable private-label companies and brands is also propelling the sales of aftermarket components in the region.

Hence, it can be said with full surety that the demand for vehicular parts and components manufactured by aftermarket companies will shoot up all over the world in the forthcoming years. Mainly because of the increasing average age of automobiles and the growing deployment of electric vehicles in various countries around the world.

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