Aftermarket Automotive Parts Market is Estimated to Witness High Growth Owing to Increased Adoption of Digital Mobility Technologies
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| Aftermarket Automotive Parts Market |
The aftermarket automotive parts market includes a wide range of car parts that are manufactured or sold for installation in a vehicle, as a replacement for original components. These include performance parts, exterior parts, suspension and braking components, glasses, engine parts, filtration and Wear items among others. Aftermarket parts provide substantial cost benefits, increased customizability, and better performance flexibility compared to OEM parts. The growing complexity of vehicles and rising vehicle ownership have driven the need for frequent repairs and part replacements, thus fueling market growth.
The
Global aftermarket automotive parts market is estimated to be valued at US$
474.12 Bn in 2024 and is expected to exhibit a CAGR of 5.8% over the forecast
period 2024 to 2031.
Key Takeaways
Key players operating in the aftermarket automotive parts market are Aisin
Seiki Co., AutoZone, Inc., Bridgestone Corporation, Continental AG, Denso
Corporation, Faurecia, Goodyear Tire and Rubber Company, Hyundai Mobis, Lear
Corporation, Magneti Marelli. These players are focusing on new product
launches, partnerships, acquisitions and geographic expansions to gain shares
in the market.
The growing vehicle parc and increasing average age of vehicles present
significant opportunities for aftermarket products ranging from basic wear
& tear parts to advanced performance upgrades. Additionally, the adoption
of digital retailing channels, vehicle diagnostics, and 3D printing for parts
manufacturing are opening new frontiers in after-sales vehicle servicing and
parts delivery.
Technological advancements in automotive electronics, sensors, telematics, and
ADAS systems require the aftermarket to provide compatible repairs and
replacements. Standardized interfaces, wireless software updates, usage-based
pricing, and remote diagnostic-driven repairs are revolutionizing the parts
ecosystem through technologies such as 5G connectivity, artificial
intelligence, and cloud computing.
Market drivers
Rising vehicle usage and an increasing preference to repair rather than replace
old vehicles are driving the need for replacement parts. Higher demand for
enhanced appearance and performance aftermarket parts from individual customers
and workshops also supports the market growth. Furthermore, tightening emission
regulations have accelerated the replacement cycle of filtration and wear
items. Faster adoption of new auto technologies and rising vehicle complexity
impose requirements for advanced diagnostics and informed part replacements in
the aftermarket.
Current challenges in the aftermarket automotive parts market :
The Aftermarket
Automotive Parts Market Size industry
is facing rising challenges due to the increasing complexity of automotive
designs. Vehicles today come equipped with advanced technologies such as
driver-assistance, connectivity and infotainment systems which require highly
specialized skills and tools for repairs and maintenance. This increases the
cost of maintaining an inventory of different types of parts. Moreover, strict
emission regulations in many countries have increased compliance requirements
for aftermarket parts manufacturers. Counterfeit products also pose a major
threat as buyers often find it difficult to differentiate genuine parts from
fake ones. The pandemic had severely impacted the supply chain and demand in
the initial months. Labor shortage is another challenge impacting the industry.
SWOT Analysis
Strength: Large established players with global presence and strong
distribution networks. Significant aftermarkets developed for popular car
models.
Weakness: High dependence on automotive production volumes which fluctuate as
per economic cycles. Rapid technological changes require high R&D
investments to develop advanced parts.
Opportunity: Growing vehicle fleet worldwide especially in emerging markets.
Increased demand for customized and performance enhancement parts. Shift
towards electric vehicles opens up opportunities for different kinds of parts.
Threats: Stringent emission norms and safety regulations increase compliance
costs. Threat from counterfeit parts affecting brand reputation.
Geographically, the United States holds the largest share in the aftermarket
automotive parts market in terms of value owing to the large vehicle fleet and
frequent repairs and replacement needs. However, China is emerging as the
fastest growing regional market supported by rising vehicle ownership,
increasing mileage and mileage-driven vehicles in the country.
The Asia Pacific region excluding China is also witnessing strong growth in the
aftermarket automotive parts market driven by surging vehicle sales across
developing nations such as India. Favorable policies by governments to develop
local auto components industry are boosting investments in the aftermarket
segment.
Current challenges in the aftermarket automotive parts market:
The aftermarket automotive parts industry is facing rising challenges due to
the increasing complexity of automotive designs. Vehicles today come equipped
with advanced technologies such as driver-assistance, connectivity and
infotainment systems which require highly specialized skills and tools for
repairs and maintenance. This increases the cost of maintaining an inventory of
different types of parts. Moreover, strict emission regulations in many
countries have increased compliance requirements for aftermarket parts
manufacturers. Counterfeit products also pose a major threat as buyers often
find it difficult to differentiate genuine parts from fake ones. The pandemic
had severely impacted the supply chain and demand in the initial months. Labor
shortage is another challenge impacting the industry.
SWOT Analysis
Strength: Large established players with global presence and strong
distribution networks. Significant aftermarkets developed for popular car
models.
Weakness: High dependence on automotive production volumes which fluctuate as
per economic cycles. Rapid technological changes require high R&D
investments to develop advanced parts.
Opportunity: Growing vehicle fleet worldwide especially in emerging markets.
Increased demand for customized and performance enhancement parts. Shift
towards electric vehicles opens up opportunities for different kinds of parts.
Threats: Stringent emission norms and safety regulations increase compliance
costs. Threat from counterfeit parts affecting brand reputation.
Geographically, the United States holds the largest share in the aftermarket
automotive parts market in terms of value
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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)
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