Automotive Aftermarket Size, Share & Trends Report

Automotive Aftermarket Size, Share & Trends Analysis Report By Service Channel (OE, DIY), By Replacement Part (Tire, Battery), By Certification, By Distribution Channel, By Region, And Segment Forecasts, 2019 - 2025

  • Published Date: Apr, 2019
  • Base Year for Estimate: 2018
  • Report ID: GVR-1-68038-363-8
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2017
  • Number of Pages: 100

Industry Insights

The global automotive aftermarket size was valued at USD 369.2 billion in 2018 and is anticipated to expand at a CAGR of 3.9% from 2019 to 2025. The market is majorly driven by the pursuit of automobile drivers to enhance their vehicle performance in terms of exhaust sound, speed, and appearance parameters, along with many other aspects.

Regional regulatory authorities such as Japanese Automobile Sports Muffler Association (JASMA) and the U.S. Environmental Protection Agency monitor the built-up standards and environmental impacts associated with automotive component functioning. For instance, the noise emission levels associated with the modern-day automotive resonators and mufflers in automotive exhaust systems.

North America automotive aftermarket

Digitization of component delivery sales and services, along with the advent of online portal distributing aftermarket components in synchrony with the global auto-part supplier groups, is expected to draw huge investments from the key participants. For instance, the leading market component suppliers, such as U.S. Auto Parts Network, Inc. and CarParts.com, would drive the global market demand in the years to come. Owing to above-mentioned trade gateways, the online aftermarket businesses arcade parades high potential in the Asia Pacific countries.

The value chain comprises two primary segments automotive replacement parts suppliers and service enablers with prime industry segments exchanging value through these sectors at several intermittent stages.

Access to elaborative component assortment, coupled with the simplicity of transactions delivered through digitalization of the global automotive component sales, is destined to resolve the obtainability issues, thereby driving the automobile aftermarket industry. The ensuing digitalization is anticipated to convey a high impact on the industry growth owing to rising inclination of people towards Internet-of-Things (IoT) and digitization trends.

Replacement Part Insights

The tire segment emerged as the largest segment in the market. It is anticipated to dominate the market in terms of size by 2025 on account of the low replacement cycle of tires as compared to the other component counterparts.

Replacement parts suppliers comprise various accessories suppliers, lubricants and tires suppliers, and other component replacement suppliers. Further, the industry value chain consists of service enablers, such as repairing services providers and entertainment service providers. The automobile industry is observing an increase in the demand for hybrid electric cars that would eventually throttle the demand for exhaust parts and specific tools for these specialized cars. This curb can be attributed to the increased prices of petrol and petrol engine-based automobiles.

Rise in the disposable proceeds of patrons in developing nations, such as China and Brazil, is expected to have a positive impact on the growth of the market. Surging demand for locomotives is projected to trigger the demand for automobile component sales. Rigid regulatory standards of car safety across the globe are anticipated to drive the market economies.

The modern age production technology such as 3D printing of automotive parts is extensively deployed by major players in the industry to optimize their production costs, with 3D printing enabling efficient fabrication performance and reduction of emission toxicity.

Distribution Channel Insights

The retailers segment is anticipated to dominate the market arena in terms of size by 2025. The wholesale and distribution segment would witness relatively faster growth in terms of revenue from 2019 to 2025.

Increasing influence of technological advancement is transforming the market towards digitization. The aftermarket is going online and the marketplace is changing. Parts and services are being sold online. Every player in value chain such as Original Equipment Manufacturers (OEMs), Original Equipment Suppliers (OESs), wholesalers, insurers, and workshops are reacting to growing online aftermarket trend. Advanced technology usage in auto parts fabrication, surge in consumer and passenger automobile production, and digitalization of automotive repair and maintenance services are the few factors expected to benefit market expansion over the forecast period.

Issues pertaining to high R&D expenditures are expected to hinder the market growth over the forecast period. Automobile manufacturers face certain constraints while carrying out their manufacturing processes. Production cost is one of these constraints. Aftermarket filters, however, offer the chance of choosing a muffler that suits the conditions in which a vehicle operates.

Automotive aftermarket economies are important parts of the overall automotive manufacturing and maintenance scheme as automotive components need to be replaced on time to maintain the overall performance of the vehicle.

Certification Insights

The genuine segment is anticipated to hold the dominant share in terms of size by 2025. The uncertified segment would witness relatively faster growth in terms of revenue from 2019 to 2025. The report also includes ballpark market size and estimation for counterfeit automotive replacement parts. Counterfeit parts are illegal, not tested or certified, and have no warranty.

Genuine parts are manufactured by the car manufacturers or by the OEMs, also known as subcontractors. Genuine replacement parts have greater assurance of quality, are diverse, easy to find, and include a warranty. The downside of these parts is that they are expensive and required to be purchased from dealers.

Certified automotive parts are tested and inspected by certified organizations. The Certified Automotive Parts Association (CAPA) is a non-profit organization, which was incorporated in 1987. CAPA offers test programs to verify and guarantee the quality and suitability of automotive replacement parts. It was the brainchild of automotive insurance companies and was formed to ensure the quality of replacement parts used by collision repair shops. Certified parts are cost-effective alternatives to costly genuine parts. Whereas, uncertified parts can be used instead of the original automotive parts. Uncertified parts are not approved by the car maker.

Service Channel Insights

The OE segment is anticipated to hold the largest share in terms of size by 2025. The DIY segment would witness relatively faster growth in terms of revenue from 2019 to 2025. DIY customers have technical knowledge and interest to maintain, repair, and upgrade their cars on their own. DIFM customers buy parts online but get them installed from professional workshop.

Global automotive aftermarket

Service channel comprises members such as raw material suppliers, tier 1 distributors, and automobile exhaust hubs/manufacturing units and aftermarket units comprising jobbers and ultimately the repair shops. Repair centers are the important stakeholders in the service channel. The industry is witnessing a trend of strategic alliances and collaborations between collision repair centers and leading auto insurance companies to gain a competitive edge and capture a significant share in the market. For instance, Utica Mutual Insurance Company, State Farm Mutual Automobile Insurance Company, and Progressive Casualty Insurance Company have tie-ups with certified automotive repair shops across all the states in U.S.

Regional Insights

North America led the aftermarket arena in terms of revenue in 2018. Advanced technology usage in the fabrication of auto parts, surge in consumer and passenger automobile production and sales, and digitalization of automotive component delivery services are anticipated to spur the automotive sales in the region.

Universities and other R&D organizations are increasingly working on increasing the cost and operational efficiencies of such critical automotive components, aimed at reducing their prices and eventually the price of the final end product. A new design developed by a team of researchers from the Department of Chemical Engineering at Imperial College in London uses up to 80% less rare metal, considerably reducing the costs of the vehicle and component fabrication. The prototype is anticipated to exhibit better results than the existing automobiles.

Such rules have pressurized the component suppliers to produce environment-friendly and high-efficient automotive components for the native and global markets. Over the past few years, emerging economies comprising China, India, and Brazil have validated insistent developments, which are expected to bid thriving prospects to the segment growth in Asia Pacific.

Automotive Aftermarket Share Insights

Key participants include 3M Company, Continental AG, Delphi Automotive PLC, Denso Corporation, Federal-Mogul Corporation, Magneti Marelli S.p.A., and Robert Bosch GmbH. Technological proliferation and increasing investments in R&D activities by manufacturers and associations are expected to drive the industry.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2014 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Billion & CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, South America, and MEA

Country scope

U.S., Canada, Mexico, U.K., Germany, France, Japan, China, India, and Brazil

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

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Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global automotive aftermarket report on the basis of replacement part, distribution channel, service channel, certification, and region:

  • Replacement Part Outlook (Revenue, USD Billion, 2014  - 2025)

    • Tire

    • Battery

    • Brake parts

    • Filters

    • Body parts

    • Lighting & Electronic components

    • Wheels

    • Exhaust components

    • Turbochargers

    • Others

  • Distribution Channel Outlook (Revenue, USD Billion, 2014 - 2025)

    • Retailers

      • OEMs

      • Repair Shops

    • Wholesalers & Distributors

  • Service Channel Outlook (Revenue, USD Billion, 2014 - 2025)

    • DIY (Do It Yourself)

    • DIFM (Do It for Me)

    • OE (Delegating to OEM’s)

  • Certification Outlook (Revenue, USD Billion, 2014 - 2025)

    • Genuine Parts

    • Certified Parts

    • Uncertified Parts

  • Regional Outlook (Revenue, USD Billion, 2014 - 2025)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • U.K.

      • France

    • Asia Pacific

      • China

      • Japan

      • India

    • South America

      • Brazil

    • MEA

Key questions answered by the report
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