The global automotive aftermarket size was valued at USD 335.23 billion in 2016 and is projected to gain traction over the forecast period. The market is majorly driven by automobile drivers looking to enhance vehicle performance in terms of exhaust, sound, speed, and appearance, among other aspects.
Regional regulatory authorities, such as Japanese Automobile Sports Muffler Association (JASMA) and the U.S. Environmental Protection Agency, monitor built-up standards and environmental impacts associated with automotive component functioning. Noise emission levels associated with modern-day automotive resonators and mufflers in automotive exhaust systems is one such example.
Digitalization of component delivery sales and services, along with advent of online portal distributing aftermarket components in association with global auto-part supplier groups, is expected to draw massive investments from key industry participants. The online aftermarket presents high potential in Asia Pacific countries, especially with growing number of people inclined toward Internet-of-Things (IoT).
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 elaborate component assortment, coupled with simplicity of transactions delivered through digitalization of automotive component sales, is destined to resolve obtainability issues, thereby driving the automobile aftermarket industry.
Based on replacement part type, the market includes tire, battery, brake parts, filters, body parts, lighting and electronic components, wheels, and exhaust components. The tire segment emerged as dominant and this trend is likely to continue through 2025 on account of low replacement cycle of tires compared to other components.
Suppliers of replacement parts in the automotive aftermarket comprise accessory suppliers, lubricants, tires suppliers, and others. The industry value chain comprises service enablers such as repairing service providers and entertainment service providers. The automobile industry is observing an increase in demand for hybrid/electric cars, which is slated to eventually limit demand for exhaust parts and specific tools. This growing preference for electric/hybrid cars can be attributed to increased prices of petrol and petrol engine-based automobiles.
Rise in disposable proceeds of patrons in developing nations such as China and Brazil is expected to have a positive impact on the growth rate of the market. Increasing demand for locomotives is projected to trigger demand for automobile component sales. Rigid regulatory standards pertaining to car safety are also anticipated to drive the market.
New production technologies, such as 3D printing of automotive parts, is being extensively deployed by major players in the industry to optimize production costs. 3D printing enables efficient fabrication performance and reduction of emission toxicity.
The market is segmented on the basis of distribution channel into retailers and wholesale and distribution (W&D). The retailers segment is anticipated to dominate the market in terms of size by 2025. The wholesale and distribution segment, on the other hand, is slated to exhibit a stronger growth rate in terms of revenue from 2017 to 2025.
Increasing influence of technological advancements is guiding the market toward digitalization. The aftermarket is going digital, with parts and services being sold online. Every player in the value chain, such as Original Equipment Manufacturers (OEMs), Original Equipment Suppliers (OESs), wholesalers, insurers, and workshops, are reacting to the growing trend of an online aftermarket. Usage of advanced technologies in auto parts fabrication, surge in passenger automobile production, and digitalization of auto repair and maintenance services are some of the factors expected to impel market growth over the forecast period.
On the down side, high R&D expenditure is expected to hinder market growth. Automobile manufacturers face certain constraints while carrying out manufacturing processes, production cost being one. Aftermarket filters, however, offer the chance of choosing a muffler that suits the conditions in which a vehicle operates.
Automotive aftermarket economies are crucial in the overall automotive manufacturing and maintenance process as auto components need to be replaced on time to maintain overall performance of a vehicle.
The automotive aftermarket is segmented on the basis of certification into genuine, certified, and uncertified. The genuine segment is anticipated to dominate the automotive aftermarket arena in terms of size by 2025. The uncertified segment, on the other hand, is poised to register the fastest growth in terms of revenue during the forecast period. The report also includes ballpark market size and estimation for counterfeit auto replacement parts. Counterfeit parts are illegal, are not tested or certified, and have no warranty.
Genuine parts are made by car manufacturers or by 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 auto parts are tested and inspected by certified organizations. The Certified Automotive Parts Association (CAPA) is a non-profit organization incorporated in 1987. CAPA offers test programs to verify and guarantee quality and suitability of automotive replacement parts. It was the brainchild of automotive insurance companies and was formed to ensure quality of replacement parts used by collision repair shops. Certified parts are cost-effective alternatives to genuine parts. Although uncertified parts can be used instead of original auto parts, they are not approved by the car maker.
The automotive aftermarket is segmented on the basis of service channel into Do It Yourself (DIY), Do It For Me (DIFM), and Original Equipment (delegating to OEM’s) segments. The OE segment is anticipated to dominate the automotive aftermarket arena in terms of size by 2025. The DIY segment is likely to witness relatively faster growth in terms of revenue from 2017 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 in workshops at the hands of professionals.
The automotive aftermarket service channel comprises raw material suppliers, tier 1 distributors, automobile exhaust hubs/manufacturing units, aftermarket units comprising jobbers, and repair shops, among others. 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 auto repair shops across U.S.
North America led the automotive aftermarket in terms of revenue in 2016. Advanced technology usage in fabrication of auto parts, surge in automobile production and sales, and digitalization of auto component delivery services are anticipated to spur the market in the region.
Universities and other R&D organizations are increasingly working toward increasing cost- and operational efficiency of critical auto components, to ensure reduced prices. A new design developed by a team of researchers from the Department of Chemical Engineering at Imperial College, London uses up to 80% less rare metal, considerably reducing the cost of vehicle and component fabrication. The prototype is anticipated to show better results than existing automobiles.
Government regulations have pressurized component suppliers to produce environment-friendly, high-efficient automotive components for domestic and global markets. Over the past few years, emerging economies such as China, India, and Brazil have been home to various developments in the field, which are expected to boost market growth in Asia Pacific and South America.
Key industry participants in the market 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 industry growth.
|
Attribute |
Details |
|
Base year for estimation |
2016 |
|
Actual estimates/Historical data |
2014 - 2015 |
|
Forecast period |
2017 - 2025 |
|
Market representation |
Revenue in USD Billion & CAGR from 2017 to 2025 |
|
Regional scope |
North America, Europe, Asia Pacific, South America, and MEA |
|
Country scope |
U.S., Canada, Mexico, U.K., Germany, Japan, China, India, and Brazil |
|
Report coverage |
Revenue forecast, company share, competitive landscape, growth factors, and trends |
|
15% free customization scope (equivalent to 5 analyst working days) |
If you need specific market information, which is not currently within the scope of the report, we will provide it to you as a part of customization |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of 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 based on 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.
Asia Pacific
China
Japan
India
South America
Brazil
MEA
Avail customized purchase options to meet your exact research needs:
Get your queries resolved from an industry expert.
Design an exclusive study to serve your research needs.
A testimonial for service in the form of BBB "A" Accreditation.
Your personal and confidential information is safe and secure.
"The quality of research they have done for us has been excellent..."
