GVR Report cover Automotive Aftermarket Industry Size, Share & Trends Report

Automotive Aftermarket Industry Size, Share & Trends Analysis Report By Replacement Part (Tire, Battery, Brake Parts, Filters), By Distribution Channel, By Service Channel, By Certification, By Region, And Segment Forecasts, 2022 - 2030

  • Report ID: GVR-1-68038-363-8
  • Number of Pages: 100
  • Format: Electronic (PDF)
  • Historical Range: 2017 - 2020
  • Industry: Technology

Report Overview

The global automotive aftermarket industry size was valued at USD 408.5 billion in 2021. The market is expected to register a compound annual growth rate (CAGR) of 3.4% from 2022 to 2030. The industry 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.

Asia Pacific Automotive Aftermarket size, by replacement part, 2020 - 2030 (USD Billion)

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, are expected to draw huge investments from the key participants. For instance, the leading industry component suppliers, such as US 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 developing countries. Additionally, growing online sales of automotive components is estimated to deliver significant demand for the market. 

The companies are now shifting to the digital platform owing to the smoother experience for the customers. In January 2020, Continental AG announced their online portal that will contain a portfolio of all of their services and information about their product for the industry. The value chain of the industry comprises two primary segments: automotive replacement part suppliers and service enablers. These prime industry segments are exchanging value through automotive 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 as a growing number of people incline toward Internet-of-Things (IoT) and digitization trends. Furthermore, technology improvements in propulsion have created numerous opportunities in the market. However, issues about 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. Some automotive replacement parts as aftermarket filters, however, offer the chance of choosing a part that suits the conditions in which a vehicle operates.

COVID-19 Impact Insights

The automotive and transportation industry is amongst the most exposed verticals to the ongoing COVID-19 outbreak and is currently amidst unprecedented uncertainty. COVID-19 is expected to have a significant impact on the supply chain and product demand in the industry. The industry's concern has moved on from being centered on supply chain disruption from China to the overall slump in demand for aftermarket products. The demand for commercial vehicle parts is expected to plummet with the shutdown of all non-essential services. Furthermore, changes in consumer buying behavior owing to uncertainty surrounding the pandemic may have serious implications for the near future growth of the industry. With the ups and downs in the economy, people are tending to hold on to their vehicles for a long time now.

Meanwhile, liquidity shortfall and cash crunch have already impacted the aftermarket players, and this shortfall is further expected to widen over the next few months. Further, In the aftermath of the pandemic, the consumers are expected to prefer private conveyance. However, the financial disparities will be expected to hamper the purchase of new vehicles; due to budget constraints, commuters are expected to opt for used cars. Increasing sales of used cars are expected to surge the demand for aftermarket auto parts for vehicle maintenance. On a bigger scale, in developing countries, the pandemic is expected to be a reason for the comeback of some entry-level aftermarket players. The market will also be expected to vary with the demand from different segments of customers as every class segment has its own preferences regarding car repair and maintenance.

Replacement Part Insights

In terms of market size, the others segment dominated the market with a share of 48.7% in 2021. The tire segment would be the largest segment in terms of the replacement parts and is anticipated to dominate the market in terms of size. It is expected to remain the dominant segment on account of the low replacement cycle of tires as compared to the other component counterparts. The aftermarket replacement part suppliers comprise various accessories suppliers, lubricants, tires suppliers, and other component replacement suppliers. Further, the industry value chain comprises 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. Growth in the 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. The growing 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 being 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

In terms of market size, the retail segment dominated the market with a share of 56.6% in 2021. The retail segment is anticipated to dominate the market arena in terms of size by 2030. The wholesale and distribution segment would witness relatively fast growth in terms of revenue from 2022 to 2030. 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.

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 the value chain such as Original Equipment Manufacturers (OEMs), Original Equipment Suppliers (OESs), wholesalers, insurers and workshops are reacting to the growing online aftermarket trend. Advanced technology usage in auto parts fabrication, the surge in consumer and passenger automobile production and digitalization of automotive repair and maintenance services are the few factors expected to impel the market growth over the forecast period.

Service Channel Insights

In terms of market size, the original equipment segment dominated the market with a share of 72.0% in 2021. The OE segment is anticipated to dominate the aftermarket arena in terms of size by 2030. The DIY segment would witness relatively fast growth in terms of revenue from 2022 to 2030. DIY customers have technical knowledge and interest in maintaining, repairing and upgrading their cars by themselves. DIFM customers buy parts online but get them installed from a professional workshop.

The 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 the U.S.

Certification Insights

In terms of market size, the genuine parts segment dominated the market with a share of 52.0% in 2021. The genuine segment is anticipated to dominate the aftermarket arena in terms of size by 2030. Uncertified segment would witness relatively fast growth in terms of revenue from 2022 to 2030. Counterfeit parts are illegal, are not tested or certified, and have no warranty. Genuine parts are manufactured by 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.

Global Automotive Aftermarket Industry share, by certification, 2021 (%)

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 carmaker. However, the low cost of uncertified parts creates significant growth opportunities for the segment in coming years.

Regional Insights

In terms of market size, Asia Pacific dominated the market with a share of 28.2% in 2021. The industryt is also expected to deliver significant growth from 2022 to 2030. Advanced technology usage in the fabrication of auto parts, a surge in consumer and passenger automobile production and sales, and digitalization of automotive component delivery services are anticipated to spur automotive sales in the region. Various companies are focusing on acquisitions for achieving higher share in the industry. For instance, in February 2021, Goodyear Tire & Rubber Company acquired Cooper Tire & Rubber Company to combine the brand portfolio and provide comprehensive services along the value spectrum of the industry.

Universities and other R&D organizations are increasingly working toward 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 percent less rare metal, considerably reducing the costs of the vehicle and component fabrication. The prototype is anticipated to show better results than the existing automobiles. Such rules have pressurized the component suppliers to produce environment-friendly, 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 the Asia Pacific region.

Key Companies & Market Share Insights

Technological proliferation and increasing investments in R&D activities by manufacturers and associations are expected to drive the industry growth. There are numbers of domestic and regional competitors prevailing in the market that are challenged to deliver innovative offerings, which help buyers to address the changing technologies, security needs, and business practices. The key participants are in an advantageous yet vulnerable position in terms of market share gain or losing points. The key players are adopting mergers and acquisitions strategy with the aim of extending their foothold across the globe. Some of the prominent players in the automotive aftermarket industry include:

  • 3M Company

  • Continental AG

  • Cooper Tire & Rubber Company

  • Delphi Automotive PLC

  • Denso Corporation

  • Federal-Mogul Corporation

  • HELLA KGaA Hueck & Co.

  • Robert Bosch GmbH

  • Valeo Group

  • ZF Friedrichshafen AG 

Automotive Aftermarket Industry Report Scope

Report Attribute

Details

Market size value in 2022

USD 427.5 billion

Revenue forecast in 2030

USD 559.9 billion

Growth rate

CAGR of 3.4% from 2022 to 2030

Base year for estimation

2021

Historical data

2017 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD billion  and CAGR from 2022 to 2030

Report coverage

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

Segments covered

Replacement part, distribution channel,  service channel, certification, region

Regional scope

North America; Europe; Asia Pacific; South America; MEA

Country scope

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

Key companies profiled

3M Company; Continental AG; Cooper Tire & Rubber Company; Delphi Automotive PLC; Denso Corporation; Federal-Mogul Corporation; HELLA KGaA Hueck & Co.; Robert Bosch GmbH; Valeo Group; and ZF Friedrichshafen AG

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional, and segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

 

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 in each of the segments from 2017 to 2030. For this study, Grand View Research has segmented the global automotive aftermarket industry report based on replacement part, distribution channel, service channel, certification, and region:

  • Replacement Parts Outlook (Revenue, USD Billion, 2017 - 2030)

    • Tire

    • Battery

    • Brake Parts

    • Filters

    • Body parts

    • Lighting & Electronic Components

    • Wheels

    • Exhaust components

    • Turbochargers

    • Others

  • Distribution Channel Outlook (Revenue, USD Billion, 2017 - 2030)

    • Retailers

      • OEMs

      • Repair Shops

    • Wholesalers & Distributors

  • Service Channel Outlook (Revenue, USD Billion, 2017 - 2030)

    • DIY (Do it Yourself)

    • DIFM (Do it for Me)

    • OE (Delegating to OEM’s)

  • Certification Outlook (Revenue, USD Billion, 2017 - 2030)

    • Genuine Parts

    • Certified Parts

    • Uncertified Parts

  • Regional Outlook (Revenue, USD Billion, 2017 - 2030)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • U.K.

      • France

    • Asia Pacific

      • China

      • Japan

      • India

    • South America

      • Brazil

    • MEA

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