GVR Report cover Automotive Aftermarket Size, Share & Trends Report

Automotive Aftermarket Size, Share & Trends Analysis Report By Replacement Parts (Tire, Battery, Brake parts, Filters), By Distribution Channel, By Service Channel, By Certification, And Segment Forecasts, 2021 - 2028

  • Published Date: Apr, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-1-68038-363-8
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2019
  • Number of Pages: 109

Report Overview

The global automotive aftermarket size was valued at USD 390.10 billion in 2020. It is expected to expand at a compound annual growth rate (CAGR) of 3.8% from 2021 to 2028. 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 the 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, 2017 - 2028 (USD Billion)

Digitization of component delivery sales and services, along with the advent of an 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 market 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 the above-mentioned trade gateways, the online aftermarket businesses arcade parades high potential in developing countries. Additionally, growing online sales of automotive components are estimated to deliver significant demand for the market.

The value chain of the market 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 the digitalization of the global automotive component sales, is destined to resolve the obtainability issues, thereby driving the automotive aftermarket industry. The ensuing digitalization is anticipated to convey a high impact on the industry as a growing number of people incline toward the 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 such 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 on the near future growth of the industry. 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 preferences regarding car repair and maintenance.

Replacement Parts Insights

In terms of market size, the others segment dominated the market with a share of 49.19% in 2020. The tire segment would be the largest in terms of the replacement part 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, tire 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 positively impact 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 57.2% in 2020. The retail segment is anticipated to dominate the market arena in terms of size by 2028. The Wholesale and distribution segment would witness relatively fast growth in terms of revenue from 2021 to 2028. 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.

The 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 the digitalization of automotive repair & 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 72.9% in 2020. The OE segment is anticipated to dominate the aftermarket arena in terms of size by 2028. The DIY segment would witness relatively fast growth in terms of revenue from 2021 to 2028. 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 a professional workshop.

The aftermarket service channel comprises members such as raw material suppliers, tier 1 distributors, 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 52.2% in 2020. The genuine parts segment is anticipated to dominate the aftermarket arena in terms of size by 2028. The uncertified segment would witness relatively fast growth in terms of revenue from 2021 to 2028. 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 share, by certification, 2020 (%)

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. 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 the forthcoming years.

Regional Insights

In terms of market size, Asia Pacific dominated the market with a revenue share of 28.0% in 2020. Asia Pacific market is also expected to deliver significant growth from 2021 to 2028. 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.

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 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-efficiency 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 on thriving prospects to the segment growth in the Asia Pacific region.

Key Companies & Market Share Insights

The key industry participants are 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. Technological proliferation and increasing investments in R&D activities by manufacturers and associations are expected to drive industry growth. There are several 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 a mergers and acquisitions strategy, intending to extend their foothold across the globe. Some prominent players operating in the global automotive aftermarket are:

  • 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 Report Scope

Report Attribute

Details

Market size value in 2021

USD 408.51 billion

Revenue forecast in 2028

USD 529.25 billion

Growth Rate

CAGR of 3.8% from 2021 to 2028

Base year for estimation

2020

Historical data

2017 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million/billion and CAGR from 2021 to 2028

Report coverage

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

Segments covered

Replacement parts, distribution channel, certification, service channel, regions

Regional scope

North America; Europe; Asia Pacific; South America; and 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; ZF Friedrichshafen AG

Customization scope

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

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For this study, Grand View Research has segmented the global automotive aftermarket report based on replacement parts, distribution channel, service channel, certification, and region:

  • Replacement Parts Outlook (Revenue, USD Billion, 2017 - 2028)

    • Tire

    • Battery

    • Brake Parts

    • Filters

    • Body Parts

    • Lighting & Electronic Components

    • Wheels

    • Exhaust Components

    • Turbochargers

    • Others

  • Distribution Channel Outlook (Revenue, USD Billion, 2017 - 2028)

    • Retailers

      • OEMs

      • Repair Shops

    • Wholesalers & Distributors

  • Service Channel Outlook (Revenue, USD Billion, 2017 - 2028)

    • DIY (Do it Yourself)

    • DIFM (Do it for Me)

    • OE (Delegating to OEM’s)

  • Certification Outlook (Revenue, USD Billion, 2017 - 2028)

    • Genuine Parts

    • Certified Parts

    • Uncertified Parts

  • Regional Outlook (Revenue, USD Billion, 2017 - 2028)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • U.K.

      • France

    • Asia Pacific

      • China

      • Japan

      • India

    • South America

      • Brazil

    • MEA

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