Automotive Aftermarket Industry Size, Share & Trends Analysis Report By Replacement Part (Tire, Battery, Brake Parts, Filters, And Others), By Distribution Channel, By Service Channel, By Certification, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global automotive aftermarket industry size was valued at USD 427.51 billion in 2022. The market is expected to register a compound annual growth rate (CAGR) of 4.0% from 2023 to 2030, according to Grand View Research, Inc. 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. Digitization of component delivery sales & 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, online aftermarket business arcade parades have high potential in developing countries. Additionally, growing online sales of automotive components are estimated to deliver significant demand for the market. Companies are now shifting to the digital platform owing to the smoother experience for the customers. In January 2020, Continental AG announced its online portal that will contain a portfolio of all of its services and information about its product 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 the 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 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, the technological improvements in propulsion have created numerous opportunities in the market. However, issues about high R&D expenditures are expected to hinder 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 & transportation industry is among 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 automotive aftermarket 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, 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 Parts Insights

In terms of market size, the others segment dominated the market with a share of 48.3% in 2022. The tire segment would be the largest segment 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 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 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 56.0% in 2022. The retail segment is anticipated to dominate the market arena in terms of size by 2030. The Wholesale & distribution segment would witness relatively fast growth in terms of revenue from 2023 to 2030. Automotive aftermarket economies are important parts of the overall automotive manufacturing & 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 71.1% in 2022. 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 2023 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, 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 of 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 51.8% in 2022. The genuine segment is anticipated to dominate the aftermarket arena in terms of size by 2030. The uncertified segment would witness relatively fast growth in terms of revenue from 2023 to 2030. Counterfeit parts are illegal, are not tested or certified, and have no warranty. Genuine parts are manufactured 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 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. However, the low cost of uncertified parts creates significant growth opportunities for the segment in the coming years.

Regional Insights

In terms of market size, Asia Pacific dominated the market with a share of 28.5% in 2022. The Asia Pacific market is also expected to deliver significant growth from 2023 to 2030. Advanced technology usage in the fabrication of auto parts, a surge in consumer and passenger automobile production & sales, and the digitalization of automotive component delivery services are anticipated to spur automotive sales in the region. Various companies are focusing on acquisitions for achieving a higher share in the market. 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 market.

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.

Key Companies & Market Share Insights

Technological proliferation and increasing investments in R&D activities by manufacturers and associations are expected to drive industry growth. There are numerous 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 the merger and acquisitions strategy intending to extend their foothold across the globe. Some 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

Recent Developments

• In June 2023, Continental released the UltraContact NXT series tire, which is distinguished by its high share of sustainable material usage. The tire comprises up to 65% of recycled, renewable, and ISCC PLUS mass balance-certified materials. The tires will be made available in 19 sizes.

• In June 2023, the Goodyear Tire & Rubber Company added the ‘WORK Series Regional Haul Trailer (RHT) 2’ to its Cooper WORK Series line. The trailer tire is SmartWay-verified and helps deliver better fuel efficiency and durability in tough driving environments and high scrub applications.

• In April 2023, Delphi Technologies released overall 87 parts in its product line. Of these, 65 parts were for the company’s primary portfolio of chassis, fuel delivery, and engine management. On the other hand, the company’s specialty brand Sparta announced the remaining 22 parts for its fuel portfolio.

• In March 2023, HELLA, which operates under the FORVIA brand, announced the expansion of its Black Magic auxiliary headlamp series with the introduction of 32 new lightbars. Of these, 14 lightbars have received ECE approval for on-road usage and the remaining for off-road applications.

• In June 2023, ZF introduced the ZF Health Check digital service concept to help buses improve their uptime on the road. Through live read data collected from driving operations, an individual maintenance plan tailored to the actual transmission condition can be created.

• In April 2023, Continental announced the opening of its Solution Center in Portugal, with the aim to digitalize tire solutions, business workflows, and production processes at the Continental Tires group sector. The center, located at Lousado, is situated in proximity to the company’s tire plant, with both expected to work in close collaboration.

• In May 2023, the Goodyear Tire & Rubber Company unveiled the Cooper ProControl all-season tire that has been designed to deliver enhanced wet handling, as well as long-lasting tread wear to provide drivers with optimal traction and control.

• In September 2022, DENSO announced the expansion of the, detection angle of its vision sensor to 128°, making it easier to detect bicycles and pedestrians crossing the road while driving at a low speed, thus preventing accidents at intersections and busy areas.

Automotive Aftermarket Industry Report Scope

Global Automotive Aftermarket Industry Segmentation

This report forecasts revenue growth at regional level and provides an analysis of the industry trends in each of the segments from 2017 to 2030. For this study, Grand View Research has segmented the global automotive aftermarket 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

  • Middle East & Africa