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Global Automotive Aftermarket Analysis

Published On June 12, 2017 By Minal

The automotive aftermarket is the secondary market of the automotive industry, one of the most well-established industries of its kind, globally. It comprises every replacement, detailing, customisation, done to the vehicle once it is sold. The market covers all the segments from manufacturing and re-manufacturing of the vehicle parts, accessories and components to their distribution and retailing to finally installing and/or repairing them. The automotive industry itself is a trillion dollar recording the sales of vehicles around ~86 Mn vehicles in 2016, which creates enormous opportunities for the automotive aftermarket parts and services.

As we can see, the automotive aftermarket is growing, the average age of vehicles has been increasing, along with original equipment manufacturers globalizing their base. The aftermarket business fetches 5-6% of its revenue through e-tailing channels, and the percentage share will continue to rise in future due to convenience, cheaper prices, variety of options available to the customers.

Global Automotive Aftermarket is expected to reach US $1.00 Tn by 2022 with CAGR of 8%, largely because of increased average age of vehicles, expanding per capita ownership of vehicles, growing customer preferences for re-manufactured automotive parts, and growing awareness for preventive maintenance.

The aftermarket has been tracked and estimated by type and geography. The aftermarket by type, can be further segmented into power-trains, chassis and safety, body and security and tires. The market has also been estimated for growth in each of these segments with individual CAGR and y-o-y growth rates, factors driving the growth and impeding it, along with government regulations and policies and other initiatives associated with the market dynamics.

A thorough geographical analysis has identified and predicted European Union to be currently the largest market for automotive after-parts and components, at the manufacturer level of the organized sector, globally. Asia, is predicted to grow at the fastest CAGR, with China and India as the major contributors in the predicted increase. All these are strongly dependent on the number and average age of vehicles on road, stringent government regulations and policies, developmental activities, economic conditions of the country, and the import and export data along with government support.

The demand for these products are fulfilled by many major players, some of them being Continental AG, Federal Mogul, ZF-TRW, WABCO, Infineon AG, Hitachi, Bosch, Denso Corporation, Delphi, Continental AG, Magna International, NSK Ltd., Akebono Brake, and Brembo S.p.A., which have been profiled in detail. All of these companies deal in one or multiple of the products of the aftermarket. These companies are driving the industry with continuous business expansions, mergers and acquisitions, partnerships and products. The major geographies covered are North America- U.S and Canada; Asia- China & India, Europe- U.K. & Germany, and ROW- Brazil.