Automotive Aftermarket Industry Size, Share & COVID-19 Impact Analysis, By Replacement Part Type (Battery, Brake Pads, Filters, Gasket & Seals, Lighting Component, Body Part(Interior and Exterior), Wheels & Tires, and Others), By Vehicle Type (Passenger Cars and Commercial Vehicles), and Regional Forecast, 2023 – 2030

The global Automotive Aftermarket Industry size was valued at USD 408.49 billion in 2022. The market is projected to grow from USD 418.95 billion in 2023 to USD 527.25 billion by 2030, exhibiting a CAGR of 3.3% during the forecast period.

This market pertains to the secondary market, which caters to the needs and preferences of vehicle owners, offering a variety of choices beyond what is available through the original equipment manufacturers. The aftermarket industry includes a wide range of products and services, such as replacement parts (tires, batteries, brakes, and filters), performance-enhancing components, accessories (car audio systems, navigation systems, and cosmetic upgrades), and maintenance and repair services.

The aging of vehicles plays a significant role in generating the demand for aftermarket parts and services. However, longer warranties provided by OEMs may limit the market demand. The anticipated surge in the acceptance of electric and hybrid vehicles, leading to a demand for Automotive Aftermarket parts compatible with EVs, is poised to propel the market expansion during the projected period.

COVID-19 IMPACT

Fall in Vehicle Use During the COVID-19 Pandemic Hampered Market Demand

The COVID-19 pandemic had a significant impact on the global industry, affecting various aspects of the supply chain, demand, and overall business operations. The pandemic disrupted global supply chains, leading to shortages of aftermarket components and parts. Manufacturing plants faced closures, production slowdowns, and logistical challenges, affecting the availability of products for both passenger cars and aftermarket businesses.

Lockdowns, social distancing measures, and economic uncertainties led to a decline in vehicle usage. With fewer people commuting and traveling, there was a reduction in wear and tear on vehicles, resulting in decreased demand for replacement parts and aftermarket services. For instance, According to the U.S. Department Of Transportation (DOT) Bureau of Transportation Statistics (BTS), the passenger vehicle miles travelled (VMT) index was at its lowest 0.4 on 12^th April 2020. The index rose decently thereafter, reaching 1.2 on 5^th June 2021.

Automotive Aftermarket Industry Trends

Surging E-Commerce Influence Drives Expansion in the Industry

The trend of e-commerce dominance refers to the increasing prevalence of online sales and the growing influence of digital platforms in the purchase of replacement parts, accessories, and automotive services.

Increasingly, consumers prefer conducting their purchases via online platforms over conventional brick-and-mortar stores. This shift is driven by the convenience of online shopping, allowing customers to browse a wide range of products, compare prices, and make purchases from the comfort of their homes.

For instance, in June 2022, Bosch unveiled its latest website to cater to customers, shops, and technicians. The primary objective of the new site is to provide simplified access to product information. Through API enhancements, users can now easily compare a diverse range of products and gain insights into which products are compatible with their vehicles. Noteworthy features of the updated website include vehicle fit capabilities, new icons for highlighting information, product comparison functionality, and improved website speed.

Automotive Aftermarket Industry Growth Factors

Vehicle Aging Fuels the Growth of the Industry

The age of vehicles is a significant factor driving the Automotive Aftermarket Industry growth. Older vehicles generally require more frequent maintenance and repairs as their components wear out over time. This creates a consistent demand for replacement parts and services offered by the aftermarket industry. With the passage of time and usage, various components of a vehicle, such as brakes, tires, and exhaust systems, experience wear and tear. The need for replacement of various parts in older vehicles drives the market.

For instance, in 2023, according to ACEA (The European Automobile Manufacturers' Association), the average age of cars in the European Union (EU) stands at 12 years, with Greece and Estonia boasting the oldest car fleets, with the average being nearly 17 years. Luxembourg, on the other hand, leads with the newest passenger cars at an average age of 7.6 years. Among the major EU markets, Italy claims the oldest van fleet at 14 years, closely followed by Spain at 13.6 years.

RESTRAINING FACTORS

Advancements in Vehicle Technology and Complexity Impede Market Growth

While the global industry has experienced significant growth, it faces certain challenges and restraints. One key restraint to the industry's growth is the advancements in vehicle technology and complexity.

Modern vehicles are equipped with increasingly sophisticated technologies and complex systems. While this is beneficial for vehicle performance and efficiency, it poses challenges for the aftermarket industry. Advanced technologies often require specialized knowledge and tools for diagnostics, repairs, and replacements. As a result, independent repair shops, Automotive Aftermarket distributors, and DIY enthusiasts may face difficulties in keeping up with the evolving technology, leading to a reliance on original equipment manufacturer (OEM) services or authorized dealerships.

Advanced vehicle systems may require specialized diagnostic equipment and software, limiting the ability of independent repair shops to effectively identify and address issues. Some manufacturers restrict access to crucial repair and diagnostic information, making it challenging for independent repair facilities to perform certain repairs and maintenance tasks.

Automotive Aftermarket Industry Segmentation Analysis

By Replacement Part Type Analysis

Development of Tires for Electric Vehicles Fuels the Wheels & Tires Segment Expansion

Based on replacement part type, the market is segmented into various sub-segments, namely battery, brake pads, filters, gasket & seals, lighting component, body part, wheels & tires, and others.

The wheels & tires segment held the largest market share in 2022. The rising trend of electric vehicles also forced manufacturers to develop tires specifically for EVs. For instance, in November 2023, Yokohama Tire unveiled the ADVAN Sport EV A/S, an ultra-high-performance all-season tire tailored for electric vehicles (EVs) at the Electrify Expo held in Austin, Texas, from 10^th-12^th November. The Sport EV is presented in 10 sizes, spanning from 18 to 20 inches, and is scheduled for market release on 1^st January, 2024.

The body part segment held the second-largest share of the market in 2022. The most significant driver for the segment is the need for repairs following accidents or collisions. Cracked bumpers, dented doors, and other body damage often require replacement parts, leading to a continuous demand for body components. In July 2023, auto-body and glass repair shops in McLennan County experienced a surge in the demand for vehicles with hail damage following the hail storms that struck the area between April and June 2023.

By Vehicle Type Analysis

Higher Component Wear & Tear Favors Passenger Cars Segment Growth

Based on vehicle type, the market is divided into two sub-segments, passenger cars and commercial vehicles.

The passenger cars segment held the largest market share in 2022. As urbanization increases, the reliance on passenger cars for daily commuting also rises. This leads to higher wear and tear of various components, necessitating more frequent replacements and repairs. For instance, as per data published by the World Economic Forum in May 2022, the predominant mode of transportation for commuting between home and work in the U.S. is private car usage, with 76% of American commuters opting for their vehicles.

The commercial vehicle segment held a considerable market share in 2022. The economic conditions, including growth in industries such as logistics, transportation, and construction, influence the demand for commercial vehicles and, consequently, aftermarket parts. According to IBEF (India Brand Equity Foundation), the freight movement in India in 2022 by road was around 3.05 trillion ton-km, accounting for 66% of the total freight movements. This demands higher activity from commercial vehicles, which propels the market demand.

REGIONAL INSIGHTS

Consumer Preference in Customized and Personalized Vehicles Fuel Market in North America 

By region, the market is analyzed across North America, Europe, Asia Pacific, and the rest of the world.

North America held the largest share in 2022. North American consumers often have a strong preference for customizing and personalizing their vehicles. This inclination toward vehicle modification drives the demand for aftermarket accessories and performance-enhancing products. In October 2023, Gas Monkey Garage, known for automotive excellence, debuted at SEMA 2023 in Las Vegas. The garage, renowned for the Fast N' Loud TV show, revealed four exceptional customized cars, ranging from classics to innovative electric vehicles (EVs).

Europe held a significant share of the global market in 2022. Europe has a significant number of vehicles on the road, and the average age of vehicles is relatively high. As vehicles age, the demand for aftermarket products and services, including replacement parts and repairs, increases. For instance, in 2023, according to ACEA (The European Automobile Manufacturers' Association), Trucks in the European Union have an average age of 14.2 years. Greece holds the record for the oldest truck fleet, with an average age of around 22.7 years.

Asia Pacific held a decent market share in 2022. The region has witnessed a significant increase in the number of vehicles on the road, driven by economic growth, rising incomes, and urbanization. As the vehicle fleet expands, the demand for aftermarket parts for maintenance and repairs rises. For instance, according to SIAM (Society of Indian Automobile Manufacturers, in the fiscal year 2022-23, India witnessed a rise in total passenger vehicle sales, growing from 30,69,523 units to 38,90,114 units.

The rest of the world held a considerable market share in 2022. The level of vehicle ownership and the size of the vehicle fleet in each region play a significant role. The demand for aftermarket products and services increases as the number of vehicles increases.

List of Key Automotive Aftermarket Industry Companies

Advancement in Technology and Eco-friendly Products Drive Competitive Edge

Market leaders are concentrating on the development and production of aftermarket parts designed to be compatible with the latest vehicle models while simultaneously catering to the needs of the older vehicle market. Prominent entities in the market are dedicated to the development of environmentally friendly products, thereby contributing to sustainability objectives.

Robert Bosch GmbH, Continental AG, and ZF Friedrichshafen AG, among others, are considered to have led the market in 2022. Robert Bosch GmbH Bosch is a multinational engineering and technology company that operates in various sectors, including automotive. Bosch is a major player in the Automotive Aftermarket Industry, offering a diverse range of products such as automotive parts, diagnostic equipment, and workshop services.

List of Key Companies Profiled:

• Robert Bosch GmbH (Germany)


• Denso Corporation (Japan)


• Magna International Inc. (Canada)


• Continental AG (Germany)


• ZF Friedrichshafen AG (Germany)


• Aisin Seiki Co. (Japan)


• Lear Corp. (U.S.)


• Bridgestone Corporation (Japan)


• Faurecia (France)


• Valeo SA (France)

KEY INDUSTRY DEVELOPMENTS:

• October 2023: Robert Bosch, LLC expanded its portfolio by introducing 102 vehicle aftermarket parts, providing coverage for almost 24 billion vehicles in operation throughout North America.


• August 2023: ZF Aftermarket broadened its range of automotive components for vehicles in the U.S. and Canada. The expansion would include 74 new listings incorporated into its TRW and SACHS branded portfolios. With these latest additions, the coverage would extend to over 18.7 billion vehicles currently in operation.


• April 2023: Faurecia introduced the Skin Light Panel, an integrated mono-material polymer (polyurethane) designed as a single, 3D-sculpted piece enveloping the rear of the front seats. This innovative solution would offer an alternative to traditional-grained or wrapped plastic panels.


• April 2023: Robert Bosch, LLC added 52 aftermarket parts for automotive to its portfolio. This expansion would provide coverage for nearly 22 million vehicles in operation across North America, further solidifying the company's role as a reliable supplier for shops and technicians. The Bosch products, designed for both domestic and European/Asian passenger and commercial vehicles, encompass three braking parts, 16 fuel and water pumps, two ignition coils, 30 sensors, and one fuel injector.


• November 2022: Magna invested USD 500 billion for the expansion of its operations across three distinct sites in Southeast Michigan. The company intended to enhance its St. Clair facility, specializing in the production of battery enclosures, and established facilities dedicated to powertrain manufacturing in Shelby Township and the production of seating components in Detroit.

REPORT COVERAGE

The market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

Report Scope & Segmentation