Automotive Aftermarket Industry Size, Share & COVID-19 Impact Analysis, By Replacement Parts Type (Battery, Brake Pads, Filters, Gaskets & Seals, Lighting Components, Body Parts, Wheels and Tires, Others), By Vehicle Type (Passenger Cars, Commercial Vehicles), and Regional Forecast, 2021-2028

The global automotive aftermarket industry size was USD 392.35 billion in 2020 and is projected to grow from USD 407.51 billion in 2021 to USD 529.88 billion by 2028, exhibiting a CAGR of 3.8% in the during the forecast period. Automotive aftermarket industry growth is attributed to the factors such as, growing demand for hybrid and all-electric vehicles, and the emergence of 3D printing in the automotive industry.

Based on our analysis, the global market exhibited a lower growth of 3.1% in 2020 compared to the average year-on-year growth during 2017-2020. The global impact of COVID-19 has been unprecedented and staggering, with the market witnessing a negative impact on demand across all regions amid the pandemic. The rise in CAGR is attributable to this automotive aftermarket’s growth and demand, returning to pre-pandemic levels once the COVID-19 crisis is over.

The automotive parts aftermarket represents auto components and parts installed after the automobile has left the factory. Vehicle parts, replacement tires, equipment, service repair, collision repair, and accessories, sold after the vehicle's original sale, are a part of this Industry. It includes companies involved in the manufacturing, distribution, retailing, installation, and remanufacturing of all vehicle parts and accessories. The digitalization of auto repair & components sales has emerged due to technological advancements, which, in turn, have augmented the automotive aftermarket industry progress.

Closure of Auto Assembly Parts and Large-Scale Manufacturing Interruptions to Impede Market Progress

In 2020, the COVID-19 crisis had a severe and swift impact on the worldwide integrated automotive sector. The closure of auto assembly plants, large-scale manufacturing interruptions, and disruption in aftermarket products exports worldwide is afflicting extreme pressure on the automotive industry, which is already ongoing with a downshift in global demand. Due to COVID-19, people stay home, and the economy has slipped into a recession, putting less wear and tear on their cars. The COVID-19 pandemic impacted the sales of aftermarket automotive parts in 2020. However, the vehicle aging fleet is expected to stimulate demand for these automotive parts in the coming years.

LATEST TRENDS

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Digitalization of Automotive Component Delivery Services, Higher Price transparency and Greater Diversity of Supply for Customers to Fuel Growth

Digital channels such as social media gain growing influence in customer research and purchase processes in developed and emerging markets. Online sales channels give customers swift access to information on the price of parts, and end customers use these channels to determine which car parts to buy. Online forums give customers a peer perspective on the quality/value of workshops. Suppliers, OEMs, distributors, and workshop chains are increasing their online participation, and some key players have already set up their online channels, e.g., Hella GmbH & Co. KGaA. Besides, a digital sales model enables a leaner and shorter value chain that benefits suppliers. Streamlining the distributor layer and eliminating intermediaries allows for additional substantial margins and savings for the suppliers that can be passed on to the end-users.

DRIVING FACTORS

Aggressive Expansion of OEMs into Aftermarket Activities to Propel the Market Growth

Original equipment manufacturers have steadily improved their level of activity and focus within the automotive parts aftermarket value chain by, for instance, creating their networks of non-car brand-specific repair shops. Major market players aiming to keep up with the vehicle-age-driven market have introduced second service formats and second brands (e.g., VW Direkt Express) or remanufactured parts to compete with independent aftermarket players and keep customers in their networks longer. OEMs are also investing in customer experience optimization efforts and introducing differentiated aftermarket service offerings by, for instance, leveraging vehicle connectivity to retain customers and automate decision-making related to service and repair.

For instance, French carmaker PSA has made the independent Automotive Aftermarket a significant part of its Push to Pass five-year growth strategy. Coupled with a series of acquisitions, PSA has launched several of its brands along the entire value chain. PSA has stakes in the distribution network Distrigo and Mister Auto, and Aramisauto and Autobutler. Via this approach, PSA aims to target all consumers, regardless of their vehicle brand, age, or distribution channel. Other original equipment manufacturers, both premium and volume players, have followed PSA’s example, driving the market growth in the coming years.

Growing Automotive Industry, and Increasing Manufacturing of Auto Components to Drive the Market Growth

Growing consumer awareness regarding the repair and proper maintenance of vehicles to maintain their efficiency and performance are several factors anticipated to support the market growth from 2021 to 2028. Moreover, the rising demand for crossover and long-distance travel vehicles further upsurges the requirement for periodic repairs and replacement of vehicle parts. Growing flexibility in vehicle design and production permits greater customer customization, which is anticipated to drive market growth over the forecast period.

RESTRAINING FACTORS

Adoption of Vehicle Safety Technologies and Rising Electric Vehicle Sales to Hinder Market Growth

The use of sensors in vehicles, which leads to optimum driving behavior, enables lesser wear and tear of cars, particularly brakes and tires, which are subjected to harsh driving conditions daily. This factor reduces the replacement requirements that may restrain the Industry progress. Furthermore, ongoing research and development for new raw materials to reduce the deterioration of vehicle parts also limit product penetration. For instance, UBC Okanagan, the Sharif University of Technology in Iran, and the University of Toronto developed self-lubricant brakes for cars. The carbon fiber-infused polymer-based brakes are anticipated to lead to smaller brake pads that are more cost-effective and efficient as the small pads can withstand higher friction and temperatures.

SEGMENTATION

By Replacement Parts Type Analysis

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Wheels and Tires Segment Anticipated to Witness Highest Growth Rate due to Low Replacement Cycle of Tires Compared to other Component Counterparts

Based on replacement parts type, the market is segmented into battery, brake pads, filters, gaskets & seals, lighting components, body parts, wheels and tires, and others. In 2020, the wheels and tires segment accounted for the majority revenue share in the global market. The body parts segment is projected to hold one of the largest market shares due to an amplified focus on the safety of vehicle occupants coupled with research and development by major aftermarket players to reduce the overall weight of a vehicle by introducing lightweight and cost-effective solutions.

Moreover, the filters segment is likely to witness over 3% CAGR from 2021-2028 due to growing market penetration and consumer awareness regarding the replacement and existence of cabin air filters and the purchase of higher value filter products in well-developed regions. Further, the lighting components segment is expected to grow due to high demand in regions with poor road infrastructure to avert accidents and the adoption of innovative lighting solutions, particularly in highway vehicles.

The brake pads segment is also anticipated to grow due to the periodic product replacement to safeguard vehicle safety. Disc brakes offer better security by reducing the stopping distance of vehicles, which is likely to fuel growth in this segment. The battery segment is projected to show steady growth in this market, chiefly driven by stringent government regulations and emission norms governing the auto industry. For instance, the U.S. American Recovery & Reinvestment Act grants funds to private & public entities to develop hybrid electric vehicles.

By Vehicle Type Analysis

Commercial Vehicles Expected to Fuel Market Growth Owing to Frequent Repair and Maintenance Activities

Based on vehicle type, the market is segmented into passenger cars and commercial vehicles. The passenger car segment is anticipated to show slow growth in this market over the forecast period. Greater consumer awareness regarding alternative fuel mobility and the effect of conventional vehicles on global warming has led to the increased popularity of electric vehicles, thereby impacting growth in the passenger car segment.

Moreover, the commercial vehicle segment is expected to show steady growth in this market owing to upcoming emission norms for commercial vehicles that are likely to impact the repair side via increased adoption of engine electronics. The upsurge in remanufacturing also offers truck warranty support, operators' service life, and performance without the cost associated with a new part. These major factors are projected to impact the commercial vehicles segment.

REGIONAL INSIGHTS

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The market in Asia Pacific is characterized by increasing vehicular sales in terms of both passenger cars and commercial vehicles in emerging economies such as China and India. Also, there has been increasing consolidation among parts distributors and the implication of new tax reforms, which are responsible for replacing the current unorganized sector. These factors are anticipated to lead to a dominant share of APAC in the global market. Europe is expected to hold the second-largest market share. Advanced technology usage in the fabrication of auto parts and the digitization of automotive component delivery sales fuel the market growth in this region.

Moreover, North America is also anticipated to show steady growth in this market, with the United States accounting for the foremost share. The presence of key manufacturers has positioned this region as a significant automotive parts and accessories aftermarket manufacturing hub. The market in Latin America is expected to show good growth in the market owing to increased fabrication and customization works in Mexico, and the Middle East is currently in the nascent stage.

KEY INDUSTRY PLAYERS

Diverse Portfolio and Core Focus of Robert Bosch GmbH is Expected to Help Retain Its Leading Position

The market is highly competitive and fragmented, with key players such as Robert Bosch GmbH, Denso Corporation, Magna International Inc., Continental AG, ZF Friedrichshafen AG, Aisin Seiki Co., Lear Corp., and Valeo SA, among others. The major companies are focusing on acquisitions, expansions, and collaborations strategy to strengthen their position in the market.

Moreover, Robert Bosch GmbH continues to lead the global automotive parts aftermarket sales. A sizeable aftermarket division with the most comprehensive product range finding extensive application in Buses, Utility Vehicles, LCVs and HCVs, two and three-wheelers, Off-highway applications, and among others and constant R&D by the company leading to technological advancements, are prominent factors responsible for the dominance of the company

However, Continental AG, ZF Friedrichshafen AG, and Magna International have also retained their positions in the competitive landscape with Magna International, mostly dominating the North American market compared to its competitors. This factor is projected to influence the global market as these automotive companies are expected to drive market innovation in the coming years.

LIST OF KEY COMPANIES PROFILED:

• Robert Bosch GmbH (Gerlingen, Germany)


• Denso Corporation (Aichi, Japan)


• Magna International Inc. (Aurora, Canada)


• Continental AG (Hanover, Germany)


• ZF Friedrichshafen AG (Friedrichshafen, Germany)


• Aisin Seiki Co. (Aichi, Japan)


• Lear Corp. (Michigan, U.S.)


• Valeo SA (Paris, France)


• Bridgestone Corporation (Tokyo, Japan)


• Faurecia (Nanterre, France)

KEY INDUSTRY DEVELOPMENTS:

• April 2021 – Lippert Components Inc. announced the acquisition of Kaspar Ranch Hand Equipment, LLC. With this acquisition, Lippert Components Inc.’s aimed to expand its presence in the automotive parts aftermarket.


• February 2020 – MotoRad LTD. partnered with the Automotive Aftermarket Suppliers Association (AASA) and Auto Care Association to endorse the “Your Car. Your Data. Your Choice.” Campaign. This campaign was launched to inform vehicle owners about their automobiles' data with vital maintenance and repair information.

REPORT COVERAGE

An Infographic Representation of Automotive After Market

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The market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, replacement parts types, and vehicle types. Besides this, 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 have contributed to the market's growth over recent years.

Report Scope & Segmentation