How Automobile Aging Is Taken-Up by the Largest Automotive Aftermarket Companies by Designing Compatible Components

The aftermarket industry is inclusive of a diverse array of services and products, including performance-enhancing parts, maintenance and repair services, accessories (cosmetic upgrades, navigation systems, and car audio systems), and replacement components (batteries, brakes, filters, and tires). This market is referred to as the secondary market, which serves the preferences and requirements of vehicle owners, providing various choices that go beyond the available products through OEMs. The aging of automobiles has a crucial role in the generation of demand for services and parts pertaining to aftermarket.

As per a report by Fortune Business Insights™, the automotive aftermarket reached USD 418.95 billion in 2023 and is set to reach USD 568.19 billion by 2032 with a CAGR of 3.5%. The market is also expected to reach USD 430.51 billion in 2024.

The expected rise in the adoption of hybrid and electric vehicles, which results in a demand for automotive aftermarket components with EV compatibility, is slated to contribute to the market growth during the forecast period.

Moreover, largest automotive aftermarket companies are focusing on producing and developing aftermarket parts with compatibility with the latest models of vehicles and meet the requirements of the older vehicle market. Largest automotive aftermarket companies are also emphasizing the creation of environmentally friendly products and contributing to sustainability goals. In 2022, the market was dominated by Continental AG, ZF Friedrichshafen AG, and Robert Bosch.

The growing e-commerce is further poised to drive the expansion of the market. There is a growing preference of consumers for completing their purchases via conventional brick-and-mortar stores and online platforms. This move is impelled by the convenience provided by online shopping, which enables customers to browse a diverse array of products and purchase from the home comfort while comparing prices.

In June 2022, Bosch came up with its latest website to serve shops, technicians, and customers. The main aim of the new site is to offer simplified access to product information. Moreover, a wide array of products can be compared and insights can be gained on the products compatible with their vehicles through enhancements in API.

Furthermore, the COVID-19 pandemic asserted a significant influence on the industry, impacting the demand, different elements of supply chain, and overall operations of the business. It led to disruptions in supply chains across the globe, resulting in scarcity of automotive aftermarket parts and components.

Fortune Business Insights™ Profiles Top 5 Largest Automotive Aftermarket Companies in the Market

1. Robert Bosch GmbH

Robert Bosch GmbH is a prominent provider of services and technology across the globe. The company’s services include smart building solutions, software solutions, electric vehicle solutions, safety and security solutions, energy and thermal solutions, in-vehicle technologies, and power tools. The automotive aftermarket company provides a comprehensive selection of workshop and diagnostic equipment and a wide range of spare parts in its aftermarket business segment. Moreover, repair solutions and exchange and new parts come under this offering, which serves both commercial vehicles and passenger cars globally.

2. Continental AG

Continent AG, located in Hanover, Germany, is a specialized manufacturer that develops parts for the transportation and automotive sectors. The automotive aftermarket company has three unique divisions of operations, namely rubber technologies, powertrain technologies, and automotive technologies. Its aftermarket products are offered under different brand names, including Uniroyal, Semperite, Barum, ATE, and Continental. The company has emerged as a global entity, with sales hitting USD 42.03 billion in 2022. Its workforce includes nearly 200,000 people in 57 markets and nations. The company was founded as a maker of rubberized materials and tires and is a key player in the industry.

3. ZF Friedrichshafen AG

ZF Friedrichshafen AG is a leading technology company that provides different systems for commercial vehicles and passenger cars. Its offerings also include industrial technology, which allows for next-generation mobility. Moreover, comprehensive software and product solutions in four technology domains, including electric mobility, automated driving, vehicle motion control, and integrated safety are provided by the company. It also provides solutions and products to automakers and mobility and transport service provides. Furthermore, its aftermarket division offers services and products for HCVs, railways, agriculture, two-wheelers, and others. The automotive aftermarket company’s operations span 40 nations and 120 locations across the globe, which include 650 service partners and 90 logistics centers. It accounts for a strong presence in both industrial and automotive markets.

4. Lear Corporation

Lear Corporation, established in 1977 and located in Aurora, Canada, is a designer, manufacturer, assembler, supplier, and developer of electrical distribution and automotive seating systems. Its operations fall under e-systems and seating segments. The seating segment is inclusive of seating systems and associated components, such as recliner mechanisms, seat structures, fabric and leather products, thermoelectric seat cooling and heating systems, headrests, and seat trim covers. On the other hand, the e-systems segment provides electrical distribution systems that help in the management of electric power within the vehicle and routing electric signals for traditional architectures of vehicle and hybrid electric systems. Other offerings of the automotive aftermarket company include wireless systems consisting of remote keyless entry, dual-function or dual-range remote keyless entry systems and passive entry.

5. BRIDGESTONE CORPORATION

BRIDGESTONE CORPORATION, a Japan-based multinational company, possesses expertise in the distribution and manufacturing of rubber products and tires. The automotive aftermarket company has evolved as one of the largest manufacturers of tires across the globe. Its product line is inclusive of buses, motorcycles, trucks, and car tires. Off-road tires, snow tires, and all-season tires are also manufactured by the company. In addition, a diverse array of automotive parts, including suspension systems, brakes, and other rubber-based parts, are developed by it. Moreover, the regional headquarters of the company are located in the Asia Pacific, Europe, and North America.

Road Ahead for Automotive Aftermarket

Older vehicles generally need more frequent repairs and maintenance owing to wearing out of their parts over time. This factor leads to a constant demand for replacement services and parts provided by the aftermarket industry. Moreover, different parts of a vehicle, including tires, exhaust systems, and brakes observe wear and tear. Thus, the requirement for the replacement of different parts in older vehicles bolsters the growth of the market.