Automotive Part Aftermarket

Automotive Part Aftermarket Outlook (2024 to 2034)

Fact.MR, in its newly published study, says that the global automotive part aftermarket is pegged at US$ 608.1 million in 2024. The global aftermarket is forecasted to increase at 5.6% CAGR and reach a market value of US$ 1,048.6 million by the end of 2034.

The automotive part aftermarket size is expected to experience growth opportunities in emerging economies, attributed to the connected vehicles and IoT. The integration of the Internet of Things in vehicles, often referred to as connected vehicles, has transformed the automotive industry by enabling real-time monitoring, data collection, and communication between vehicles and external systems. The connectivity presents significant opportunities for aftermarket companies to offer innovative services, particularly in the areas of predictive maintenance and customized solutions.

Connected vehicles generate a vast amount of data through sensors embedded in various components, capturing information on engine performance, fuel efficiency, tire pressure, and other critical parameters. Aftermarket companies can access this real-time data, allowing for continuous monitoring and diagnostics of a vehicle's health and performance.

IoT-enabled vehicles provide aftermarket companies with the ability to implement predictive maintenance services. Aftermarket, by analyzing real-time data, providers can predict potential issues before they escalate, enabling timely interventions and reducing the risk of unexpected breakdowns.

Connected vehicles facilitate remote diagnostics, allowing aftermarket service providers to assess the condition of a vehicle without physical inspection. The capability streamlines the troubleshooting process, enabling quicker and more efficient identification of issues.

Report Attributes	Details
Automotive Part Aftermarket Size (2024E)	US$ 608.1 million
Forecasted Aftermarket Value (2034F)	US$ 1,048.6 million
Global Aftermarket Growth Rate (2024 to 2034)	5.6% CAGR
North America Aftermarket Share (2034F)	22.4%
CAGR in Japan (2024 to 2034)	7.4% CAGR
China Aftermarket Value (2034F)	US$ 329.0 million
Demand for Passenger Cars (2034F)	US$ 575.7 million
Revenue Share of Tires Segment (2034F)	16.4%
Key Companies Profiled	Hitachi Astemo Ltd. Robert Bosch GmbH Michelin Denso Corporation Magna International Continental AG Valeo SA Bridgestone Gabriel India Limited Bajaj Auto Ltd.

Which Trends are Opening New Opportunities for Manufacturers?

“Vehicle Ageing Population to Fuel the Aftermarket Growth”

Various components such as brakes, tires, batteries, and fluids naturally wear out and require replacement, as vehicles age. Regular maintenance becomes more critical to ensure the continued functionality and safety of older vehicles. Consumers are likely to invest in aftermarket products and services to extend the lifespan of their aging vehicles.

Older vehicles are more prone to mechanical failures and breakdowns due to wear and tear. Repairs become more frequent as components like the engine, transmission, and suspension systems may experience issues over time. The aftermarket benefits from the demand for replacement parts and skilled repair services to keep aging vehicles on the road.

Original equipment manufacturer parts for older vehicle models may become obsolete or harder to find. Aftermarket suppliers fill this gap by producing and supplying compatible replacement parts, ensuring that consumers can still maintain and repair their aging vehicles.

“Technological Advancements to Accelerate the Aftermarket”

Modern vehicles are equipped with a wide array of electronic components and systems, including advanced sensors, control units, and communication modules. Aftermarket companies can develop and provide replacement electronic components to address issues or failures in existing systems, offering consumers alternatives to expensive OEM replacements.

The need for advanced diagnostic tools and equipment grows, as vehicles become more technologically sophisticated. Aftermarket companies can specialize in developing diagnostic tools compatible with a variety of vehicle makes and models, helping mechanics and car owners identify and address electronic and software-related issues.

Consumers increasingly demand connectivity features and advanced infotainment systems in their vehicles. Aftermarket companies can offer upgrades, such as advanced audio systems, touchscreen displays, and connectivity solutions, allowing owners of older vehicles to enjoy modern features without purchasing a new car.

“E-Commerce Growth to Contribute Significantly”

E-commerce platforms offer consumers the convenience of shopping for automotive parts and accessories from the comfort of their homes. Customers can browse, compare prices, and make purchases at any time, eliminating the need to visit physical stores.

Online retailers provide a vast and diverse selection of automotive parts and accessories from various brands and manufacturers. Consumers can easily find both OEM and aftermarket products, as well as explore niche or specialty items that might be challenging to find in traditional brick-and-mortar stores.

E-commerce platforms provide detailed product descriptions, specifications, and customer reviews, aiding consumers in making informed decisions. Buyers can access comprehensive information about compatibility, features, and performance, enhancing their confidence in the products they choose.

Online platforms make it easy for consumers to compare prices across different sellers, ensuring they get the best value for their money. Many e-commerce sites offer discounts, promotions, and bundle deals, making the online purchase of automotive parts and accessories financially attractive.

Which Factor is Restraining the Automotive Part Aftermarket?

“Rise in Electric Vehicles to Restrain the Aftermarket Growth”

Electric vehicles have fewer moving parts compared to traditional internal combustion engine vehicles. They typically have simpler drivetrains with fewer components like pistons, belts, and exhaust systems, which results in reduced wear and tear on components, leading to less frequent maintenance needs compared to traditional vehicles.

Traditional aftermarket suppliers that focus on components specific to internal combustion engines, such as exhaust systems, air filters, and spark plugs, may experience a decline in demand as electric vehicles become more prevalent. The shift to electric propulsion reduces the market for traditional aftermarket products related to combustion engines.

Electric vehicles require unique components, including electric motors, batteries, power electronics, and charging infrastructure. Aftermarket companies need to adapt by developing expertise in supplying and servicing these specialized components to meet the evolving needs of electric vehicle owners.

While electric vehicle batteries have a longer lifespan, they are subject to degradation over time. Aftermarket suppliers can explore opportunities in providing battery replacement services and upgrades, addressing the long-term maintenance requirements of electric vehicles.

What Strategy Should Start-ups Incorporate to Enhance Their Market Presence?

“Fleet Management and Maintenance is Key to Gaining Competitive Edge”

Commercial vehicles, including those in ride-sharing and delivery services, are often in operation for extended periods, leading to higher mileage and accelerated wear on essential components. The increased wear and tear necessitate more frequent maintenance and replacement of parts, driving up the demand for aftermarket components.

As commercial fleets grow in size, the overall demand for replacement parts rises proportionally. Aftermarket suppliers benefit from this trend as they can cater to the specific needs of commercial vehicle operators, offering a wide range of components such as brakes, tires, filters, and engine parts.

The growth of commercial fleets has led to an increased demand for specialized fleet management solutions. Aftermarket companies can offer technologies and services designed to optimize fleet performance, including GPS tracking systems, telematics, and predictive maintenance solutions. Commercial fleet operators often enter into maintenance contracts with aftermarket service providers. The contracts ensure regular maintenance, inspections, and timely repairs, creating a steady and predictable revenue stream for aftermarket service providers.

Country-wise Insights

Fact.MR asserts that North America is predicted to hold a 22.4% share of the global market by 2034. The growing demand for unique and customized vehicles drives the need for aftermarket parts and accessories that cater to individual preferences, which includes aesthetic modifications, performance upgrades, and personalized interiors.

What is the Scenario of the Aftermarket in the United States?

“Mileage Accumulation to Augment the Growth”

Attribute	United States
Aftermarket Value (2024E)	US$ 127.9 million
Growth Rate (2024 to 2034)	4.5% CAGR
Projected Value (2034F)	US$ 197.8 million

The United States is predicted to account for 84.2% of the North American aftermarket by 2034. Vehicles experience higher wear and tear, with Americans driving more miles annually, increasing the need for replacement parts and regular maintenance services from the aftermarket. The robust used car market in the country leads to increased aftermarket, as buyers of pre-owned vehicles often invest in replacement parts and upgrades to ensure the reliability and performance of their vehicles.

The American automotive market has a strong culture of vehicle customization. Enthusiasts often seek aftermarket parts to personalize and enhance the performance of their vehicles, contributing to aftermarket growth.

What is projected to propel the Growth of Automotive Part Aftermarket in China?

“Rapid Vehicle Ownership Growth in China to Fuel the Aftermarket in China”

Attribute	China
Aftermarket Value (2024E)	US$ 175.1 million
Growth Rate (2024 to 2034)	6.5% CAGR
Projected Value (2034F)	US$ 329.0 million

China is forecasted to hold an 80.7% share of East Asia aftermarket revenue by 2034. China has experienced significant growth in vehicle ownership, with a large and expanding middle class. The increasing number of vehicles on the road contributes to a growing aftermarket as these vehicles age and require maintenance.

Supportive government policies and incentives for the automotive industry, including subsidies for electric vehicles and efforts to stimulate vehicle consumption, can positively influence the aftermarket sector.

Advances in automotive technology, including connected vehicles and advanced safety features, create opportunities for the aftermarket to provide compatible components, diagnostic tools, and technological upgrades.

What is Projected to Influence the Growth of Automotive Part Aftermarket in Japan?

“Quality and Precision to Enhance Aftermarket Prospects”

Attribute	Japan
Aftermarket Value (2024E)	US$ 27.9 million
Growth Rate (2024 to 2034)	7.4% CAGR
Projected Value (2034F)	US$ 56.9 million

Japan is anticipated to hold a 14.0% share of East Asia aftermarket revenue by 2034. Japanese consumers often prioritize quality and precision in automotive products. The reputation for high-quality manufacturing extends to the aftermarket, where consumers seek reliable and durable replacement parts.

The growth of e-commerce platforms in Japan provides consumers with convenient access to a wide range of aftermarket parts. Online sales channels contribute significantly to the distribution and sales of automotive components.

Japan is a major player in the global automotive supply chain. The globalization of supply chains facilitates access to a diverse range of aftermarket parts, contributing to the variety and availability of products for consumers.

Category-wise Insights

Based on vehicle type, the global automotive part aftermarket is projected to rise significantly in the passenger cars segment. Rapid technological advancements in passenger car features, such as infotainment systems, connectivity, and safety technologies, create opportunities for aftermarket companies to offer upgrades and aftermarket solutions catering to these advancements.

Which Vehicle Type to Contribute Significantly to the Growth of Automotive Part Aftermarket?

“Passenger Cars are expected to Accelerate the Automotive Part Aftermarket”

Attribute	Passenger Cars
Segment Value (2024E)	US$ 353.3 million
Growth Rate (2024 to 2034)	5.0% CAGR
Projected Value (2034F)	US$ 575.5 million

The passenger cars segment of automotive part aftermarket is forecasted to hold 54.9% of the market share by 2034. The rising number of passenger cars on the road, driven by global population growth, urbanization, and increasing disposable incomes, contributes to a higher demand for aftermarket parts as these vehicles age and require maintenance.

Consumers are keeping their passenger cars for longer periods, leading to an increased need for replacement parts and maintenance services. Various components, such as brakes, batteries, and exhaust systems, may require replacement, as vehicles age.

Passenger car owners frequently seek aftermarket parts to customize their vehicles, including aesthetic enhancements, performance upgrades, and interior modifications. The trend contributes to the growth of the aftermarket segment for passenger cars.

Which Product Type of Automotive Part Aftermarket is Set to Occupy a Leading Market Share?

“Tires Segment is expected to be the Dominant Product Type”

Attribute	Tires
Segment Value (2024E)	US$ 94.3 million
Growth Rate (2024 to 2034)	6.2% CAGR
Projected Value (2034F)	US$ 172.0 million

The tires segment is predicted to occupy a 16.4% share of the global aftermarket by 2034. Seasonal variations and changing weather conditions prompt consumers to switch between different types of tires, such as winter and summer tires. The seasonality results in periodic demand for replacement tires in the aftermarket.

The overall growth in vehicle sales, both in new and used car markets, directly correlates with increased demand for replacement tires. The aftermarket for tires expands, as more vehicles are sold. Tires have a relatively high replacement frequency compared to other automotive components. The need for regular tire replacements due to wear, punctures, or damage ensures a steady and recurring demand for replacement tires.

Stringent road safety regulations often mandate the use of tires meeting specific standards, which can drive consumers to choose high-quality aftermarket tires that comply with safety requirements, fostering growth in this segment.

Competitive Landscape

Key players in the aftermarket are deploying a range of strategies to achieve their goals. The tactics include fostering innovation, instituting stringent quality control measures for their products, forming strategic partnerships, optimizing their supply chain management systems, and consistently advancing their products and technologies.

Company Portfolio

• Hitachi Astemo Ltd.: The company is a global automotive technology company that is known for its advanced automotive systems and components. Hitachi Astemo offers a wide range of automotive products, including powertrain systems, electronic control units, and various components contributing to vehicle efficiency and performance.
• Robert Bosch GmbH: The company is a leading global supplier of technology and services, operating in various sectors, including automotive. In the automotive aftermarket, Bosch is renowned for its high-quality automotive parts and systems. Bosch provides a comprehensive portfolio of automotive aftermarket parts, including components for the powertrain, safety systems, electrical systems, and more.

Hitachi Astemo Ltd., Robert Bosch GmbH, Michelin, Denso Corporation, Magna International, Continental AG, Valeo SA, Bridgestone, Gabriel India Limited, and Bajaj Auto Ltd., are key players in the market.

Segmentation of Automotive Part Aftermarket Research

• By Vehicle Type :

  • Passenger Cars
  • Light Commercial Vehicles
  • Heavy Commercial Vehicles

• By Product Type :

  • Engine and Transmission Parts
  • Brake Parts
  • Electrical Parts
  • Fuel Intake and Ignition Parts
  • A/C Parts
  • Suspension Parts
  • Exhaust Parts
  • Engine Cooling Parts
  • Steering Parts
  • Wheels
  • Tires

• By Region :

  • North America
  • Europe
  • East Asia
  • Latin America
  • Middle East & Africa
  • South Asia & Oceania