The rise in automotive post-sale services, strict Government regulations for replacement or upgrade of vehicle components, and surge in the trend of vehicle customisation drive the growth of the global automotive aftermarket to reach $828.2 billion by 2031, from $438.7 billion in 2021.
According to the latest report by Allied Market Research titled, 'Automotive Aftermarket Industry by Application (Infotainment and Multimedia, Engine Component, Tyres and Wheels, Electrical Products, Seat and Steering Covers, Others), by Distribution (OEM, Third Party Vendors), by Vehicle Type (Two Wheeler, Passenger Car, Commercial Vehicle), by Position (External Accessories, Internal Accessories): Global Opportunity Analysis and Industry Forecast, 2021-2031,' the global automotive aftermarket is anticipated to grow at a CAGR of 6.2% till 2031.
Despite many factors positively impacting the growth of the global automotive aftermarket, the surged demand for shared mobility solutions and fluctuations in prices of raw materials restrain the market growth. On the other hand, the rise of the e-commerce industry and surge in demand for technologically-advanced features present new opportunities in the coming years.
The shortage of raw materials for vehicle components occurred due to restrictions on import and export activities during the COVID-19 pandemic. As a result, many market players in the automotive sector faced several issues such as stoppage of production activities, limited supply of automotive parts, reduction in workforce, and decline in liquidity.
Leading players in this space include Alpine Electronics, Bridgestone Corporation, Continental, DENSO Corporation, Ford Motor Company, HARMAN International, Hella KGaA Hueck & Co, Hyundai Mobis, Michelin, Osram Licht AG, Panasonic Corporation, Pioneer Corporation, Robert Bosch GmbH, The Goodyear Tire & Rubber Company, The Yokohama Rubber Co. Ltd, Visteon and Auto Zone.
Automotive component manufacturers established their e-commerce platforms to meet the surged demand and widen their customer reach. This, in turn, is helping the automotive aftermarket to recover. In addition, manufacturing activities and raw material supply are expected to recover post-pandemic as restrictions on import-export activities, and lockdown is lifted. This will help the market recover soon.
Electrical Products
According to the report, the electrical products segment to maintain its lead position during the forecast period. Based on application, the electrical products segment accounted for the highest market share in 2021, contributing to nearly one-fourth of the global automotive aftermarket, and is projected to maintain its lead position during the forecast period. Moreover, this segment is estimated to witness the largest CAGR of 7.6% from 2022 to 2031. This is due to customer inclination toward advanced electronic accessories, safety, and convenience features. The report also analyses the segments, including infotainment and multimedia, engine components, tyres and wheels, seat and steering covers, and others.
Third-party Vendors
Based on distribution, the third-party vendors' segment contributed to the highest market share in 2021, accounting for nearly three-fourths of the global automotive aftermarket, and is expected to maintain its dominant share during the forecast period. This segment is projected to manifest the largest CAGR of 6.6% from 2022 to 2031. This is attributed to the shift of customers toward e-commerce platforms for convenience in buying experience and fast delivery.
Passenger Cars
Based on vehicle type, the passenger car segment held the highest market share in 2021, contributing to more than two-fifths of the global automotive aftermarket, and is expected to continue its dominance during the forecast period. In addition, this segment is projected to register the largest CAGR of 7.0% during the forecast period. This is due to the rise in the adoption of smart technologies in passenger cars. The report also discusses segments, including two-wheeler and commercial vehicles.
External Accessories
Based on position, the external accessories segment held the highest market share in 2021, accounting for more than half of the global automotive aftersales market. However, the internal accessories segment is projected to register the highest market share in revenue by 2031. In addition, this segment is projected to register the largest CAGR of 7.4% from 2022 to 2031, owing to an increase in demand for aesthetic appearance in vehicles, Allied Market Research noted.
Based on region, Asia-Pacific contributed to the highest market share in 2021, holding more than one-third of the global automotive aftermarket, and is expected to maintain its lead status by 2031. Moreover, this region is projected to grow at the fastest CAGR of 6.9% from 2022 to 2031. This is due to a large passenger car fleet across the region and the increased involvement of original equipment manufacturers. The research also analyses regions including North America, Europe, and LAMEA, the report noted.
Courtesy: Allied Market Research. Photo is representational; courtesy: Continental.