Auto Aftermarket Market Size, Industry Trends Report | 2031

Report Description

The global auto aftermarket market size is anticipated to expand at a CAGR of 3.8% and is projected to reach USD 529.25 billion during the forecast period, between 2021 and 2028. The growing demand for automobiles by consumers increases the production and sale of automobiles. The shift in the consumer’s preferences towards the vehicle’s upgradation and increasing standard of living associated with rising disposable income increases the demand for vehicles in developing countries like India and Brazil is driving the market.

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The auto aftermarket, also known as the generic part is a secondary market of the automotive industry, which includes brand-new replacement parts made by the vehicle’s original equipment manufacturers. The auto aftermarket is concerned with manufacturing, remanufacturing, distribution, retailing, and installing all vehicle parts, equipment, chemical, safety, performance, and accessories after the sale of automobiles to the consumers. The process of replacing auto parts is done after the original parts are got damaged. The aftermarket is generally divided into two categories such as replacement parts and accessories. The aftermarket provides a wide range of parts to all types of auto models. However, the auto aftermarket is continuously expanding and developing to fulfill changing consumers' expectations.

Market Trends, Drivers, Restraints, and Opportunities:

• Rising long-distance traveling and increasing demand for electric vehicles, hybrid vehicles, and autonomous and semi-autonomous cars are boosting the market. 
• Growing adoption of automobile drivers to enhance the vehicle's performance including speed, exhaust sound, and appearance is fueling the market. 
• Increasing concerns related to the environment associated with noise and carbon emissions are driving the market. 
• High operation costs and issues associated with high expenditure incurred in performing R&D activities are expected to hamper the market. 
• Complexities in manufacturing processes and replacing and selecting suitable parts such as aftermarket filters are expected to hinder the market. 
• The availability of counterfeit auto parts and uncertified service providers are restricting the market.
• Increasing adoption of modern-day automotive mufflers and resonators in automotive exhaust systems and 3D printing of automotive parts are creating opportunities in the market. 

Scope of Auto Aftermarket report:

The market report includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.

Market Segment Insights

In terms of replacement part, the market is segmented into tires, batteries, brake parts, filters, body parts, lighting & electronic components, wheels, exhaust components, turbochargers, and others. The tires segment constituted a significant market share in 2020 and is projected to expand at a rapid rate during the forecast period. The growth in the tire segment is attributed to the low replacement cycle of tires as compared to other component counterparts.

The body parts segment is expected to register a considerable CAGR during the forecast period, owing to the increasing demand for the lightweight body in white parts for electric vehicles as it helps in a longer driving range for EVs.

On the basis of distribution channel, the global auto aftermarket is segregated into retailers and wholesalers & distributors. The retailers segment is further bifurcated into OEMs and repair shops  The retailer's segment held a considerable share of the market in 2020, owing to the growing need to manage overall vehicle performance. The auto aftermarket is a significant part of overall auto manufacturing and maintenance. Moreover, rising digitization and the increasing influence of technological advancements made retailers shift their business to the online platform. However, retailers (repair shops and original equipment manufacturers (OEMs) are offering online services for enhancing better customer experiences.

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Based on certification, the market is categorized as genuine parts, certified parts, and uncertified parts. The genuine parts segment constituted a significant market share in 2020 and is projected to grow in the near future, due to the diverse range and warranty offered by service providers. Genuine parts are manufactured by subcontractors/original equipment manufacturers (OEMs) that give quality assurance to the customers about the parts. The certified segment is expected to hold a significant share of the market during the forecast period, attributed to the growing demand for cost-effective solutions by consumers. Genuine auto parts are highly expensive compared to certified parts. Moreover, the certified auto parts are tested and inspected by a certified organization such as Certified Automotive Parts Association (CAPA). However, CAPA offers test programs to verify the quality of auto parts and replacement sustainability.

On the basis of service channel, the global auto aftermarket is fragmented into DIY (do it yourself), DIFM (do it for me), and OE (delegating to OEMs). The original equipment (delegation to original equipment manufacturers) segment dominated the market in 2020 and is projected to expand at a rapid rate during the forecast period. The DIY (do it yourself) segment is expected to hold a significant share of the market during the forecast period attributed to the rising consumer interest to repair and maintain vehicles on their own.

Modern consumers have a knowledge and keen interest to know the technicality of vehicles. Additionally, consumers are learning and upgrading their vehicles on their own. This also helps them to save on the excess charges imposed by the service providers.

In terms of region, the global auto aftermarket is split into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. Asia Pacific constituted a significant share of the market in 2020, due to the growing adoption of advanced technology in the fabrication of auto parts. The growth in the production and sale of consumer and passenger automobiles and the increasing digitization of auto-delivery services are driving the market in the region.

The market in the Asia Pacific is projected to expand at a significant CAGR during the forecast period, due to the growing research to develop an environment-friendly and cost-effective solution. However, favorable safety standards, increasing government support in the reduction of emission toxicity, and monitoring the impact made by the automotive industry on the environment are propelling the market in the Asia Pacific.

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