The aftermarket automotive parts industry involves the manufacturing, remanufacturing, distribution, retailing, and installation of automotive parts. These parts include motors and engines, drive transmission, steering systems, heating and cooling systems, suspension and braking systems, electrical parts, fuel supply, and bearings. The aftermarket automotive parts provide various advantages like cost-effectiveness, compatibility, and easy availability as compared to original equipment manufacturer parts. The rising average age of vehicles and increasing demand for maintenance and repairs have boosted the need for aftermarket automotive parts.
Global aftermarket automotive parts market is estimated to be valued at USD 474.12 Bn in 2024 and is expected to reach USD 704.63 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.8% from 2024 to 2031.
Key Takeaways
Key players operating in the aftermarket automotive parts are Robert Bosch GmbH, Denso Corporation, Magna International Inc., Continental AG, ZF Friedrichshafen AG, Hyundai Mobis Co. Ltd., Aisin Seiki Co. Ltd., Faurecia S.A., Lear Corporation, and Valeo SA.
The rising average age of vehicles and surging vehicle parc have opened significant opportunities for Aftermarket Automotive Parts Market Demand replacement and servicing. Additionally, the increasing consumer preference for customized and upgraded vehicle performance is fuelling the sales of aftermarket performance parts.
The global aftermarket automotive parts market is expanding rapidly due to factors such as surging vehicle fleet, rising demand from emerging economies, and availability of low-cost spare parts. The increasing export of used vehicles from developed regions is further augmenting the sales of aftermarket parts in developing countries.
Market drivers
The increased average lifespan of vehicles is a major driver fueling the growth of the aftermarket automotive parts market. With the steady rise in average vehicle age due to economic conditions and higher build quality of modern vehicles, the demand for replacement parts has increased substantially. As per the U.S. Department of Transportation, the average age of cars and light trucks in operation in the U.S. increased to a record 12.1 years in 2022. The rising vehicular fleet and increasing average age of vehicles globally have created robust demand for spare parts replacement and vehicle service, thereby driving the aftermarket automotive parts industry.
PEST Analysis
Political: The automotive aftermarket parts industry is regulated by transportation and safety laws set by governing bodies. Changes in regulations can impact the types of parts that can be sold.
Economic: The overall economic condition affects discretionary consumer and commercial spending on vehicle repairs and maintenance. A strong economy encourages more aftermarket sales.
Social: Younger drivers are less loyal to brand names and are more interested in affordable repair and maintenance options offered by independent shops. This benefits the aftermarket industry.
Technological: Advancements like 3D printing and use of composite materials allow for cost-effective manufacturing of high-quality replacement parts. This drives innovation and competition in the aftermarket industry.
Market concentration in terms of value
North America accounts for the largest share of the global automotive aftermarket parts industry in terms of value, led by the United States. The region benefits from high vehicle ownership and an extensive independent repair network.
Fastest growing region
Asia Pacific region is expected to witness the highest growth during the forecast period due to rising motorization in emerging economies like China and India. Rapid economic development and increasing average age of vehicles will spur the need for replacement parts in the Asia Pacific aftermarket industry.
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About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
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