Automotive aftermarket size to reach US $ 950.1 billion by

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Tokyo, January 03, 2022 (GLOBE NEWSWIRE) – The world automotive aftermarket The size was valued at US $ 693.8 billion in 2020. After the original equipment manufacturer (OEM) sells the vehicle to the consumer, the automotive aftermarket is responsible for manufacturing, the distribution and sale, as well as the installation of automotive parts, equipment and accessories. The original equipment manufacturer (OEM) may or may not manufacture accessories and components for sale.

The global automotive aftermarket is driven by key factors such as increased internet penetration combined with improvements in the telematics industry. These variables encourage online sales of auto parts, resulting in more frequent purchases.

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The growing demand for automobiles in emerging markets is expected to drive the market growth. Due to many environmental requirements, technological advancements and adoption of various environmentally friendly practices in automobile production are expected to increase the demand for alternative auto parts.

Automotive Spare Parts Market Analysis by Regions (2016-2027)

Region Market share
North America 35.50 %
Europe 24h15 %
Asia Pacific 22.03 %
LATAM 10.79 %
AEM 7.54 %

Regional overview

The North America region accounted for the largest share of automotive aftermarket revenue in 2020. Due to the presence of large manufacturers, North America has emerged as a major center for the production of parts and services. ‘automotive accessories. The market for this region is expected to grow rapidly, owing to the growth of the manufacturing industry in Mexico.

The Asia-Pacific region is the fastest growing region in the automotive aftermarket. In expanding markets such as India, China and Japan, the Asia-Pacific market is characterized by increased sales of commercial and passenger vehicles. In addition, there has been an increase in mergers and acquisitions among the major market players, due to new regulatory frameworks related to taxation. These factors are expected to propel the automotive aftermarket in Asia Pacific.

Europe is expected to dominate the global automotive aftermarket mainly due to increasing disposable income and consumer preferences for replacement products to improve vehicle performance. Lifestyle Changes With shifting trends and easy customization, consumers use their aftermarket products to replace original equipment as they are lightweight, sturdy, and versatile in customization. Increased sales through major online platforms like amazon.com, ebay, Rakuten and Oscaro will multiply the growth of the European automotive aftermarket.

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Comparison of Automotive Parts Market Revenue (Billion US $) and Growth Rate by Application (2016-2027)

Application segments 2016 2019 2027 CAGR%
DIFM (Do it for me) 454.58 507.32 515.08 4.45 %
DIY (do it yourself) 186.50 215.09 238.35 5.60 %
OE (delegation to OEMs) 182.68 201.70 196.67 3.91 %
Total 823.76 924.10 950.09 4.61 %

Market dynamics

Conductors

Rising demand for electric vehicles

The demand and production of electric vehicles has increased dramatically in recent years, due to their many advantages over gasoline vehicles. Oil and air filters, fan belts, timing belts, cylinder head housings and spark plugs do not need to be replaced, making gasoline vehicles more cost effective and efficient . As a result, electric vehicles are becoming the preferred mode of transportation, limiting the growth of the gasoline vehicle industry. In addition, with improved vehicle dynamics and traction control, automakers are focusing on the development of electric vehicles with advanced technology. This requires the use of high quality equipment and accessories. As a result, increased production of electric vehicles is expected to drive the growth of the automotive aftermarket.

Constraints

Adoption of vehicle safety technologies

Automotive sensors reduce wear and tear on automobiles, especially tires and brakes, which are subjected to harsh driving conditions on a daily basis. This element reduces the need for spare parts, which could stifle the growth of the industry. In addition, the continuous research and development of new raw materials to prevent deterioration of auto parts and accessories limit product penetration. As a result, adoption of vehicle safety technologies hampers the growth of automotive aftermarket during the forecast period.

Opportunities

Growing demand for spare parts

The growing demand for maintenance and services due to poor roads and degraded vehicles will benefit aftermarket components. Low production costs and increasing number of road accidents are contributing to the growth of the market. As a result, the increasing demand for spare parts creates lucrative opportunities for the growth of the automotive aftermarket during the forecast period.

Challenges

High R&D expenditure

Research and development refers to the actions that companies take to innovate and create new products and services. This is often the initial stage in the development process. The goal is usually to market innovative products and services while increasing the company’s profits. The development of new and innovative products requires research and development. The main players in the automotive aftermarket are investing heavily in the development of new products. Research and development require a lot of resources for the introduction of new products to the market. Thus, the high expenditure on research and development is a huge challenge for the growth of the automotive aftermarket during the forecast period.

Related reports

Highlights of the report

  • In terms of revenue, the tire has dominated the global automotive aftermarket with US $ 202.04 billion by 2027 at 5.47% CAGR and is expected to continue to dominate over the forecast period due to a reduced replacement cycle compared to its counterparts. As tires have a shorter replacement cycle than other components, it should remain the segment leader.
  • On an end-user basis, the retail segment is expected to reach $ 720.17 billion in revenue by 2027 with a CAGR of 4.74%, while the wholesale and distribution segment experiences the most growth. fast over the projected years.
  • Based on the certification, the OEM parts segment is estimated to be the most opportunistic segment during the forecast period. Original equipment manufacturers (OEMs), often referred to as subcontractors, manufacture genuine parts. Original spare parts have a higher level of quality assurance, are more diverse, are easier to locate and come with a warranty.

Market segmentation

By spare part

  • Drums
  • Tire
  • Filters
  • Brake parts
  • Turbochargers
  • Lighting and electronic components
  • Parts of the body
  • Exhaust components
  • wheels
  • Others

By service channel

  • DIFM (Do it for me)
  • DIY (do it yourself)
  • OE (delegation to OEMs)

Through Final user

  • Wholesalers and distributors
  • Retailers

By certification

  • Certified parts
  • Authentic pieces
  • Non-certified parts

By regional perspectives

  • North America
  • Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
  • Rest of the world

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