This projects consistent growth for the market. Valued at USD 824.82 Bn in 2017 and is expected to grow to reach an approximate value of USD 1,023.4 Bn by the end of 2023.

Competitive Tracking:

Market Research Future's report includes the analysis of prominent key players which include Valeo, Aisin Seiki Co. Ltd., Continental AG, 3M, and Denso Corporation. Other players include Sumitomo Electric industries, Cooper Tire & Rubber company, Aptiv PLC, ACDelco and MAHLE GmbH to name a few.

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Consumers are showing a greater preference for products with transparency, leading to increased market transparency and reduced service costs in the automotive aftermarket. The cost of repairs and replacement parts has declined worldwide while offering consumers the liberty to choose the offer most convenient to their requirements and criteria. This has led to increased customer satisfaction which in turn leads to customer retention in the long run, thus prompting market growth. Additionally, vehicles have longer lifespans which require increased aftermarket activities; this has put pressure on OEMs to expand the same to retain customers. For instance, although more than half of the passenger vehicles in North America younger than two years are serviced within the OEM network, only 15% of the vehicles that are older than eight years are serviced within the OEM network. OEMs have had limited aftermarket activities which have significantly picked up the pace to strengthen their position in the market and in order to leverage current market trends such as introducing second service formats and remanufactured parts.

The high fragmentation of the market means there are a wide number of independent and authorized repair shops in the automotive aftermarket which are implementing various strategies in an effort to secure higher market shares. Attractive offers such as extended warranties, and service contracts for new vehicles, as well as wear & tear repair and servicing solutions over a vehicles lifetime, are offered to consumers, thus increasing demand for similar aftermarket activities. Moreover, independent repair shops, which have a strong hold on the old vehicle segment, are working to expand their market share in new vehicles by offering affordable pricing, high quality & speed of service, and standardized service contracts for fleet operators, business customers and partnerships with diagnostic specialists. The increasing popularity of vehicle electrification has further expanded the market by prompting repair shops to offer remote diagnostic and telematics services.

Meanwhile, the digital revolution has made its mark on the automotive industry with new technologies such as telematics and fleet management systems. These intermediary business models are fast emerging and offer solutions which target both B2C and B2B consumers. These intermediaries are placing focus on expanding their value chain footprint and with direct access to consumers is expected to open up new opportunities for the market. Moreover, the rise in car sharing users and professional fleets are increasing opportunities for the aftermarket ad there is an anticipated increase in maintenance and repair services. Partnerships between workshops and intermediary businesses and the automation of workflow and parts logistics are expected to provide the market with expansion opportunities that carry the potential for exponential growth in the coming years.

The global automotive aftermarket is segmented on the basis of offering, channel type, vehicle age, vehicle type, and region. By offering, the market is segmented into parts and services. The parts segment share accounts for over 50% of the total market and is expected to display the highest CAGR during the forecast period. Parts include tires, brake parts, battery, body & other component parts which have high sales and high demand in the aftermarket due to the upkeep required to ensure these components are functioning at optimally.

By channel type, the market is segmented into authorized repair and independent repair. The independent repair segment accounts for the largest share of the total market and accounts for close to 60% of the total market. Independent repair shops are expected to witness the fastest growth with the highest CAGR during the forecast period due to the expansion activities are undertaken by the players in this segment. Moreover, they are entering partnerships with fleet operators, insurers, and leasing firms in an effort to gain large maintenance contracts across all vehicle segments, thus leading to significant growth for the independent repair segment.

By vehicle age, the market is segmented into 0-4 years, 4-8 years, and above 8 years. The above 8 years segment is the predominant segment with regards to vehicle age and is expected to experience the fastest growth over the course of the review period. Consumers who own vehicles belonging to this age group are more reliant on the aftermarket to keep up optimal maintenance of the vehicle. Moreover, these consumers prefer cost-efficient alternatives and often prefer to visit independent vehicle repair shops for affordable quotes. The above 8 years segment was valued at USD 462.6 billion in 2017 and is expected to reach an approximate evaluation of USD 610.4 billion by the end of 2023.

By vehicle type, the market is segmented into passenger vehicle and commercial vehicle. The passenger vehicle segment accounts for the most significant share of the market and is anticipated to witness the most rapid growth during the assessment period. The availability of disposable income has grown worldwide resulting in the increased demand for passenger vehicles. The global expansion of automotive manufacturers has also significantly improved the growth of the automotive aftermarket.

Regional Analysis

North America accounts for the most significant region in the automotive aftermarket and is closely followed by Europe and the Asia Pacific. With over a third of the global share, North America is a major contributor to the market with high sales of premium and luxury vehicles which require careful maintenance and upkeep. Moreover, the region possesses a large number of prominent manufacturers, existing aftermarket infrastructure and an affinity toward the adoption of advanced technologies which is driving demand and consequently the growth of the automotive aftermarket.

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