Name: Automotive Aftermarket Market and Analysis Report – Opportunities and Forecast 2024-2031
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Automotive Aftermarket Market and Analysis Report – Opportunities and Forecast 2024-2031

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Analysts at GMI Research estimates that the Automotive Aftermarket was worth USD 502 million in 2023, and forecast to touch USD 747 million in 2031, growing at a CAGR of 5.1% from 2024-2031 owing to rising vehicle ownership, rising VIO, aging vehicles, and the expansion of e-commerce.

Automotive Aftermarket Market present significant opportunities, with over millions of passenger vehicles are currently out of warranty in 2023, and the passenger cars with an out of warranty population is projected to grow at a robust CAGR from 2023-2031.

Automotive Aftermarket Market

Major Drivers and Emerging Trends

The market has been seeing significant growth in recent years as there is a growing vehicle ownership around the world. Currently there are over one billion vehicles recently on the road worldwide with more than sixty million cars produced this year so far. Car ownership is prevalent in some countries including the United States where it is common for people to own several different automobile types.

Factors contributing to the surge in vehicle ownership include growing incomes and greater mobility needs due to hectic lifestyles. Rising environmental concerns worldwide have also led to an increased interest in electric vehicles. This shift has been supported by government policies including subsidies and credits along with enhancements in charging infrastructure and battery technology.

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The increasing duration of vehicle ownership also contributes to a sustained growth in the need for aftermarket products. With more consumers choosing to keep their vehicles instead of buying new cars, the aftermarket sector is likely to experience ongoing expansion. Furthermore, improvements in vehicle technology have led to enhanced vehicles’ durability and longevity. Modern vehicles feature more robust materials and advanced diagnostic systems which enable them to endure more mileage and extended usage before necessitating major replacements. The growing average vehicle age is a crucial factor driving the aftermarket sector as it leads to increased opportunities for service providers and suppliers to address the changing vehicle owners’ need across the globe.

As vehicles grow older and components wear and tear increases, the need for regular repairs and maintenance drives persistent requirement for aftermarket replacement parts. The gradual deterioration of components like brakes and tires creates a requirement for replacements in aging vehicles which contributes to the market growth. It is because older vehicles necessitate increased maintenance and replacement parts to maintain smooth and safe operation.

The other factor supporting the global automotive aftermarket market size expansion is the adoption of digital solutions in distribution processes. The shift towards e-commerce reflects the expanding role of online sales and digital platforms in acquiring replacement parts and automotive services. Consumers are progressively favoring online platforms for their purchases rather than physical retail stores.

The move towards online shopping is driven by its convenience as it enables consumers to explore a vast array of products and buy items or order services from their own homes. E-commerce solutions also allow businesses to engage with a wider audience and enhance their growth potential. With increasing internet penetration and a rise in smartphone users we can anticipate a growing trend in online shopping which will consequently drive market growth.

The expansion of global infrastructure projects is also playing a significant role in driving market growth. Many governments around the world are advancing numerous infrastructure projects which include the development of roads and highways. Effective transportation networks which include roads and highways are key to connecting communities and distributing goods which fuel economic progress. The expansion of road networks and the rise in vehicle mileage are leading to a greater need for replacement parts which is fueling the automotive aftermarket demand.

While the industry has seen considerable expansion, it also faces certain constraints which includes the increasing complexity and technological advancements in vehicles. Modern vehicles offer enhanced efficiency and performance through sophisticated technologies even though these advancements also introduce challenges for the automotive aftermarket sector.

As vehicles evolve with innovations such as electric power and autonomous driving, aftermarket providers must constantly enhance their skills and tools. Keeping pace with these swift technological changes poses a major challenge for the aftermarket industry. Advanced vehicle technologies demand specialized capabilities and tools for diagnostics and repairs. This causes repair shops and aftermarket distributors to struggle with keeping pace which often drives them to rely on authorized dealerships and OEM services. Advanced systems frequently require specific diagnostic tools and software which pose a challenge for some repair shops to accurately diagnose and resolve problems.

The market also faces considerable challenges due to supply chain disruptions. The sector depends on a complex global supply chain for its parts and components. Disruptions caused by natural disasters or trade disputes can result in shortages and high costs which impacts the aftermarket pricing and availability.

Additionally, aftermarket businesses encounter challenges in adhering to a range of regulatory requirements especially those related to emissions and safety. Complying with these new regulations often demands significant investments in research and manufacturing processes to ensure that the products meet regulatory standards without compromising performance and cost.

Tires are expected to lead the market because of its shorter replacement cycle relative to other parts alongside growing consumer demand for regular maintenance.

However, technological progress is gradually transforming the market and pushing it towards a more digitalized landscape. As the aftermarket moves to an online model, the marketplace is evolving with services and parts now offered for sale over the internet. Stakeholders throughout the value chain such as OEMs and wholesalers are embracing the increasing shift towards the online aftermarket. It is given that the advancement of technology and the digitalization of maintenance services in the automotive sectors are key factors driving the market growth in recent years.

By region, Asia Pacific is expected to be the leading market growth for the automotive aftermarket. The primary factors are the robust economic growth in China, Japan, and India along with the rising vehicles and aftermarket items production in these countries. The region’s economic expansion and urbanization have significantly boosted the amount of vehicles in operation. This growth in the vehicle fleet has consequently increased the need for aftermarket parts for repairs and maintenance.

North America is also expected to experience moderate growth in the industry due to robust economic growth and growing emphasis on vehicle safety among consumers. North American vehicle owners often show a pronounced inclination towards personalizing and customizing their cars. The tendency towards vehicle customization boosts the need for aftermarket accessories and performance upgrades.

Europe also maintains a substantial global market share driven by its large vehicle fleet and the generally older age of these vehicles. As vehicles get older, the need for aftermarket products such as replacement parts grows.

In this competitive market, leading companies use advanced technology and high-quality products to boost their revenue. The companies use strategies like R&D along with mergers and acquisitions to broaden their product ranges while sustaining their competitive advantage. Some of the major companies within the market are Denso Corporation, 3M Company, Continental AG, among others.

Top Market Players

The leading automotive aftermarket companies are Continental AG, 3M Company, BorgWarner Inc., Tenneco Inc., Denso Corporation, Marelli Holdings Co., Ltd., Robert Bosch GmbH, The Goodyear Tire & Rubber Company, ZF Friedrichshafen AG, and Cooper Tire & Rubber Company, among other companies.

Key Developments:

- In 2020, BorgWarner Inc., one of the leading companies providing clean and efficient technology solutions for combustion, hybrid and electric vehicles, acquired Delphi Technologies PLC, one of the prominent companies in automotive aftermarket. This is expected to enhance the company’s business portfolio in the automotive aftermarket industry.
- In 2018, Tenneco Inc., acquired Federal-Mogul Corporation, one of the leading global suppliers to original equipment manufacturers and the aftermarket in automotive industry. This acquisition helped to enhance the product portfolio of the company in the aftermarket products.

Segments covered in the Report:

The Global Automotive Aftermarket has been segmented on the basis of vehicle type, certification, replacement part. Based on the vehicle type, the market has been segmented into commercial vehicles and passenger vehicles. By replacement parts, the market is segmented into tire, battery, brake parts, filters, Lighting Components, Electronic components, Lubricants, Clutch Parts, Engine Components and others. Based on certification, the market has been segmented into Genuine Parts, Certified Parts and Others. Based on the Sales Channel, the market is segmented into Authorized Dealers, Independent Dealers and Online Channel

Report Coverage	Details
Market Revenues (2023)	USD Million
Market Base year	2023
Market Forecast Period	2024-2031
Base Year & Forecast Units	Revenues (USD Million)
Market Segment	By Vehicle Type, By Replacement Parts, By Certification, By Sales Channel and By Region
Regional Coverage	Asia Pacific, Europe, North America, and RoW
Companies Profiled	Continental AG, 3M Company, BorgWarner Inc., Tenneco Inc., Denso Corporation, Marelli Holdings Co., Ltd., Robert Bosch GmbH, The Goodyear Tire & Rubber Company, ZF Friedrichshafen AG, and Cooper Tire & Rubber Company among others; a total of 10 companies covered.
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation