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Industry Insights, Market Size, CAGR, High-Level Analysis: Automotive Aftermarket Market The global automotive aftermarket size was valued at USD 378.4 billion in 2019 and is expected to register a CAGR of 4.0% from 2020 to 2027. The market is majorly driven by the pursuit of automobile drivers to enhance their vehicle performance in terms of exhaust sound, speed, appearance, along with other aspects. Regional regulatory authorities, such as the Japanese Automobile Sports Muffler Association (JASMA) and the U.S. Environmental Protection Agency, monitor built-up standards and environmental impacts associated with automotive component functioning, for instance, noise emission levels associated with the modern day resonators and mufflers in automotive exhaust systems. Digitization of component delivery sales and services, along with online portals distributing aftermarket components in synchrony with global automotive suppliers, is expected to draw significant investments from the key participants. Owing to above-mentioned trade gateways, the online aftermarket business is expected to witness high growth in developing countries. Additionally, increasing online sales of automotive components is estimated to further boost the market growth. Value chain of the aftermarket consists of two primary segments, automotive replacement part suppliers and service enablers. These prime industry segments exchange value through automotive sectors at several intermittent stages. Access to a considerable number of components along with simple transactions through digitalization, are expected to solve the obtainability issues, thereby driving the aftermarket growth. Ensuing digitalization and rising trend of Internet-of-Things (IoT) are anticipated to have a significant impact on the industry growth. Though technological improvements have created several market opportunities, high R&D expenditures are expected to hinder the market growth over the forecast period. Automobile manufacturers face various constraints, such as increased production costs during manufacturing processes. However, some automotive replacement parts, such as aftermarket filters, offer the chance of choosing a part that suits the condition in which the vehicle operates. Replacement Part Insights On the basis of replacement part, the market is segmented into tire, battery, brake parts, filters, body parts, lighting and electronic components, wheels, and exhaust components. The tire is anticipated be the largest segment in terms of replacement part and is expected to dominate the market in terms of size owing to low replacement cycle of tires as compared to its counterparts. The aftermarket replacement part suppliers include various accessories, lubricants and tires, and other component replacement suppliers. The industry value chain consists of service enablers, such as repairing services providers and entertainment service providers. The automobile industry is observing growth in demand for hybrid electric cars due to increased prices of petrol and petrol engine-based automobiles. This would eventually throttle the demand for exhaust parts and specific tools for these vehicles in the coming years. Increasing disposable income in developing countries, such as China and Brazil, is expected to have a positive impact on the aftermarket. Increasing demand for automotive is projected to trigger the demand for automobile component sales in the forecast period. Stringent regulatory rules and standards for car safety across the globe are anticipated to drive the market growth. Modern age production technologies, such as 3D printing of automotive parts that enables efficient fabrication and reduces emission, are being used extensively by major players in the aftermarket to optimize their production costs. Distribution Channel Insights On the basis of distribution channel, the aftermarket is categorized into retailers and wholesale and distribution (W&D) segments. In terms of size, the retailers segment is anticipated to dominate the market, whereas the wholesale and distribution segment will witness the fastest growth from 2020 to 2027. The automotive aftermarket plays a significant role in the automotive manufacturing and maintenance scheme as automotive components need to be replaced on time to maintain overall performance of the vehicle. Technological advancements are transforming the market toward digitalization, leading to automotive components, parts, and services being sold online. Every player in the value chain, including Original Equipment Manufacturers (OEMs), Original Equipment Suppliers (OESs), wholesalers, insurers, and workshops are reacting to the growing online trend. Advanced technology usage in automotive fabrication, rise in automobile manufacturing, and digitalization of automotive repair and maintenance services are some of the factors boosting the market growth. Service Channel Insights On the basis of service channel, the aftermarket is segmented into Do It Yourself (DIY), Do It For Me (DIFM), and Original Equipment (delegating to OEMs). In terms of revenue, the OE segment is anticipated to dominate the aftermarket by 2027 while the DIY segment is expected to witness fastest growth over the forecast period. DIY customers have technical knowledge and interest to maintain, repair, and upgrade their cars on their own whereas, DIFM customers buy parts online but get them installed by professionals. The aftermarket service channel includes raw material suppliers, tier 1 distributors, and automobile exhaust hubs/manufacturing units and aftermarket units, comprising jobbers and repair shops. Repair centers are important stakeholders in the aftermarket service channel. The industry is witnessing a trend of strategic alliances and collaborations between collision repair centers and insurance companies to gain a competitive edge and capture a significant share in the market. For instance, Utica Mutual Insurance Company, State Farm Mutual Automobile Insurance Company, and Progressive Casualty Insurance Company have tie-ups with certified automotive repair shops across all the states in U.S. Certification Insights On the basis of certification, the aftermarket is segmented into genuine, certified, and uncertified. The genuine segment is anticipated to dominate the aftermarket in terms of size by 2027 while uncertified segment is expected to witness fastest growth from 2020 to 2027. Genuine parts are manufactured by the car manufacturers or by the OEMs, also known as subcontractors. Genuine replacement parts have greater quality assurance, are diverse, easy to find, and come with manufacturing warranty. The downside, however, is that they are expensive and need to be purchased from authorized dealers. Certified automotive parts are tested and inspected by certified organizations. The Certified Automotive Parts Association (CAPA) is a non-profit organization that was incorporated in 1987, to ensure quality of replacement parts used by collision repair shops. CAPA offers test programs to verify and guarantee the quality and suitability of automotive replacement parts. Certified parts are cost-effective alternatives to costly genuine parts whereas, uncertified parts can be used instead of original automotive parts. Uncertified parts are not approved by the car maker. However, low cost of uncertified parts is anticipated to create significant growth opportunities for the segment in coming years. Regional Insights of Automotive Aftermarket Market Based on region, the aftermarket is segmented into North America, South America, Europe, Asia Pacific, and MEA. Asia Pacific led the aftermarket in terms of revenue in 2019 and is also expected to witness significant growth from 2020 to 2027. Advanced technology usage in the fabrication of auto parts, surge in consumer and passenger automobile production and sales, and digitalization of automotive component delivery services are anticipated to spur the automotive sales in the region. Universities and other R&D organizations are working toward increasing the cost and operational efficiencies of critical automotive components, thus reducing the price of the end product. A new design, developed by a team of researchers from the Department of Chemical Engineering at Imperial College, London, uses up to 80% less rare metal, reducing costs of the vehicle and component fabrication considerably. The prototype is anticipated to exhibit better results than the existing automobiles. Strict vehicle emission rules by governments across the globe have also pressurized component suppliers to manufacture environment-friendly and high-efficient automotive components for the native and global markets. Over the past few years, emerging economies, such as China, India, and Brazil have witnessed considerable developments in the automotive sector, which is expected to boost the market growth in Asia Pacific. Automotive Aftermarket Share Insights Some of the key industry participants in the aftermarket are Continental AG, 3M Company, Delphi Automotive PLC, Federal-Mogul Corporation, Denso Corporation, Magneti Marelli S.p.A., and Robert Bosch GmbH. Technological advancements and increasing investments in R&D by manufacturers are expected to drive the aftermarket. Several domestic and regional competitors prevailing in the market are challenged to offer innovative products to help buyers understand the changing technologies, security needs, and business practices. Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Automotive Aftermarket Market Research Report: This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. For the purpose of this study, this market research report has segmented the global automotive aftermarket report based on replacement part, distribution channel, service channel, certification, and region: Replacement Part Outlook (Revenue, USD Billion, 2019 - 2030) Tire Battery Brake Parts Filters Body parts Lighting & Electronic Components Wheels Exhaust components Turbochargers Others Distribution Channel Outlook (Revenue, USD Billion, 2019 - 2030) Retailers OEMs Repair Shops Wholesalers & Distributors Service Channel Outlook (Revenue, USD Billion, 2019 - 2030) DIY (Do it Yourself) DIFM (Do it for Me) OE (Delegating to OEM’s) Certification Outlook (Revenue, USD Billion, 2019 - 2030) Genuine Parts Certified Parts Uncertified Parts
Table of Contents Chapter 1 Methodology and Scope 1.1 Research Methodology 1.2 Research Scope & Assumptions 1.3 List of Data SourcesChapter 2 Executive Summary 2.1 Automotive aftermarket - Market Snapshot & Key Buying Criteria, 2016 - 2027Chapter 3 Automotive Aftermarket Variables, Trends & Scope 3.1 Market Segmentation & Scope 3.2 Automotive Aftermarket Size and Growth Prospects 3.3 Automotive aftermarket - Value Chain Analysis 3.3.1 Automotive a | read more...