COVID19 Impact on Automotive Aftermarket Size and Growth Forecast till 2026
September 8, 2020
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Sep 07, 2020 (The Expresswire) —
The global automotive aftermarket size is set to touch USD 288.20 billion by 2026, exhibiting a CAGR of 3.7% during the forecast period. Growing focus on digitization of aftersales services in the automotive industry will aid the growth of this market, states Fortune Business Insights™ in its report, titled “Automotive Aftermarket Size, Share and Industry Analysis, By Replacement Part Type (Battery, Brake Pads, Filters, Gaskets and Seals, Lighting Components, Body Parts, Wheels, Others), By Vehicle Type (Passenger Cars, Commercial Vehicles), and Regional Forecast, 2019-2026”. Automakers, components suppliers and distributors, and Original Equipment Manufacturers (OEMs) are intensely focused on utilizing digital means to optimize value chain processes.
Digitization of channels and services will also enable consumers to deepen their research before purchasing or repairing their vehicle as well as provide them with necessary information about workshop quality, location, and availability of services. Many suppliers are already taking steps toward digitization, which are driving the automotive aftermarket trends. For instance, in 2018, Hella KGaA Hueck and Co., the German automotive parts supplier, established a ‘Mobility Solutions’ unit to promote digital business models in the aftermarket domain.
The report further states that the value of this market stood at USD 215.32 billion in 2018. The other highlights of the report include:
In-depth analysis of the automotive aftermarket industry trends;
Comprehensive study of the market drivers and constraints;
Thorough research into the different market segments; and
Exhaustive evaluation of the regional and competitive dynamics shaping the market.
Strategic Expansion of Aftermarket Operations by OEMs to Fuel Growth
OEMs are aggressively widening their operations in the aftermarket domain with a view to enhance the automotive aftermarket value chain and provide high-quality services to customers. Many companies are putting in place various strategies to maintain their lead in this niche space. For example, the French automobile and motorcycle manufacturer Groupe PSA unveiled its ‘Push to Pass’ five-year (2016-2021) strategy with the aim of cementing its position as an aftermarket specialist.
The company’s objective is to cater to all customers across the globe, irrespective of their vehicle’s age, brand, or budget. Furthermore, the company has specialized divisions for meeting different aftersales requirements. For instance, PSA’s multi-brand spare parts distribution is handled by Distrigo, the company’s distribution brand. Thus, carmakers are shifting their focus toward elevating the quality of aftersales services, thereby augmenting the automotive aftermarket growth.
Escalating Sales of Vehicles to Bolster the Market in Asia-Pacific
Asia-Pacific, with a market size of USD 101.52 billion in 2018, is anticipated to dominate the automotive aftermarket share during the forecast period owing to rapidly rising sales of passenger and commercial vehicles in the region. In Europe, the main growth driver is expected to be the high adoption rate of advanced technologies in fabrication of auto parts.
This, coupled with increasing digitization of components sales, will ensure Europe retains its runner-up position in this market in the coming years. In North America, on the other hand, strong presence of leading auto manufacturers will be the central factor propelling the growth of the market in the region.
Digital Innovation to be the Key Highlight of Market Competition
According to the automotive aftermarket report, the standout feature of the competition in this market is the adoption of digitalization measures by key players. Innovation in this market, thus, is finding firm footing in the digital platforms that are being established by companies to cater to the high aftermarket demand in the automotive industry.
January 2020: Continental AG, the German automotive part manufacturer, introduced a specialized web portal to enable swift access to all information related to the automotive aftermarket industry. Available in 7 languages, the portal also features a catalogue containing a substantial bundle of information on spare parts, helping consumers find the right spare parts for their vehicles.
October 2019: The Canadian automotive parts maker Magna International received its largest order till date for the production of transmission technologies from the German automotive behemoth, the BMW Group. The order is in the form of a multi-year contract that includes manufacturing and delivery of front wheel dual-clutch transmissions for regular as well as hybrid vehicles.
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