Aftermarket to reach US$519 billion by 2026
The global automotive aftermarket is expected to reach more than US$519 billion by 2026 with a compound annual growth rate of four per cent during the forecast period according to a new study released by Polaris Market Research. The report Automotive Aftermarket [By Product (Tire, Wheels, Battery, Lighting Components, Exhaust Components, Body Parts, Accessories, Telematics, and Others); By Sales Channel (OEM, Professional Service Stations); By Vehicle Type (Passenger Vehicles, Commercial Vehicles); By Region]: Market size & Forecast, 2017 – 2026 provides an extensive analysis of present market dynamics and predicted future trends.
In 2017, the tyre segment accounted for the majority revenue share in the global market. The key factors driving the market include expanding the global automotive industry and the rising average age of vehicles. The growing awareness about proper maintenance and repair of vehicles is expected to propel the demand in the coming years. Other factors boosting the market growth include technological advancements in telematics, greater need for long distance travel, and changing lifestyles. New emerging markets, sale through online channels, and emerging consumer demographics are expected to offer a new avenue for growth in the coming years.
The competition is high in automotive aftermarket owing to the presence of a large number of industry players that offer products and services required for repair and maintenance for a wide range of vans, trucks, cars, and buses. Factors such as price, quality, vehicle age, and convenience affect consumer buying behaviour.
High investment in research and development is expected to open a new avenue for growth during the forecast period. The demand for replaceable parts and accessories such as clutch systems, axle, and engine parts is gaining owing to wear and tear of vehicles. Increase in the number of accidents has also propelled the demand.
In 2017, North America dominated the global market with a large customer base with high disposable income and high demand for replaceable vehicle parts. Asia-pacific is anticipated to witness the highest growth rate during the forecast period owing to rising demand from developing nation such as China and India and the expansion of global players. The rise in living standards and high disposable income is expected to boost the market growth in the coming year in the region. The factors such as poor road infrastructure and favourable production regulations, in developing nations such as India, and Pakistan are estimated to drive the demand during the forecast period.
The automotive aftermarket can be classified based on products into tyre, battery, wheels, exhaust components, lighting, telematics, accessories, body parts, and others. The tyre segment is expected to dominate the market during the forecast period.
The market is segmented based on vehicle type into passenger vehicles, and commercial vehicles. The growing demand for passenger vehicles in developing regions such as India, China, and Brazil is expected to provide numerous growth opportunities in the coming years.
The major vendors profiled in the report include Denso Corporation, Royal Dutch Shell PLC, Exide Technologies, Inc., Johnsons Controls Inc., Delphi Automotive PLC, 3M Company, Goodyear Tire & Rubber Company, Magneti Marelli S.p.A, Cooper Tire & Rubber Company, and Robert Bosch GmbH, among others. These vendors are involved in strategic initiatives such as new product development, merger and acquisition, and collaboration with other market leaders to meet the increasing needs and requirements of consumers.