Automotive Aftermarket Industry Size, Share & Trends Analysis Report By Replacement Part (Tire, Battery, Brake parts, Filters, Others), By Distribution Channel, By Service Channel, By Certification, By Region- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2024-2033

The global automotive aftermarket industry size was exhibited at USD 448.25 billion in 2023 and is projected to hit around USD 669.93 billion by 2033, growing at a CAGR of 4.1% during the forecast period of 2024 to 2033.

Key Takeaways:

• Asia Pacific dominated the market with a share of 29.0% in 2023.
• The other segment dominated the market with a share of 48.3% in 2023. 
• The retail segment dominated the market with a share of 56.0% in 2023.
• The original equipment segment dominated the market with a share of 71.1% in 2023.
• The genuine parts segment dominated the market with a share of 52.0% in 2023.

Automotive Aftermarket Industry: Overview 

The automotive aftermarket industry plays a pivotal role in the automotive ecosystem, serving as a dynamic and robust sector that provides products and services beyond the original equipment manufacturers (OEMs). This comprehensive overview delves into the various facets of the automotive aftermarket, examining its key components, trends, challenges, and future prospects.

Automotive Aftermarket Industry Growth

The robust growth of the automotive aftermarket industry can be attributed to several key factors driving its expansion. Firstly, the increasing average age of vehicles on the road necessitates a higher demand for replacement parts and maintenance services, fostering sustained growth. Additionally, the rising consumer inclination towards customization and personalization of vehicles fuels the demand for aftermarket accessories, contributing significantly to the industry's expansion. The advent of e-commerce platforms and digital marketing strategies has further streamlined distribution channels, making after-market products more accessible to consumers. Moreover, the continuous technological advancements in automotive components, including IoT integration and data analytics, drive innovation within the aftermarket sector, attracting a tech-savvy customer base. As the automotive landscape evolves, the aftermarket industry is well-positioned to capitalize on emerging trends, ensuring a promising trajectory for future growth.

Automotive Aftermarket Industry Report Scope

Automotive Aftermarket Industry Dynamics

• Digital Transformation and E-Commerce Integration:

The automotive aftermarket industry is undergoing a profound shift with the widespread adoption of digital technologies. E-commerce platforms have become integral to the industry, offering a convenient and efficient channel for consumers to access a diverse range of aftermarket products and services. The digital transformation is not only limited to sales but also extends to marketing and customer engagement. Online platforms leverage data analytics and personalized marketing strategies to enhance customer experience and tailor product recommendations. 

Sustainability and Eco-Friendly Products:

An emerging and influential dynamic in the automotive aftermarket industry is the growing emphasis on sustainability and environmentally conscious practices. Consumers are increasingly seeking eco-friendly aftermarket products, ranging from recycled materials in manufacturing to energy-efficient components. This shift is not only driven by consumer preferences but also by global initiatives aimed at reducing the environmental impact of automotive activities. As regulations and consumer awareness regarding environmental sustainability continue to rise, aftermarket businesses are compelled to adapt and innovate, introducing eco-friendly solutions and practices. 

Automotive Aftermarket Industry Restraint

• Counterfeit products and quality concerns:

A significant restraint facing the automotive aftermarket industry revolves around the proliferation of counterfeit products. The market is plagued by a multitude of substandard and imitation components, posing a considerable challenge to both consumers and legitimate aftermarket businesses. Counterfeit parts not only compromise vehicle performance but also jeopardize safety standards, raising concerns among consumers about the reliability and quality of aftermarket products. 

• Rapid Technological Changes and Compatibility Issues:

The fast-paced evolution of automotive technologies presents a notable restraint for the aftermarket industry. As vehicles become more technologically advanced, integrating features like IoT, AI, and complex electronic systems, aftermarket components must keep pace to ensure compatibility. Rapid technological changes can lead to a scenario where aftermarket parts may not seamlessly integrate with newer vehicle models, posing challenges for both manufacturers and consumers.

Automotive Aftermarket Industry Opportunity

• Electric and Hybrid Vehicles Market Expansion:

A compelling opportunity within the automotive aftermarket industry lies in the growing market for electric and hybrid vehicles. As the automotive landscape shifts towards sustainable mobility solutions, there is a burgeoning demand for aftermarket products and services tailored to these eco-friendly vehicles. Opportunities include the development of specialized components, such as batteries and charging systems, along with maintenance services and performance enhancements specific to electric and hybrid platforms. 

Connectivity Solutions and Smart Aftermarket Products:

The increasing integration of connectivity features in modern vehicles presents a lucrative opportunity for the automotive aftermarket. As vehicles become more connected, there is a rising demand for aftermarket products that enhance connectivity and offer smart solutions. This includes aftermarket devices for vehicle tracking, diagnostic tools, and entertainment systems. The demand for seamless integration of smartphones, navigation systems, and other digital applications in vehicles opens up avenues for aftermarket businesses to develop and provide cutting-edge connectivity solutions.

Automotive Aftermarket Industry Challenges

• Regulatory Compliance Complexities:

One of the foremost challenges facing the automotive aftermarket industry is the complexity of regulatory compliance. The industry operates in a global landscape with diverse regulations and standards across different regions. Adapting to and ensuring compliance with these varying regulations poses a significant challenge for aftermarket businesses. Meeting safety, emissions, and quality standards demands continuous monitoring and adjustment to evolving regulatory frameworks, adding a layer of complexity to product development, distribution, and overall business operations. 

• Impact of Rapid Technological Changes:

The rapid evolution of automotive technologies represents a substantial challenge for the aftermarket industry. As vehicles incorporate advanced features such as artificial intelligence, IoT connectivity, and sophisticated electronic systems, aftermarket components must keep pace. The challenge lies in developing aftermarket products that are not only technologically compatible with modern vehicles but also economically viable for consumers. The need for ongoing research and development to stay abreast of technological advancements can strain resources for aftermarket businesses.

Segments Insights:

COVID-19 Impact Insights

The automotive & transportation industry is among the most exposed verticals to the ongoing COVID-19 outbreak and is currently amidst unprecedented uncertainty. COVID-19 is expected to have a significant impact on the supply chain and product demand in the automotive aftermarket industry. The industry's concern has moved on from being centered on supply chain disruption from China to the overall slump in demand for aftermarket products. The demand for commercial vehicle parts is expected to plummet with the shutdown of all non-essential services.

Furthermore, changes in consumer buying behavior owing to uncertainty surrounding the pandemic may have serious implications for the near future growth of the industry. With the ups and downs in the economy, people are tending to hold on to their vehicles for a long time now. Meanwhile, liquidity shortfall and cash crunch have already impacted the aftermarket players, and this shortfall is further expected to widen over the next few months. Further, in the aftermath of the pandemic, consumers are expected to prefer private conveyance. However, the financial disparities will be expected to hamper the purchase of new vehicles; due to budget constraints, commuters are expected to opt for used cars. Increasing sales of used cars are expected to surge the demand for aftermarket auto parts for vehicle maintenance. On a bigger scale, in developing countries, the pandemic is expected to be a reason for the comeback of some entry-level aftermarket players. The market will also be expected to vary with the demand from different segments of customers as every class segment has its own preferences regarding car repair and maintenance.

Replacement Parts Insights

In terms of market size, the others segment dominated the market with a share of 48.3% in 2023. The tire segment would be the largest segment in terms of replacement parts and is anticipated to dominate the market in terms of size. It is expected to remain the dominant segment on account of the low replacement cycle of tires as compared to the other component counterparts. The aftermarket replacement part suppliers comprise various accessories suppliers, lubricants suppliers, tire suppliers, and other component replacement suppliers.

Further, the industry value chain comprises service enablers such as repair service providers and entertainment service providers. The automobile industry is observing an increase in the demand for hybrid electric cars that would eventually throttle the demand for exhaust parts and specific tools for these specialized cars. This curb can be attributed to the increased prices of petrol and gasoline-engine-based automobiles. Growth in the disposable proceeds of patrons in developing nations, such as China and Brazil, is expected to have a positive impact on the growth rate of the market.

The growing demand for locomotives is projected to trigger the demand for automobile component sales. Rigid regulatory standards of car safety across the globe are anticipated to drive market economies. Modern-day production technology, such as 3D printing of automotive parts, is extensively being deployed by major players in the industry to optimize their production costs, with 3D printing enabling efficient fabrication performance and reducing emission toxicity.

Distribution Channel Insights

In terms of market size, the retail segment dominated the market with a share of 56.0% in 2023. The retail segment is anticipated to dominate the market arena in terms of size by 2030. The wholesale & distribution segment would witness relatively fast growth in terms of revenue from 2023 to 2030. Automotive aftermarket economies are important parts of the overall automotive manufacturing & maintenance scheme, as automotive components need to be replaced on time to maintain the overall performance of the vehicle.

The increasing influence of technological advancement is transforming the market towards digitization. The aftermarket is going online, and the marketplace is changing. Parts and services are being sold online. Every player in the value chain, such as original equipment manufacturers (OEMs), original equipment suppliers (OESs), wholesalers, insurers, and workshops, is reacting to the growing online aftermarket trend. Advanced technology usage in auto parts fabrication, the surge in consumer and passenger automobile production, and the digitalization of automotive repair & maintenance services are the few factors expected to impel market growth over the forecast period.

Service Channel Insights

In terms of market size, the original equipment segment dominated the market with a share of 71.1% in 2023. The OE segment is anticipated to dominate the aftermarket arena in terms of size by 2030. The DIY segment would witness relatively fast growth in terms of revenue from 2023 to 2030. DIY customers have technical knowledge and interest in maintaining, repairing, and upgrading their cars by themselves. DIFM customers buy parts online but get them installed from a professional workshop.

The aftermarket service channel comprises members such as raw material suppliers, tier 1 distributors, automobile exhaust hubs and manufacturing units, and aftermarket units comprising jobbers and ultimately the repair shops. Repair centers are the important stakeholders in the service channel. The industry is witnessing a trend of strategic alliances and collaborations between collision repair centers and leading auto insurance companies to gain a competitive edge and capture a significant share of 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 the U.S.

Certification Insights

In terms of market size, the genuine parts segment dominated the market with a share of 52.0% in 2023. The genuine segment is anticipated to dominate the aftermarket arena in terms of size by 2030. The uncertified segment would witness relatively fast growth in terms of revenue from 2023 to 2030. Counterfeit parts are illegal, are not tested or certified, and have no warranty. Genuine parts are manufactured by car manufacturers or by OEMs, also known as subcontractors. Genuine replacement parts have greater assurance of quality, are diverse, easy to find, and include a warranty. The downside of these parts is that they are expensive and required to be purchased from dealers.

Certified automotive parts are tested and inspected by certified organizations. The Certified Automotive Parts Association (CAPA) is a non-profit organization, which was incorporated in 1987. CAPA offers test programs to verify and guarantee the quality and suitability of automotive replacement parts. It was the brainchild of automotive insurance companies and was formed to ensure the quality of replacement parts used by collision repair shops. Certified parts are cost-effective alternatives to costly genuine parts. Whereas, uncertified parts can be used instead of the original automotive parts. Uncertified parts are not approved by the car maker. However, the low cost of uncertified parts creates significant growth opportunities for the segment in the coming years.

Regional Insights

In terms of market size, Asia Pacific dominated the market with a share of 29.0% in 2023. The Asia Pacific market is also expected to deliver significant growth from 2023 to 2030. Advanced technology usage in the fabrication of auto parts, a surge in consumer and passenger automobile production & sales, and the digitalization of automotive component delivery services are anticipated to spur automotive sales in the region. In addition, the Indian automotive aftermarket is witnessing the expansion of organized retail and service chains. Companies like Mahindra First Choice, Pitstop, and Carnation Auto are establishing networks of authorized service centres, offering standardized services, genuine spare parts, and a transparent customer experience.

Over the past few years, emerging economies, comprising China, India, and Brazil, have validated insistent developments, which are expected to bid thriving prospects to the segment growth in the Asia Pacific. Further, the MEA region has a growing demand for vehicle customization and personalization. The aftermarket is witnessing a trend towards customized exterior and interior modifications, including body kits, alloy wheels, interior trims, upholstery upgrades, and lighting enhancements. This trend caters to the desire for individuality and uniqueness among vehicle owners in the region.

Recent Developments

• In June 2023, Continental released the UltraContact NXT series tire, which is distinguished by its high share of sustainable material usage. The tire comprises up to 65% recycled, renewable, and ISCC PLUS mass balance-certified materials. The tires will be made available in 19 sizes.
• In April 2023, ZF Aftermarket announced an expansion of its range of offerings for the Indian passenger car market with introduction of three newly manufactured TRW products in India comprising shock absorbers, brake pads, and brake discs. The company emphasizes that a crucial aspect of the independent aftermarket is the repair of brakes for passenger vehicles.
• In March 2023, HELLA, which operates under the FORVIA brand, announced the expansion of its Black Magic auxiliary headlamp series with the introduction of 32 new lightbars. Of these, 14 lightbars have received ECE approval for on-road usage and the remaining for off-road applications.
• In November 2022, Delphi Technologies released the Sparta fuel pump line for older, high-mileage vehicles. The Sparta fuel pump line was aimed at providing revenue opportunities for distributors and customers targeting a specific subgroup of older vehicles.

Some of the prominent players in the automotive aftermarket industry include:

• 3M Company
• Continental AG
• Cooper Tire & Rubber Company
• Delphi Automotive PLC
• Denso Corporation
• Federal-Mogul Corporation
• HELLA KGaA Hueck & Co.
• Robert Bosch GmbH
• Valeo Group
• ZF Friedrichshafen AG

Segments Covered in the 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 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the global automotive aftermarket industry.

Replacement Parts

• Tire
• Battery
• Brake Parts
• Filters
• Body parts
• Lighting & Electronic Components
• Wheels
• Exhaust components
• Turbochargers
• Others

Distribution Channel

• Retailers

• • OEMs
  • Repair Shops

• Wholesalers & Distributors

Service Channel

• DIY (Do it Yourself)
• DIFM (Do it for Me)
• OE (Delegating to OEM’s)

Certification

• Genuine Parts
• Certified Parts
• Uncertified Parts

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)