The Automotive Aftermarket Market size was estimated at USD 443.76 billion in 2023 and is projected to reach USD 576.14 billion in 2030 at a CAGR of 3.80% during the forecast period 2023-2030.
The automotive aftermarket includes replacement, collision, aesthetic, and functional parts. Replacement components that are not produced by the original equipment manufacturer are known as aftermarket parts. They may also be used for improving and tune-ups, but are often utilized to replace broken parts in cars and other machinery. For almost all vehicle makes and models, the aftermarket offers a large range of components in various quality levels and pricing ranges. Although the amount one saves varies by manufacturer, aftermarket components are generally less expensive than OEM parts. The aftermarket businesses analyse the part's weaknesses and reverse engineer it. There are several businesses that focus on particular parts, which results in a great assortment, a larger range of costs, and greater availability.
The desire of car owners to improve their vehicle performance in terms of exhaust sound, speed, and aesthetic factors, along with many other elements, is a primary driver of the industry. The leading players anticipate making significant investments in the digitized component delivery sales & services and the launch of an online portal selling aftermarket parts in coordination with the international auto-part supplier groupings. Additionally, rising online sales of automobile parts are predicted to generate a sizable amount of market demand. Because the digital platform offers a smoother user experience, businesses are moving there. The advancements in propulsion technology have also opened up a lot of business prospects.
However, concerns regarding expensive R&D costs are anticipated to impede market expansion within the forecast period. The manufacturing procedures used by automakers are subject to various limitations. One of these restrictions is the cost of production.
The COVID-19 pandemic had a substantial effect on the automobile aftermarket industry's supply chain and product demand. Concern in the industry has shifted from China's disruption of the supply chain to the general decline in aftermarket product demand. The cessation of all non-essential services resulted in a sharp decline in the market for commercial vehicle parts. Additionally, adjustments in consumer purchasing patterns brought on by the pandemic's uncertainties had a significant impact on the industry's growth in the near future.
The Automotive Aftermarket Market is expected to grow during the forecast period. This growth can be attributed to several factors such as the desire for car owners to improve their vehicle performance, investment in making significant investments in the digitized component delivery sales & services and the launch of an online portal selling aftermarket parts in coordination with the international auto-part supplier groupings. In addition, rising online sales of automobile parts is expected to drive the growth of the market further during the forecast period. However, the high R&D cost and the high cost of production might hamper the growth of the market during the forecast period.
Asia-Pacific to Dominate the Market