The global automotive aftermarket had a valuation of $803.22 billion in 2019 and is predicted to progress at a CAGR of 5.07% between 2020 and 2030. Furthermore, the market will reach a valuation of $1,370.17 billion by 2030, as per the estimates of the market research firm, P&S Intelligence.

The increasing age of automobiles, the rising prevalence of road accidents, and the surging number of automobiles on roads are the major factors driving the advancement of the market.

With the rising average age of automobiles, the industry is predicted to demonstrate rapid expansion in the coming years, especially in the developing regions such as Latin America, Middle East, and Africa (LAMEA) and Asia-Pacific (APAC). For example, in China, the average age of automobiles will rise from 4 years in 2010 to 6 years by the end of 2020. This increment is because of the availability of stretched car loans for as many as 4-5 years in the country.

Additionally, the rapid improvements being made in the quality of the manufactured automobiles are fueling the demand for aftermarket parts and components. Many emerging economies such as India, Brazil, and China are predicted to witness a sharp surge in the average age of automobiles in the coming years. This will create lucrative growth opportunities for the industry players. Due to the growing popularity of e-commerce, the aftermarket component manufacturing companies are witnessing a rapid expansion in their customer pools.

Besides the aforementioned factors, the increasing deployment of electric vehicles is also driving the progress of the automotive aftermarket across the world. Due to the increasing concerns being raised in several countries over the escalating pollution levels because of the emission of harmful gases from the oil and gas-powered vehicles, the governments of these countries are rapidly enacting policies for encouraging the adoption of electric vehicles. This is fueling the boom of the market.

Based on component, the automotive aftermarket is divided into drive transmission and steering parts, electrical parts, equipment, suspension and braking parts, engine parts, and various other miscellaneous parts and components. Out of these, the engine parts category is predicted to register the highest growth in the market in the forthcoming years. According to industry experts and reports, more than 65 million passenger cars were sold all over the world in 2018.

Geographically, the automotive aftermarket is predicted to record the fastest growth in the Asia-Pacific (APAC) region in the upcoming years. This would be a result of the increasing average age of automobiles. In addition to this, the growing price sensitivity of customers while purchasing aftermarket parts or replacements, especially in the emerging economies such as India and China, is boosting the demand for aftermarket parts and components in the regional countries.

Hence, it can be safely said that the market will demonstrate huge expansion all over the world in the coming years, primarily due to the rising average age of automobiles and the soaring requirement for more affordable vehicle parts and components.

Source: P&S Intelligence