OTTAWA, June 14, 2021 (GLOBE NEWSWIRE) – Precedence Research, announced a new report on “Automotive aftermarket (By spare part: battery, tire, filters, brake parts, turbochargers, body parts, wheels and others; by service channel: DIFM (do it for me), DIY (do it yourself) and OE (delegation to OEMs); By distribution channel: wholesalers and distributors and retailers (OEMs and repair shops); By technology: certified parts, original parts and non-certified parts) – Global market size, trend analysis, segment forecast, regional outlook 2021-2027 “
The automotive aftermarket involves the aftermarket replacement of vehicle parts or components to maintain efficiency and affordable mobility throughout the life of a vehicle. There is a chain of operators in the automotive aftermarket that includes multi-brand repairers, technical information providers, parts distributors, tool makers, parts manufacturers and service providers. roadside assistance.
- Increased sales of used and new vehicles
- Aging of vehicles
- Bad road conditions
- Growing adoption of electric vehicles and safety technologies
- Integration of advanced technologies
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The North America region holds the largest market share of 35.50% over the period 2016 to 2027. This is attributed to the increase in sales and production of passenger and utility vehicles in the region. The Europe region accounted for a market share of 24.15% over the period 2016 to 2027. The APAC region is expected to reach 22.03% market share over the period 2016 to 2027. The LATAM region is expected to exceed 10.79% market share and MEA 7.54%. .
Table 1 – Global Automotive Aftermarket Market Overview: Production (USD Billion) (2016-2020)
Impact of COVID-19
This situation due to COVID -19 has led to uncertainty about its impact on various industries. The sectors most affected are airlines, automotive, manufacturing, construction sites, pharmaceuticals, medical, food and beverage and tourism. The auto industry was at a standstill for some time which caused losses to these companies and therefore affected the auto aftermarket sector. The demand to deal with the Covid-19 situation was higher than that of other consumer goods sectors. This reduced demand and the tilt of the automotive aftermarket and other operations, resulting in lower spending. The automotive sales and service industry has also suffered huge losses due to the suspension of the manufacturing process and low demand from end users. The labor issue has greatly affected these companies.
The overall automotive market has been affected. Various governments are injecting money into the economy, for example the US Fed has taken the initiative to inject $ 1.5 trillion into the financial system. Similar initiatives have been taken by various governments, which should reduce the negative impact on the economy. Such initiatives can help reduce the severity of the impact on these industries.
The COVID-19 outbreak has caused a massive supply chain slowdown; uncertainty in the stock market; declining business confidence and growing public panic. Despite growing uncertainty and panic, technology vendors must continue to focus on their long-term investments, maintain engagement with partners and prospects, and seek stability in specific markets. Emerging technologies such as intelligent transportation, Industry 4.0, Internet of Things and innovation in high performance materials will be fundamental for a global recovery of the automotive manufacturing and modification industry.
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- Rise in technological advances
The demand for aftermarket parts such as catalytic converters and microchips to increase fuel economy on older vehicles has increased in response to the demand for environmentally friendly vehicles. Owners are particularly interested in adding new features to their older cars, which is a key driver of market growth in the automotive aftermarket industry.
- Government regulations contribute to market growth
In many countries, the government has imposed strict regulations on car emissions, pressuring product manufacturers to produce environmentally friendly, high-performance auto parts for domestic and international markets. which increases the demand of the automotive aftermarket and is expected to increase at an increasing rate in the coming years. years.
- Ratification of vehicle safety technologies
With increasing technological changes, vehicles are well equipped with sensors that lead to excellent driving behavior and thus reduce wear on brakes and other vehicle components. This factor hinders the replacement of components and hampers the growth of the automotive aftermarket.
The cost of modifying a vehicle is high for most of the population. Vehicle parts are sold as a premium option to upper class consumers who choose to pay a higher price for them. However, if it becomes more widely used, the price should drop so that ordinary people can afford it. Hence, it hinders the expansion of the automotive aftermarket market
- Increase in older vehicles and their age –
The average age of vehicles continues to increase with passenger cars and the pickup truck segment, the average age stands at 11.3 years. Older vehicles become; the more parts it takes to stay on the road. There has been a 14% increase in the age of automobiles over the past six years, which is a positive sign for the development of the market.
- E-commerce has changed the automotive aftermarket
Digitization which is the digital influence has transformed the way a consumer makes a purchase. Aftermarket customers read everything possible, including reviews and videos. Year after year, consumers are besieged by online advertising, both on desktops and smartphones. Wheel and tire websites and aftermarket touch-up paint websites are the two fastest growing segments of the industry. Thus, the aftermarket industry is catching up with the rest of the world by using the e-commerce technologies of smartphones.
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Highlights of the report
- North America dominated the automotive aftermarket in terms of revenue in 2020 and has been analyzed for significant growth during the forecast period. In this region, increasing consumer demand for vehicle modification to improve performance and resale value has widened the automotive industry market. The used vehicle sales trend is on the rise and creates a huge demand for the automotive aftermarket during the forecast period. In addition, vehicles or vehicle components require replacement after certain years of use, which is the key factor in the expansion of the market in the United States.
- Europe is expected to dominate the global automotive aftermarket mainly due to increasing disposable income and consumer preferences for replacement products to improve vehicle performance. Lifestyle Changes With changing trends and easy customization, consumers use their aftermarket products to replace original equipment as they are lightweight, sturdy and versatile in terms of customization. Increased sales through major online platforms like amazon.com, ebay, Rakuten and Oscaro will multiply the growth of the European automotive aftermarket.
- Asia-Pacific is experiencing significant growth due to the growth of automobile production and the increase in the number of automobile manufacturers to increase and improve their performance in terms of appearance, speed, sound and other aspects. . As the growing auto industry, especially in countries like China, India and Korea, the need for a large number of auto parts and components is increasing, which is one of the main growth factors of the market in Asia.
- In terms of revenue, the tire has dominated the global automotive aftermarket with US $ 202.04 billion by 2027 at a CAGR of 5.47% and is expected to continue to dominate over the course of the forecast period due to a reduced replacement cycle compared to its counterparts.
- Based on the distribution channel, the retail segment is expected to reach $ 720.17 billion in revenue by 2027 with a CAGR of 4.74%, while the wholesale and distribution segment is the fastest growing over the years projected.
- By technology, OEM parts are expected to dominate the automotive aftermarket with a CAGR of 4.63% over the forecast period 2021 to 2027. Genuine parts are made by manufacturers and also OEMs. Since genuine parts are made by the manufacturers themselves, they have greater quality assurance, are diverse, easy to find, and also include a warranty. Genuine parts are more expensive than certified and uncertified parts.
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