Automotive Aftermarket Market

The global Automotive Aftermarket Market is valued at USD 462.23 Billion in 2024 and is projected to reach a value of USD 718.72 Billion by 2035 at a CAGR (Compound Annual Growth Rate) of 4.10% between 2025 and 2035.

Key highlights of Automotive Aftermarket Market

• The North American region dominated the Automotive Aftermarket market in 2024, obtaining the largest revenue share of more than 34.7%,
• In 2024, the Asia Pacific region had a substantial market share and will witness remarkable growth during the forecast period,
• Tire segment dominated the market with largest market share of 47.8% in 2024
• The Retailers segment continued to assert its dominance by application, capturing the largest market share of 57.1% in 2024
• OE (Delegating to OEM’s) dominated the market with a significant market share of 72.2% in 2024
• Genuine Parts segment dominated the market with market share of 52.2% in 2024
• Technological advancements such as vehicle connectivity, telematics, and advanced driver assistance systems (ADAS) fuel demand for innovative aftermarket upgrades and retrofits.

Automotive Aftermarket Market: Regional Overview

North America Dominated Sales with a 34.7% share in 2024. The U.S. is a leader in North America Automotive Aftermarket industry and is experiencing a shift driven by stringent emission norms and government regulations, particularly in the heavy-duty vehicles market. For instance, the U.S. Environmental Protection Agency and international agencies are setting rules to enhance the quality and safety of automotive components, fostering innovation in the industry. Digitization is revolutionizing service delivery, offering transparency, and enabling automakers and service dealers to innovate and compete in the U.S. Automotive Aftermarket market.

Canada boasts the second-largest Automotive Aftermarket market in North America and stands as the regions second-largest vehicle producer, offering employment to over 125,000 individuals directly and 400,000 through aftermarket services. With more than 1.4 million cars assembled by global players, including major automakers like Ford, GM, Toyota, Honda, and Stellantis, the countrys automotive sector relies heavily on a global supply chain, with around 700 auto parts supplied by these manufacturers. The Canadian Automotive Aftermarket market is thriving due to the significant presence of global players and the growing demand for vehicle modifications among car owners, driven by an increase in passenger vehicle sales and the inevitable rise in demand for replacement parts as vehicles age, creating abundant opportunities for future growth.

U.S. Automotive Aftermarket Market Overview

The main factors influencing the U.S. Automotive Aftermarket market are diverse products and services catering to vehicle owners' maintenance, repair, and customization needs. With a robust vehicle parc and a large base of vehicles in operation, the U.S. aftermarket sector thrives on a strong vehicle ownership and maintenance culture. Additionally, the growing trend of vehicle customization and personalization further fuels aftermarket demand, driving innovation and competition within the industry. The market is primarily driven by drivers' desire to enhance their cars' speed, appearance, and exhaust sound, among many other aspects of their performance. Local regulatory bodies, including the U.S. Environmental Protection Agency, keep an eye on the environmental effects and established norms related to the operation of vehicle components.

The global Automotive Aftermarket market can be categorized as Replacement Parts, Distribution Channel, Service Channel, Certification, and Region.

Automotive Aftermarket Market: Replacement Parts Overview

In 2024, the Tire segment dominated the largest market share of 21.5%. The Automotive Aftermarket market, segmented by Replacement Parts, includes Batteries, Tires, Filters, Brake Parts, Turbochargers, Lighting & Electronic Components, Body Parts, Exhaust Components, Wheels, and Other Replacement Parts. This dominance can be attributed to tires' essential role in vehicle performance, safety, and maintenance, driving consistent demand for replacement tires and related services. Regular wear and tear, seasonal changes, and increasing vehicle age contribute to sustained aftermarket tire demand. Additionally, advancements in tire technology, including innovations in tread design, materials, and durability, further stimulate aftermarket sales in this segment. As consumers prioritize safety, performance, and fuel efficiency, the tire segment continues to represent a significant opportunity for aftermarket suppliers and service providers to meet evolving customer needs and preferences.

Automotive Aftermarket Market: Distribution Channel Overview

In 2024, the Retailers segment accounted for the largest market share at 67.2%. The Distribution Channel segment is divided into Wholesalers & Distributors, and Retailers. This segment includes various retail outlets such as auto parts stores, specialty shops, and chain retailers that offer consumers a wide range of aftermarket products and services. The Retailers segment benefits from its extensive reach, providing convenient access to aftermarket products and accessories for vehicle owners across different regions. Additionally, retailers often offer value-added services such as professional installation, product advice, and warranty support, enhancing the overall customer experience.

Automotive Aftermarket Market: Service Channel Overview

The OE (Delegating to OEMs) segment accounted for a significant market share of 72.2% in 2024. The Service Channel segment is divided into DIY (Do it Yourself), DIFM (Do it for Me), and OE (Delegating to OEM’s). This segment involves delegating aftermarket sales to original equipment manufacturers (OEMs) or authorized dealerships, where consumers purchase replacement parts and accessories that match the specifications of their vehicles' original components. The OE segment benefits from its association with OEMs, assuring consumers of quality, compatibility, and warranty coverage. Additionally, OEMs often provide specialized services, diagnostics, and technical support, enhancing the aftermarket customer experience. The OE segments strong performance underscores consumers' trust and confidence in OEM-branded aftermarket products, highlighting the importance of brand reputation and reliability in driving aftermarket sales and customer loyalty.

Automotive Aftermarket Market: Certification Overview

In 2024, the Genuine Parts segment dominated the largest market share of 54.1%. The Automotive Aftermarket market, segmented by certification, includes Genuine Parts, Certified Parts, and Uncertified Parts. This segment encompasses parts and components that are certified as genuine or original equipment manufacturer (OEM) parts, meeting the highest standards of quality, compatibility, and performance. Genuine parts offer consumers assurance of authenticity and reliability, often backed by warranties and technical support from OEMs or authorized dealerships. As consumers prioritize safety, durability, and vehicle longevity, the Genuine Parts segment continues to represent a preferred choice for aftermarket purchases, reflecting the importance of quality assurance and brand reputation in driving consumer confidence and loyalty in the Automotive Aftermarket landscape.

Key Trends

• The approach that e-commerce and digital platforms are adopting is changing the aftermarket industry. Online retail platforms and aftermarket marketplaces are experiencing development as consumers increasingly resort to online channels for the purchase of automobile parts and accessories.
• The need for maintenance and repairs is growing as the average age of cars on the road rises. The aftermarket sector is expanding due to an increase in the need for replacement components, diagnostics, and repair services as cars age.
• The aftermarket industry is changing as electric and hybrid vehicles gain popularity. This trend drives the need for specialized EV and hybrid parts and services, like battery replacements, charging infrastructure, and diagnostic tools.
• The growing integration of connection and telematics technology in automobiles is driving the need for aftermarket solutions for vehicle diagnostics, remote monitoring, and predictive maintenance. As a result, the market for aftermarket telematics products and linked automobile services is expanding.

Premium Insights

The increasing average age of vehicles on the road, which boosts demand for maintenance and repair services, and the rising popularity of electric and hybrid vehicles drive the demand for specialized Automotive Aftermarket solutions. The expansion of the automobile sector is being impacted by the annual increase in the market for electric vehicles. In 2021, the number of plug-in electric vehicle sales in the United States exceeded 172.1 thousand units annually, demonstrating the significant demand for parts and components to meet the needs of this industry. Additionally, the growing adoption of digital platforms and e-commerce is reshaping the aftermarket landscape, providing consumers with convenient access to automotive parts and accessories. For instance, in the U.S., Online parts sales have typically grown at a pace of 16% annually, but e-commerce activities had a 30% spike due to the coronavirus pandemic. Furthermore, the focus on sustainability and green technologies drives the development of eco-friendly aftermarket solutions.

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Market Dynamics

The rising adoption of electric vehicles (EVs) is expected to significantly enhance demand in the Automotive Aftermarket market

The local Original Equipment Manufacturers (OEMs) dominate the Chinese EV market, accounting for approximately 94% of sales. China has implemented quotas mandating that manufacturers allocate at least 10% of total net sales to 100% electric or hybrid vehicles, driving further EV adoption. Similarly, major economies like India, Japan, and South Korea impose stringent restrictions to promote EV adoption. This growing demand for efficient powertrain systems, coupled with favorable government policies such as Indias Automotive Mission Plan FAME-II, is anticipated to offer new opportunities for market players. Manufacturers are focusing on optimizing powertrain system design to limit greenhouse gas (GHG) emissions while enhancing performance. For instance, in 2022, Tesla announced plans to build a second EV facility in China to meet increasing local and export demand. Hondas joint venture in China is developing an EV manufacturing factory in Wuhan. Additionally, in 2022, Toyota Group intends to invest INR 48 billion (USD 624 million) in India to manufacture EV components. Suzuki Motor plans to spend INR 10,440 crore in India to develop a new electric car and battery facility. These initiatives reflect the markets shift towards electric mobility and the efforts of manufacturers to capture the growing market share by offering innovative solutions and expanding production capacities.

The Automotive Aftermarket industry faces rising operational costs associated with manufacturing, distribution, and compliance requirements

The rising costs are manufacturing expenses, encompassing various factors such as raw material procurement, labor, equipment, and overhead costs. The necessity to invest in cutting-edge technologies to meet quality requirements and price fluctuations for raw materials add to the overall rise in manufacturing costs. Additionally, compliance with environmental regulations adds another layer of complexity and cost to production processes, as companies strive to adopt eco-friendly practices and materials.

Distribution costs represent another major component of operational expenses for aftermarket companies. Some of these expenses include transportation, warehousing, inventory control, and order fulfillment. With the growing demand for e-commerce and faster shipping options, aftermarket companies are pressured to optimize their distribution networks to meet evolving customer expectations.

The proliferation of e-commerce platforms and online marketplaces has transformed the Automotive Aftermarket market landscape

Through online channels, consumers now have convenient access to a wide range of aftermarket parts and accessories. This shift towards e-commerce expands market reach, enables aftermarket suppliers to reach a broader customer base, and facilitates seamless transactions and product deliveries. For instance, in 2020, Continental AG unveiled its online portal, including details on its product for the market and a portfolio of all of its services.

Competitive Landscape

The Automotive Aftermarket market is highly competitive, with a diverse array of players vying for market share. Key participants include established automotive parts manufacturers, aftermarket retailers, independent repair shops, and online platforms. Major global players such as Bosch, 3M, and Delphi Technologies dominate the market with their extensive product portfolios and strong distribution networks. Regional players also play a significant role, catering to local preferences and offering specialized products and services.

The key players in the global Automotive Aftermarket market include - 3M Company (U.S.) among others.

Recent Market Developments

• In June 2023, the UltraContact NXT series tire, introduced by Continental, stood out for using a large percentage of sustainable materials. Up to 65% of the tires materials are renewable, recycled, and certified by ISCC PLUS mass balance. There will be 19 sizes of the tires available.
• In February 2024, ZF Aftermarket kept growing in India, and thanks to TRWs manufacturing site there, the nation became a center for the companys competence in making shock absorbers. ZF Aftermarket introduced TRW shock absorbers, brake pads, and brake discs, making substantial progress toward diversifying its product and solution offerings for the Indian market. ZF is currently concentrating on strengthening its TRW shock absorber production capabilities in India in keeping with its "Make in India" pledge for India. The company wants to create a highly trained personnel pool that can be used for research, development, and design in addition to manufacturing.
• In March 2023, HELLA, a company that sells products under the FORVIA brand, announced the addition of 32 new lightbars to its Black Magic auxiliary headlamp range. Of these, 14 lightbars are approved by the ECE for use on public roads, and the rest lightbars are approved for use off public roads.
• Delphi Technologies released the Sparta fuel pump line for older, high-mileage vehicles in November 2022. Targeting a certain subset of older automobiles, the Sparta fuel pump line was designed to give distributors and customers financial opportunities.