Automotive Aftermarket to Reach $680B by 2024
March 14, 2017—The automotive aftermarket industry size is slated to cross $680 billion by 2024, according to Global Market Insights.
A few key highlights from the report include:
- DIY automotive aftermarket industry generated revenue over 100 billion in 2015. Low operation cost is the substantial factor driving the product development in this segment. Rising consumer awareness pertaining to online maintenance tutorials is the key factor positively influencing the market growth. Shifting consumer preference toward vehicle comfort, enhancing efficiency and customization for aesthetically pleasant vehicles are the key factors driving the automotive aftermarket demand, the report states.
- Increasing vehicle wear and tear due to poor road infrastructure particularly in developing countries have led to more replacement parts consumption which will support the product penetration. Rise in average distance driven per vehicle has resulted in increasing requirement for maintenance encouraging vehicle parts replacements.
- Professional sales outlet is the major revenue generating segment for automotive aftermarket and was valued over $300 billion in 2015. Moreover, additional services provided by the outlets for customer delight including free periodic servicing, insurance to damaged parts and delivery facilities will fuel the automotive aftermarket industry growth.
- Stringent regulations regarding emission control and safe transport has resulted in increased maintenance of the vehicle. Shifting trend for vehicle customization which includes lighting system, vehicle graphics, spoilers to achieve optimum performance is the key factor driving global automotive aftermarket demand.
- Rising demand for the vehicle durability has increased the scheduled maintenance frequency to achieve better performance. This has resulted in increasing replacement of original parts driving the automobile aftermarket industry size.
- Legal issues regarding patent and copyright infringement are restraining factors to automotive aftermarket industry. Increasing on-road vehicle usage coupled with rising vehicle average age are the key factors driving the global automotive aftermarket demand. Tires, electrical parts and brakes are among the highest revenue generating parts, accounting for over 50 percent of total revenue generated from replacement part segment.