The automotive aftermarket is anticipated to experience steady expansion by 2028 owing to prevalent consumer demand for automotive parts in key regions across the globe.
Recently, industry players have been implementing effective strategies to improve their market position, thereby fueling business growth worldwide. For instance, in March 2022, Schaeffler Group, a key company in the automotive industry, announced its plans to expand and relocate its automotive aftermarket operations with the groundbreaking of a new 250,000 square-foot plant. The new facility is being constructed in Strongsville, Ohio, which is around five miles from Schaeffler’s existing Valley City building. It is scheduled to become operational in the third quarter this year.
To cite another instance, in March 2022, Continental AG, a leading automotive parts manufacturer, broadened its range of vehicle camera systems with the addition of its novel Platform AHD (Analog High Definition) Camera Systems that are designed to enhance driver’s vision as well as fleet efficiency. As a result, rising focus on the development of advanced products has been favorable for the overall market landscape.
The automotive aftermarket has been bifurcated based on product, sales outlet, and region. With respect to product, the market has been further categorized into accessories and replacement parts. The replacement parts sub-segment is likely to witness robust growth by 2028, registering around 6% CAGR over the projected timeframe. Increasing maintenance requirements owing to the excessive strain caused by vehicles’ aging and poor road conditions are set to provide a positive outlook for aftermarket parts in the coming years.
In terms of sales outlet, the automotive aftermarket has been segmented into DIY, professional, and OEM factory fill. The professional sub-segment holds over 60% share in the market and is slated to reach a sizable revenue by the end of 2028. Professional outlets include garages & services, dealers, quick lubes, commercial fleets, government services, and other outlets.
Growing consumer preferences for economical services, closer to home advantages, and personalized services are likely to augment the growth rate of various professional outlets, such as garages, service stations, and automobile dealerships. Moreover, service quality, high-quality parts, and technical skills are some major factors that are set to positively influence professional sub-segment market size.
In the regional landscape, the Middle East & Africa automotive aftermarket is anticipated to grow at a CAGR of over 5.5% through the forecast period. This growth is attributed to mounting support from governments, surging imports, booming markets for used cars, high expenditure on regular maintenance, and private sector investments. Furthermore, the pervasiveness of improved distribution strategies, low fuel costs, soaring availability of advanced technological parts, and high disposable income are foreseen to play a major role in the development and expansion of the automotive aftermarket across the MEA region in the future.