Persistence Market Research, a market intelligence company recently published a report saying that the automotive aftermarket is set to be the biggest emerging market by 2021. The automotive aftermarket covers all services and parts that customers buy for their light duty and heavy duty vehicles after they have purchased a vehicle from the original equipment manufacturer or the OEM. The sector is growing at a rapid rate and has become increasingly important automotive companies in light of the higher margins. There is immense potential for the sector in markets like China, UK, Russia, Italy, France, Spain and India. Growth of the sector in these economies which are on the growth track is expected to drive grown on a global basis during the forecast period.
Another area in which the automotive aftermarket can create chances to increase revenue is through the provision of innovative services like mobility and telematics services, and such services are now accounting for a growing share of the automotive aftermarket. Automobile companies are expanding their business in these countries, which is expected to drive the growth of automobile aftermarket over forecast period.
The report published by Persistence Market research provides an overview of the global automotive aftermarket and discussing each aspect in detail taking into account market figures. The research report analyses the industry growth rate, industry capacity, and industry structure. The report analyses the historical data and forecasts the automotive aftermarket size along with key factors driving and restraining the market growth.
The automotive aftermarket can be analyzed and segmented both on the basis of vehicle age and on the basis of the channels and vehicle age. From the channels perspective, the automotive aftermarket can be segmented into two major categories comprising authorized channels (single-brand repair shops and multi-brand repair shops) and independent channels like automotive centers, franchise workshops and independent repair shops.
When it comes to the age of the vehicles, the automotive aftermarket can be divided into three major categories namely vehicle age 0-4 years, vehicle age 4-8 years and vehicle age over 8 years.
The market can also be segmented geographically into North America, Europe, Asia Pacific and Rest of the World (Latin America, Middle East and Africa).
In the period from 2013 to 2019, the automotive aftermarket is expected to show significant increase in CAGR across the globe. Boom in the automotive aftermarket market will lead to lower repair and maintenance costs for vehicles.
The main factors that will drive growth in this market are growth in emerging markets like the Asia Pacific region and Europe, cost advantage and increasing demand for parts from high quality brands. The main hurdle to growth for this sector is legal issues, which can hinder the growth of automotive aftermarket.
The major players in the automotive aftermarket are companies like Bosch Brake Components LLC, Centric Parts, ABS Friction Inc., Honeywell, ADVICS North America Inc., Fritec and Link Engineering among others.