Â鶹ԭ´´

The automotive aftermarket is a crucial segment of the global automotive ecosystem, providing the essential products and services that keep vehicles running safely, efficiently, and in line with consumer preferences. It encompasses all replacement parts, accessories, services, and maintenance required after a vehicle is sold by the original equipment manufacturer (OEM). This includes everything from simple components, such as filters, wiper blades, and tires, to complex systems, including braking assemblies, electronic modules, and diagnostic equipment, as well as routine maintenance services like oil changes, repairs, and customizations.

In essence, the aftermarket ensures the longevity and performance of vehicles throughout their lifecycle, offering solutions to keep cars, trucks, and other vehicles operational beyond their original warranty period. It also caters to consumer desires for personalization and upgrades, allowing owners to modify vehicles according to their tastes and needs.

Key Components of the Automotive Aftermarket

The aftermarket can be broadly categorized into:

• Replacement Parts: Components that substitute for original parts, including wear-and-tear items (brake pads, belts, batteries) and critical systems (engines, transmissions, suspensions).

• Accessories: Products that enhance functionality, appearance, or performance, such as infotainment systems, lighting upgrades, and body kits.

• Services and Repairs: Maintenance activities ranging from routine oil changes to complex engine diagnostics and collision repairs.

This sector serves as the lifeline for aging vehicles. As vehicles age, they require more frequent repairs and maintenance, driving consistent demand for aftermarket products and services. With over 1.5 billion vehicles on the roads globally, the aftermarket plays a pivotal role in supporting the mobility needs of consumers, fleet operators, and businesses alike.

Global Automotive Aftermarket: Growth Outlook and Key Drivers

The global automotive aftermarket—comprising replacement parts, accessories, and maintenance services—is a vast and steadily growing industry. Its size varies based on definitions, but key estimates highlight its massive scale:

• The core aftermarket (parts & accessories) is expected to grow from approximately $430.5 billion in 2024 to around $565–568 billion by 2032, reflecting a ~3.5% CAGR.

• The total aftermarket (including service and repair labor) reached about $1.87 trillion in 2022 for passenger/light vehicles alone, and $2.33 trillion when including heavy-duty vehicles. This figure is projected to surpass $2.5–3 trillion by 2030.

Historical Growth Trends

Historically, the aftermarket has expanded by low single digits annually, primarily driven by:

• An expanding global vehicle parc—o±¹±ð°ù 1.5 billion vehicles are on the road globally as of the mid-2020s.

• Rising average vehicle age, leading to greater maintenance needs.

The COVID-19 pandemic briefly impacted the sector in 2020, but it rebounded strongly:

• The U.S. aftermarket saw 9.7% growth in 2022, followed by a robust ~8% in 2023.

• Average vehicle age reached record highs—12.1 years in the U.S. (2021) and 12 years in the EU (2023)—as highlighted in the chart above.

Forecast: Steady Growth Expected

Various forecasts project a 3–5% CAGR for the global aftermarket from 2025 to 2030:

• Various reports anticipate a 3.8-4.1% CAGR, with parts revenue exceeding $600+ billion by 2030.

• Total aftermarket revenue (including services) could approach $2.5–3 trillion globally by 2030.

• Vehicle parc growth is a major driver, projected to rise from ~1.5 billion in 2020 to 1.7 billion by 2030 (see chart above).

Key Growth Drivers

The aftermarket’s expansion is supported by:

• Aging vehicle fleet: As cars age, they need more repairs and parts, fueling aftermarket demand.

• Consumer behavior: Many owners opt to maintain and personalize existing vehicles rather than buying new, especially amid economic uncertainty and high new car prices.

• Durability improvements: Vehicles are lasting longer (often 200,000+ miles), but still require periodic maintenance and part replacements.

• Global miles driven: Rebounded post-pandemic, supporting wear and tear trends.

Challenges Ahead

While growth is steady, the aftermarket faces technological headwinds:

• Electrification: EVs typically require fewer routine parts (like oil filters, spark plugs), potentially impacting parts demand.

• Connected technologies and ADAS: May shift maintenance to specialized providers or OEM-authorized channels.

• Right-to-repair debates: Could affect access to parts and diagnostic data in the future.