The global Automotive Aftermarket is expected to reach USD 529.25 billion by 2028, according to a new report by Grand View Research, Inc. The market is anticipated to expand at a CAGR of 3.8% from 2021 to 2028. Digitalization of automotive repair & component sales complemented by advanced technology incorporations in the automobile aftermarket component manufacturing is expected to boost the market growth. The surging reception of semi-autonomous, electric vehicles, and hybrid and autonomous cars in the years to come is further expected to bolster the demand for new components.
Furthermore, the increasing vehicle penetration is driven by the overall improvement of lifestyle in developing countries, such as India and Brazil, and is expected to drive the growth of the automobile industry in these regions. Similar surges in the automotive manufacturing sector across various regions along with the increasingly stringent emissions norms are expected to drive the growth of the aftermarket component sales over the forecast period. Third-party services and technology offer new and profitable revenue streams, to leverage all these opportunities. Also, the industry requires investment in product development, supply chain, organizational design, and pricing model to create a great surge in demand.
To support the initiatives for leveraging the market foothold, the manufacturers in developing countries are adopting various strategies, including mergers, acquisitions, and partnerships. Asia Pacific is expected to be the fastest-growing region over the forecast period, owing to its developing living standards and high vehicle production. It is also anticipated to be the fastest-growing market in automobile production. With the growing penetration and acceptance of gas and hybrid electric cars, specialized repair centers dedicated to the repair of particular vehicles are expected to increase. The global aftermarket is expected to witness tremendous growth due to an upsurge in the number of vehicle collisions along with the inclination of owners toward the repair of their automobiles.
Related Press Release@ Automotive Aftermarket Report
Automotive Aftermarket Report Highlights
- The market is estimated to grow significantly over the forecast period, owing to an increase in the number of lightweight vehicles coupled with the increasing age of the light vehicle fleet
- While technological advancement erupted the challenges and disruption for the manufacturing industry, it has also brought opportunities and real growth
- Innovative business models and solutions provided by the manufacturers and growing investment in the same are expected to create sustainable growth opportunities for the market
- North America has a higher technology adoption rate, which is anticipated to result in faster and higher adoption of hybrid electric automobiles in the region as compared to the other geographies
- The global aftermarket is anticipated to witness a phase change attributable to the growing proportion of specialized automotive collision repair centers that are dedicated to serving specific vehicles such as alternate fuel-powered vehicles