Automotive Aftermarket Worth Close to $500B by 2025
March 6, 2018—The global automotive aftermarket size is expected to reach USD 486.36 billion by 2025, according to a new report by Grand View Research Inc., registering a 4.2 percent CAGR during the forecast period.
Digitalization of automotive repair and component sales has been brought on by the incorporation of advanced technologies; this is slated to boost market growth. Surging reception of electric and hybrid vehicles as well as semi-autonomous and autonomous cars in the years to come is further expected to bolster market growth. Based on replacement parts, the market can be categorized into tire, battery, brake parts, filters, body parts, lighting and electronic components, wheels, exhaust components, and turbochargers.
Increasing vehicle sales are driven by overall improvement in living standards, especially in developing countries such as India and Brazil. This has driven the global automobile industry. Similar growth in automotive manufacturing across various regions, along with increasing stringent emissions norms, is expected to drive automotive aftermarket component sales over the forecast period.
Asia Pacific is expected to be the fastest growing market for automotive collision repair services over the forecast period, owing to high vehicle production, rising road accidents, and improving living standards of consumers. It is also anticipated to be the fastest-growing market in automobile production. With growing penetration and acceptance of gas and hybrid/ electric cars, specialized repair centers are expected to increase.
Further key findings from the report suggest:
- The automotive aftermarket is estimated to grow significantly over the forecast period, owing to an increase in number of lightweight vehicles
- 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
- The global automotive aftermarket is anticipated to be driven by mushrooming specialized automotive collision repair centers dedicated toward serving specific vehicles such as alternate fuel powered vehicles
- Key industry participants include Magneti Marelli S.p.A., Continental AG, 3M Company, Federal-Mogul Corporation, Delphi Automotive PLC, Robert Bosch GmbH, and Denso Corporation.
View the full report by clicking here.