The Global Automotive Aftermarket Market was valued at USD 224.50 billion in 2021 and is anticipated to reach a valuation of USD 340.25 billion by 2027 and is predicted to register a CAGR of 7.17% between 2022-2027

Following the sale of an automobile, the automotive aftermarket industry is in charge of remanufacturing, retailing, distributing, and installing car parts and equipment. A consistent pace of growth in the global automotive aftermarket industry is anticipated due to rising global car demand and production. The automobile aftermarket, which is heavily reliant on consumers, depends on them. Due to the rapid technological improvements in automobiles, the automotive aftermarket industry is continually growing to meet shifting consumer demands. The global automotive aftermarket industry is therefore expected to benefit from advancements in automobile technology.

Market Drivers and Restraints:

The demand for aftermarket components, such as catalytic converters and electronic chips to enhance fuel efficiency on older vehicles, has surged in response to the need for environmentally sustainable vehicles. The desire of owners to upgrade their older vehicles with new features is a key factor in the expansion of the automotive aftermarket sector.

The demand for automotive aftermarket parts is expected to increase significantly in the coming years as a result of the government's strict enforcement of car emission regulations in many nations, which puts pressure on manufacturers to produce environmentally friendly and highly efficient automobile parts for both domestic and international markets

The rise of the automotive aftermarket is fueled by OEMs including extra components in vehicles that may be customized in the aftermarket to meet consumer demands for comfort and convenience in cars. The demand for aftermarket goods is fueled by evolving lifestyles, rising living standards, and more disposable cash. Increasing disposable income could result in a more opulent lifestyle and the need to buy expensive cars. Millionaires all over the world are building or remodeling their own vehicles due to the rising demand for automotive aftermarket equipment.

Manufacturers are under pressure to use global platforms and modular design more quickly due to the dramatic rise in vehicle registrations around the globe. The outcome will be a sharp rise in the production of automobiles, which will raise demand for auto repair shops and other component suppliers. As a result, the market for automobile aftermarket businesses grows.

As technology develops, vehicles are becoming more sensor-equipped, which improves driving behavior and reduces wear and tear on brakes and other parts of the vehicle. Because of this, component replacement is challenging and the automobile aftermarket's expansion is hampered.

For the majority of the population, the cost of car modification is prohibitively expensive. The premium option is marketed to consumers who are relatively upper-class and willing to pay more for auto parts. But, the cost will need to go down if this service is utilized more frequently in order for the typical person to afford it.

To cut carbon emissions and manage the climate, automobiles are sold in many nations with environmentally friendly parts. Customers are unable to decide whether or not to regularly replace items that increase carbon emissions and hurt the environment. These factors, therefore, place limitations on the aftermarket for vehicles.

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The report is segmented as follows:

The Automotive Aftermarket Market is segmented by Replacement Type; Market is segmented by Service Channel; the Market is segmented by Distribution Channel; Market is segmented by Certification:

By Replacement Type (Battery, Tyre, Filters, Brake Parts, Turbochargers, Body Parts, Wheels, and Others)

By Service Channel (DIFM, DIY, and OE)

By Distribution Channel (Wholesalers & Distributors and Retailers)

By Certification (Certified Parts, Genuine Parts, and Uncertified Parts)

Regional Segmentation:

Asia Pacific dominated the market in terms of size in 2020, making up 28.0% of total revenue. The Asia Pacific market is expected to grow significantly between 2022 and 2027. The Asia Pacific automobile aftermarket is anticipated to expand faster than 7% by 2026. Increased sales of gas, hybrid, and electric cars are helping to expand the regional market, which is changing consumer preferences from traditional vehicles to more eco-friendly ones. The digitization and personalization of cars, as well as the increasing demand for Bluetooth devices and other technological accessories, are driving the market figures.

More than 42% of the world's total vehicle production takes place in the Asia Pacific region. China is the market leader for electric vehicles, commercial trucks, and passenger cars worldwide. China's aftermarket industry is expected to be worth more than US$ 153 billion in 2020, exceeding its counterparts in the United States, Germany, France, and the United Kingdom. Other APAC nations, including Malaysia, Thailand, Japan, Indonesia, South Korea, and India, are also seeing an increase in automobile production. Currently, a sizeable portion of the global automotive aftermarket industry is based in the Asia Pacific region.

With more than $180 billion in sales in 2020, North America will rule the automotive aftermarket in terms of revenue. Due to the rising demand for passenger cars, the use of contemporary technology in the production of auto parts, and the digitization of component delivery services, the market in the region is anticipated to grow. Component manufacturers have been forced to upgrade vehicle components to meet with laws due to the region's strict emission regulations. As a result of the increasing environmental degradation brought on by vehicle emissions, the demand for high-efficiency and environmentally friendly vehicle components for both local and international markets has increased significantly.

Due to the presence of numerous automobile OEM manufacturers in the region, Europe contributes significantly to global automotive aftermarket revenues. Also, the market is expanding as a result of high purchasing power and the green revolution's objective of making transportation more environmentally friendly. The European region kept a 24.15 percent market share between 2021 and 2026.

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Impact of the COVID-19 pandemic on the market:

The auto and transportation sectors, which are currently dealing with unprecedented instability, are among the most vulnerable to the continued COVID-19 spread. The sector's supply chain and product demand are anticipated to be significantly impacted by COVID-19. The primary concern for the sector has shifted from China-related supply chain disruptions to a general decline in aftermarket product demand. Once all non-essential services are shut down, the demand for commercial vehicle parts is anticipated to decline.

In addition, adjustments in consumer spending patterns brought on by the pandemic's uncertainties may have a considerable effect on the industry's near-term growth. A liquidity and cash problem that has already hindered aftermarket players are expected to get worse over the next few months. In the wake of the pandemic, consumers are also anticipated to favor private transportation. The purchase of new automobiles is anticipated to be hampered by financial issues, and commuters are expected to choose used cars because of cost considerations.

With an increase in the sales of old cars, there will likely be greater demand for aftermarket auto parts for vehicle maintenance. On a bigger scale, the outbreak is predicted to lead to the re-emergence of various entry-level aftermarket players in developing nations. Because each class segment has various preferences for auto repair and maintenance, the market is also anticipated to change dependent on customer demand.

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