Asia Pacific Automotive Aftermarket Share was USD 221.4 billion in 2019 and will grow at a CAGR of 6.0% up to 2026.
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The Asia Pacific market will witness significant growth owing to growing automotive production and by the pursuit of automotive manufacturers to increase their automobile performance in terms of appearance, speed, sound and other aspects. Regional regulatory authorities monitor the environmental impacts associated with automobile components functioning like noise emission from automotive exhaust systems.
Aftermarket comprises of automotive service industry and automotive part businesses. Rapidly growing aftermarket volume, including retail sales across the region is becoming increasingly essential for automotive industry players as compared to new vehicle sales due to greater margins. On the other hand, automobile wear and tear components and products accounts for more than half of the total sales in Asia Pacific region followed by diagnostic products and services along with crash-relevant parts. Digital services such as telematics, fleet management, vehicle diagnosis will also increase exponentially with growing digital penetration in the region.
The impact of coronavirus pandemic on automotive industry and associated sectors has significantly affected the market. Disruption of supply chains and weak customer demand is further impacting the revenue generation. The coronavirus has forced many countries in the region to impose strict lockdowns, dipping customer confidence and diverting customer expenditure towards essential buying. However, incentives provided by government across the region is expected to bring the automotive industry back on track thereby driving the industry growth.
Replacement parts are the most widely used product and will hold significant share in Asia Pacific market. Industry value chain includes, repairing service providers and component suppliers. Moreover, growth in electric and hybrid cars demand due to growing regulation and norms regarding fuel emissions. This will drive exhaust parts and tools demand for the projected timeframe.
Automobile dealership will witness around 6% CAGR in Asia Pacific market for the projected time period. Online channels are becoming the most attractive business strategy and are pushing industry players to provide new products and services via online channels. For example, Bosch a major component manufacturer established its online presence on Chinese e-commerce platform TMall and Alibaba. The component suppliers are setting up their bases on online platforms with an objective to connect directly with the customers.
China holds around 50% share in the Asia Pacific market. Increasing demand for automobile is expected to propel the demand for automobile. Stringent regulations for vehicle safety across the region are expected to drive the market growth. Innovation in production technologies including, 3D printing for automotive parts enables efficient fabrication and are more widely used by various industry players to optimizes their production costs.
The key players in the market includes, Yazaki Corporation, Denso Corporation, Continental AG, Hella KGaA Huech & Co., Bridgestone Corporation, Yangfeng Automotive Interiors Systems Co., Ltd., BASF SE, Delphi automotive PLC, 3M, Lear Corporation, Toyota Motor Company, etc. Various industry players are working towards increasing their online presence in the market. For instance, in June 2020, Bridgestone India launched contactless tyre servicing portal called Bridgestone Bookmyservice which help customers to take an online appointment making them spend less time at the outlets.