Asia Pacific Automotive Aftermarket size surpassed USD 120 billion in 2021 and is anticipated to exhibit a CAGR of 7% between 2022 and 2028.
The growing focus of several regulatory authorities on monitoring the environmental impacts related to the functioning of numerous automobile components, such as noise emission from automotive exhaust systems, will lead to a favorable outlook for the market. The surging rate of automotive production has urged several manufacturers to enhance their automobile features, such as performance, appearance, sound, and speed. The increasing consumer demands for safety, styling, and comfort are also contributing to changing features of the automobile industry.
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Aftermarket primarily constitutes automotive part businesses and the automotive service industry, and mainly revolves around buying and selling equipment or parts for a product after the initial product is manufactured and sold. The surging digital penetration in the APAC region has proved favorable for the rising penetration of digital services such as fleet management, telematics, and vehicle diagnosis.
The rapidly growing population and their increased purchasing power have resulted in multiple opportunities for supply chains and manufacturers to proliferate the aftermarket volume, mainly through retail sales. The collective inclination for luxury cars and the rise in the number of technological investments will further drive the market size.
Impact of the COVID-19 outbreak on Asia Pacific automotive aftermarket
The coronavirus pandemic significantly impacted the automotive industry and associated sectors on account of the disruption of supply chains and weakened customer demand, further hampering revenue generation. It also forced many countries across the continent to impose stringent lockdowns, leading to dipped automotive sales.
However, the increasing strides in e-commerce and the subsequently rising opportunities for OEMs, OESs, workshops, garages, and distributors among others are contributing toward the market expansion in the post-pandemic era.
The replacement parts segment will exceed USD 173000 million revenue by 2028, on account of their widespread usage across the region. These aftermarket parts are particularly preferred as they replace damaged parts in automobiles and are not manufactured by the original car manufacturer. They are designed and constructed to exactly fit and work far better than the OEM parts they replace. The value chain of this industry comprises component suppliers and repairing service providers.
The automobile dealership segment will gain remarkable momentum during the forecast timeline, attributed to the thriving all-electric EV sales and the expanding internal combustion engine (ICE) aftermarket in the Asia Pacific. A large number of automotive dealers are approaching partnerships for strategically strengthening their digital presence as well as omnichannel purchase path. Rising mobility trends and the growing digitization to facilitate online and offline changes throughout the purchasing journey will also influence the market dynamics.
India automotive aftermarket will witness healthy growth through 2028, due to the fast-growing middle-class population and economic growth in the country that is attracting the attention of a rising number of companies and capital.
For instance, in May 2022, BASF expanded its automotive coatings center in India to boost customer service capabilities across the region. The emergence of new models, rising enthusiasm of industry participants and investors, and the increasing focus on end-user service quality and experience with regard to resource integration are other factors driving the market growth.
Some of the leading companies involved in the market are Yazaki Corporation, Delphi Automotive PLC, Yangfeng Automotive Interiors Systems Co., Ltd., Hella KGaA Huech & Co., Lear Corporation, Denso Corporation, Continental AG, Bridgestone Corporation, BASF SE, and Toyota Motor Company. Industry players is placing targeted efforts on growth as well as revenue-driven innovation and marketing initiatives for increased customer reach and extended offerings.