Market Size

Automotive Aftermarket Size

Automotive Aftermarket size was valued at USD 922 billion in 2023 and is expected to grow at 12.6% CAGR from 2024 to 2032, due to increasing necessity for maintenance & scheduled servicing requirements to enhance the aging vehicle’s lifetime. The increasing customer expectations, ongoing technological innovations, and rising competition across the automotive industry are the major factors fueling the industry expansion. The increasing penetration of OEMs into aftermarket activities along with the consolidation of parts distributors is providing a positive outlook for market expansion.

Factors, such as crash repair and wear & tear, are supporting the aftermarket components demand. The consumer preferences for aftermarket parts instead of Original Equipment Manufacturer (OEM) parts owing to their cost-saving attributes are likely to boost the key manufacturers’ revenue. The generic or aftermarket parts are also easily available than the original manufacturer’s parts, thus saving time & money for both consumers and insurance companies. The automotive aftermarket component manufacturers are expected to form strategic partnerships with insurance agencies to gain a competitive edge.

The strong demand for automobiles from the emerging economies is likely to favor automotive aftermarket industry growth. The increase in demand was supported by the rapid expansion of global players in Asian countries, majorly in China, India, Australia, and Indonesia. The rising eco-friendly techniques in automotive manufacturing owing to the stringent environmental regulations will result in a surge in the demand for alternative automotive parts.
 

The increasing competition among the automotive industry is driving the exponential development of online sales platforms for automotive components. Manufacturers are expected to offer convenient shipping options, flexibility, and a seamless online experience to boost their product sales. Consumers are anticipated to compare products and prices before the buying decision. The increased convenience coupled with no-cost ship-to-store pricing is the major factor supporting the automotive aftermarket product sales.