Selbyville, Delaware, Aug. 30, 2021 (GLOBE NEWSWIRE) --
The automotive aftermarket revenue is anticipated to record a valuation of USD 800 billion by 2027, according to the most recent study by Global Market Insights Inc. It is a well-known fact that the global automotive industry is dynamically expanding. International Organization of Motor Vehicle Manufacturers (OICA) recorded that the worldwide automobile sales surpassed a whopping 77 million units mark as of 2020.
With such huge sales in the sector, the need for proper and efficient aftermarket services is gradually taking a sharp incline in the overall automotive and transportation business space. In this case, various automakers are now looking forward to including the aftermarket services to help expedite the business prospects considerably. Reason? Aftermarket, if done well, offers cost savings, a better service experience, and enhanced performance.
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Given below is a brief snapshot of the trends that are likely to re-shape the growth structure of market through 2027:
Digitization of distribution channels
Post the COVID-19 pandemic, the demand for digital platforms rose incredibly across various industries, including the automotive sector. In this regard, it is quite overt that the penetration of digital platforms in the distribution channel would potentially expedite the industry progression. It has been reported that digitalization of distribution channels would play a significant role towards differentiation in a saturated market, improved profitability, and revenue growth.
Owing to this, various automakers are now looking toward the possibility of building a digital aftermarket division and introducing digitization in the biz. For instance, TVS Automobile, an Indian automotive firm, recently announced establishing a digital aftermarket arm with potential funds from various tech investors. The new subsidiary would be named Ki Mobility and would offer quality, cost-effective, and standardized service to vehicle owners.
Increasing interest towards spare part replacement
There is an increased interest being laid on vehicle spare part replacement, which is providing impetus to the global automotive aftermarket. The growing technological developments in the space would generate lucrative gains for the replacement part segment. In fact, it has been reported that the segment holds over 80% of the business revenue share. What has been driving this segment is the elevating demand for comprehensive automotive solutions across the globe.
Expanding sales through OEM factory fill
Sales of aftermarket services through OEM factory fill will generate huge profits in the years to come across the automotive industry. The rising demand for high-quality factory fill lubricants is cited to be a prominent growth driver. Industry experts speculate the OEM factory fill segment to account for USD 60 billion by the end of 2027.
Robust presence of automotive giants in Europe
Europe has been, for years, known as the hub for leading automotive manufacturers. According to credible sources, the region represents over 7% of the EU GDP. This makes the continent a hotspot for aftermarket as well. Moreover, rising disposable incomes and interest towards vehicle ownership have impelled the demand for passenger vehicles in European countries. Factors like these have laid emphasis on the need for aftermarket services. As of 2020, the regional automotive aftermarket segment held a business share of 30%.
Innovations by leading market players
Some of the prominent companies operating in the automotive aftermarket industry include Roberts Bosch, Continental AG, Bridgestone Corporation, and others. These firms are leaving no stone unturned to take up strategic practices like collaborations, acquisitions, product launches, and facility expansions, in consideration. This helps them to gain a prominent position in the global market.
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One such company is Robert Bosch. The conglomerate’s automotive aftermarket division, Bosch Automotive Aftermarket, had recently launched one of the largest Bosch Car Service facilities in Panchkula district of India. The move was taken up as the company’s network expansion drive.
About Global Market Insights
Global Market Insights, Inc., headquartered in Delaware, U.S., is a global market research and consulting service provider; offering syndicated and custom research reports along with growth consulting services. Our business intelligence and industry research reports offer clients with penetrative insights and actionable market data specially designed and presented to aid strategic decision making. These exhaustive reports are designed via a proprietary research methodology and are available for key industries such as chemicals, advanced materials, technology, renewable energy and biotechnology.
