International. The automotive aftermarket is estimated to grow by $164.58 billion from 2022 to 2027, with a CAGR of 6.26%. This was noted in the most recent report by the research firm Technavio.
According to it, the automotive aftermarket is fragmented due to the presence of many global and regional companies.
The technology advisory firm also indicates that the automotive parts and components market is experiencing substantial growth due to the increased demand for vehicle parts.
"This increase is primarily due to the automotive aftermarket sector, which encompasses maintenance, high-performance parts, tuning, customization, body/exterior and interior components, tires, wheels, batteries, filters, and lubricants," Technavio said.
The growing inclination towards improving vehicle performance, aesthetics and durability is contributing significantly to the expansion of this market, emphasizing consumer preferences for reliable and customized automotive solutions.
It also highlights that the predominant trend in the automotive aftermarket is the growing popularity of e-retail parts.
"This increase is prominently shaping the growth trajectory of the market, specifically for spare parts, repair services, brakes, suspension systems, exhaust systems, lighting, electronics, diagnostic tools, fluids, air conditioning, and engine components," it said.
"The shift towards online platforms to purchase these automotive products means a growing consumer preference for convenient, accessible and varied options, showing the significant impact of digital retail on this industry," he adds.
Finally, it underlines that the automotive aftermarket and components is facing a challenge amidst the emerging trend of the aftermarket e-retail.
"This evolution affects the market dynamics for transmission parts, steering components, fuel system parts, cooling system components, gaskets, seals, tools and special equipment. The challenge lies in adapting traditional retail strategies to the digital landscape seamlessly while ensuring an optimized customer experience," he concludes.
