Global vehicles in operation will increase sharply over the 2013-2020 period, driving new opportunities for light vehicle parts and service providers. This research compiles findings from various deliverables published over the past two years. It covers growth prospects for the global automotive aftermarket in North America, Latin America, Europe, Asia, and Australia. The research includes vehicles in operation analysis, revenue forecasts and top parts, and service providers by regions. It also includes an analysis of mega trends impacting the global automotive aftermarket, with a specific focus on electronic parts retailing. Conclusions and future outlook are presented for each region.
Total Automotive Aftermarket: Top Six Predictions, Global, 2014
Average Vehicle Age to Hit All-time High in Developed Regions
The global economic recession of 2008-09, ongoing financial crisis across Europe and growth of new mobility solutions continues to keep many consumers out of the new car market in developed regions. With people keeping their old vehicles longer, the average age will exceed years in the United States and years in Europe, the highest it has ever been since Frost & Sullivan began tracking the automotive aftermarket.
China will be Home to More Than 1 in 3 New Vehicles in Operation
China’s vehicles in operation is forecasted to increase by million from 2013 to 2014, while globally the total light vehicle population grows by million. High GDP growth and the emergence of China’s middle class will make it the focus of aftermarket parts and service companies in 2014.
One in 5 Global Vehicles in Operation to Have In-vehicle Telematics
Embedded and tethered telematics systems allow vehicle owners to remain connected to dealers, parts suppliers, service centers and other providers in the aftermarket through WiFi, satellite and Bluetooth communications systems. As these systems become more common in modern automobiles, it will lead to significant changes in how consumers maintain their vehicles.
OEMs Usage of Aftermarket Parts to Total Half of OES Channel Sales
With maintenance and repair options increasing for consumers, there is a growing focus on price to draw vehicle owners to service shops. To support price competitiveness, more automakers will replace most of the original parts they use for routine maintenance at their franchised dealerships with lower-priced aftermarket products.
More than Independent Repair Facilities to Close
The expansion of well-financed service chains across emerging and developed regions will lead to the closure of thousands of family-owned garages annually. Many shop owners are nearing retirement age and foregoing the expenses of training, tools and equipment to stay open.
E-retailers to Account for % of all Parts Sales Worldwide
Led by tire manufacturers, which account for % of all sales, the share of parts sold through online channels will reach its highest level in 2014 on its way to % of revenue by 2020. E-retailers can reduce prices for consumers and serve as a surrogate distribution channel in regions without all-makes-and-models wholesalers.
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