Asia Pacific Automotive Aftermarket Size Estimates By Product (Replacement Parts [Belt, Brakes, Clutch, Electrical Parts, Lighting, Electrical & AC Parts, Exhaust, Filters, Suspensions, Transmission, Wiper Parts], Accessories [Car Exteriors, Car Interiors]), By Sales Outlet (Professional [Quick Lubes, Garages & Service Stations, Automobile Dealerships, Government, Commercial Fleets & Other Professional Outlets], DIY [Discount Department Stores, Auto Parts Stores], OEM Factory Fill), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Price Trends, Competitive Market Share & Forecast, 2021 - 2027
The Asia Pacific automotive aftermarket is projected to observe robust growth by 2027 owing to surging product demand across the region. Moreover, rapid digitalization in the sector is likely to further support market growth over the forecast timeline.
Aftermarket parts refer to replacement parts that are not fabricated by the OEM (original equipment manufacturer). These parts are typically used to replace damaged parts in automobiles as well as other equipment, However, their utilization could potentially impact insurance coverage for the item. Additionally, aftermarket parts are considered more cost-efficient than OEM parts, which has played a vital role in product adoption, thereby propelling Asia Pacific automotive aftermarket growth in recent years.
Notably, industry players have been implementing lucrative strategies to strengthen their foothold in the market, which has been favorable for the overall business growth. For instance, in August 2021, TVS Automobile Solutions, a leading firm in the automotive aftermarket, announced that it had raised ₹375 crores. The investment was made by a fund managed by one of the major holding companies in Europe, Exor.
TVS intended on leveraging the funding for business expansion of Ki Mobility Solutions, its digital aftermarket subsidiary and the first full stack O-to-O (online-to-offline) digital platform of India. The company also planned on setting up a pan India platform under Ki Mobility and establishing a cloud-based digital infrastructure as part of its efforts to become the biggest B2C company in the automotive aftermarket. As a result, increasing focus of manufacturers on monetizing emerging market trends has positively influenced industry expansion.
For extensive analysis, the Asia Pacific automotive aftermarket has been segmented on the basis of product, sales outlet, and region. In terms of product, the market has further been divided into replacement parts and accessories.
The clutch segment in the replacement parts product segment is anticipated to witness substantial growth by 2027, expanding at a CAGR of approximately 4% over the projected period. The key functions of clutch, including engine control to the gearbox without disturbing the engine and allowing continuous transmission during gear designation, is set to fuel segmental demand over the following years.
With respect to sales outlet, the market has been segregated into DIY, professional, and OEM factory fill. Under the professional sales outlet segment, the garages & service stations segment is anticipated to grow at over 7% CAGR through the study timeframe. Garages & service stations serve as a one-stop shop for many automotive problems as they provide various services, such as brakes repair shops, cooling systems, inspections, engine repairs, AC or heating, electrical systems, and suspension or steering alignment repairs, which is speculated to support segmental growth in the coming years.
In the regional landscape, the South Korea automotive aftermarket was valued at more than USD 6.2 billion in 2020 and is estimated to garner a considerable revenue share in the Asia Pacific automotive aftermarket by the end of 2027, growing at a notable CAGR through the forecast period.
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