Growing Global Vehicle Fleet & Rising Average Age of Vehicles Drive the Automotive Aftermarket

The global Automotive Aftermarket is projected to reach US$560.6 billion by 2024, driven by the increasing average age of vehicles and the number of vehicles in operation. Demand for automotive parts in the aftermarket depends largely on replacement intervals. More frequent replacements translate into higher market opportunities for aftermarket parts and components. Replacement cycles vary widely across geographic regions and for different product categories. In case of wiper system replacements, Japan, where safety tops the priority charts with vehicle owners replacing wiper blades every 1.2 years, presents tremendous opportunities for growth. Europeans, on an average, replace wiper blades every 1.5 years. Within Europe, differences exist among countries. Scandinavians, for instance, change the blades more frequently with the average replacement period being 1.5 years. British, Italian and Spanish motorists, on the other hand, replace the wipers every 3 years. Vehicle owners in France and Germany change their blades every 1.5 years. These two countries represent exclusive markets in Europe with vehicle owners typically buying single replacement blades. However, motorists in North America replace their wiper blades every two-and-a-half years and therefore present relatively lesser opportunities for wiper blades in aftermarket segment than Japan and Europe. Increasing vehicle population and longer car retention will continue to fuel growth in the aftermarket. Growth will increasingly shift towards developing countries supported by the emergence of countries like China and India as large producers and consumers of automobiles.

Global vehicles in operation have been increasing at a steady rate. Increasing sales of new vehicles coupled with longer retention of older vehicles is leading to an increase in vehicles in operation around the world. Vehicles in operation around the world increased from about 1 billion vehicles in 2009 to about 1.4 billion vehicles in 2017. China has been the driving force of the global automotive market for more than a decade. The country’s rapid pace of growth was the saving grace for the global automotive industry. Even though growth in the Chinese automotive market has slowed down from the dizzying heights of the past, the market continues to be the anchor for global automotive growth. More than a decade of growth has resulted in the number of vehicles in operation (VIO) increasing in China, arising from high vehicle sales in the recent past, most of which would still be in operation today. Chinese vehicles in operation at about 163 million in 2015 are next only to that of the U.S., where nearly 264 million vehicles operate.

As stated by the new market research report on Automotive Aftermarket, Europe represents the largest market worldwide. Asia-Pacific, with an increasing number of vehicles on the road is represents the fastest growing market with a CAGR of 6.9% over the analysis period. Emerging markets in Asia suffer from less than optimal road conditions. Vehicles driven on such roads tend to suffer increased wear and tear. The increased wear and tear leads to frequent repairs of vehicles. For instance potholes on roads can damage tires, rims, and other mechanical products associated with the wheel assembly, leading to increased maintenance costs. Regular driving on pothole ridden roads also leads to loss of steering alignment. If unchecked, steering misalignment leads to increased wear and tear of tires, and leads to lower life of tires. Even if maintained well, vehicles driven on such roads experience higher wear and tear, and subsequently higher repair and replacement rates compared to vehicles driven in developed markets such as the U.S. and Europe.

Key players in the market include 3M Company, ACDElco, Akebono Brake Corporation, American Axle & Manufacturing Inc., ASIMCO Technologies Limited, Bridgestone Corporation, Compagnie Générale des Etablissements Michelin, Continental AG, Cooper Tire & Delphi Technologies PLC, Denso Corporation, Gates Corporation, Goodyear Tire & Rubber Company, Grupo Kuo S.A.B. de C.V., HELLA KGaA Hueck & Co., Hyundai Mobis Co. Ltd., Johnson Controls Inc., Kumho Tires Co. Inc., Pirelli & C. S.p.A., Prestone Products Corporation, Robert Bosch GmbH, Tenneco Inc., Yokohama Rubber Co. Ltd., and ZF Friedrichshafen AG, among others.

The research report titled "Automotive Aftermarket - Market Analysis, Trends, and Forecasts" announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, drivers, vehicles in operation in major markets, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections for Automotive Aftermarket for all major geographic markets including the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, and Rest of Europe), Asia-Pacific (Australia, China, India, and Rest of Asia-Pacific), Middle East & Africa, and Latin America (Brazil, Mexico, and Rest of Latin America). Key product categories analyzed in the report include Mechanical Products; Electrical Products; Electronic Products; Exterior & Structural Products; Motor Oil, Fluids & Additives; and Appearance Chemicals.

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