Automotive aftermarket industry’s market valuation will cross US $1100 billion by 2026, according to a new report by Global Market Insights, Inc.
According to the study, the increasing average age of vehicles has led to an increase in the need for maintenance and repair services.
It said the sub-par standard of road infrastructure in some emerging economies, especially in the Asia Pacific, escalates the wear and tear in vehicles, leading to frequent maintenance and repair requirements, driving the automotive aftermarket towards a growth trajectory.
One more emerging trend in the market is remote diagnostics. Remote diagnostics allows for real-time monitoring of parameters of an automobile to evaluate its quality of operations and performance in line with predetermined benchmarks.
The shift from conventional means to the digitization of service channels and interfaces is aiding growth opportunities for the sector’s expansion.
Modern tools, such as big data and data analytics, allow market participants to store and process vehicle usage data to increase the efficiency of the value chain. The data provides insights on specific vehicle details regarding potential service due date and time spent in workshop per vehicle to increase productivity and effectiveness.
In addition, more and more small-scale service providers and shop owners are coming into agreement with largescale fleet operators to procure additional contracts for repair and maintenance and are further anticipated to support the industry expansion.
According to the report, increasing stringency regarding vehicle safety in terms of regulation mandated by several countries across the globe is forcing vehicle manufacturers to incorporate new safety technologies & features such as ADAS in vehicles.
The adoption of ADAS is expected to reduce road accidents significantly over the forecast timeframe. The rising autonomous vehicle trends are expected to limit the automotive aftermarket growth over the forecast timeframe.
The OEM factory fill segment will witness around a 4 per cent CAGR in the automotive aftermarket size, owing to existing consumer confidence and trust toward automotive parts offered by OEMs.
The exhaust segment in automotive aftermarket replacement parts will witness around a 7 per cent CAGR over the projected time frame.
(With inputs from Automotive Lead Research Team)
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