The ASEAN Automotive Aftermarket, By Category Type (Accessories( Interior and Exterior), Parts (Lubricants , Tires, Batteries , Wear & Tear Parts , Filters , Collision Body , Starters &  Alternators, Lighting Exhaust Components and Spark Plugs and Services(General Automotive Repairs and Automotive Transmission Repairs))  , By Vehicle Type (Passenger Car and Commercial Vehicles),  and by Country Malaysia, Indonesia, Philippines, Vietnam, Singapore, Thailand and Rest of ASEAN) - Forecast to 2027”, is expected to be valued at US$ 53,016.04 million by 2027, exhibiting a CAGR of 9.7 % during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights.

Overview

The automotive aftermarket is the automotive industry’s after-sale market. The aftermarket includes equipment, replacement tires, service repair, collision, repair and accessories, etc. Furthermore, the aftermarket includes companies in manufacturing, remanufacturing, retailing, distribution, and installation of replacement vehicle parts, automotive accessories, service repair, and equipment. Vehicle parts and accessories may or may not be manufactured by the original equipment manufacturer. There are interior and exterior accessories including audio/video devices, steering wheels, parking brake handles, shift boots, grills, headlight covers, front & rear guards, mirrors, etc. Consumers can repair their vehicles on their own with the DIY segments or can take the vehicle to professional repair facilities.

The ASEAN automotive aftermarket was accounted for US$ 25,250.2 Mn in 2019 is expected to exhibit a CAGR of 9.7% during the forecast period.

Market Driver

Significant increase in the average age of a vehicle is expected to boost growth of the ASEAN automotive aftermarket during the forecast period

Material and technology used for automotive manufacturing have improved significantly in the recent past, which in turn, has increased average operational age of vehicles. According to Coherent Market Insights’ analysis, in Thailand, the number of vehicle on road with age between 5-8 years were around 6 million in 2016. According to the same source, the number of vehicles with over 12 years of age is expected to increase by 15% over the next five years globally. Moreover, reliability of vehicles has improved substantially over the past decade. Consumers are increasingly keeping old cars as their second vehicle instead of reselling or scraping. As a result of this, vehicle age is increasing thereby boosting the demand for replacement parts, repair, and maintenance. Thus, these factors are expected to drive the market growth over the forecast period.

Market Opportunity

Online sales of auto parts are expected to present lucrative growth opportunities in the near future

According to Coherent Market Insights’ analysis, the online sales of automotive parts is expected to hold a dominant position in terms of sales channel in the automotive aftermarket by 2020. Consumers are gradually shifting towards online purchase of parts, due to ease of availability, price and they could access the complete product portfolio of parts, accessories, and services. Although new entrants hold dominant positions in online aftermarket sales and services, OEMs and wholesalers are inclined towards the online selling of parts and accessories. The main parts sold online include tires, wiper blades, bulb, brake pad, filter, etc. The online sales would allow customers to find new products in the market. Thus, the aforementioned factors pose excellent opportunities for market players over the forecast period.   

Market Restraint

High cost related to replacement and maintenance is expected to hamper the ASEAN automotive aftermarket growth over the forecast period

Growing technical complexity of the vehicles led to increase in cost for replacement of parts and maintenance in the aftermarket. With advancement in replacement parts, tools and equipment used for maintenance there has been an upsurge in aftermarket cost. Moreover, increasing labor costs worldwide and the unwillingness of customers to adapt to these high-cost parts and services are expected to hinder the ASEAN automotive aftermarket growth over the forecast period. 

Market Trends

  1. Growing adoption of remote vehicle diagnostic systems

Remote vehicle diagnostic systems allow real-time monitoring of vehicle parameters to analyze its performance against benchmarks. Advancements in-vehicle technologies and growing focus on vehicle safety and connected cars have increased adoption of remote diagnostics system in commercial as well as utility vehicles. Moreover, authorized dealers and OEMs are laying emphasis on utilizing their capabilities and providing advanced services such as remote diagnosis, in order to gain competitive edge in the market. Furthermore, fleet operators are preferring adoption of remote vehicle diagnostics systems since it allows fleet owners on-board system failure modes earlier and optimizes vehicle maintenance schedules.

  1. Increasing use of software-operated LED matrix headlamps

The LED matrix headlights are the latest trends in automotive headlights. The LED matrix headlight works on a glare-free high beam function which allows drivers to drive with high beam all the time. An ultralight sensitive camera identifies traffic on the road thereby providing automatic distribution of light from high beam to cover a specific area. Moreover, this light provides a high beam without blinding other drivers. The LED matrix headlight is a software-driven system that adjusts the beam in real-time.

Competitive Section

Key players operating in the ASEAN automotive aftermarket are Bridgestone Corporation, ACDelco, Denso Corporation, Aisin Seiki Co., Ltd., Hella KGaA Hueck & Co., BorgWarner Inc., Robert Bosch GmbH, Continental AG, Magneti Marelli SpA, Delphi Automotive PLC, and Faurecia SA.

Key Developments

  1. Key players in the market are focused on mergers and acquisitions, in order to enhance the market presence. For instance, in October 2019, Continental AG, a Germany-based automotive manufacturing company, acquired CRP Industries’ automotive aftermarket business.
  2. Major companies in the market are involved in mergers and acquisitions, in order to gain a competitive edge in the market. For instance, in January 2020, BorgWarner Inc., a U.S.-based provider of automotive industry components and parts, acquired Delphi Automotive PLC for US$ 3.3 billion.

Segmentation

Market Taxonomy:

  1. By Category

Accessories

  1. Interior
  2. Exterior

Parts

  1. Lubricants
  2. Tires
  3. Batteries
  4. Wear & Tear Parts
  5. Filters
  6. Collision Body
  7. Starters & Alternators
  8. Lighting
  9. Exhaust Components
  10. Spark Plugs

Services

  1. General Automotive Repairs
  2. Automotive Transmission Repairs
  3. By Vehicle Type
  • Passenger Cars
  • Commercial Vehicles
  1. By Country
  • Malaysia
  • Indonesia
  • Philippines
  • Vietnam
  • Singapore
  • Thailand
  • Rest of ASEAN
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