Automotive aftermarket to record appreciable gains through 2027

Europe houses some of the major automotive manufacturers in the world and thus regional market held close to 30% of the global automotive aftermarket share in 2020. The large automotive production rate in the continent is another factor driving the market expansion. It has been estimated that the region accounts for around 7% of the European Union GDP.

Demand for automotive aftermarket parts across OEM factory fills is anticipated to register more than USD 60 billion through 2027. This is mainly attributable to the increasing requirement for high-quality factory fill lubricants.

The growth can be attributed to the constant technological advancements in replacement parts in order to generate massive revenue gains. There is also an inclining need for holistic automotive solutions worldwide. On account of these factors, the automotive aftermarket from the replacement part product segment accounted for a significant remuneration in 2020 and is expected to record an 8% share in the analysis timeline.

The COVID-19 pandemic, which brought ructions to numerous industries, hampered the overall automotive sector with regard to demand and supply. This business vertical saw a halt in manufacturing worldwide, adding to more roadblocks to the aftermarket product demand. The shuttering of the production activities at the original equipment manufacturers also hampered the entire value chain. Taking note of this, the sales of passenger cars plummeted to around 60.5 million units during 2020, from a peak sale value of about 70 million units in 2017.

 The rising efforts, including partnerships, investments, and acquisitions, implemented by major automotive aftermarket companies, for enhancing their global presence will further favor the market dynamics. For instance, in October 2019, Continental AG acquired CRP Industries’ automotive aftermarket belt portfolio, comprising import as well as domestic Continental-branded Pro Series kits, accessory drive kits, Black Series kits, Pro Series Plus kits, multi-v belts, and v-belts, timing belts. The acquisition helped the firm to reinforce its presence in the aftermarket arena.