The automotive aftermarket industry will witness a healthy growth from 2017 to 2023, a research report suggests. Growing at a CAGR of 4.40%, the market is projected to reach US$1000 billion by 2023. Rising automotive aftermarket shares in the automotive ecosystem is expected to support the market growth along with rapidly increasing automobile sales. As predicted by analysts, slower sales of new vehicle purchases will negatively affect the market’s performance from 2017 to 2023. During the forecast period, the market will be supported by escalating demand for international brands and rising technological advances. Increased government incentives instituted for new vehicle purchases on the other hand will challenge secondary market sector based organizations functioning in the global automotive aftermarket industry.
Analysts have split the market into channel, offering, vehicle age, and vehicle type segments based on products and services. Secondary market based companies have been profiled. Decline in the number of older vehicles is set to affect the global market during the forecast period 2017 to 2023. The report also provides the market’s performance forecasts till 2023. Analysts have studied the strategy of secondary market segment based organizations to help new entrants and established businesses. The secondary market sector itself is supported by rising economic growth worldwide as well as the growing penetration of the internet and rapid digitalization. During the forecast period 2017 to 2023, the automotive aftermarket industry is set to witness a health growth across channel, offering, vehicle age, and vehicle type segments as well as regional markets.
The secondary market sector has seen growth across channel, offering, vehicle age, and vehicle type segments owing to the increasing spending power of consumers and the growing application areas. To study the market, analysts have further segmented channel, offering, vehicle age, and vehicle type into authorized repair and independent repair on the basis of channel. The market is further segmented into offering sub segment which is split into parts and service. Additionally, the automotive aftermarket industry on the basis of vehicle age is segmented into 0-4 years, 4-8 years, and above 8 years. The market is further segmented into vehicle type sub segment which is split into passenger vehicle and commercial vehicle.
The segmental analysis presented in the report provides secondary market field based organizations insights into key growth factors such as favorable policies across regional markets as well as challenges such as the increasing demand for highly skilled professionals the market will face from 2017 to 2023. The surging usage across different industries and the presence of many untapped opportunities across the market are some of the key factors having an influence on secondary market industry based companies, suggest analysts as per the automotive aftermarket industry report. But the report also identifies the lack of skilled labor and the high cost of product and maintenance as major threats companies in the secondary market will face till 2023.
Secondary market based companies in the automotive aftermarket industry are functioning across North America, Europe, Asia Pacific, the Middle East, and Africa including the rest of the world. The rising economic pressures will be a key growth driver for regional markets. However, growing concerns regarding high costs will turn out to be a threat. For the forecast period 2017 to 2023 each of these regional markets are studied in the report. Starting from North America, the regional market and secondary market vertical based companies are spread across the United States, Canada, and Mexico.
The lack of interest among consumers will turn out to be a major challenge from 2017 to 2023. Parts of the European market covered in the report are regional markets spread across the United Kingdom, France, Italy, and Germany. The market in the region will be benefitted by increasing numbers of automotive part manufacturers as well as the rising consumption of automotive parts in MROs, suggests the report. Similarly, the secondary market sector’s segmental analysis for the Asia Pacific region covers India, Japan, China, and others. For the rest of the world, the research report for the automotive aftermarket industry covers the Middle East and Africa. Forecast based on the report’s findings are presented for the forecast period till 2023.
The global automotive aftermarket industry research report brings a comprehensive study of channel, offering, vehicle age, and vehicle type market segments, regional analysis, and secondary market vertical based company details of key players. As the forecast period 2017 to 2023 will bring new opportunities for the market owing to the rising demand from a large number of companies in various industry sectors and the increasing preference of consumers, the market is set to grow at a compound annual growth rate of 4.40% and is predicted to reach a value of US$1000 billion by 2023. With SWOT analysis of secondary market sector based companies and Porter’s Five Force model analysis based findings, and understanding challenges such as the lack of growth in demand and the dearth of professional services, companies in the secondary market sector can change the way business is done.
The Jordan Company has agreed to sell Kohlberg & Company a majority stake in Parts Authority, a distributor of automotive aftermarket parts. Parts Authority (PA) is a dealer to the automotive aftermarket with approximately 500,000 SKUs of automotive and truck parts, tools and machinery, and transmissions. Independent installers, national fleets, jobbers, and e-tailers are among PA's clients. PA has expanded through organic ventures as well as acquisitions, acquiring over a dozen businesses in the last twelve years.