The automotive aftermarket involves the manufacturing and distribution of all services and products including replacement parts, accessories that are sold for usage in light vehicles and commercial vehicles after the original equipment. They are used to maintain and repair vehicles. The automotive aftermarket parts range from filters to engines and from oil to transmission. They help extend the vehicle’s lifespan, enhances performance and reduce expenses from replacing an entire system. Parts like filters help in removing impurities from oil or air to reduce damages.
The global ASEAN Automotive AfterMarket is estimated to be valued at US$ 28.7 Bn in 2023 and is expected to exhibit a CAGR of 9.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Increasing vehicle parc and average age of vehicles are driving the ASEAN Automotive AfterMarket. According to forecasts by IHS Markit, the total vehicle parc in ASEAN countries is expected to increase from over 130 million units in 2018 to over 180 million units by 2030, registering a CAGR of 3.4%. With rising disposable income and economic growth, vehicle ownership in the region is surging. An aging vehicle fleet requires frequent repairs and component replacements, thereby propelling the aftermarket sales. Moreover, stringent emission regulations have increased the adoption of advanced components and technologies in newer vehicles, which warrants their repair and replacement well within the projected forecast period.
SWOT Analysis
Strength: The ASEAN Automotive Aftermarket size has a large potential customer base as ASEAN countries have high vehicle parc. Being a fragmented market provides opportunities for global as well as regional players. Many countries in the region are focusing on infrastructure development which will boost vehicle usage and aftermarket demand.
Weakness: Lack of standardized processes and quality controls across the diverse ASEAN region can lead to inconsistent product quality. High dependence on imports makes the market vulnerable to currency fluctuations and trade barriers. Furthermore, unorganized local players may not comply with regulatory quality standards.
Opportunity: Growth of electric vehicles in the region will spur demand for different components in the aftermarket compared to internal combustion engine vehicles. Digitization of automotive repair and maintenance services provides scope for innovative business models. ASEAN’s young demographic and rising affluence will support the region’s high economic growth momentum over the coming decade.
Threats: Stricter emission regulations might increase compliance costs for manufacturers. Protectionist trade policies can disrupt cross-border component sourcing. Growing vehicle sharing economy and used car markets may reduce the life-cycles of new vehicles sold, impacting the aftermarket demand driver.
Key Takeaways
The global ASEAN Automotive Aftermarket is expected to witness high growth. Supported by strong economic expansion, rising vehicle parc and infrastructure investments across Southeast Asia, the market size is projected to reach US$ 48.3 billion by 2030 at a CAGR of 9.8% during the forecast period.
Southeast Asia accounts for over 60% of the total ASEAN Automotive Aftermarket currently, led by Indonesia, Thailand and Vietnam. Countries like Philippines, Malaysia and Singapore are also growing at a fast pace. ASEAN’s diverse vehicle preferences and climatic conditions support the availability of a wide range of components in the aftermarket across the region.
Key players operating in the ASEAN Automotive Aftermarket are Bridgestone Corporation, Denso Corporation, Hella KGaA, BorgWarner Inc., Robert Bosch GmbH, Continental AG, Enkei Corporation, F.C.C. Co., Ltd., Mitsuba Corp., Schlemmer, Showa Corporation, Yachio Industry Co., Ltd., TOYOTA MOTOR CORPORATION, and ZF Friedrichshafen AG. Global giants cater to both domestic as well as export markets while regional players have a stronghold in their local territories.
Get more insights on this topic: https://www.trendingwebwire.com/asean-automotive-aftermarket-size-and-outlook-2023-2030/
