ASEAN Automotive Aftermarket Is Estimated To Witness High Growth Owing To Rising Vehicle Ownership and Increasing Vehicle Age
The ASEAN automotive aftermarket market 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 2023-2030, as highlighted in a new report published by Coherent Market Insights.
A) Market Overview:
The ASEAN automotive aftermarket refers to the sales and distribution of automotive components, accessories, and services to consumers after the sale of the vehicle by the original equipment manufacturer (OEM). This market includes products such as replacement parts, tires, lubricants, filters, car care products, and repair and maintenance services. The demand for these aftermarket products and services arises due to the increasing vehicle ownership in the ASEAN region and the need to maintain and enhance the performance and longevity of vehicles.
B) Market Dynamics:
Driver 1: Rising Vehicle Ownership
The ASEAN region has witnessed a significant increase in vehicle ownership due to factors such as rising disposable income, urbanization, and improving infrastructure. As more consumers purchase vehicles, the demand for aftermarket products and services also increases. This creates a lucrative market for automotive aftermarket players to offer a wide range of products and services to cater to the growing needs of vehicle owners.
Driver 2: Increasing Vehicle Age
Along with the increase in vehicle ownership, the average age of vehicles in the ASEAN region is also increasing. As vehicles age, the wear and tear of components and the need for repairs and maintenance become more frequent. This drives the demand for aftermarket products such as replacement parts and repair services. Additionally, older vehicles often require customization and enhancement, leading to increased sales of accessories and performance-enhancing products.
C) SWOT Analysis:
Strengths:
1. Growing vehicle ownership in the ASEAN region.
2. Increasing demand for repair and maintenance services due to aging vehicles.
Weaknesses:
1. Threat of counterfeit and low-quality aftermarket products.
2. Lack of standardized regulations and quality control in the aftermarket industry.
Opportunities:
1. Rising trend of vehicle customization and personalization.
2. Increasing adoption of electric vehicles in the ASEAN region.
Threats:
1. Competition from OEMs offering their own aftermarket products and services.
2. Economic and political factors impacting the automotive industry.
D) Key Takeaways:
1. The ASEAN Automotive Aftermarket Size is expected to witness high growth, exhibiting a CAGR of 9.8% over the forecast period, due to increasing vehicle ownership and the need for aftermarket products and services to maintain and enhance vehicle performance.
2. The ASEAN region is expected to be the fastest-growing and dominating region in the automotive aftermarket, driven by a growing middle class, expanding urbanization, and improving infrastructure.
3. Key players operating in the ASEAN automotive aftermarket include 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. These players offer a wide range of aftermarket products and services, catering to the diverse needs of consumers in the ASEAN region.
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