ASEAN Automotive Aftermarket Is Estimated To Witness High Growth
The ASEAN Automotive Aftermarket Market is estimated to be valued at US$ 28.7 Bn in 2022 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.
Market Overview:
The ASEAN automotive aftermarket consists of replacement parts, accessories, lubricants, diagnostic tools, and repair services for passenger vehicles and commercial vehicles. The key products in the automotive aftermarket include tires, batteries, braking systems, filters, body parts, lighting & electronic components, turbochargers, and diagnostic scanning equipment. Increasing vehicle ownership coupled with an aging vehicle fleet is driving the demand for automotive aftermarket products and services in the ASEAN region.
Market Dynamics:
Increased vehicle ownership across Southeast Asian countries owing to rising incomes and vehicle affordability is fueling demand in the ASEAN automotive aftermarket. According to Thailand Automotive Institute, the number of registered vehicles in ASEAN surpassed 170 million in 2021, growing at a CAGR of 5% during 2015-2021. With an aging vehicle fleet, the requirement for repair and replacement of parts is growing steadily. Additionally, the development of organized automotive repair services networks by prominent players is improving accessibility to quality aftermarket services in the region. For example, Bridgestone has a widespread service network across ASEAN with over 3,000 outlets. Such established distribution and service networks for automotive parts are supporting the growth of the automotive aftermarket industry.
SWOT Analysis
Strength: The global ASEAN automotive aftermarket has strong demand for replacement parts and services to repair and maintain the growing vehicle parc in the region. Major component manufacturers have established production bases in ASEAN countries to cater to local demand. Higher vehicle usage and accidents lead to increased repair needs in the aftermarket.
Weakness: Unorganized and fragmented nature of the aftermarket means quality control and standardization can be issues affecting customer satisfaction. High dependence on imports for some critical components raises vulnerability to supply chain disruptions.
Opportunity: Rising motorization fueled by strong economic growth presents huge potential for aftermarket demand. Digital technologies like telematics and AI can help optimize repair processes and enhance customer experience.
Threats: Strict enforcement of emission and safety norms requires upgrading component technologies, raising product and compliance costs for players. Shift towards electric vehicles may impact demand patterns for conventional components in the long run.
Read More:
https://ictideologist.blogspot.com/2023/11/asean-automotive-aftermarket-segment.html
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