The global 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.
Market Overview:
The ASEAN automotive aftermarket caters to the replacement of spare parts, accessories, equipments, components and other services for vehicles post sales and purchase. It involves supplying of various spare parts and components required for repair and maintenance of vehicles throughout their lifespan. The automotive aftermarket offers advantages like improved vehicle performance, increased vehicle life, lower maintenance costs and reduced downtime through timely repairs and replacements. With increasing vehicle parc across ASEAN countries, the aftermarket demand for spare parts, accessories and services is witnessing strong growth.
Market key trends:
One of the key trends propelling growth of the ASEAN automotive aftermarket is rising vehicle ownership led by increasing disposable incomes and economic growth in the region. ASEAN countries have been witnessing increased vehicle ownership with expanding middle class population which has bolstered demand for replacement parts and repair & maintenance services. Furthermore, advancements in e-commerce have provided significant boost to the automotive aftermarket industry in the region. The proliferation of automotive aftermarket spare parts and service sales through online platforms has augmented convenience for customers, thereby augmenting market revenues. Moreover, longer replacement cycles for certain components like engine and transmission parts due to improved vehicle quality and technologies is creating opportunities for the automotive aftermarket industry in ASEAN over the forecast period.
Porter’s Analysis
The threat of new entrants: The ASEAN automotive aftermarket has moderate threat of new entrants due to high cost of entering the market which requires substantial investment in production facilities, supply chain infrastructure, and brand development efforts.
Bargaining power of buyers: Customers in the ASEAN automotive aftermarket have moderate bargaining power due to availability of substitute product options from different established market players.
Bargaining power of suppliers: Parts manufacturers have low to moderate bargaining power over automotive original equipment manufacturers and component suppliers due to large number of component manufacturing firms.
The threat of new substitutes: Threat of substitutes is low owing to lack of alternatives that can match the performance benefits of automotive components and parts.
Competitive rivalry: High degree of competition between large established players and regional component suppliers.
Key Takeaways
The ASEAN Automotive Aftermarket Market is expected to witness high growth, exhibiting CAGR of 9.8% over the forecast period 2023-2030, due to increasing vehicle parc and rising demand for replacement parts and components.
Regional analysis: The Southeast Asian countries such as Thailand, Indonesia, Malaysia, and Singapore are expected to dominate the ASEAN automotive aftermarket during the forecast period. Thailand is the largest automotive producer and exporter in ASEAN, and hence has the largest aftermarket as well.
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.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
