A) Market Overview:
The ASEAN Automotive Aftermarket market is estimated to be valued at US$28.7 billion in 2023, and it is expected to exhibit a CAGR of 9.8% from 2023 to 2030, according to a new report published by Coherent Market Insights. The market encompasses a wide range of products and services associated with the post-sale maintenance, repair, and customization of vehicles in the ASEAN region. These include spare parts, accessories, service and repair, and automotive electronics.
B) Market Dynamics:
The market is primarily driven by two key factors. Firstly, the growing vehicle parc in the ASEAN region is fueling the demand for automotive aftermarket products. As the number of vehicles on the road increases, the need for regular maintenance and repair also rises, creating opportunities for aftermarket players. Additionally, the rising average age of vehicles in the region is driving the demand for replacement parts and services.
Secondly, technological advancements in automotive electronics and components are propelling the growth of the automotive aftermarket. With the increasing adoption of electric and connected vehicles in the ASEAN region, there is a growing need for aftermarket solutions to repair and service these advanced systems. This includes battery replacement, software updates, and diagnostics.
C) Market Key Trends:
One key trend in the ASEAN Automotive Aftermarket is the growing demand for eco-friendly products. As sustainability becomes a key focus in the automotive industry, aftermarket players are introducing environmentally friendly parts and accessories such as energy-efficient tires, eco-friendly lubricants, and recycled components. For example, Bridgestone Corporation has introduced eco-friendly tires that reduce fuel consumption and CO2 emissions.
D) SWOT Analysis:
Strength: The robust growth of the ASEAN automotive industry provides a strong foundation for aftermarket expansion. With increasing vehicle sales and a growing average age of vehicles, the demand for aftermarket products and services is set to rise.
Weakness: The fragmented nature of the market poses challenges for aftermarket players, as it leads to intense competition and limited pricing power. Additionally, counterfeit and low-quality products remain a concern in the region.
Opportunity: The shift towards electric vehicles presents a significant opportunity for the automotive aftermarket. With electric vehicle adoption on the rise, there will be a surge in demand for aftermarket services and components specific to electric vehicles.
Threats: The emergence of ride-sharing services and self-driving technology may have a disruptive impact on the traditional automotive aftermarket. As the ownership model shifts and autonomous vehicles require less maintenance, the demand for traditional aftermarket services could decline.
E) Key Takeaways:
The ASEAN Automotive Aftermarket Size is expected to witness high growth, with a CAGR of 9.8% over the forecast period. This growth can be attributed to the increasing vehicle parc and a rising average age of vehicles in the ASEAN region. The market is driven by the need for maintenance and repair services, as well as advancements in automotive electronics.
In terms of regional analysis, Southeast Asia is expected to be the fastest-growing and dominating region in the ASEAN Automotive Aftermarket. The region’s strong economic growth, rising urbanization, and increasing disposable income are driving automotive sales and thereby fueling the demand for aftermarket products and services.
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 are actively engaged in product innovation, partnerships, and mergers to strengthen their market presence and cater to the evolving customer demands in the ASEAN region.
In conclusion, the ASEAN Automotive Aftermarket offers significant growth opportunities driven by the expanding vehicle parc, technological advancements, and growing emphasis on sustainability. Market players need to adapt to the evolving market dynamics and customer preferences to stay competitive in this rapidly changing landscape.
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.