May 04, 2020
As per the report titled ‘Asia Pacific Automotive Aftermarket Size By Vehicle Part, By Sales Outlet, By Vehicle Industry Analysis Report, Country Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2018 - 2024’, available with Market Study Report LLC, Asia Pacific automotive aftermarket is estimated to register strong CAGR during 2018-2024.
Increasing sales of both new and used vehicles coupled with rising demand for replacement parts are driving the growth of Asia Pacific automotive aftermarket. Growing use of automotive aftermarket parts in light commercial vehicles, heavy commercial vehicles, passenger cars, and off-highway vehicles is further enhancing the market growth. Rising internet penetration in the region along with booming e-commerce industry backed by tie-ups with automobile manufacturers are propelling the market growth. For instance, in May 2018, Amazon entered into a partnership with Sears to install automotive aftermarket products purchased from its online portal with its Ship-To-Store integration feature.
Favorable FDI policies on aftermarket parts manufacturing along strict regulatory norms for reducing carbon emissions is expected to render a positive impact on the business landscape. For instance, Philippines’ Comprehensive Automotive Resurgence Strategy (CARS) program attracts investors from around the globe, including several automotive manufacturers for the development of cheaper and better automobile aftermarket parts.
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Major players are expanding their operation bases in Asia Pacific to fulfill the growing consumer demand, thereby boosting the market growth. Moreover, shifting focus towards reducing transportation & handling costs by partnering with logistic channel providers will further augment the industry growth.
Elaborating on the vehicle part, transmission segment is anticipated to grow with a CAGR of 6% over the forecast timeline. Surging demand for fuel-efficient transmission systems with smoother gear transitions is encouraging the development of automated manual transmission (AMT) systems. Growing adoption of AMT systems owing to benefits such as lower cost and improved fuel economy over traditional automatic transmissions is expected to bolster segment growth in the forthcoming years.
As per the sales outlet, independent professional segment accrued USD 75 billion in 2017 and is expected to exhibit strong growth trends throughout the analysis period. Dense presence of independent professionals along with their ability to service wide array of vehicle using high-quality machinery and tools is driving the segment growth.
Elaborating on the vehicle type, passenger car segment was worth USD 79 billion in 2017 and is expected to record considerable growth during the forecast period. Growing consumer inclination towards upgradation of existing cars by integrating advanced technologies and replacing old components is fueling the segment growth. Moreover, rising per capita and easier credit facilities will boost the sales of passenger cars and aftermarket components over the projected timeframe.
Considering the geographical landscape, China automotive aftermarket is anticipated to see tremendous growth through 2024, owing to the emergence of online platforms providing wide range of passenger car spare parts. Moreover, strategic collaborations between domestic and international vehicle manufacturers is supplementing the regional market expansion. Citing an instance, in July 2017, Renault entered into a joint venture with Brilliance China Automotive Holdings Ltd. (CBA) to create stronghold in the LCV segment across the nation.
Prominent players in Asia Pacific automotive aftermarket are Aisin Seiki Co., Ltd., Continental AG, Denso Corp., 3M Company, Robert Bosch GmbH, YAZAKI Corporation, ZF Friedrichshafen AG, and Sumitomo Electric Industries, Ltd.