With the rise in the average age of automobiles, the demand for automotive parts and components manufactured by aftermarket companies is growing rapidly across the world. This is fueling the sales of these components, especially in the Latin America, Middle East, and Africa (LAMEA) and Asia-Pacific countries. For example, the average age of automobiles in China grew from 4 years in 2010 to 6 years by the end of 2020.
This increment was primarily because of the provision of stretched car loans for around 4¬–5 years and the rapid improvements and advancements being made in the manufacturing processes of automobiles in the country. Moreover, the adoption of technologically advanced and innovative products in vehicles has also contributed toward the increased lifespan of vehicles in the country. Apart from China, the average age of automobiles is also rising in Brazil and India.
This is, in turn, driving the expansion of the automotive aftermarket. Additionally, the growing deployment of electric vehicles in several countries is also propelling the sales of these parts and components across the world. Due to the escalating air pollution levels and the rising consumer preference for environment-friendly modes of transportation, the sales of electric vehicles are surging sharply, which is subsequently creating lucrative growth opportunities for aftermarket companies around the world.
Due to the above-mentioned factors, the global automotive aftermarket is registering huge growth. As a result, the value of the market is predicted to grow from $803.22 billion in 2019 to $1,370.17 billion by 2030. Furthermore, the market is predicted to advance at a CAGR of 5.07% between 2020 and 2030. Drive transmission and steering parts, engine parts, suspension and braking parts, electrical parts, and equipment are the major aftermarket components sold across the world.
Hence, it can be said with full surety that the demand for vehicular parts and components manufactured by aftermarket companies will shoot up all over the world in the forthcoming years, mainly because of the increasing average age of automobiles and the growing deployment of electric vehicles in various countries around the world.