by The ASEAN automotive aftermarket market is estimated to be valued at US$ 28.7 billion in 2023 and is expected to exhibit a CAGR of 9.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
A) Market Overview:
The ASEAN automotive aftermarket refers to the industry that provides automotive parts, components, accessories, and services after the sale of the vehicle. This market caters to the growing demand for replacement parts, upgrades, and maintenance services for vehicles. The market includes a wide range of products such as tires, batteries, filters, braking systems, lighting, and electronic components.
The ASEAN region has witnessed a significant increase in vehicle sales in recent years, leading to a higher demand for aftermarket products and services. With the growing number of vehicles on the road, there is a need for regular maintenance and replacements, driving the growth of the aftermarket industry. Additionally, technological advancements in automotive components have also contributed to the market growth, with the introduction of innovative and advanced products.
B) Market Dynamics:
1. Driver: Increasing Vehicle Sales
The ASEAN region has witnessed a rapid increase in vehicle sales in recent years. This can be attributed to various factors such as rising disposable income, urbanization, and improving road infrastructure. As more people can afford to buy vehicles, the demand for aftermarket products and services also increases. This driver provides a significant boost to the growth of the ASEAN automotive aftermarket market.
For example, countries like Indonesia and Thailand have seen a substantial rise in vehicle sales due to their growing middle-class population and increasing urbanization. The higher the number of vehicles on the road, the higher the demand for aftermarket products, creating lucrative opportunities for market players.
2. Opportunity: Technological Advancements
Technological advancements in automotive components have revolutionized the aftermarket industry. The introduction of advanced technologies such as hybrid and electric vehicles, connected cars, and advanced safety systems has increased the complexity of automotive components.
This presents an opportunity for aftermarket players to offer technologically advanced replacement parts and accessories. For instance, the increasing demand for electric vehicles in the ASEAN region provides an opportunity for aftermarket players to offer charging infrastructure, batteries, and other related parts and services.
C) Segment Analysis:
The ASEAN Automotive Aftermarket Size can be segmented based on product type, vehicle type, and distribution channel. In terms of product type, the market is dominated by replacement parts such as batteries, tires, filters, and braking systems. These products are essential for maintenance and repair purposes, which drive their high demand.
In terms of vehicle type, passenger cars dominate the market due to their large numbers in the ASEAN region. However, commercial vehicles such as trucks and buses also contribute significantly to the aftermarket demand, especially for replacement parts and maintenance services.
D) PEST Analysis:
Political: The political landscape in the ASEAN region plays a crucial role in the automotive aftermarket market. Government regulations and policies regarding vehicle emissions, safety standards, and import/export regulations can impact the market dynamics.
Economic: Economic factors such as GDP growth, disposable income, and consumer spending patterns influence the demand for aftermarket products and services. Higher economic growth leads to increased vehicle sales and aftermarket demand.
Social: Social factors like urbanization, population growth, and changing consumer preferences also impact the market. For instance, the increasing middle-class population in ASEAN countries demands better quality products and services, driving the growth of the aftermarket industry.
Technological: Technological advancements in automotive components, as mentioned earlier, have a significant impact on the aftermarket market. The development of advanced technologies and the need for compatible aftermarket products and services create opportunities for market players.
E) Key Takeaways:
– The ASEAN automotive aftermarket market is expected to witness high growth, exhibiting a CAGR of 9.8% over the forecast period, due to increasing vehicle sales and technological advancements.
– In terms of regional analysis, the ASEAN region is the fastest-growing and dominating region in the automotive aftermarket market. Countries like Indonesia, Thailand, and Malaysia contribute significantly to the market’s growth due to their growing economies and increasing vehicle sales.
– Key players operating in the ASEAN automotive aftermarket market 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 have a strong presence in the market and offer a wide range of aftermarket products and services.
In conclusion, the ASEAN automotive aftermarket market is poised for significant growth due to increasing vehicle sales and technological advancements. The market offers lucrative opportunities for aftermarket players to provide innovative and advanced products and services to meet the growing demand. With the ASEAN region witnessing a rise in vehicle ownership and technological evolution, the aftermarket market is expected to thrive in the coming years.
