Market Trend Analysis of Aftermarket customized automotive parts from 2021 to 2028
Some factors that may influence the market for aftermarket customized automotive parts over the next few years include:
The overall health and growth of the automotive industry: The demand for aftermarket customized parts is often linked to the overall demand for vehicles and the level of vehicle ownership and use. If the automotive industry is growing and there are more vehicles on the road, there may be increased demand for aftermarket customized parts.
Technological advancements: The development of new technologies and materials may lead to the production of more advanced aftermarket customized parts that offer improved performance or new features. This could lead to increased demand for these types of parts.
Changes in consumer preferences: The preferences and priorities of consumers can influence the demand for different types of aftermarket customized parts. For example, if there is a trend towards eco-friendly or fuel-efficient vehicles, there may be increased demand for aftermarket customized parts that improve fuel efficiency.
Competition from OEMs: As OEMs expand their product lines and offer more customized options for their vehicles, they may compete with aftermarket suppliers for a share of the market for customized parts.
Regulations and policies: Changes in regulations and policies, such as emissions standards or vehicle safety requirements, may influence the demand for aftermarket customized parts that help vehicles meet these requirements.
Market Definition:
The automotive aftermarket size was significantly large in 2020, and is expected to continue to register a rapidly inclining revenue CAGR between 2021 and 2028. Key factors responsible for driving market revenue growth are increasing demand from automobile drivers for the improvement of vehicle performance in terms of appearance, speed, and exhaust sound parameters. At the same time, regulatory bodies of various countries worldwide are implementing strict norms to reduce environmental impacts related to automotive component functioning.
The automotive aftermarket is the automobile firm\'s secondary market, concerned with the after-sales replacement of automotive components or parts to keep a vehicle\'s usability and functionality inexpensive throughout its life. Once automobiles are purchased from Original Equipment Manufacturers (OEMs), there is a network of contractors in the aftermarket that includes street emergency service providers, multi-brand repairers, parts manufacturers, device makers, components vendors, and efficient knowledge providers. These together form the automotive aftermarket. The industry aims to provide customers with a choice for getting their vehicles customized, maintained, or serviced to keep them on road for a longer period of time.
Drivers:
Increasing awareness regarding the importance of appropriate vehicle repair and replacement among customers to sustain their proper functioning is expected to boost the automotive aftermarket growth in the upcoming years. High popularity of crossover cars and surging trend of long-distance travel are necessitating more frequent vehicle repairs and replacements. The demand for aftermarket equipment, such as electronic chips and catalytic converters is increasing rapidly, owing to the need for ecologically friendly automobiles. These help in enhancing fuel economy in older vehicles.
Owners nowadays are very much eager to add new amenities to their older vehicles, which is a major driver of the global automotive aftermarket development. Additionally, government laws are creating pressures on industry players to create environmentally friendly and high-efficiency vehicle components for both domestic and foreign markets. It is also expected to increase the automotive aftermarkets growth in the upcoming years.
Restraints:
High costs involved in part replacements and vehicle modifications are expected to be the major factor restraining the automotive aftermarket growth over the forecast period. These parts are sold at par. The average person, on the other hand, cannot afford them. Furthermore, use of sensors in vehicles often results in optimal driving behavior and reduces vehicle wear & tear, especially for brakes and tires. It is further subjected to hard-driving situations on a regular basis. This aspect can decrease the need for replacement parts, which might limit the expansion of the automotive aftermarket. Product penetration is further limited by continuous R&D activities taking place to come up with new raw materials for reducing the degradation of vehicle parts.