ASEAN Automotive Aftermarket Is Estimated To Witness High Growth Owing To Increasing Vehicle Usage and Aging Vehicle Fleet

The ASEAN Automotive Aftermarket market is estimated to be valued at US$28.7 Bn in 2023 and is expected to exhibit a CAGR of 9.8% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

A) Market Overview:
The ASEAN Automotive Aftermarket refers to the secondary market for automotive parts, equipment, and services that are used to repair, maintain, and enhance vehicles after their initial sale. The market offers a wide range of products such as tires, batteries, lubricants, filters, brake pads, and accessories. The aftermarket provides consumers with more affordable options for vehicle maintenance and customization compared to original equipment manufacturers (OEMs). It plays a vital role in extending the lifespan of vehicles and ensuring their optimal performance and safety.

B) Market key trends:
One key trend driving the growth of the ASEAN Automotive Aftermarket is the increasing vehicle usage and the aging vehicle fleet. The rising population and improving purchasing power in the ASEAN region have led to an increase in vehicle ownership. As a result, the vehicle parc has been growing steadily, leading to a high demand for aftermarket products and services. Moreover, the average age of vehicles in the region is increasing, leading to a higher need for repairs and maintenance. This trend is expected to propel the growth of the ASEAN Automotive Aftermarket during the forecast period.

For example, in countries like Thailand and Malaysia, where the automotive industry is significant, there has been a rapid increase in vehicle ownership. The growing number of vehicles on the road has created a massive market for aftermarket products and services. Additionally, the increasing average age of vehicles in these countries has further boosted the demand for replacement parts and maintenance services.

C) PEST Analysis:

– Political: The political stability in the ASEAN region promotes business growth and trade. Governments in these countries support the development of the automotive industry, which indirectly benefits the aftermarket market. However, political regulations and policies related to taxes, tariffs, and emissions standards can impact the import and export of aftermarket products.

– Economic: The growing GDP and disposable income in the ASEAN region have contributed to increased vehicle ownership and aftermarket spending. Economic growth and consumer spending patterns are essential factors influencing the aftermarket market.

– Social: The increasing urbanization and changing lifestyles in the ASEAN region have led to a higher demand for personal vehicles. This social trend has significantly contributed to the growth of the Automotive Aftermarket.

– Technological: Advances in technology have influenced the aftermarket market. Technological innovations have led to the development of advanced aftermarket products, such as smart vehicle accessories and digital diagnostic tools. Additionally, e-commerce platforms have facilitated the easy availability of aftermarket products to consumers.

D) Key Takeaways:

1) Market size:
The ASEAN Automotive Aftermarket Size is expected to witness high growth, exhibiting a CAGR of 9.8% over the forecast period. The increasing vehicle usage, coupled with the aging vehicle fleet, is driving the demand for aftermarket products and services. For instance, as more vehicles enter the ASEAN market, there is a higher need for replacement parts, maintenance services, and customization options.

2) Regional analysis:
Among the ASEAN countries, Thailand is expected to be the fastest-growing and dominating region in the Automotive Aftermarket. The country’s booming automotive industry, along with a large vehicle parc and increasing average age of vehicles, creates significant opportunities for aftermarket players.

3) Key players:
Key players operating in the ASEAN Automotive Aftermarket are 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 involved in developing and offering a wide range of aftermarket products and services to cater to the growing demand in the ASEAN market.

In conclusion, the ASEAN Automotive Aftermarket is expected to witness significant growth due to increasing vehicle usage and the aging vehicle fleet. The aftermarket provides cost-effective solutions for vehicle maintenance and customization, contributing to the extension of vehicle lifespan and optimization of performance. Market players should focus on innovating and offering a diverse range of aftermarket products and services to meet the growing consumer demands in the ASEAN region.

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