Auto Parts Industry Growth Rate
The global auto parts industry is expected to surpass USD 535 billion by 2020 and will grow at a CAGR of 3% during the forecast period. The factors contributing to this growth are rising demand for automobiles from emerging economies and rising usage of new technology. The market is projected to continue its growth trajectory through the next few years, thanks to rising adoption of alternative automotive parts. Listed below are some key trends driving the growth of the automotive aftermarket.
The European automotive industry is predicted to grow exponentially over the next five years. This growth is due to the high demand for aftermarket products, vintage car parts, and truck parts. Major players are also introducing innovative products and services online and are expanding their presence in developing economies. They include 3M Company, Denso Corporation, Continental AG, Hyundai Mobis Co., Ltd., ACDelco, Lear Corporation, Akebono Brake Corporation, Aisin Seiki, and Toyota Motor Corporation.
Despite rising competition, the industry is growing despite the emergence of substantial online retailers. This has led to increased price competition for manufacturers. It is also worth noting that the average age of licensed cars has risen to more than eleven years. This means that there is a greater chance of component failure in the future, resulting in increased demand for aftermarket automotive parts. In addition to this, the industry’s adaptability is showing no signs of slowing, which explains the growth rate.
In addition to the global automotive aftermarket, other emerging markets are also driving this growth. The age of licensed vehicles is rising, with the average age topping 11.7 years in 2019. The longer the vehicle remains on the road, the higher the chances that a component may break down or become unusable. As a result, this has also increased the demand for aftermarket automotive parts. One area of growth that is experiencing a significant boost is the aerospace aftermarket. This sector is estimated to grow at a CAGR of 7% over the next five years.
As the age of cars continues to increase, the demand for automotive aftermarket parts has also increased. In fact, the average age of light trucks now exceeds eleven years, making it necessary to purchase more parts in the coming years. The longer the vehicles stay on the road, the more parts they will need. Moreover, the average life expectancy of vehicles is increasing globally. This means that the auto aftermarket will continue to grow.
In recent years, the automotive aftermarket has undergone a series of transformations, with the advent of the Internet. In the last few years, the world has seen a massive shift in the automotive aftermarket. The U.S. American Recovery & Reinvestment Act has encouraged the development of hybrid electric vehicles and the use of advanced technologies to create fuel efficient cars. These factors are anticipated to continue to drive the global market for auto parts in the coming years.