ASEAN Automotive Aftermarket

2020 Analysis and Review: ASEAN Automotive Aftermarket by Vehicle – PV, LCV, and HCV for 2020-2030

  • 2020-07-24
  • REP-AS-661
  • 17 Tables
  • 66 Figures
  • 250 pages
  • Format: PDF/PPT/Excel

An Incisive, In-depth Analysis on the Asean Automotive After Market

This study offers a comprehensive, 360 degree analysis on the Asean Automotive After market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Asean Automotive After market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.

ASEAN Automotive Aftermarket Market Outlook & Key Findings

  • The ASEAN automotive aftermarket market is expected to click US$ 19.4 Bn in 2020
  • Manufacturers to reap substantial revenues from automotive aftermarket parts through 2030
  • Passenger cars continues to account for greater demand for automotive aftermarket services over the decade ahead
  • Malaysia, Indonesia, and Thailand to collectively capture over 80% of overall market value

ASEAN Automotive Aftermarket Market Analysis – Increasing Average Vehicle Age to Augur Well for Market Growth

Technology and material used for automotive production have improved significantly in ASEAN countries in the recent past, which in turn, have improved the average operational life of vehicles. Recent estimates suggest that the number of on-road vehicles with age between 5-8 years in Thailand were nearly 6 million in 2016.

Moreover, the number of vehicles that are at least 12 years old is anticipated to surge by 15% over the coming five years in the ASEAN region.

Going forward, reliability of automobiles has enhanced significantly over the last decade. Customers are increasingly keeping old vehicles as their secondary automobile rather than scraping or reselling. As a result, vehicle age is improving, thus, spurring the demand for automotive replacement parts, maintenance, and repair.  

ASEAN Automotive Aftermarket Market Trends – Matrix LED Headlamps for Safer Night Driving

As autonomous driving technology progresses, meeting safety regulations continues to become more complicated for automotive OEMs. At the same time, car safety is a strong market differentiator that can manage greater profit margin.

Owing to the trend that efficient safety aspects will ultimately be required on every vehicle, the earlier OEMs introduce safety features, the longer they can create value from them.

Software-enabled matrix LED headlamps are among the non-obvious innovations to convey data to drivers. Individual control of LEDs allows vehicles to adjust the headlights dynamically as per the driving situation and surrounding.

Case in point, glare to the approaching cars can be warded off via beamforming and by splitting the light vertically. Moreover, the headlamps can be guided to follow the road - adaptive front-lighting system (AFS) - and spot the objects in the way.

With software-enabled matrix LED headlamps, automotive OEMs are able to substantially improve drivers’ awareness regarding potential environmental mishaps. Simultaneously, these headlamps improve the visibility of vehicles and their intentions to nearby drivers, intuitively and seamlessly. The final outcome is a safer and more effective drive – win-win situation for everyone.

Automotive aftermarket suppliers in ASEAN must drive push innovation in existing headlamps in order to equip them with such cutting-edge features – making it a standard approach. This will ultimately boost the market value of these suppliers in the immediate future.

Market Players to Go Online

With the COVID-19 pandemic raging across the ASEAN region, market players are accelerating their shift towards online sales channels. E-commerce platforms are redefining the bar for how market players will engage with their customers and suppliers.

Customers are gradually turning to online purchase of parts, owing to ease of availability, and cost effectiveness, as well as they can access the complete product portfolio of accessories, parts, and services.

While new entrants are already maintaining their supremacy in online automotive aftermarket sales and services, wholesalers and OEMs are swiftly following their footsteps. Main parts that are sold online include wiper blades, tires, filters, and brake pads. Further, online sales channels are enabling customers to seek new launches in the market.

Rising Influx of International Visitors to Offer Potential Growth Avenue

Diverse range of travel options and recreational activities in the ASEAN region has made it a top tourist destination. The region attracted 133.1 million international tourists in 2019, of which, about 40% comprised of intra-ASEAN tourists. The rise in tourist visitors is attributable to the rise of low-cost airline tickets and an open-air agreement between associated members countries.

Using public transportation at times becomes time-consuming and does not provide end-to-end ride. Car rental services such as Hertz Asia, and AVIS are gaining huge traction among tourists as they offer round-the clock convenient services.

Surging on-fleet rental cars is translating into increased demand for on-demand aftermarket services. Market players are moving aggressively and creating comprehensive strategies to capture the opportunity and maintain their positive trend.

While the number of international visitors in ASEAN region were increasing at a healthy pace, however, the number dropped significantly due to the onset of COVID-19 pandemic in January 2020.

Vietnam registered a mere 3.7 million international tourists (down by 50% compared to 2019) during the first five months of 2020, while the number of local travelers also declined to 16 million (down by 58.5%). In addition, the overall revenue of the country’s tourism sector slashed by 47.4% to US$ 6.5 Bn.

Moving ahead, the air passenger industry in Malaysia is expected to witness a 39% drop in demand – about 25.49 million passengers, states the International Air Transport Association (IATA).

The IATA has revealed that Malaysia’s airline industry is slammed with a projected RM 14.4 Bn (US$ 3.38 Bn) loss in revenue, impacting nearly 169,700 jobs. Moreover, airports in Malaysia witnessed a confounding 97.8% reduction in passenger traffic movements in May 2020 as compared to the same month last year.

Such repercussions due to the COVID-19 pandemic on the aviation and tourism industries in ASEAN countries are bringing the regional automotive aftermarket market to economic uncertainties.

To gradually recover from this situation, governments in ASEAN countries are investing in support programs and marketing campaigns to bolster intra-ASEAN tourism. With subsequent ease in travel restrictions and social distancing norms, the domestic tourism is poised to see positive growth, which, in turn, is expected to offer a ray of hope for the ASEAN automotive aftermarket market players.

ASEAN Automotive Aftermarket Market Regional Analysis – Opportunities Abound in Indonesia and Thailand

Among the ASEAN countries, Indonesia will remain at driver’s seat in the automotive aftermarket market over the following decade. Passenger vehicles (PV) contribute to a major chunk – over 60% - of overall automotive aftermarket services in Indonesia.

Moreover, sales of PVs in the country pegged roughly 799, 000 in 2019, up by nearly 1.5X over the past decade.

Thailand follows Indonesia in terms of revenue share in the ASEAN automotive aftermarket market. The number of warranty cars in Thailand is likely to rise, given large inventory established by the increasing sales of automobiles in 2012 under the First Car Scheme policy (2012-2013).

While Bangkok represents the most worthwhile market for independent automotive aftermarket services, demand from North-eastern regions is poised to increase in the near term.

Moreover, recent surveys conducted in Thailand reveal that used car dealership owners are partnering with finance firms to offer loans, which is working in favor of Thailand automotive aftermarket market. Furthermore, there are over 5,000 independent repair shops in Thailand, 65-70% of which offer repair and maintenance services for parts such as tires, and batteries.

The automotive aftermarket market in Malaysia is experiencing a meteoric growth, and is expected to click US$ 10 Bn towards the end of projection period. About 9 out 10 automotive aftermarket service providers serve PVs in the country. Total automobile sales in Malaysia in 2019 rose by about 1% over 2018, of which PVs led the pack with a rise 3.2%.

Navigating the automotive aftermarket industry from the staggering growth the ASEAN countries have been experiencing over the long haul is difficult. The ASEAN countries are increasingly giving cutthroat competition to each other to put forth investments and tax rebates for the automotive aftermarket market in respective countries.

This will pave way for better growth opportunities for foreign shareholders that are looking to enter the ASEAN market.

The major competition for foreign shareholders is between Thailand and Indonesia, who are both striving to attract shareholders with their potential to emerge as the regions’ automotive manufacturing base. Both the countries have issued tax cuts and other concessions to lure foreign investments, majorly Japanese and, Chinese investors.

ASEAN Automotive Aftermarket Suppliers – Service Providers Race to Capture the Value at Stake

Majority of automotive aftermarket repair shops in ASEAN do not deliver an entire range of maintenance and repair services. As such, store owners are following a competitive tactic of offering specialist services, or scaling up the number of services they are offering.

In addition, small-scale vendors are entering into collaborations with fleet operators and leasing companies to deliver top-notch maintenance and replacement services at competitive prices.

Leading players in ASEAN automotive aftermarket market are investing in capacity expansions, product launches, and acquisitions, some of which include,

  • Aisin Seiki Co. Ltd., in December 2019, declared to set up Kyushu Development Center Hakata Laboratory for artificial intelligence (AI) technologies in Fukuoka City, Japan, with the aim to strengthen its AI infrastructure.
  • Hella KGaA Hueck & Co., in November 2019, rolled out its product solutions for better safety and visibility at Solutrans International Transport Trade Fair.
  • In October 2019, Continental AG, acquired CRP Industries’ automotive aftermarket business.

Apart from that, OEMs and authorized dealers are putting greater emphasis on leveraging their potential and delivering tech-forward services such as remote vehicle diagnostics in a bid to gain competitive edge in the ASEAN automotive aftermarket market.

The technology allows fleet owners to monitor on-board system failure earlier and optimize vehicle maintenance schedules accordingly.

ASEAN Automotive Aftermarket Future Outlook – Mobility Technology to Carve the Way Ahead

Mobility technology is a vast emerging industry in ASEAN, with ride hailing companies such as Indonesia-based GoJek, and Singapore-based Grab, as well as Malaysia-based car-sharing platform Moovby making headways.

The development incorporates plethora of technologies and business framework, targeted to various market requirements. The common ground is that all these technologies involve novel ways of allowing goods or customers to be moved around in automobiles.

In ASEAN countries, various biggest cities are investing in tech-forward mobility technologies to help them fetch business, make financial progress, and fix two existing challenges - congestion and pollution.

The automotive aftermarket in ASEAN is a business-to-business (B2B) play. As more cars hit the roads for ride hailing, car-sharing, and trucking, the result is an increasing demand for swift, cost-effective automotive aftermarket services. Service providers, in turn, require proactive deliveries of supplies and parts.

The bigger picture is that of an environment that requires supply chains to be streamlined and integrated with on-demand services. This is creating swarms of meaningful business opportunities for emerging players in automotive aftermarket market to deal with crucial or all the elements of the picture.

Automotive Aftermarket Market: ASEAN Industry Analysis 2015-2019 & Opportunity Assessment 2020-2030

A recent market study published by FMI on the Automotive Aftermarket market includes the ASEAN industry analysis of 2015-2019 & opportunity assessment for 2020-2030, and delivers a comprehensive assessment of the most important market dynamics. Our analysts have conducted thorough research on the historical as well as current growth parameters of the market to obtain growth prospects with maximum precision.

Automotive Aftermarket Market: Segmentation

By Category

  • Parts
    • Tires
    • Batteries
    • Filters
    • Starters and Alternators
    • Lighting
    • Exhaust components
    • Spark plugs
    • Lubricants
    • Collision body
    • Wear and Tear Parts
  • Accessories
    • Interior
    • Exterior
  • Services
    • General automotive repair
    • Automotive transmission and others

By Vehicle Type

  • Passenger Cars
  • Light Commercial Vehicles
  • Heavy Commercial Vehicles

By Country

  • Malaysia
  • Indonesia
  • Philippines
  • Vietnam
  • Singapore
  • Thailand
  • Rest of ASEAN

Report Chapters

Chapter 01 – Executive Summary

The report initiates with the executive summary of the Automotive Aftermarket, which includes a summary of the key findings and statistics of the market. It also includes the demand & supply-side trends pertaining to the ASEAN Automotive Aftermarket market.

Chapter 02 – Market Overview

In this chapter, readers can find the definition and a detailed taxonomy of the ASEAN Automotive Aftermarket market, which will help them understand the basic information about the ASEAN Automotive Aftermarket market. Along with this, comprehensive information about the Automotive Aftermarket and its properties are provided in this section. This section also highlights the inclusions and exclusions, which help readers understand the scope of the ASEAN Automotive Aftermarket market report.

Chapter 03 – Key Market Trends

The ASEAN Automotive Aftermarket market report provides key market trends that are expected to significantly impact the market growth during the forecast period. Detailed industry trends are provided in this section.

Chapter 04 – Key Success Factors

This section includes the factors that have emerged as key successful factors and strategies adopted by key market participants.

Chapter 05 – ASEAN Automotive Aftermarket Market Demand (in Value or Size in US$ Mn) Analysis 2015-2019 & Opportunity Assessment 2020-2030

This section explains the ASEAN market value analysis and forecast for the ASEAN Automotive Aftermarket market for the forecast period of 2020-2030. This chapter includes a detailed analysis of the historical ASEAN Automotive Aftermarket market, along with an opportunity analysis for the future. Readers can also find the absolute $ opportunity for the current year, and incremental $ opportunity for the forecast period.

Chapter 06 – Market Background

This chapter explains key macro-economic factors that are expected to influence the growth of the ASEAN Automotive Aftermarket market over the forecast period. Along with the macroeconomic factors, this section also highlights the value chain, supply chain, forecast factors, and value chain analysis for the ASEAN Automotive Aftermarket market.

Chapter 07 – ASEAN Automotive Aftermarket Market Analysis 2015-2019 & Opportunity Assessment 2020-2030, by Category

Based on the category, the Automotive Aftermarket market is segmented into parts, accessories, and services. In this chapter, readers can find information about the key trends and developments in the Automotive Aftermarket market and market attractiveness analysis based on the category.

Chapter 08 – ASEAN Automotive Aftermarket Market Analysis 2015-2019 & Opportunity Assessment 2020-2030, by Vehicle Type

This chapter provides details about the ASEAN Automotive Aftermarket market based on the Vehicle Type and has been classified into Passenger Cars, Light Commercial Vehicles, and Heavy Commercial Vehicles. In this chapter, readers can understand the market attractiveness analysis based on the Vehicle Type.

Chapter 09 – ASEAN Automotive Aftermarket Market Analysis 2015-2019 & Opportunity Assessment 2020-2030, by Country

This chapter explains how the ASEAN Automotive Aftermarket market will grow across various geographic regions such as Malaysia, Indonesia, Philippines, Singapore, Vietnam, Thailand, and Rest of ASEAN.

Chapter 10 – Malaysia Automotive Aftermarket Market Analysis 2015-2019 & Opportunity Assessment 2020-2030

This chapter includes a detailed analysis of the growth of the Malaysia Automotive Aftermarket market. Readers can also find the regional trends, and market growth based on the vehicle type in Malaysia.

Chapter 11 – Indonesia Automotive Aftermarket Market Analysis 2015-2019 & Opportunity Assessment 2020-2030

This chapter provides the growth scenario of the Automotive Aftermarket market in Indonesia. Along with this, an assessment of the market across target segments has been provided.

Chapter 12 – Philippines Automotive Aftermarket Market Analysis 2015-2019 & Opportunity Assessment 2020-2030

Important growth prospects of the Automotive Aftermarket market based on category and vehicle type in Philippines are included in this chapter.

Chapter 13 – Singapore Automotive Aftermarket Market Analysis 2015-2019 & Opportunity Assessment 2020-2030

This chapter highlights the growth of the Automotive Aftermarket market in Singapore. This section also help readers understand the key factors that are responsible for the growth of the Automotive Aftermarket market in Singapore.

Chapter 14 – Vietnam Automotive Aftermarket Market Analysis 2015-2019 & Opportunity Assessment 2020-2030

In this chapter, readers can find detailed information about the growth parameters of Vietnam Automotive Aftermarket market during the forecast period of 2020-2030.

Chapter 15 – Thailand Automotive Aftermarket Market Analysis 2015-2019 & Opportunity Assessment 2020-2030

This chapter provides information about how the Automotive Aftermarket market will grow in Thailand during the forecast period of 2020-2030.

Chapter 16 – Rest of ASEAN Automotive Aftermarket Market Analysis 2015-2019 & Opportunity Assessment 2020-2030

This chapter provides the growth scenario of the Automotive Aftermarket in Rest of ASEAN countries by category and vehicle type.

Chapter 17 – Market Structure Analysis

In this chapter, readers can find detailed information about the tier analysis and market concentration of key players in the ASEAN Automotive Aftermarket market, along with their market presence analysis by region and product portfolio.

Chapter 18 – Competition Analysis

In this chapter, readers can find a comprehensive list of all the prominent stakeholders in the Automotive Aftermarket market, along with a detailed information about each company, which includes the company overview, revenue shares, strategic overview, and recent company developments. Some of the market players featured in the report are Continental AG, Robert Bosch GmbH, Denso Corporation, Delphi Technologies PLC, HELLA GmbH & Co. KGaA, Mazda Motor Corporation, Honda Motor Co., Ltd., Renault SA, ACDelco, Faurecia SA, Magneti Marelli SpA, Aisin Seiki Co., Ltd., and Bridgestone Corporation, among others.

Chapter 19 – Assumptions and Acronyms

This chapter includes a list of acronyms and assumptions that provides a base to the information and statistics included in the ASEAN Automotive Aftermarket market report.

Chapter 20 – Research Methodology

This chapter help readers understand the research methodology followed to obtain various conclusions as well as important qualitative and quantitative information about the ASEAN Automotive Aftermarket market.

Sources and Primary Research Splits (%)

Industry Interactions

  • C - Level Executives
  • Marketing Directors
  • Product Managers
  • Business Development Officers
  • Production Managers
  • Procurement Heads
  • Sales Executives
  • Distributors
  • Traders
  • Raw Material Suppliers
  • Industry Experts
  • End Users
  • Current market dynamics and challenges
  • Yesteryear trends
  • Market characteristics
  • Market performance and growth quadrants
  • Competition structure and market structure
  • Strategic growth initiatives
  • Near-term and long-term market growth prospects
  • Market segment splits and authenticity
  • Opinions on market projections and validity of assumptions

References Catalogue

  • Industry Publications
  • Industry Associations
    • OICA
    • International Trade Association
  • Factiva
  • Company Press Releases
  • Annual Reports and Investor Presentations
  • Research Papers
  • Government Websites and Publications
  • Trade Websites

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