The ASEAN automotive aftermarket is expected to expand its roots at a steady CAGR of 8.5% during the forecast period. The market is likely to hold a revenue of USD 24.56 billion in 2023, while it is anticipated to surpass USD 55.53 billion by 2033.
The increasing sale of imported vehicles, second-hand motors, and lack of OEM replacement or service centers have flourished the market growth. Furthermore, a surge in aftermarket automotive part manufacturers in emerging economies contributes to market growth.
Factors driving the market growth
Attributes | Details |
---|---|
ASEAN Automotive Aftermarket CAGR (2023 to 2033) | 8.5% |
ASEAN Automotive Aftermarket Size (2023) | USD 24.56 billion |
ASEAN Automotive Aftermarket Size (2033) | USD 55.53 billion |
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The improving financial condition of individuals and international vehicle brands' penetration in the ASEAN region makes it a prominent market. The higher maintenance charge and costly OEM automotive parts are pushing end users to look for other options. Alongside this, the long list of parts is segregated based on the quality of material used, sizes, and pricing.
The advent of electric vehicles is likely to transform the ASEAN automotive aftermarket as the production of EV parts might expand the market size. Other than this, the increasing driving population wants to spend a minimum on the maintenance and repair of their vehicles.
This has led to massive aftermarket automotive parts suppliers and manufacturers entering the market system. The tender for government automobile maintenance projects also helps producers survive in the market.
Key restraints include end users preferring OEM parts, reduced quality of some parts, and higher end-support from the OEM centers. Furthermore, higher reliability and people having their vehicles under insurance schemes are choosing the original manufacturer to replace or repair any products.
Country | Indonesia |
---|---|
Market Share/CAGR | 34.4% of the ASEAN Market in 2021 |
Country | Thailand |
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Market Share/CAGR | 7.6% (2023 to 2033) |
Higher Penetration of Aftermarket Automotive Parts Manufacturers along with Affordable Automotive Solutions fuels the Market
Indonesia held a market share of 43.4 in ASEAN automotive aftermarket in 2021. The growth is owned by the rise in producers that deliver aftermarket automotive parts with customizations available. Furthermore, different pricing, sizes, and quality also provide end-users with multiple choices.
The increase in technological breakthroughs includes advanced battery systems, electric vehicle aftermarket parts, and new product launches. The collaboration of local brands with international vehicle manufacturing companies is also flourishing the demand in Indonesia.
Discounted automotive parts and online sales channels in the region are helping end users buy these products for their vehicles. Some other developments include diverse technologies and business frameworks for different market requirements.
Technological Integrations, Limited Maintenance Budget, and Lack of OEM Infrastructure fuel the Market Growth in Thailand
Thailand thrives at a CAGR of 7.6% between 2023 and 2033 in the ASEAN automotive aftermarket. The growth is attributed to the expanding automotive sector post covid-19 virus breakthrough. Thailand-based aftermarket automotive parts and Japanese auto spare parts are flourishing in the market growth.
Companies in the country have introduced their mobility solutions, including full-stack support for any app centers. Furthermore, the limited maintenance budget post buying the vehicle also pushes end users to leave OEM solutions and adopt aftermarket automotive solutions.
A surge in warranty-based automobiles in Thailand is projected to gain traction. The growth is attributed to the big inventory created by the First Car Scheme policies beginning in 2012. At the same time, Bangkok is among the profitable market for independent automobile aftermarket service providers. Moreover, sales of the same are likely to rise in Northeastern provinces during the forecast period.
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Attribute | Details |
---|---|
Category | By Category |
Leading Segment | Parts |
Market Share (2023) | 67.1% |
Attribute | Details |
---|---|
Category | By Vehicle Type |
Leading Segment | Passenger |
Market Share (2023) | 68.9% |
The parts segment leads in the ASEAN automotive aftermarket based on category type. It holds a market share of 67.1 % in 2023. The growth is attributed to the higher prices of OEM parts such as tires, batteries, rims, and other parts. Furthermore, the limited shelf life of some parts of the vehicle also makes the segment active in terms of sales.
The tire sub-segment leads in the parts segment as the lifespan of a tire is short, and it depends upon the road conditions. The aftermarket for tires is rising with the increase in per capita income and consumers' expanded focus on safety.
Based on the vehicle type, passenger vehicle holds a market share of 68.9% in 2023. The growth is attributed to the lack of OEM infrastructure for support, service, repair, and parts replacements. Furthermore, the limited lifespan of a passenger car with vehicle repair components available on the E-commerce platforms is flourishing the sales of automotive aftermarkets through passenger cars.
The key players focus on producing services and products equivalent to the OEM producer. Limiting prices and options of different quality, sizes, and material is also a part of the competitive strategy. Furthermore, the collaboration between small-scale vendors and fleet operators is increasing the competition in the market.
Market Developments
Market players are working on three key strategies
The market is valued at USD 24.56 billion in 2023.
The growth potential of the ASEAN automotive aftermarket is 8.5% CAGR through 2033.
The market is estimated to reach USD 55.53 billion by 2033.
Players are concentrating their efforts on delivering to remote areas.
NGK Spark Plug, ZF Friedrichshafen AG, and Continental AG are key ASEAN automotive aftermarket players.
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