For decades the automotive industry has been one of the most successful and prominent industries across the globe and has given birth to smaller industries such as the automotive aftermarket industry.The boom in the automotive industry is subsequently proving beneficial for the automotive aftermarket industry. There is a rising demand for car service and parts that are spurring new revenue and growth opportunities for businesses operating in the automotive aftermarket industry.
Opportunities in the Automotive Aftermarket Industry
The increasing trend among automotive customers to keep their vehicles well maintained and the growing popularity of vehicle modifications, especially among the millennials have proved beneficial for the companies in this industry. Some of the main factors bringing about new opportunities in this market space are:
- Older car owners are more likely to undertake regular car service
- The repair and maintenance for older cars would be more, prompting these car owners to spend more on car service
- Newer car owners, especially the millennials, spend more on car modifications and parts
Three Popular Trends Driving the Automotive Aftermarket Industry
Many lucrative opportunities are available in the automotive aftermarket industry. With the growing demand for car service and spare parts, the automotive aftermarket has started showing impressive growth. Here are three popular trends in the industry that are acting as key drivers of demand and sale in this sector:
The Climbing Average Age of Vehicles
The increasing average age of cars has proved to be a positive aftermarket trend for the past few years. Improvement in car service facilities provided has made the vehicles longer lasting and facilitates smoother functioning over an extended period.
Globalization of Original Equipment Manufacturers (OEM)
The tremendous growth in the global vehicle registration has put pressure on OEMs to accelerate the use of global platforms and modular architecture. This means that the number of vehicles produced will rise rapidly, increasing the demand for spare parts and other car service facilities. This opens more opportunities for the automotive aftermarket companies.
Technological Advancement in the Automotive Aftermarket Industry: Boon and Bane
Technological developments in the automotive industry have given a boost to the automotive aftermarket industry. It has facilitated the faster availability of spare parts and improved car service facilities. However, improved services and better quality products also act as a challenge for this industry, especially in instances where the recommended interval between oil change, gap between routine maintenance of vehicles, etc. have become more. This acts as a loss of regular business for the companies in the aftermarket industry because these are the stages at which most of the repair opportunities are discovered and business is generated for them.