Global Automotive Aftermarket to Exceed US$329.8 Billion by 2015, According to a New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report on Automotive Aftermarket. Despite being grounded by the current recession that sent the entire automotive industry through a harrowing period of punishing fall in sales, production cutbacks, capacity surplus and financial instability, world automotive aftermarket is projected to regain sufficient poise in the medium term to reach US$329.8 billion by the year 2015. Growth during this period will be driven by resurgence in new car purchases, reappearance of consumer preferences for sport utility vehicles (SUVs) and pickup trucks and strong demand for alternative vehicles. Increase in automotive production and sales across Asian countries also augurs well for the market.

Automotive Aftermarket: A Global Strategic Business Report

Automotive aftermarket is a crucial link in the automotive value chain. Automotive aftermarket worldwide is highly competitive, dynamic and technology-savvy. The sector has managed to keep pace with trends in the ever-changing automobile industry. The increasing number of cars on the road each year directly translates into mounting replacement demand for auto components. The penchant of car owners to turn their cars from a simple transportation machine to an ultimate status symbol by installing a range of electronic gadgets and accessories has and will continue to remain a traditional growth driver in the aftermarket.

The automotive aftermarket, especially for parts and components is relatively cushioned as compared to the OEM automotive market, primarily because parts and components like fan belts, exhaust pipes and brake pads are less discretionary spends, since replacement of worn parts is a necessity if the vehicle needs to be kept running. Although resilient to a degree, the market is not completely recession proof, and the hypothesis that reduced spends on new cars results in higher spends on maintaining old cars often crumbles when disposable personal income, and gross domestic product (GDP) dip sharply and over a prolonged period of time, as is the case in the current financial crisis led world economic recession.

The conventional wisdom that industries like aftermarket hold up well during recession because people spend more time repairing and servicing their existing vehicles rather than purchase new cars has therefore apparently failed in the present context making this recession different from earlier recorded periods of economic slowdown. This is because the unusually pronounced length, depth and magnitude of the current recession sent ripples of unrest across the entire automotive value chain including the aftermarket. Lesser availability of credit, rising levels of unemployment, reduction in disposable incomes and household wealth and falling consumer confidence have all resulted in postponement of aftermarket purchases of components, parts, and accessories. Reduced frequency of maintenance and repair, especially expensive repairs, is a direct fallout of weakening employment rates, consumer income and spending power. Volatile fuel prices have also resulted in reducing the average number of vehicle miles traveled thus reducing the need for replacements of mechanical, exterior and structural products.

It’s a mixed bag of opportunities and challenges for the automotive aftermarket industry. The sizable drop in retail sales of new vehicles will result in a sharp reduction in the number of cars/vehicles covered within manufacturers' warranty periods thus promising to create increased demand for aftermarket part replacements during the post recession period. However, reduced sales of new cars will also result in reduced demand for in-vehicle telematics, entertainment and other intelligent electronic aftermarket automotive technologies and products.    

Despite the current struggles, the market is poised to make a sturdy recovery in the immediate short-term, largely because the industry still retains its underlying strength supported by trends such as longer vehicle retention, and rising awareness among car owners over the importance of car maintenance. With the recession now having played out its part in full proportions and with the automotive industry having hitting rock bottom, the worst is now over and a rebound is now seen as inevitable. Demand in the post recession period will be driven by resurgence in fundamental growth drivers, such as, recovery in GDP growth, employment rates, incomes levels, discretionary incomes, rise in consumer confidence, increase in the number of vehicle miles traveled and a parallel increase in the wear and tear of auto-parts, and recovery in OEM automotive sales, among others. Specialty aftermarket equipment/accessories, especially those that are environmentally friendly will witness the highest gains. As discretionary spends improve, demand for street performance parts and accessories is also expected to rise in the medium term period. Legislation and consumer driven demand for fuel-efficient cars will drive post recession gains for fuel-efficiency enhancing products in the aftermarket. Additionally, future growth will be also be driven by strong performance of automotive industries in developing countries like China, and India.

Europe and the United States lead the global market, as stated by the new market research report on automotive aftermarket. Market for Electronic automotive aftermarket products in Asia-Pacific is expected to register a CAGR of more than 5.0% during the analysis period.

Major players in the marketplace include ACDElco, American Axle & Manufacturing Holdings, ArvinMeritor, ASIMCO, Bridgestone Corp., Continental AG, Delphi Automotive Systems, Denso Corp., Federal-Mogul Corporation, Honeywell International Inc., Johnson Controls, Lear Corp., Magna International, Magneti Marelli SpA, Michelin, Robert Bosch GmbH, TRW Automotive, and Visteon Corp., among others.

The research report titled “Automotive Aftermarket: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections for key regional markets such as the United States, Europe and others, alongside upcoming markets such as Asia-Pacific and Latin America. Product segments analyzed include Mechanical Products, Electrical Products, Electronic Products, Exterior and Structural Products, Motor Oil, Fluids and Additives, and Appearance Chemicals.

For more details about this comprehensive market research report, please visit –
http://www.strategyr.com/Automotive_Aftermarket_Market_Report.asp

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world’s largest market research publishers. The company employs over 800 people worldwide and publishes more than 1200 full-scale research reports each year. Additionally, the company also offers thousands of smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.

Global Industry Analysts, Inc.
Telephone 408-528-9966
Fax 408-528-9977
Email press(at)StrategyR(dot)com
Web Site http://www.StrategyR.com/

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