Each year, the global automotive aftermarket industry exceeds expectations. The growing demand for vehicle parts and preventive maintenance is on the rise because more owners want to maximize the use of their vehicles.
The industry is even expected to reach as much as $722.8 billion worldwide by 2020. Because of this, the growing automotive aftermarket industry trends can open up more opportunities for businesses offering vehicle parts and other after-sales services to flourish in the coming years.
Here are some of the most exciting trends to look out for in the automotive industry in 2020.
More Durable Vehicles
Because of the onset of advanced technologies, car manufacturers can now create more resilient vehicles that can last for a long time. According to a recent survey, the age of cars increased by 16 percent during the last five years. On average, cars can run smoothly on the road from 9.78 years up to 11.33 years. Because of this, the automotive aftermarket industry trends will remain on the rise since older vehicles need repairs and regular maintenance.
Looming OEM Globalization
The increasing number of global vehicle registrations stays to pressure the original equipment manufacturer (OEM) to increase the need for using global platforms.
According to an industry report, the number of new global registrations reached more than 74 million units in 2013, but the amount can reach as much as 1.3 to 1.5 billion vehicles by 2020. It will require an increase in global production as well as in demand for OEMs to regulate their costs. These businesses need to open the use of more global platforms and pave the way to produce more units that come from each platform.
Globalization also paves the way for auto manufacturers to support modular architecture. It means that vehicles can use parts made by different manufacturers. Because of this, finding a spare car part is now more comfortable and more accessible compared to the previous years.
Business Challenges and Openings Brought by New OEM Technology
The latest developments in automotive technology can both be a blessing and a curse for the industry. For example, the market share for gas and hybrid vehicles will enjoy a steady increase.
Reports stated that these vehicle types account for 3.6 percent of all are registrations as of August 2019. It requires OEMs to invest in the development of aftersales parts for these vehicles.
Besides, OEMs may boost the necessary interval between oil changes using the oil service indicator light. This technology will notify car owners that they already need to change the oil. Because of this, car maintenance shops will have more business opportunities due to routine maintenance.
Faster After Sales Transactions
Gone are the days when vehicle owners need to look far and wide to find a single automotive part needed to start their car.
Today, they can check out whatever they need, pay for it, and have it delivered even without leaving their desks. They can also find their ideal floor mat, engine part, or the logo of their favorite team that they can install in their vehicle without any hassle. They only need to search for their needs online and order it through authorized distributors for stress-free transactions.
As the cars running on the road aged over time, the demand for parts and after-sales services will continue to be on the rise. The latest materials, new technological advancements, and the advantages brought by new e-commerce practices can assure those who are in the automotive aftermarket industry to enjoy more profits.
As long as car owners require more vehicle maintenance and upgrade their parts for better road performance, then the trend for the aftermarket parts and services will never stop booming for years to come.
