AUTOMOTIVE AFTERMARKET MARKET

Automotive Aftermarket Market Size 2024

Automotive aftermarket market size touched a whopping USD 538 billion in 2024, the market is forecast to grow at a CAGR of 3.9% from 2025-2032 and is projected to reach USD 731 billion in 2032. The global automotive aftermarket is growing owing to increasing average vehicle age, growth in vehicle miles travel (VMT), growth in vehicle in operation (VIO), increasing vehicle ownership and growing demand for vehicle modification accessories.

Key Market Insights

Market Size:

• • 2024 – USD 538 Billion
  • 2032 – USD 731 Billion
  • Market Forecast – CAGR of 3.9% from 2025-2032

Segment Insights

• • Replacement Parts Type Insights: Tire dominates the market revenues
  • Automotive Aftermarket Vehicle Type Insights: Passenger vehicles segment hold the largest revenue share
  • Sales Channel Type Insights: Online sales channel is projected to grow at the fastest CAGR during the forecast period

Automotive Aftermarket Market Trends

Growth of Electric Vehicle (EV)

According to EIA, the EV sales is continuing its growth trajectory and in 2024 EV sales set a new milestone by touching its every highest sales figure of 17 million units, the EV sales grew 25% YoY. EV sales growth is witnessed across major vehicle markets globally. EV are also becoming more popular and currently the EV share in the vehicle in Operation (VIO) reached almost 4% with a total global fleet of EV touching 58 million mark in 2024. Compared with ICE vehicle, EV’s global share of the VIO is relatively small however, this this is changing very rapidly, this will impact the automotive aftermarket growth in the years to come. This is due to as EVs have relatively less number of moving parts compared to ICE vehicles. The demand for parts replaced during vehicle servicing and engine parts such as spark plugs, air filter, fuel filter, engine parts engine oil etc Is projected to fall in the coming years.

Advanced Driver Assistance Systems (ADAS)

The rollout of ADAS is accelerating globally and is becoming more common and even it is available in some less expensive vehicles. ADAS with higher level of sophistication will reduce vehicle accidents and will work as headwinds for crash parts. This will have serious impact on the demand for crash parts in the next decade.

Automotive Aftermarket Parts and Component Market Drivers

Surge in Vehicle in Operation (VIO)

The continuous growth in the global Vehicle in Operations (VIO) will drive the total global VIO to 1.6 billion passenger vehicles by 2030. Continuous growth in VIO along with changes in the VIO is generating demand for automotive aftermarket parts globally. USA and China have the largest vehicle in operation (VIO) globally, US have around 290 million vehicles on the road.

Increasing Vehicle Ownership

The market has been seeing significant growth in recent years as there is a growing vehicle ownership around the world. Currently there are over one billion vehicles on the road worldwide with 67.5 million are passenger cars sold in 2024. Car ownership is widespread in some countries including the United States where it is common for people to own several different models. Factors contributing to the surge in vehicle ownership include growing incomes and greater mobility needs due to hectic lifestyles. US has the highest number of light vehicles per 1000 individuals, in 2024 in US the new cars sold for every 1000 people stood at around 46 light vehicles the highest across the world followed by Canada with 45 light vehicles.

Robust New Vehicle Sales

The global passenger car market is witnessing a continuous growth momentum in the in the last 4 years, even the passenger car market grew faster than the global GDP growth in the last 4 years with an average 4 year growth of 5.4% compared to global GDP growth of 4.2% average growth of last 4 year. As per OICA estimates, global passenger vehicle sales reach 67.5 million units in 2024 from 65.4 million units in 2023 growing at growth rate of 3.3 YoY. China passenger vehicle sales grew by 5.8% in 2024 reaching an all-time highest peak at 27.5 million passenger cars sold in 2024. The US came second in terms of new light vehicle sales globally, in 2024 there are 15.8 million light vehicles were sold in US followed by India and Japan with 4.2 million new passenger cars and 3.7 million new passenger cars sold in 2024.

Increasing Average Vehicle Age

The world is witnessing an increase in average vehicle age especially in the develop world countries, the average age of light vehicle in US reached an all-time high of 12.7 years in 2024, currently the US VIO has the largest share of old vehicles, the largest since 2012. As per ACEA, the Europe’s vehicle fleet is become older and currently the average age of cars in Europe is 12.3 years, In Europe the countries in located the eastern Europe has the highest average passenger car age.

As vehicles grow older and components wear and tear increases, the need for regular repairs and maintenance increases the demand for aftermarket replacement parts. The gradual deterioration of components like engine parts, suspension parts, brake pads etc. increases the need for replacements in aging vehicles which contributes to the market growth. It is because older vehicles necessitate increased maintenance and replacement parts to maintain smooth and safe operation.

The increasing duration of vehicle ownership also contributes to a sustained growth in the need for aftermarket products. With more consumers choosing to keep their vehicles instead of buying new cars, the aftermarket sector is likely to experience growth momentum. Furthermore, improvements in vehicle technology have led to enhanced vehicles’ durability and longevity. Modern vehicles feature more robust materials and advanced diagnostic systems which enable them to endure more mileage and extended usage before necessitating major replacements. The growing average vehicle age is a crucial factor driving the aftermarket sector as it leads to increased opportunities for service providers and suppliers to address the changing vehicle owners needs across the globe.

Challenges Faced by Automotive Aftermarket Parts Manufacturer

While the industry has seen considerable expansion, it also faces certain constraints which includes the increasing complexity and technological advancements in vehicles. Modern vehicles offer enhanced efficiency and performance through sophisticated technologies even though these advancements also introduce challenges for the automotive aftermarket sector.

As vehicles evolve with innovations such as electric power and autonomous driving, aftermarket providers must constantly enhance their skills and tools. Keeping pace with these swift technological changes poses a major challenge for the aftermarket industry. Advanced vehicle technologies demand specialized capabilities and tools for diagnostics and repairs. This causes repair shops and aftermarket distributors to struggle with keeping pace which often drives them to rely on authorized dealerships and OEM services. Advanced systems frequently require specific diagnostic tools and software which pose a challenge for some repair shops to accurately diagnose and resolve problems.

The global automotive aftermarket industry faces substantial challenges owing to supply chain disruptions. The auto industry depends on complex supply chain procurement of parts. The global disruption such as trade disputes, tariffs, trade routes closers etc. will affect the supply of parts resulting in shortage and increase the cost of procurement. The current US tariffs have has increased the cost of imports resulting in driving cost for automakers, parts suppliers and aftermarket companies.

Additionally, aftermarket businesses encounter challenges in adhering to a range of regulatory requirements especially those related to emissions and safety. Complying with these new regulations often demands significant investments in research and manufacturing processes to ensure that the products meet regulatory standards without compromising performance and cost.

Automotive Aftermarket Parts Market Segment Analysis

Automotive Aftermarket Replacement Parts Market Insights: Tire dominates the market revenues

Tires generates the maximum revenues and captures the largest market share of global automotive aftermarket in 2024 as tires goes through more deterioration and requires to be replaced on regular basis. Tires demand is growing at a robust rate owing to rise in global average vehicle miles travel (VMT) across developing countries due to robust economic growth driving living standards and income levels.

According to Federal Highway Administration, in US the VMT is forecast to increase at an average rate of 0.5% during the year 2019 and 2050. As the average vehicle age is on the rise especially in the US and Europe the major market for aftermarket parts, the demand for tires engine components, suspension parts, and electrical/electronic system parts is forecast to grow globally owing to older vehicles go through more wear and tear.

Automotive Aftermarket Vehicle Market Insights: Passenger vehicles segment hold the largest market share and also projected to grow at the faster CAGR

The global automotive aftermarket is driven by passenger vehicles as passenger vehicles forms the largest chunk of the global VIO in 2024, passenger is projected to dominate the global automotive aftermarket in the coming years. The average age of passenger cars is increasing and the automotive aftermarket is benefitting from this as older passenger cars require more maintenance and spare parts. This improves growth opportunities for aftermarket manufacturers, distributors and retailers globally.

Automotive Aftermarket Certification Market Insights:

OE and aftermarket parts (Independent aftermarket) are getting more traction due to rise in average vehicle age, because older vehicles goes through more wear and tear and requires more maintenance. The demand for Independent aftermarket (IAM) is projected to grow at robust rate as owners of older vehicle tends to go for cheaper affordable parts.

Independent aftermarket (IAM) plays an important role in vehicle repair especially for vehicles that are more than four years old as these vehicles are out warranty period. Currently, there are hundreds of millions of passenger vehicles are out of warranty in 2024 globally, and the passenger cars with an out of warranty population is projected to grow in the coming years. The recent growth in new vehicle sales is projected to drive the demand for genuine parts as owners of new vehicles go for genuine parts to fulfil OEM criteria’s to maintain the vehicle warranty.

Sales Channel Market Insights: Online sales channel is forecast to grow at the highest growth rate during the forecast period

Growing penetration of internet globally is driving e-commerce sales, and the automotive aftermarket is also witnessing surge in aftermarket parts through e-commerce. Consumers tends to purchase from online platforms owing to ease of purchase, wider products availability, better price and comfort.

The move towards online shopping is driven by its convenience as it enables consumers to explore a vast array of products and buy items or order services from their own homes. E-commerce solutions also allow businesses to engage with a wider audience and enhance their growth potential. With increasing internet penetration and a rise in smartphone users we can anticipate a growing trend in online shopping which will consequently drive market growth.

However, technological progress is gradually transforming the market and pushing it towards a more digitalized landscape. As the aftermarket moves to an online model, the marketplace is evolving with services and parts now offered for sale over the internet. Stakeholders throughout the value chain such as OEMs and wholesalers are embracing the increasing shift towards the online aftermarket. It is given that the advancement of technology and the digitalization of maintenance services in the automotive sectors are key factors driving the market growth in recent years.

Automotive Aftermarket Market Analysis by Region

Asia Pacific Automotive Aftermarket

In Asia Pacific, the future prospects of automotive aftermarket industry is promising, In terms of CAGR the Asia pacific region is projected to lead the global automotive aftermarket parts industry owing to robust economic growth in countries such as China, India and across ASEAN countries.

The region’s economic growth increasing urbanization have significantly boosted the new vehicle sales resulting in surge in vehicles in operation (VIO). This growth in the vehicle fleet has consequently increased the need for aftermarket parts for repairs and maintenance. In APAC, China, Japan and India leads the automotive aftermarket market size owing to their large VIO.

China

China automotive aftermarket market is forecast to grow at a higher CAGR due to rise in average vehicle age, growing sales of used cars and surge in Vehicle in Operations (VIO). Surge in the sale of used cars across China, In 2024 as per China Automobile Dealers Association the used car sale recorded a growth of 6.5% over 2023 and reaching a total sales figure of 19.6 million units. The average age of vehicle in China currently stood at 6 years which is very low compared to average car age in developed economies of US and EU however, the average age of vehicle is expected to rise creating tremendous opportunities for aftermarket companies.

India

India is becoming a prime market for automotive aftermarket companies owing to rise in VIO, robust new vehicle sales and rising income levels. India is the fourth largest passenger car market in the world with a sales of 4.2 million units in 2024 and have very large vehicle population. Rising income levels coupled with more accessible financing options are driving the demand for new and used cars in the country and the total number of used car market sales reached 5.4 million units in 2024 driving demand for automotive parts in the country. India automotive aftermarket market size touched USD 11.3 billion in 2024 and the market is forecast to touch USD 21.1 billion in 2032 growing at a CAGR of 8.1% between 2025 and 20232.

Australia

Australia Automotive Aftermarket size is estimated at USD 7.9 billion in 2024 and the market is forecast to grow at a CAGR of 5.5% reaching USD 12.1 billion in 2032. The market growth is owing to increase in disposable income, increase in vehicle age and rise in new vehicle sales.

North America Automotive Aftermarket

North America region dominated the global automotive aftermarket as the regions is base of largest VIO coupled with rise in vehicle age and vehicle owners tendency towards vehicle customization and personalization driving the demand for accessories and performance upgrades eventually propelling North America automotive aftermarket industry.

US

As the largest economy on the planet, with over 290 million light vehicles on the road, US is the largest automotive aftermarket in the world accounting for almost half of the global automotive aftermarket market share. US Automotive Aftermarket market size reached a value of USD 260 billion in 2024 and is forecast to touch USD 348 billion in 2032 growing at a steady CAGR of 3.7% between 2025 and 2032 primarily driven by increase in VIO, rise in vehicle age and growing emphasis on vehicle customization accessories and performance upgrades.

Canada

Canada Automotive Aftermarket market size touched a value of USD 22.4 billion in 2024 and the market will reach a value of USD 29.0 billion in 2032. The market is forecast to grow at a CAGR of 3.3% between 2025-2032 primarily driven by growing VIO, increase in new vehicle sales and increase in average vehicle age.

Europe Automotive Aftermarket

Europe comes second in terms of global automotive aftermarket revenues and the region captures a big share of the global demand owing to increase in vehicle age and large VIO fleet. As vehicles get older, the need for aftermarket products such as replacement parts grows owing to more wear and tear due to substantial increase in miles travelled. In Europe the major automotive aftermarket markets are Germany, UK, France, Spain, Italy etc. Automotive industry is the biggest contributor to the economic output of the European Union and the automotive industry as whole generates overs 2 trillion in gross value added every year.

UK

UK has the largest VIO in Europe with over 41 million vehicles on the road in 2023 and VIO is growing at a steady rate creating opportunities for aftermarket players. UK automotive aftermarket market is projected to grow at a CAGR of 2.3% from 2025-2032 due to large VIO fleet and millions of vehicle are out of warranty.

Germany

In Germany, around 68% of the total registered vehicle are older than 4 years, this providing ample opportunities for aftermarket players as cars older than 4 years require more maintenance. The Germany automotive aftermarket is forecast to grow at a robust rate at 1.8% during the forecast period between 2025 and 2032.

Middle East Automotive Aftermarket

GCC

GCC Automotive Aftermarket market is growing owing to robust economic growth, growing vehicle population and robust new vehicle sales, The GCC Automotive Aftermarket touched USD 11.7 billion in 2024 and the market is forecast to reach USD 17.3 billion in 2032 growing at a robust CAGR of 5.0% between 2025-2032.

Saudi Arabia

Saudi Arabia Automotive Aftermarket Market is the largest in MENA and in GCC and the market growth is promising, the aftermarket is primarily driven by surge in economic activities owing to Vision 2030, robust new vehicle sales and growing registered number of vehicle in the country. The Saudi Automotive aftermarket size is estimated at USD 6.4 billion in 2024 and is projected to reach USD 9.6 billion in 2032.

UAE

Rising disposable income is driving new sales growth in UAE, this is led to growing VIO increasing the total available market for aftermarket parts in the country. The automotive aftermarket in UAE is forecast to add an incremental revenues of USD 1.7 billion between 2025 and 2032.

Automotive Aftermarket Industry Major Players & Competitive Landscape

Automotive aftermarket industry is highly fragmented and there are thousands of large and small companies operating in the industry. Some of the prominent market players are Delphi, Valeo, Forvia Hella, Denso Corporation, ZF, 3M Company, Continental AG, Federal-Mogul, ACDelco, Hyundai Mobis, Magna International, Lear, Michelin, Bridgestone and many more.

The automotive aftermarket industry is witnessing a strong M&A volume compared to previous years and the automotive Aftermarket sector M&A is projected to remain strong in 2025 owing to strategic consolidators which remained optimistic and committed to growth in the sector despite slowdown, companies are seeing M&A for gain economies of scale and expand into new markets.

Automotive Aftermarket Industry Recent Mergers & Acquisitions

• • In 2025, Valeo, a leader in mobility technologies and automotive aftermarket solutions globally, along with MOBILIANS, an organization representing the automotive and mobility services sector, have announced a strategic collaboration agreement. The partnership aims to drive and support the significant transformation of the automotive aftermarket amid the environmental and technological shifts reshaping the industry.
  • In 2025, NASDAQ listed XPEL, Inc. a world leader in protective films and coatings acquired assets of the exclusive distributor of XPEL’s products in the Chinese aftermarket.
  • In 2024, Nissens Automotive a major European manufacturer and distributor of aftermarket engine cooling and air conditioning systems was acquired by SMP in 2024 for USD 390 million. In the acquisition SMP aquired all of Nissens’ issued and outstanding shares.
  • In 2024, Thompson Auto Glass, which is based out of New Hampshire, US has reached an agreement to sell its auto glass assets to Safelite Group which is a major provider of car glass services and recalibration and the owner of Safelite AutoGlass.
  • In 2023, Following its independence from BorgWarner, PHINIA Inc. embarks on a new chapter as an independent organization in 2023. With a great manufacturing legacy, the company is well-positioned to dominate in premium gasoline systems and aftermarket parts, and it will begin trading on the NYSE on July 5 under the ticker “PHIN.”.
  • In 2023, Continental Auto components (CAP), a top distributor of aftermarket collision automotive components to independent collision shops and multi-shop operators, was purchased by Kinderhook in 2023. With its new ownership under the private equity group, this acquisition puts CAP in a position for future growth and expansion.
  • In 2022, Faurecia has completed the acquisition of Hella, through this acquisition it helps creating the seventh largest automotive supplier in the world.
  • In 2020, BorgWarner Inc., one of the leading companies providing clean and efficient technology solutions for combustion, hybrid and electric vehicles, acquired Delphi Technologies PLC, one of the prominent companies in automotive aftermarket. This is expected to enhance the company’s business portfolio in the automotive aftermarket industry.
  • In 2018, Tenneco Inc., acquired Federal-Mogul Corporation, one of the leading global suppliers to original equipment manufacturers and the aftermarket in automotive industry. This acquisition helped to enhance the product portfolio of the company in the aftermarket products.

Automotive Aftermarket Market Scope of the Report

Automotive Aftermarket Market Research Report Segmentation

The Global Automotive Aftermarket has been segmented on the basis of vehicle type, certification, replacement part. Based on the vehicle type, the market has been segmented into commercial vehicles and passenger vehicles. By replacement parts, the market is segmented into tire, battery, brake parts, filters, Lighting Components, Electronic components, Lubricants, Clutch Parts, Engine Components and others. Based on certification, the market has been segmented into Genuine Parts, Certified Parts and Others. Based on the Sales Channel, the market is segmented into Authorized Dealers, Independent Dealers and Online Channel

Automotive Aftermarket Market by Vehicle Type

• • Commercial Vehicles
  • Passenger Vehicles

Automotive Aftermarket Market by Replacement Parts

• • Tire
  • Battery
  • Brake Parts
  • Filters
    • Air Filter​
    • Oil Filter​
    • Others​
  • Lighting Components​
  • Electronic components​
  • Lubricants​
  • Clutch Parts​
  • Engine Components
    • Timing Belt​
    • Spark Plugs​
    • Others​
  • Others

Automotive Aftermarket Market by Certification

• • Genuine Parts
  • Certified Parts
  • Others

Automotive Aftermarket Market by Sales Channel

• • Authorized Dealers
  • Independent Dealers
  • Online Channel

Automotive Aftermarket Market by Region

• • North America Automotive Aftermarket Market (Option 1: As a part of the free 25% customization)

    • By Vehicle Type
    • By Replacement Part
    • By Certification
    • By Sales Channel
    • US Market All-Up
    • Canada Market All-Up

  • Europe Automotive Aftermarket Market (Option 2: As a part of the free 25% customization)

    • By Vehicle Type
    • By Replacement Part
    • By Certification
    • By Sales Channel
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up

  • Asia-Pacific Automotive Aftermarket Market (Option 3: As a part of the free 25% customization)

    • By Vehicle Type
    • By Replacement Part
    • By Certification
    • By Sales Channel
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up

  • RoW Automotive Aftermarket Market (Option 4: As a part of the free 25% customization)

    • By Vehicle Type
    • By Replacement Part
    • By Certification
    • By Sales Channel
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Global Automotive Aftermarket Market Players (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Delphi
  • Valeo
  • Forvia Hella
  • Denso Corporation
  • ZF
  • 3M Company
  • Continental AG
  • Federal-Mogul
  • ACDelco
  • Hyundai Mobis
  • Magna International
  • Lear
  • Michelin
  • Bridgestone