ASEAN automotive aftermarket forecast at $55 billion by 2033

Pune, India – 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 US$ 24.56 billion in 2023, while it is anticipated to surpass US$ 55.53 billion by 2033 according to Future Market Insights.

Automotive aftermarket, as the name suggests, implies secondary market pertaining to the automotive vertical that does deal with production, re-production, distribution, retailing, and installing vehicle parts, accessories, and equipment. These functionalities come into picture post sales of automobiles by the OEMs. This automotive aftermarket actually deals with batteries, oil and lubricants, filters, tires, alternators and starters, paint consumables and coatings, spark plugs, exhaust components, crash parts, and likewise. Plus, there are exterior and interior accessories such as video/audio devices, parking brake handles, steering wheels, headlight covers, grills, shift boots, rear & front guards, mirrors, and likewise. These days, DIY segments are available to help with repairing the vehicles as well.

Growing demand for vehicles along with rising urban population density is expected to bolster ASEAN automotive production output. Apart from First Car Scheme Policy implemented by government of Thailand (since 2012-13) providing tax rebate of US$ 3250 has resulted in ~30% increase in sales of vehicles in Thailand. Besides, as per Organisation Internationale des Constructeurs d’Automobiles (OICA), passenger cars’ sales in Singapore did increase four-fold in 2012-16 alone. In Philippines, these sales did increase three-fold in 2012-16.

The ongoing trend is that of self-inflating tires being increasingly adopted. Participants like Rubber Company and Goodyear Tire are at the forefront herein. This self-inflating tire system does work on the air maintenance technology, which makes use of peristaltic pump for maintaining the pressure. Unwanted maintenance costs could also be averted. Another trend is that of deployment of silicon anode batteries as they tend to have a higher energy density and provide an enhanced battery life.

At the same time, the fact that the end-users are inconsiderate toward maintenance and services may hinder ASEAN Automotive Aftermarket.

“ASEAN automotive aftermarket is expected to be swept by growing demand for warranty vehicles all across Thailand”, says an analyst from Future Market Insights.