It provides components for fixing wear and tear of vehicles on account of regular use. The demand for aftermarket parts such as filters, gaskets, lighting, and electrical components is high given the need for periodic replacements. Additionally, demand for customization products such as leather seats, alloy wheels, and infotainment systems is growing among customers seeking to enhance the look and comfort of their vehicles.

The ASEAN automotive aftermarket is estimated to be valued at US$ 33.07 billion in 2024 and is expected to exhibit a CAGR of 6.5% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the ASEAN automotive aftermarket are Dentsply Sirona Inc., Ivoclar Vivadent Ag, GC America Inc., Kulzer GmbH (Mitsui Chemicals, Inc.), Modern Dental Group Limited, COLTENE Group, VITA Zahnfabrik, Amann Girrbach AG, Formlabs, DIO Corporation, Shofu Inc., and Lang Dental Manufacturing Company, Inc. These players are focusing on launching new products with enhanced features to strengthen their market position.

The demand for aftermarket parts and accessories is growing across ASEAN Automotive After Market Size  nations owing to the increasing vehicle parc. As per studies, the number of passenger vehicles and commercial vehicles on road is estimated to surpass 300 million by 2030. This is anticipated to drive significant demand for replacement parts and wear and tear components in the aftermarket.

Technological advancements are enabling manufacturers to develop lightweight and durable components, thereby improving performance and fuel efficiency of vehicles. 3D printing technology is gaining traction in the manufacturing of complex aftermarket parts with customized designs as per customer needs.

Market Trends

Growing consumer preference for genuine and OEM-approved parts: There is rising awareness among customers about use of genuine and OEM-approved parts for repair and maintenance of vehicles. This ensures performance and safety of vehicles.

Increasing adoption of e-commerce platforms: Leading aftermarket players are strengthening their online sales channel by partnering with e-commerce majors. This is increasing convenience for customers and boosting sales of companies.

Market Opportunities

Launch of advanced diagnostic tools: Introduction of advanced tools such as diagnostic scanners by market players can help garages and workshops carry out repairs faster. This will drive growth of the aftermarket.

Collaborations with independent workshops: Aftermarket companies can collaborate with independent workshops across the region to promote consistent supply of parts and accessories. This offers an opportunity to expand market reach.

Impact of COVID-19 on ASEAN Automotive AfterMarket

The COVID-19 pandemic has severely impacted the ASEAN automotive aftermarket. During the lockdown periods imposed across Southeast Asian countries to curb the spread of the virus, vehicle usage declined sharply as people were confined to their homes. This led to a major reduction in demand for replacement parts and maintenance services. With fewer cars plying on the roads, the need for repairs, servicing, and wear & tear replacements drastically reduced. As a result, revenue for aftermarket players fell significantly in 2020 compared to pre-pandemic years.

However, with restrictions now gradually lifting in 2021 as vaccination drives progress, the ASEAN automotive aftermarket is showing signs of recovery. Vehicle usage and miles driven are rising from the low levels seen during peak lockdown periods last year. This is driving up requirements for repair works, maintenance activities and replacement of worn-out components once more. While revenue still lags pre-COVID levels currently, the market is projected to bounce back strongly in 2022 as economic revival gathers pace across the region. Aftermarket companies are expanding their digital channels and predictive analytics capabilities to prepare for the anticipated rebound in demand and changing consumer behavior patterns in the post-COVID environment.

Geographical Regions with Highest Concentration in ASEAN Automotive AfterMarket

In terms of value, the ASEAN automotive aftermarket is concentrated highly in the more industrialized and populous countries of Indonesia, Thailand, and Malaysia. Indonesia has emerged as the largest market for aftermarket parts and services in recent years, aided by its significant vehicle parc which is still growing at a steady rate annually. Thailand also accounts for a major share owing to its well-established automotive industry. Meanwhile, the presence of leading global automakers' manufacturing facilities has made Malaysia another lucrative market. All three countries are anticipated to continue dominating the ASEAN aftermarket space over the forecast period on account of their large production and user base.

Fastest Growing Regional Market for ASEAN Automotive AfterMarket

The fastest growing regional market for ASEAN's automotive aftermarket sector is projected to be Vietnam through 2031. Underpinned by strong economic expansion and a burgeoning middle class, new vehicle sales as well as the in-use vehicle population have been rising sharply in Vietnam over the past decade. This has stimulated corresponding growth in the need for replacement components and maintenance requirements. Furthermore, several international automakers have been setting up assembly plants locally, augmenting the availability of spare parts infrastructure and service centres. Other active government initiatives to boost the industry additionally support Vietnam's ascent as the ASEAN aftermarket with the highest projected growth trajectory over the next ten years.

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