Automotive Aftermarket Industry to Hit USD 631.6 Billion by 2033

Automotive Aftermarket Industry Size, Trends and Forecast 2025 to 2034

The global automotive aftermarket size was measured at USD 468.8 billion in 2024 and is anticipated to reach around USD 654.6 billion by 2034, growing at a compound annual growth rate (CAGR) of 3.1% from 2025 to 2034. Increasing age of vehicles and a growing fleet enhance the need for replacement parts and repair services. Also, the expansion of e-commerce and consumer demand for do-it-yourself repairs further drive the automotive aftermarket industry.

The automotive aftermarket deals with the sale of replacement components, accessories, and services for vehicles after they are initially sold. It consists of critical products like tires, brakes, batteries, and filters, along with performance and customization products. Maintenance, repairs, and diagnostics services are also crucial in the market. Increased vehicle ownership, longer life for vehicles, and the growing trend toward personalization propel market growth. In addition, technological advancements in auto technology and online buying platforms are reshaping the aftermarket.

One of the key drivers of the automotive aftermarket is increasing vehicle age and ownership. As vehicles age, maintenance, repairs, and replacement parts needs climb, which forces the need for aftermarket products and services upward. With vehicles staying on the road longer, their owners require more frequent replacements for such items as brakes, tires, and batteries. In addition, as vehicles accumulate miles, there is increased demand for such services as oil changes and diagnostics, leading to steady growth in the aftermarket market.

Automotive AfterMarket Latest Investments

• In April 2025, Advance Auto Parts is moving away from store closures and toward growth. The company will open 30 new stores in 2025. This growth is part of its strategic turnaround plan. It seeks to increase market presence and service offerings. The action represents a major step forward in the company's revitalization efforts.
• In December 2023, the Indian auto components industry will invest USD 6.5-7 billion in the next five years to add capacity and technology upgradation. This comes on the back of a robust first half of the fiscal year, with a revenue growth of 12.6%. The industry is looking for sustained double-digit sales growth fueled by robust vehicle sales and de-stressing of supply constraints. Exports rose 2.7% to USD 10.4 billion, and sales in the domestic market to OEMs rose 13.9%. The sector is intent on minimizing imports and enhancing localization with government assistance.
• In Feb 2025, the Indian auto component sector is expected to invest USD 30 -USD 36 billion in FY26 for capacity augmentation and localization, including EV components. ICRA anticipates the revenue growth of the industry to slow down to 7-9% in the current fiscal year and 8-10% in FY26, after a peak of 14% in FY24. Domestic OEM demand is likely to increase by 7-9% in FY25 and 8-10% in FY26, led by premiumization and value addition.

Automotive Aftermarket Industry Important Factors

Technological Advancements and Digitalization

Digitalization and technological advancements are transforming the automotive aftermarket. Adoption of e-commerce, artificial intelligence-driven diagnostic capabilities, and automatic production systems is enhancing operational efficiency and customer satisfaction. Digital platforms provide easy shopping and service experience to customers, while superior technology provides enhanced product quality and operating performance. Consequently, businesses can cut costs and respond to the increasing demand for digital services in the automotive industry.

In August 2021, CarAdvise launched a new mobile app for both iOS and Android. The app allows members to access the CarAdvise platform for searching services, comparing prices, and requesting appointments. Users can also see savings, get maintenance notifications, and approve services. The goal is to provide a more convenient car care experience. CarAdvise aims to modernize the car care industry, offering discounted pricing at over 25,000 shops.

Investment in Capacity Expansion and Technological Upgradation to Fuel the Market Growth

Capacity expansion and technological upgradation investments are major drivers for the automotive aftermarket. Firms are investing in improving manufacturing capacities and integrating advanced technologies, including automation and electric vehicle (EV) parts. This serves to address the increasing demand for high-quality parts while maintaining competitiveness in a fast-evolving market. Focus lies on developing high-value products and raising production efficiencies.

In February 2025, Tenneco declared a strategic investment from Apollo Fund X in its Clean Air and Powertrain businesses. American Industrial Partners will also be investing in parallel with Apollo Fund X. This investment will create opportunities to unleash growth prospects and reinforce Tenneco's role as a dominant global automotive supplier. Tenneco will remain a single company with the same management team, structure, and strategic objectives. The deal is anticipated to close during the second quarter of 2025.

Supply Chain Disruptions May Restrain the Market’s Growth

One major constraint hindering the automotive aftermarket industry is constant supply chain disruptions. These disruptions, which are driven by international raw material shortages, labor issues, and geopolitical tensions, have worked to delay the delivery of automotive parts and services. Such issues increase the cost of operations, lower inventory levels, and adversely affect customer satisfaction.

For instance, in September 2022, Renault and Stellantis partly suspended production at their Spanish factories because of the global chip shortage. Renault temporarily closed one factory completely on a Saturday, while another suspended shifts. Stellantis' factory in Vigo canceled night shifts during weekends and underwent a 15-day shutdown in February. The two had suffered several halts in production in Spain as a result of supply issues. The pandemic-related disruptions have continued to affect the automotive industry through the chip shortage.

Growth in Electric Vehicle (EV) Aftermarket Services to Revolutionize Market Growth

The automotive aftermarket industry has the prospects of brilliant growth in the form of growing EV market. With customers continuously forming an affinity towards green mobility, the EV-specific vehicle components and services market is growing. It is such a trend that creates a demand for niche products and services for serving the needs of EVs uniquely, a promising prospect of growth for the industry.

For example, in October 2024, Brazil-based Randoncorp took some notable strategic moves towards its international expansion. In 2024, Randon acquired AXN Heavy Duty LLC in the US for USD 0.01 billion and USD 0.03 billion for stock for 18 months, bolstering its presence in North America in the automobile component industry for semi-trailers. Earlier in October 2024, Randoncorp's subsidiary Master Europe acquired the EBS Group of UK in a deal worth about USD 0.73 billion to expand the presence of its brake systems division all over the world. These acquisitions were part of the steps taken by Randoncorp to expand the product portfolio and increase worldwide brand presence. These were part of the broader steps that Randoncorp was adopting while trying to consolidate the company's global presence.

Automotive Aftermarket Report Scope

Automotive Aftermarket Regional Insight

Europe is Expected to Grow at the Fastest Rate During the Forecast Period

Europe is expected to grow at the highest rate in the automotive aftermarket market due to the increasing number of vehicles, especially EVs, and the need for repair work. Customers are being driven by sustainability trends and stricter emissions regulations to replace parts more frequently and seek green solutions.

• For example, LKQ Euro Car Parts unveiled in April 2021 an EV trial on the Isle of Wight to discover ways of decarbonizing its fleet. There will be trials using an electric Renault Kangoo and a Vauxhall Vivaro over a six-month period backed by new charge points. It has chosen the Isle of Wight for use due to available mileage and infrastructure. Its ambition is to get all of its 2,800 cars replaced by EVs without changing effectiveness. LKQ Euro Car Parts also encourages garages to invest in EV servicing skills.

North America Dominated the Automotive Aftermarket in 2024

The market leadership of North America in the auto aftermarket is propelled by large vehicle fleets, aging cars, and a mature service economy. Strong consumer awareness and a rising DIY car maintenance trend will continue to support its leadership in the short term.

• For example, in December 2023, O'Reilly Automotive will buy Groupe Del Vasto, a Canadian auto parts distributor trading as Vast-Auto Distribution. The purchase, to be finalized in January, represents O'Reilly's entry into Canada. Vast-Auto has two distribution facilities, six satellite warehouses, and serves a chain of 23 company-owned stores in five Canadian provinces. The management team of the Canadian company, headed by Mauro Cifelli, will remain in charge of the business.

Automotive Aftermarket Market, By Region, 2022-2024 ($Billion)

Automotive Aftermarket Segmental Insight

By product, the tire segment led the market

The tire represented the most prominent market share during 2024. Tires have been a required part of car performance and safety for many years, offering constant replacement demand, especially with the introduction of performance and EV tires. For instance, in March 2021, Michelin revealed its target of achieving 100% sustainable tires by 2050 and increasing R&D and collaboration with BioButterfly and Enviro to recycle tires.  Bridgestone also collaborated with Arlanxeo and Solvay to launch Techsyn, a tire technology that optimized tire wear by 30% and minimized material use. Both organizations were working on sustainable tire programs, utilizing more environmentally friendly materials in their offerings.

By distribution channel, the retailers segment led the market

The retailers held the highest market share in 2024. Retailers are the leaders in the automotive aftermarket distribution, supplying parts, tools, and accessories directly to consumers. Growth in this segment is driven by the growth in popularity of online shopping and convenience. Buyers increasingly depend upon retailers for very high product availability and home delivery, thereby making them the single largest distribution channel. For example, in December 2024, AutoZone honored its star vendors at the 2024 Vendor Summit by awarding 17 companies that have performed better than others. JK Fenner was conferred with the distinguished honor of 2024 Vendor of the Year in terms of optimum customer care as well as offering quality merchandise. GSP North America won AutoZone Mexico's "Vendor of the Year" award in back-to-back years, attesting to its efficiency in its operations and ability to satisfy its customers. Operational excellence and excellent practices for allocating capital at AutoZone contributed substantially to its 2024 success in creating value for shareholders as well as increasing its growth.

Automotive Aftermarket Market, By Distribution Channel, 2022-2024 ($Billion)

Automotive Aftermarket Major Breakthroughs

• In August 2024, Bosch released 67 new aftermarket parts, including brake pads, sensors, spark plugs, and fuel pumps, covering over 0.02 billion vehicles in North America. The additions reinforced Bosch's position as a trusted supplier for independent repair shops and vehicle owners. These parts support domestic, European, and Asian vehicles, enhancing servicing capabilities across the region. The new offerings included copper-free brake pads and advanced sensors to improve vehicle performance and efficiency.
• In September 2021, Advance Auto Parts partnered with Bridgestone Retail Operations (BSRO) in a multi-year agreement. BSRO's 2,200+ Firestone Complete Auto Care, Tires Plus, Hibdon Tires Plus, and Wheel Works locations stocked DieHard batteries, including Silver, Gold, Platinum, and Platinum AGM. The systemwide rollout was completed in July 2021. Every DieHard battery purchased at BSRO came with DieHard Assurance, offering free battery replacement and roadside assistance.
• In January 2022, Faurecia and Hella announced their new combined name, FORVIA, as the world's seventh-largest automotive supplier. FORVIA represents their commitment to driving the mobility transition with agility and confidence. The group's vision is built on safety, sustainability, advanced solutions, and customized experiences. Faurecia and Hella will operate as independent companies, collaborating on technology solutions and synergies. Both companies will retain their legal names but communicate under the FORVIA umbrella, marketing products under their existing brands.

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