June 16, 2024

The ASEAN Automotive AfterMarket is Estimated to Witness High Growth Owing to Advancements in 3D Printing Technology

The ASEAN automotive aftermarket involves maintenance, repairs, replacement of vehicle parts and accessories. With rising vehicle ownership, increasing average age of vehicles and higher mileages driven annually in the ASEAN region, the demand for vehicle repair and maintenance is growing steadily. The aftermarket provides cost-effective and quality spares and services for various vehicle components and systems.

ASEAN Automotive Aftermarket is estimated to be valued at US$ 33.07 Mn 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. The growing vehicle parc and increasing demand for customized vehicle parts present significant opportunities in the ASEAN automotive aftermarket. Technologies like 3D printing allow on-demand manufacturing of complex parts, reducing lead times and costs.

Market drivers

One of the key drivers for the ASEAN Automotive After Market Size  is the rising average age of vehicles in the region. With many cars plying on the roads for over a decade, the need for repairs and replacements is increasing. Furthermore, vehicles are driven longer annually with the average kilometers traveled increasing each year. This puts additional wear and tear on various components, driving the demand for spare parts and services in the aftermarket. The availability of low-cost components and workshop networks further aids the growth of this market.

Current Challenges in the ASEAN Automotive AfterMarket
The ASEAN automotive aftermarket faces multiple challenges currently. Availability of counterfeit and low-quality parts is causing huge losses for genuine OEMs and suppliers in the region. Lack of vehicle repair infrastructure in rural areas is another major hurdle. Technology adoption in the aftermarket is rather slow as well. With vehicle electrification trends gaining momentum, players will need to upgrade skillsets to cater to hybrid and electric vehicles in future. High import duties on imported spare parts continue to discourage investments as well. Rising labor and operational costs pose a serious threat too. Tackling these issues through collaborative efforts will be critical for sustained growth of the ASEAN automotive aftermarket.

SWOT Analysis
Strength: Well established distribution networks of major players in the region; rising vehicle parc provides a large existing customer base.
Weakness: Substantial counterfeiting reduces margins and brand loyalty; lack of technical expertise in some areas.
Opportunity: Growth of used vehicle market and rising demand for spare parts/services; potential for expanding product portfolio through e-commerce platforms.
Threats: Volatility in raw material prices impacts operating costs; protectionist trade policies implemented by certain ASEAN nations.

In terms of geographical concentration, Indonesia currently accounts for the largest share of the ASEAN automotive aftermarket in value terms. The country’s massive population and rapidly growing middle class are driving significant demand for vehicles as well as spare parts and services. Vietnam and Philippines are also emerging as important markets, expanding at a brisk pace on the back of strong economic growth over the past decade. The ASEAN automotive aftermarket is projected to perform the best in Vietnam through 2031, with annual sales anticipated to rise at a CAGR of over 10% during this period. Infrastructure development initiatives, rising incomes, and evolving consumer preferences point towards continuation of robust demand from Vietnamese consumers and workshops.

1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it