- A) Market Overview:
The ASEAN Automotive Aftermarket is estimated to be valued at US$28.7 billion in 2023 and is projected to grow at a CAGR of 9.8% from 2023 to 2030, according to a recent report by Coherent Market Insights. The aftermarket refers to the secondary market for vehicle components, accessories, and services, including maintenance, repairs, and customization. With a steadily growing automotive industry in the ASEAN region, the demand for automotive aftermarket products and services continues to rise. This market offers a range of products and advantages, such as cost-effectiveness, convenience, and enhanced vehicle performance, meeting the evolving needs of consumers.
B) Market Key Trends:
One prominent trend in the ASEAN Automotive Aftermarket is the increasing popularity of customization and personalization. Consumers are looking to enhance the appearance and performance of their vehicles, resulting in a growing demand for aftermarket accessories and modification options. For example, LED lighting upgrades, alloy wheels, body kits, and performance-enhancing components are gaining significant traction in the market. This trend offers opportunities for manufacturers and retailers to tap into the demand for unique and personalized automotive products.
C) Porter’s Analysis:
– Threat of New Entrants: The threat of new entrants into the ASEAN Automotive Aftermarket is relatively low due to the established presence of major players and high entry barriers associated with technology, distribution networks, and brand recognition.
– Bargaining Power of Buyers: Buyers in the automotive aftermarket have moderate bargaining power, as they can choose between various suppliers and substitute products. However, brand reputation and product quality remain important factors influencing their purchasing decisions.
– Bargaining Power of Suppliers: Suppliers have moderate bargaining power in this market, as they can provide specialized and high-quality components and accessories. However, buyers have the option to switch to alternatives if prices or terms become unfavorable.
– Threat of New Substitutes: The threat of new substitutes in the automotive aftermarket is low, as the market serves the specific needs of vehicle owners in terms of maintenance, repairs, and customization.
– Competitive Rivalry: The market is highly competitive, with key players constantly striving to innovate and offer a wide range of products and services. Competitive rivalry is intense, leading to product differentiation, strategic partnerships, and advancements in technology.
D) Key Takeaways:
In terms of market size, the ASEAN Automotive Aftermarket Size is expected to witness high growth with a CAGR of 9.8% over the forecast period. This growth can be attributed to increasing vehicle sales, the need for maintenance and repairs, and the rising trend of vehicle customization. The fastest-growing and dominating region in this market is ASEAN, leveraging its robust automotive industry and expanding consumer base.
Key players operating in the ASEAN Automotive Aftermarket include Bridgestone Corporation, Denso Corporation, Hella KGaA, BorgWarner Inc., Robert Bosch GmbH, Continental AG, Enkei Corporation, F.C.C. Co., Ltd., Mitsuba Corp., Schlemmer, Showa Corporation, Yachio Industry Co., Ltd., TOYOTA MOTOR CORPORATION, and ZF Friedrichshafen AG. These companies are focused on expanding their product portfolios, developing innovative solutions, and strengthening their distribution networks to gain a competitive edge in the market.
In conclusion, the ASEAN Automotive Aftermarket presents significant growth opportunities driven by consumer demand for customization, repair, and maintenance of vehicles. With an expanding market size, regional dominance, and the presence of key players, the market is poised for continuous growth in the coming years. Both consumers and market players stand to benefit from the diverse range of products and services offered in this vibrant automotive aftermarket industry.