Navigating the Future of the Automotive Aftermarket: Trends and Strategies for 2025
According to a French magazine and news portal dedicated to the automotive industry, Auto Zepros (link), the automotive industry is undergoing significant transformation, yet the aftermarket sector remains strong. While OEMs navigate challenges related to electrification and supply chain disruptions, demand for spare parts, repairs, and maintenance services continues to grow.
According to Zepros ATLAS N°18, the global automotive aftermarket is projected to reach $1.254 billion by 2030, maintaining a steady 3% annual growth rate. But what is driving this expansion, and how should businesses prepare for the future?
1. The Aging Vehicle Fleet: More Repairs, More Opportunities
The average vehicle age on the road is increasing, now reaching 12 years in many regions. This translates into greater demand for maintenance, spare parts, and diagnostic services, benefiting independent garages, distributors, and manufacturers.
Key takeaway: Workshops and suppliers must optimize inventory management and ensure availability of essential parts to meet rising repair demands.
2. Electrification: A Slow but Inevitable Shift
Despite significant investment in electric vehicles (EVs), adoption remains gradual. EVs currently account for just 2% of the global vehicle fleet, and even by 2035, 90% of cars will still have internal combustion engines (ICEs).
- EV servicing is growing, but traditional ICE maintenance will continue to dominate.
- Independent garages will play a key role in servicing aging ICE vehicles.
- Suppliers must gradually adapt their product offerings to include EV-compatible components.
Key takeaway: The transition to EVs is ongoing, but ICE vehicles will remain a major part of the aftermarket for at least another decade. Businesses should balance ICE and EV investments to stay competitive.
3. Emerging Markets: The Next Growth Hotspots
While growth in Europe and North America is stabilizing, emerging regions present significant expansion opportunities.
- Middle East & Africa: Rising vehicle ownership is driving demand for affordable spare parts and service solutions.
- Latin America: A priority region for global suppliers, fueled by a rapidly expanding vehicle parc.
- China & India: China leads in EV adoption, while India’s traditional vehicle market continues to grow.
Key takeaway: Suppliers and distributors should explore expansion strategies in high-growth regions, leveraging localized supply chains and partnerships to establish market presence.
4. Digitalization & Sustainability: The New Industry Drivers
Technology and sustainability are reshaping the aftermarket, creating both challenges and opportunities.
- AI-driven diagnostics and predictive maintenance are enhancing efficiency in repair services.
- Online parts marketplaces are revolutionizing distribution and procurement.
- Sustainability is gaining momentum, with remanufactured and recycled parts becoming a priority. The global remanufacturing market is expected to surpass $112 billion by 2030.
Key takeaway: Businesses that invest in digital tools, automation, and eco-friendly solutions will gain a competitive advantage in the evolving aftermarket landscape.
Final Thoughts: Preparing for the Future
Despite rapid industry changes, the automotive aftermarket remains resilient. Companies that adapt to digitalization, explore new markets, and prepare for the gradual EV transition will be best positioned for long-term success.
- For suppliers: Diversify product lines to include EV-compatible components while maintaining ICE offerings.
- For workshops: Invest in training, digital tools, and sustainability initiatives to remain competitive.
- For distributors: Expand into emerging markets with strong vehicle growth potential.
The aftermarket industry is evolving—how is your business preparing for these shifts?
Source: Auto Zepros
