Global automotive aftermarket will grow in 2018: report
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The new report, by market research firm Frost & Sullivan, says that global automotive aftermarket demand will increase by 4.4 per cent during 2018, with a slowdown anticipated in some developed markets.
Global automotive aftermarket demand will increase by 4.4 per cent during 2018, a new study says, with a slowdown anticipated in some developed markets.
According to the new report by market research firm Frost & Sullivan, telematics, e-commerce, and 3D printing will form key foundations in the evolution of the original equipment manufacturer (OEM) aftersales channel, with OEMs attempting to integrate all aftersales services into a single, digital platform.
The firm’s latest report says participants in the OEM aftermarket that embrace data monetisation can enhance customer accessibility, widen B2B networks and expand product and service portfolios will capitalise on current value-add opportunities.
“The development of applications to leverage data collection from on-road vehicles will open up opportunities for data monetisation with service providers aiming to deliver innovative predictive maintenance solutions around this trend,” said Vasudevan Rajesh, mobility senior industry analyst at Frost & Sullivan.
Frost & Sullivan’s recent analysis, Global Automotive Aftermarket Outlook, 2018, identifies the size of the global automotive parts and services aftermarket and its growth opportunities in 2018.
Analysis of vehicles in operation and replacement rates, industry trends, challenges, market size potential, the impact of mega trends and major benchmarks are assessed across America, Europe, China, Latin America, and India.
The report identified five ways to leverage growth opportunities in the global automotive aftermarket sector:
- Develop localised offerings for repair and maintenance solutions in emerging high-growth markets.
- Adopt original equipment service channel engagement by developing e-retailing to boost online sales.
- Build innovative business models and solutions to leverage the potential of data monetisation.
- Invest in manufacturing newer replacement parts to tap into the popularity of alternate powertrain vehicles.
- Manage global supply chains to maximise the incentives of globalisation.
“A slowdown in replacement demand in some developed markets, including the United States and Western Europe, will impact overall aftermarket growth,” Rajesh said. “This trend has forced the automotive aftermarket to look toward expanding in emerging markets like China, India and Eastern Europe.”