The ASEAN automotive aftermarket refers to the secondary market of automobile components, parts, and maintenance accessories. It comprises components such as engine components, drive transmission & steering components, suspension & braking components, electrics & electronics components, equipment and service. The automotive aftermarket products offer cost-effective maintenance and repair solutions to consumers as compared to buying a completely new vehicle. With rising vehicle population and average age of vehicles in the ASEAN region, the demand for automotive aftermarket products and services is increasing steadily.
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.
Advancements in automotive technology such as introduction of electric and hybrid vehicles, telematics, and development of smart components are driving the need for specialized repair and maintenance services in the automotive aftermarket.
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. Key opportunities in the ASEAN automotive aftermarket include rising ASEAN Automotive Aftermarket Demand for used and refurbished parts, increase of workshop chain stores, and increasing do-it-yourself (DIY) culture. 3D printing technology is enabling localized and on-demand manufacturing of automobile parts, thus improving supply chain efficiency. Technological advancements such as telematics solutions, advanced driver-assistance systems (ADAS), and electric drivetrains are expanding the scope of repair and diagnostic services offered in the automotive aftermarket. Data-driven services for predictive maintenance and remote diagnostics present new revenue streams.
Market Drivers
The key driver for the ASEAN automotive aftermarket is the rising average age of vehicles in the region. As vehicles age, the requirement for repairs and periodic maintenance increases, thus driving the aftermarket business. Other factors such as improving road infrastructure, expanding middle-class population and income levels are also contributing to the growth of the ASEAN automotive aftermarket.
Current challenges in ASEAN automotive aftermarket:
The Asean Automotive Aftermarket Challenges And Opportunities is facing several challenges currently including rising vehicle maintenance and repair costs, shortage of trained technicians, lack of standardization and regulations. Maintenance and repair costs have been increasing steadily over the years with the growing complexities in vehicle electronics and engine technologies. Finding skilled technicians with expertise in maintenance of modern vehicles equipped with advanced driver assistance and infotainment systems has also become a challenge. The aftermarket in the region also lacks standards and harmonization of regulations which hinders cross-border movement of automotive spare parts and services.
SWOT Analysis
Strength: Growing vehicle parc in ASEAN region with increasing demand for vehicle services and spare parts.
Weakness: Shortage of skilled labor and technicians. Lack of regulations and quality standards in some countries.
Opportunity: Potential for investments and partnerships between global automotive companies and local players.
Threats: Threat from low-cost counterfeit auto parts and growing preference for new vehicles over repairs among customers. In terms of value concentration, the ASEAN automotive aftermarket in countries like Indonesia, Thailand, Malaysia and Singapore accounts for over 60% of total market worth currently. Indonesia has the largest vehicle population as well as a thriving services industry in the region. Another fast growing market is Vietnam, driven by strong economic growth, rising incomes and vehicle sales over the past decade. The Vietnamese aftermarket is projected to expand at an annual rate of over 8% during the forecast period.
Get more insights: ASEAN Automotive AfterMarket
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