07/14/2025

Automotive Aftermarket Growth Projected to Reach $804.87 Billion by 2030

Source: aftermarketNews

A report by MarketsandMarkets valued the global automotive aftermarket at $674.61 billion in 2024. The company projects that the automotive aftermarket growth will reach $804.87 billion by 2030, growing at a compound annual growth rate (CAGR) of 2.9%. Key factors driving this market include the increasing age and mileage of electric vehicles (EVs) globally, the rising focus on vehicle telematics, and growing adoption of digitalization across the value chain.

Aftermarket Industry to See Consolidation

The aftermarket industry is expected to experience gradual consolidation, marked by mergers and acquisitions of parts manufacturers, distributors, and service providers. This trend may lead to increased market power for larger entities, resulting in economies of scale, enhanced negotiating leverage with suppliers and retailers, and optimized supply chain efficiencies, according to the report. However, it could also reduce competition, potentially leading to higher prices for consumers and independent repair shops.

Smaller businesses may face challenges competing with larger companies’ broader product portfolios and distribution networks. The impact on job markets within acquired companies and the diversity of product and service offerings remain key considerations. Private equity firms are also acquiring many aftermarket service providers in North America and Europe.

Remanufactured Parts to Become a Major Product in Automotive Aftermarket

Automotive component remanufacturing is expected to become a significant product in the automotive aftermarket. Remanufactured parts offer cost-effective and environmentally sustainable alternatives to new parts, attracting budget-conscious consumers and repair shops. Remanufacturing reduces waste, conserves resources, and lowers energy consumption, aligning with environmental concerns and regulations.

This creates opportunities for companies involved in remanufacturing. It also potentially generates new revenue streams from core collection, the remanufacturing process, and the sale of remanufactured units. As vehicles age, the demand for affordable repair solutions grows. This makes remanufactured parts an attractive option and a vital segment within the automotive aftermarket.

EVs to Become a Transformational Driver in Aftermarket Industry

The study explores the impact of the growing electric vehicle (EV) market on the traditional automotive aftermarket. As EV adoption increases, the demand for conventional maintenance services and parts associated with internal combustion engines will decline. This shift will create new opportunities and demands for specialized services and components unique to EVs, such as battery diagnostics, repairs and replacements, electric motor servicing, and charging infrastructure maintenance.

The study will analyze how aftermarket businesses need to adapt their service offerings, invest in new skills and equipment, and navigate the evolving landscape to cater to the specific needs of EV owners, reshaping the future of the automotive aftermarket industry.