After a storm, the calm

The entire automotive industry is undergoing a transformation towards a data-driven economy in which digital solutions are becoming as important as classic vehicle technology. The aftermarket is following suit as it is embracing next generation concepts.

The Covid-19 pandemic has affected industries worldwide, as noted by ResearchAndMarkets/com*, but few felt the storm as directly as the global commercial vehicles aftermarket. It notes: “The collapse of economic activity in many regions reduced the number of trucks on the road and average miles driven,” adding that the pandemic has also caused a skilled labour shortage of truck drivers, repair technicians and other workers needed to keep the aftermarket industry thriving.

Despite these challenges, the global heavy-duty automotive aftermarket market reached a value of US$120,5 billion in 2020**. Looking forward, IMARC Group expects the market to reach a value of US$155,4 billion by 2026. “Keeping in mind the uncertainties of Covid-19, we are continuously tracking and evaluating the direct as well as the indirect influence of the pandemic.”

Rapid digitalisation, coupled with the rising integration of Internet-of-Things (IoT) sensors with advanced tracking technologies in heavy-duty vehicles, has propelled the market growth globally. “These IoT sensors installed in the heavy-duty automobiles allow several fleet management companies to get real-time information regarding the condition of replacement parts, thereby minimising various risks involved in the untimely breakdown of the vehicle,” states IMARC.

“Furthermore, rising environmental concerns, along with the implementation of stringent laws by various governments to limit emissions by heavy-duty vehicles, have also catalysed the demand for heavy-duty aftermarket components. Moreover, the growing consumer awareness towards regular servicing and maintenance of their vehicles, further bolsters the market growth.”

IMARC explains that the wide availability of heavy-duty automotive parts across various e-commerce platforms have enabled customers to buy genuine and original quality parts at reasonable prices, which is also fuelling the growth of this market.

“In addition, various technological upgrades have led to the introduction of several innovative services, such as telematics and mobility services, that further drive the market for heavy-duty automotive afterparts. Moreover, across several emerging economies of the Middle East, Asia Pacific and Latin America, the growth of the heavy-duty automotive aftermarket can be attributed to the growing sales and ownerships of heavy-duty vehicles, which is also bolstering the demand for aftermarket products.”

On the other hand, developed regions in North America and Europe are rapidly adopting technological advancements for the development and commercialisation of autonomous trucks that spur the sales of aftermarket truck components and parts.

Experts group the five core technologies that will shape the future mobility market under the acronym “CASES”: Connected, Autonomous, Shared, Electric and Sustainable. Philippe Colpron, head of ZF’s Aftermarket Division, explains: “These technologies have the power to revolutionise our entire industry because they offer a compelling alternative to our current vehicle-centric landscape – while conserving resources and reducing emissions.”

ZF Aftermarket, a division of the German vehicle parts maker the ZF Group, specialises in driveline, chassis technology as well as active and passive safety technology. In short, it produces holistic system solutions that allow vehicles to see, think and act, in order to shape next generation mobility.

This enables ZF Aftermarket to anticipate industry challenges and prepare its partners at an early stage to adapt to changes.

Autonomous driving and the aftermarket

Autonomous Transport Systems (ATS) from ZF have been in use since 1997 at the Amsterdam Airport Schiphol – its so-called people movers have transported more than 14 million passengers to date. Thanks to their comprehensive equipment, which includes sensors, driver assistance systems and electric drivelines, together with permanent networking capabilities able to operate with manufacturers and infrastructure, these vehicles could serve as a blueprint for future passenger cars, vans and commercial vehicles.

But the complexity of these vehicles means that their operators can no longer rely simply on classic maintenance and repair support from automotive workshops; they also require comprehensive digital support throughout the entire service life. Among many other things, this includes services such as intelligent fleet control, predictive maintenance and over-the-air updates. In this way, the workshop business of the past is evolving into the “next generation aftermarket”. This new routine is characterised by increasingly complex vehicles, professionally organised fleet businesses instead of many individual private customers, and new competitors such as e-commerce players.

Preventive and predictive maintenance

ZF Aftermarket provides services not only for ATS, but also for other applications that are already in series production or planned: self-driving vans, industrial material handling vehicles and agricultural machinery. This is where a new market will emerge for ZF’s workshop partners in the future.

“Highly efficient, data-driven driverless applications – such as robo-taxis or shuttles – are setting new horizons for mobility. ZF Aftermarket supports the continuous roll-out of CASES vehicles by expanding the infrastructure, but also by offering maintenance services for the software and hardware of these future-oriented applications,” comments Colpron.

The company also passes this experience on to its service partners – for example, in training courses on topics such as driver assistance systems or high-voltage drives. This topic was featured on ZF Aftermarket Live, ZF’s online platform which ran parallel to Automechanika Digital Plus, from September 14 to 16.

Electric mobility: clean and efficient transport

Technological developments offer interesting growth potential for workshops but can only be used if they are prepared for it. The number of hybrid but also battery-operated electric models is increasing and with it the need for service and repairs. However, without the correct training, technicians are not allowed to touch an electric or hybrid vehicle; a rule which even applies to simple maintenance work on conventional vehicle components.

So, while it seems that the aftermarket will weather the storm brought about by the pandemic, the waters are far from tranquil. This industry needs to keep pace with the myriad changes that comes with next generation mobility.

* In its piece “Global Medium/Heavy Commercial Vehicle Aftermarket Outlook, 2021”.

** This information was obtained from “Heavy-Duty Automotive Aftermarket Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2021-2026” released by the IMARC Group (another international market research company).