An ascending aftermarket?

Global market studies and consulting services provider Fortune Business Insights projects that the global automotive aftermarket will grow from US$430.51 billion in 2024 to US$568.19 billion in 2032. This equates to a compound annual growth rate of 3.5% during the forecast period; what is driving these gains?

The automotive aftermarket industry is propelled by ageing vehicles. “As vehicles mature, they necessitate more frequent maintenance and repairs due to component deterioration,” emphasises Fortune Business Insights in its report.

The report further notes that this steady demand for replacement parts and services is what fuels the aftermarket sector, as components such as brakes, tyres, and exhaust systems wear out with use over time, “driving the need for replacements in older vehicles and stimulating market expansion”. 

The market research company adds that there has been a steady increase in the average age of vehicles operating in various regions over the past decade, ranging from 7.6 to 14 years across Europe and the US (in South Africa, the age ranges between 10 and 13 years, according to Arrive Alive).

“Furthermore, advances in vehicle technology have contributed to the increased longevity of vehicles. Modern vehicles are built with more durable materials, improved engine technology, and sophisticated onboard diagnostics systems that allow for better monitoring and maintenance,” the report expands. “As a result, vehicles can now withstand higher mileage and longer periods of use before requiring major repairs or replacement.”

The global aftermarket industry does, however, face various challenges and restraints. “One key restraint to the industry’s growth is the advancements in vehicle technology and complexity. Modern vehicles are equipped with increasingly sophisticated technologies and complex systems. While this is beneficial for vehicle performance and efficiency, it poses challenges for the aftermarket industry,” Fortune Business Insights explains.

“Advanced technologies often require specialised knowledge and tools for diagnostics, repairs, and replacements,” it adds. “As a result, independent repair shops, and automotive aftermarket distributors may face difficulties in keeping up with the evolving technology, leading to a reliance on original equipment manufacturer (OEM) services or authorised dealerships.”

The influx of batteries to drive electric and hybrid systems also presents its own set of challenges in the aftermarket sector, but has led to some interesting industry innovations. A stellar example comes from Austrian battery diagnostics specialist Aviloo, which covers 95% of all available electric vehicle brands. Its Flash Test plug-and-play-style battery tester can check the functionality of stationary electric vehicles (EVs), and plug-in hybrids in just three minutes. The tester presents the results in an intuitive report that includes a score. This means that degradation and defects can be quickly discovered, while it also promotes the acceptance of used EVs, thus protecting their residual values.

“The easy and inexpensive availability of precise and fast EV battery diagnostics brings a new dimension to the used EV market, making us indispensable partners for everyone working on the future of e-mobility,” says Marcus Berger, CEO of Aviloo.

It is easy to see why Aviloo’s battery tester won the Automechanika Innovation Award for 2024 in the category of “Electromobility & Innovative Drive Technologies” earlier this year.

This isn’t the only aftermarket apparatus that has earned an accolade, as UVeye’s AI-powered vehicle inspection technology was added to TIME’s list of Best Inventions of 2024, for the Automotive category, at the end of October.

Likened to an “MRI for vehicles”, UVeye’s drive-through inspection systems leverage deep learning and a massive database of vehicular components and flaws to conduct real-time examinations in seconds. This delivers assessments that detect even the smallest external defects or mechanical flaws. The systems can also detect damages, modifications, or foreign objects under and around the vehicle within seconds.

“We’re supremely honoured that UVeye’s AI-powered vehicle inspection systems have earned a spot on TIME‘s prestigious Best Inventions list for 2024,” says Amir Hever, CEO and co-founder at UVeye. “Our mission is to bolster innovation in vehicular safety and smart transportation. Being named to this list is a testament to the ingenuity and drive of our amazing team and world-class partners.”

It seems as though the automotive aftermarket industry is indeed set to ascend to new heights, as an array of tools like those from Aviloo and UVeye embrace the tides of change. This should ensure the industry’s continued growth, despite increasing vehicle complexity and electrification challenges.