The automotive aftermarketAugust 30, 2018
The automotive aftermarket in 2025 - trends and implications
The automotive aftermarket is undergoing a gradual but profound change and in only a few years, it will look completely different. Electrified, softwarized and connected cars will make up a bigger part of the car park and we will see a shift in ownership models.
Globally, the parts market will grow from currently EUR 398 billion to EUR 566 billion by 2025 – an impressive increase! Whereas mature markets like Western Europe, North America and Latin America will see growth rates of 3% or below, Eastern Europe will grow by 5.7% and Asia by 8.6%. Asia will almost double its size and constitute nearly 30% of the global market. Obviously, the growth agenda of parts suppliers must be turned towards the East.
At the same time, the parts market will be deeply affected by the shifts in the vehicle technology. With electrified, softwarized, connected and down the road autonomous cars finding their way into the car parks, the share of “traditional” product categories will decrease. Software, electronics and data-driven services will make up a quarter of the market in Europe by 2025.
If suppliers "do nothing" and hold on to their current business models, market growth will be captured by new players in the industry. However, suppliers can turn challenges into opportunities by positioning themselves technologically for future demand and work proactively to rethink the value chain from supplier to end user and take out costs – before Amazon or another digital player does so for them.
In this white paper, QVARTZ and Stern Stewart & Co. provide an outside perspective on the suppliers' position in the European automotive aftermarket towards 2025.