Global automotive aftermarket set to grow in 2018, says Frost & Sullivan
Research company Frost & Sullivan major automotive markets, including North America, Europe, China, Latin America and India to identify growth opportunities in the global automotive aftermarket
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LONDON, U.K.—Research firm Frost & Sullivan expects global automotive aftermarket demand to increase by 4.4 per cent during 2018, with a slowdown anticipated in some developed markets.
Telematics, e-commerce and 3D printing will form key foundations in the evolution of the original equipment manufacturer (OEM) aftersales channel, with OEMs attempting to integrate all aftersales services into a single, digital platform.
The firm’s latest report says participants in the OEM aftermarket that embrace data monetisation can enhance customer accessibility, widen B2B networks and expand product and service portfolios will capitalise on current value-add opportunities.
“The development of applications to leverage data collection from on-road vehicles will open up opportunities for data monetisation with service providers aiming to deliver innovative predictive maintenance solutions around this trend,” said Vasudevan Rajesh, Mobility Senior Industry Analyst at Frost & Sullivan.
Frost & Sullivan’s recent analysis, Global Automotive Aftermarket Outlook, 2018, identifies the size of the global automotive parts and services aftermarket and its growth opportunities in 2018.
Analysis of vehicles in operation and replacement rates, industry trends, challenges, market size potential, the impact of mega trends and major benchmarks are assessed across America, Europe, China, Latin America, and India.
Five ways to leverage growth opportunities in the global automotive aftermarket sector:
• Develop localised offerings for repair and maintenance solutions in emerging high-growth markets;
• Adopt original equipment service channel engagement by developing e-retailing to boost online sales;
• Build innovative business models and solutions to leverage the potential of data monetisation;
• Invest in manufacturing newer replacement parts to tap into the popularity of alternate powertrain vehicles; and
• Manage global supply chains to maximise the incentives of globalisation.
“A slowdown in replacement demand in some developed markets, including the United States and Western Europe, will impact overall aftermarket growth,” noted Rajesh. “This trend has forced the automotive aftermarket to look toward expanding in emerging markets like China, India and Eastern Europe.”
Click here to visit the Global Automotive Aftermarket Outlook, 2018 webpage, which is part of Frost & Sullivan’s Automotive & Transportation Growth Partnership Service program.