South Korea Automotive Aftermarket:

South Korea’s automotive aftermarket is evolving rapidly, driven by the country’s highly developed automotive manufacturing industry. The growth in electric and hybrid vehicles, along with a strong focus on high-quality repair services and innovative technologies, are key trends shaping the aftermarket sector in South Korea.

Rapid growth in automobile sales and demand for automobiles worldwide acts as a driver for the market. The riding technological advancement and growing and internet and browsing boost the Automotive AfterMarket. Continuous economic growth and urbanization are also propelling the market. The sudden shift to public transport from the private and fewer fuel prices creates ample opportunities for the market to grow further. The government initiatives and reduction in sales hinder the growth of the market. The government incentives for new vehicle purchase results in the decline of the market. The increasing long-distance travelling and change in the lifestyle are forming demand for the replacement and repairs of vehicle parts. Awareness among people replacement and repair of the parts creates many growth opportunities for the market. The high production cost for the raw materials is restraining the market.

The Automotive AfterMarket is the secondary market available after-sales the components and original parts or components. The accessories are sold after the originally sold sale of the vehicle for convenience, comfort, performance and safety. The OEM manufactures the replacement parts to replace the original parts after being damaged. This records and witnesses rising sales of automobiles and how the demand for OME technologies has improved. In COVID 19, almost all industries get affected; likewise, the pandemic has impacted the automotive segment. Due to the pandemic, the output and production plants reduced of the automotive industry. Pandemic affected business, but the market will soon grip its usual growth rate and register a high growth rate. The aftermarket is classified into accessories and replacement parts.

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Key Players:

·       Continental AG (Germany)

·       Aisin Seiki Co. Ltd. (Japan)

·       Robert Bosch GmbH (Germany)

·       3M (U.S.)

·       Valeo (France)

·       Denso Corporation (Japan)

·       Magneti Marelli S.p.A. (Italy)

·       Cooper Tire & Rubber Company (U.S.)

·       Sumitomo Electric Industries Ltd. (Japan)

·       Federal-Mogul Corporation (U.S.)

·       Aptiv PLC (U.K.)

Industry news

In Q4 2021, O’Reilly’s sales increased by 16% to $3.29 billion, and net profit increased by 32% to $519 million, which was better than the previous year.

Market segmentation

The Automotive AfterMarket is fragmented on type, vehicle age and vehicle type. Based on the type, the market is classified into offering and channel. The offering segment is again divided into services and parts, and the channel is fragmented into authorized repair and independent repair. The Automotive AfterMarket is classified into 0-4 years, 4-8 years, and above 8 years based on the vehicle age. The vehicle type is bifurcated into commercial vehicles and passenger vehicles. The passenger segment is expected to grow significantly. Consumer awareness regarding alternative fuel mobility and the impact of conventional vehicles on global warming leads to the rising popularity of electric eco- vehicles, which led to the passenger segment holding more growth.

The automotive aftermarket in the United States is a vital and growing segment of the automotive industry, encompassing the manufacturing, distribution, retailing, and installation of all vehicle parts, equipment, and accessories after the sale of the automobile. Driven by the rising average age of vehicles on the road and consumers' growing preference for keeping their cars longer, demand for replacement parts, repairs, and maintenance services remains strong. The sector includes everything from basic replacement parts like brakes, tires, and batteries to advanced automotive technology systems and accessories that enhance vehicle performance and aesthetics.

The U.S. automotive aftermarket is also seeing a surge in e-commerce, with consumers increasingly turning to online platforms to purchase parts and accessories. This shift is reshaping traditional brick-and-mortar stores as they adapt to provide both in-person and online sales. Additionally, the growing number of electric vehicles (EVs) on U.S. roads is creating new opportunities for specialized aftermarket services, such as EV-specific repairs and charging infrastructure installation. With technological advancements and evolving consumer preferences, the U.S. automotive aftermarket is poised for sustained growth in the coming years.

Regional analysis

The Automotive AfterMarket is studied in Europe, North America, Asia Pacific and parts of the world. North America will register the largest market share due to the prominent presence of market players and components in auto solution providers pushing the market towards growth. Europe is leading the market, and it is the second-largest country to dominate the market due to the presence of established companies, improved spending on luxury cars and increasing demand for fuel-efficient and lightweight vehicles in the region. Asia pacific is also increasing steadily and remains in the third position in the growth due to the advanced technology and developing urbanization.

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