The automotive aftermarket market size in Europe was worth USD 78.17 billion in 2023. The European market size is anticipated to be worth USD 113.1 billion by 2029 from USD 83.14 billion in 2024, growing at a CAGR of 6.35% from 2024 to 2029.
The automotive aftermarket business is committed to reprocessing, retailing, distributing, and installing car components and equipment after a vehicle has been sold. The European automotive aftermarket business is predicted to grow at a constant rate due to the rising car demand and production around the continent. Consumers are critical to the car aftermarket, which relies largely on them. The automotive aftermarket industry is constantly evolving to suit shifting consumer expectations because of substantial technological advancements in automotive.
Over the last decade, new vehicle sales in Europe's consolidated market grew at a rate of less than 2% per year. At the same time, the average car age in Europe increased from 8.4 to 9.7 years. These developments underscore the overall necessity to address older car categories. Customers are also using online review sites and other digital platforms to help them formulate their purchasing judgments. There is already a slew of online parts sales and servicing platforms. Component manufacturers, automakers, aftermarket distributors, and workshop chains will continue to expand their online presence and develop new platforms. By 2026, e-commerce sales of automotive components are expected to climb 20% to 30% of total sales. Digital-driven products and services, on the other hand, are establishing a new trend and will be the primary growth drivers for the market over the projection period. The digital services segment, which includes telematics, vehicle diagnosis, and fleet management, is expected to grow rapidly from 12% to 28% throughout the forecast period. Newmarket participants are entering this arena with digitally linked business strategies to capitalize on market opportunities. On the distribution side, internet channels are proven to be the most compelling business strategy, attracting significant aftermarket companies to offer unique products and services through the Internet.
As technology progresses, vehicles become more integrated with sensors, resulting in better driving behavior and reduced wear and tear on brakes and other vehicle components, which makes component replacement difficult, and the automotive aftermarket's expansion is hampered as a result. For much of the population, the expenditure on vehicle modification is outrageously costly. Premium customers are those who are generally upper-class and willing to pay a higher price for vehicle parts. If this service is utilized more frequently, however, the price will have to drop for it to be affordable to the average person. To limit carbon emissions and manage the climate, automobiles are equipped with environmentally friendly components in a variety of countries. Consumers have little say in whether they want to replace parts that emit more carbon and hurt the environment frequently. As a result, the aftermarket for automobiles is confined by these factors.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2029 |
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CAGR |
6.35% |
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Segments Covered |
By Replacement Type, Service Channel, Distribution Channel, Certification, and Region. |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Continental AG (Germany), ZF Friedrichshafen AG (Germany), HELLA KGaA Hueck & Co. (Germany), ThyssenKrupp AG (Germany), Mahle GmbH (Germany), Delphi Tech (UK), Valeo Group (France), Faurecia (France), Gestamp (Spain), Magna International Inc (Canada), Lear Corp (US), and Others. |
Due to their shorter replacement cycle than their competitors, tires led the market and are expected to continue to do so during the projection period. Furthermore, the introduction of intelligent tires and tire monitoring systems has had a significant impact on tire aftermarket sales as a means of improving car safety features. The market is being propelled forward by rising disposable income in developing countries, as well as a shift in customer demand for appealing and aesthetic vehicle design.
With a market share of 72.9 % in 2023, the Original Equipment (OE) sector is expected to continue to dominate the market throughout the study period. Brand recognition and consumer loyalty are the major drivers of market growth in the OE sector. Aside from that, over the projection period, Do It Yourself (DIY) is predicted to grow at a respectable rate. This could be attributed to consumers' increasing technical knowledge and willingness to fix, maintain, and modify their vehicles themselves.
In 2023, the retail segment dominated the market in terms of size, accounting for 57.2 % of the total. In terms of size, the retail segment is predicted to dominate the market by 2029. The wholesale and distribution category is predicted to grow at a moderately rapid rate in terms of revenue during the forecast period. Automotive aftermarket economies are essential components of the overall automotive production and maintenance scheme, as automotive components must be replaced regularly to maintain the vehicle's overall performance.
The genuine parts segment led the market with a share of 52.2% in the European market in 2023. In terms of scale, the genuine components market will have exceeded the aftermarket by 2026. In terms of revenue, the uncertified segment is likely to grow at a rapid pace. Counterfeit components are illegal, haven't been tested, and come with no warranty. Car manufacturers or OEMs, often known as subcontractors, make genuine components. Genuine replacement parts are more diverse, easier to find, and come with a warranty. The disadvantage is that these parts are expensive and only available through select retailers.
According to Frost & Sullivan, the Europe automotive aftermarket is a €100 billion sector for components suppliers from Ireland to Russia, with overall sales increasing by 2.4% yearly. Routine maintenance parts like tires and lighting will grow faster than the market. The year-over-year increase for electrical parts, such as position and pressure sensors, will be as high as 10%. Remanufactured items are also becoming more popular, since successful cross-border core collection schemes allow for lower-cost starters/alternators and clutch parts, among other things.
Most of these vehicles are sold in mature Western European markets such as the United Kingdom, Germany, France, Italy, and Spain (about 166 million). The number of cars in use in these countries, on the other hand, is only increasing by 1% every year. Low economic growth has limited new vehicle purchases, resulting in fewer cars and light trucks being added to the parking lot. Eastern Europe's growth rates are substantially higher. The vehicle fleet in Russia is predicted to grow three times faster than the rest of Europe. Poland's new car sales rose by 6.4 %, the most since 2013, boosting the country's automobile population.
Around 40% of cars are over nine years old, making them excellent candidates for pricey maintenance replacement. New vehicle sales will take several years to recover to pre-recession levels in the major Western European countries, increasing the likelihood that owners will pay for repairs rather than sell their vehicles.
Germany is one of the most significant automotive vehicle manufacturers, with high demand and sales for automobiles, resulting in a rise in the need for the replacement of many automotive parts, which is likely to fuel market expansion over the projection period. Moreover, during the forecast period, the market is likely to be boosted by innovative business strategies and online customized services. When the linkages between GDP growth rates are taken into account, this German industry is expected to continue to be home to some of the world's most technologically advanced aftermarket companies, assisting the country in maintaining a strong position in the future.
The automotive aftermarket in the United Kingdom is prospering, ranking fourth in Europe and tenth in the world in terms of revenue, with an annual turnover of £21.1 billion. The industry employs 345,600 people and generates £12.2 billion in revenue each year. Between 2021 and 2026, the sector's worth is expected to reach £28 billion, in step with the UK's rising car fleet. The UK also has a strong trading relationship with the rest of Europe, with Germany being the largest market, followed by France and Spain.
Companies playing a key role in the Europe automotive aftermarket market include Continental AG, ZF Friedrichshafen AG, HELLA KGaA Hueck & Co., ThyssenKrupp AG, Mahle GmbH, Delphi Tech, Valeo Group, Faurecia, Gestamp, Magna International Inc. and Lear Corp. Bosch is the largest automotive aftermarket company in Europe. The world's largest service provider employs 400,000 people and operates 440 companies in 60 countries, generating $91.8 billion in revenue.
By Replacement Part
By Service Channel
By Distribution Channel
By Certification
By Country
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