On a global level, the average use of vehicles is increasing significantly. The automotive aftermarket is benefiting from this as the demand for maintenance and spare parts increases. At the same time, the market is being shaped by trends such as electromobility, digitalisation, and sustainability.
With a global market volume of over $430 billion in 2024, the aftermarket represents a central pillar of the automotive industry. It drives not only sales, but also innovation. Since 2021, the aftermarket has been growing continuously, as drivers are holding on to their vehicles for longer. There are many reasons for this. Chief among them are the sharp rise in new car prices and the uncertainty surrounding the transition from internal combustion engines to electric drives, which are affecting consumer moods.
“A wait-and-see attitude seems to be the order of the day, and is exacerbated by the current reluctance to spend due to the poor economic situation. However, as people are dependent on their cars, existing vehicles are being driven for longer,” says Thomas Vollmar, Chairman of the Gesamtverbands Autoteile-Handel (German Association of Auto Parts Trading).
“Wait-and-see seems to be the order of the day. However, as people are dependent on their cars, existing vehicles are being driven for longer.”
Worldwide, cars are getting older
According to various surveys, the average car age in the US and the EU has been rising since 2020. The Kraftfahrt-Bundesamt (Federal Motor Transport Authority) recently reported that the average car age in Germany reached 10 years for the first time in 2023. In the EU, the average age of a car has been rising steadily, from 10.6 years in 2016 to 12.3 years in 2022. The situation is different in emerging markets such as India and China: in India, the average age of a used car fell from six years in 2011 to four years in 2022, mainly due to improved infrastructure and logistics of the dealer network. In addition, the world's most populous country has a growing middle class with higher incomes. Rising prosperity in China is also resulting in comparatively young cars.
Maintenance costs are on the rise
Older cars require more maintenance, care, and spare parts. This means significant growth opportunities for the aftermarket: “Car repair shops in Germany peaked with an average capacity utilisation of 87 percent in both 2024 and 2023,” says Ulrich Köster, press spokesman for the Zentralverband Deutsches Kraftfahrzeuggewerbe (German Association of Motor Trades and Repairs). According to the 2024 DAT Report, car owners in Germany had more maintenance work done in 2023 than in the previous year. The average cost per service rose by 8.5 percent to 357 euros. “We expect this maintenance trend to continue in 2024,” says Köster. No wonder, as owners of older vehicles have services like oil changes done more often. Especially profitable for the aftermarket is the maintenance and replacement of wear-and-tear components such as brakes, timing belts, tyres, oil, fuel, and air filters – these all guarantee a steady turnover.
“Car repair shops in Germany peaked with an average capacity utilisation of 87 percent in both 2024 and 2023.”
Remanufacturing and online retailing
Remanufacturing is a major trend in the automotive aftermarket. Remanufacturing is the process of refurbishing used vehicle parts, such as transmissions and brakes, to bring them back to the market. These processes reduce costs and offer customers a budget alternative while retaining the same quality. Car manufacturers as well as their suppliers are increasingly integrating remanufacturing into their business models in order to meet both economic and environmental standards. The purchasing behaviour of car repair shops and customers is changing as a result of the ongoing trend towards online marketplaces and platforms. At the same time, additive manufacturing, especially 3D printing, is opening up new possibilities in the production of parts. Customisation and rapid availability are becoming a competitive advantage, fundamentally changing both production lines and supply chains.
New technologies: High tech in workshops
German car owners take their young cars to authorised dealers for repairs and maintenance. As the car gets older, drivers usually switch to cheaper, independent workshops, which in turn benefit from the increasing age of the vehicle.
However, in addition to their traditional repair business, workshops are needing to transform themselves into high-tech service providers for the new digital and electrified generation of cars: “Workshops should invest in a direct technical connection to the vehicle manufacturer and into data management to ensure access to vehicle systems and vehicle data. In the competition between independent workshops and manufacturer-affiliated services, this opens up new business models for independent specialists,” says Ralf Galow, Managing Director of the Netzwerk für unabhängige Kfz-Unternehmer in Europa (Network for Independent Automotive Entrepreneurs in Europe). Because at the same time, customer expectations are rising in terms of service quality, transparency, and sustainability. In the future, quality standards and innovative solutions will be the decisive factor to survive in the market.
“Workshops should invest in a direct technical connection to the vehicle manufacturer and into data management to ensure access to vehicle systems and vehicle data.”
The most durable cars in the regions of the world
“The supply of spare parts from independent car parts wholesalers is very good and dependable. There seem to be no widespread or unusually long waiting times. It can always happen that a particular part from a particular manufacturer is not in stock. However, the independent car parts trade market is able to offer products from alternative manufacturers so that a repair can be completed quickly,” says GVA-chairman Thomas Vollmar. This is what drivers like to hear. Models that are particularly well connected to a functioning spare parts supply and reliable maintenance service are driven for a particularly long time. In Europe, it is the VW Golf and the Renault Clio that dominate. They are valued for their versatility and efficiency. The Ford F-150 continues to be the North-American sweetheart thanks to its sturdiness and versatility as a pickup truck. In Asia, it’s the Toyota Corolla and Honda Civic that hold the consumers’ interest. They represent high reliability and low maintenance costs. On the African continent, the Toyota Hilux and Corolla are popular for their durability and easy maintenance, even in challenging conditions.
