The APEJ Automotive Aftermarket is estimated to be worth USD 205.7 billion in 2025 and is anticipated to reach a value of USD 344.7 billion by 2035. Demand for Automotive Aftermarket is projected to rise at a CAGR of 5.3% over the forecast period between 2025 and 2035.
The revenue generated by implementation of Automotive Aftermarket in 2024 was USD 195.3 billion. The industry is predicted to exhibit a Y-o-Y growth of 5.2% in 2025. This projected growth indicates a value growth of nearly 1.6X from the current value over the study period.
The automotive aftermarket in the APEJ region plays a vital role in maintaining and enhancing the longevity of vehicles. It includes a broad range of products and services that cater to different needs of vehicle owners.
Parts such as tires, batteries, filters, lighting, exhaust components, and lubricants are essential for routine maintenance and performance optimization. These components are designed to fit a variety of vehicles, ensuring that both passenger cars and commercial vehicles receive the necessary care for smooth operation.
Tires are one of the most critical segments in the APEJ automotive aftermarket. They not only support the vehicle's weight but also contribute significantly to its safety and performance.
Alongside tires, batteries are another essential product, providing the necessary power for starting engines and operating electrical systems. Filters and lubricants help maintain engine health, while starters and alternators ensure the vehicle’s electrical system runs efficiently. These parts are integral in keeping vehicles running smoothly for extended periods.
| Attributes | Key Insights |
|---|---|
| Estimated Value (2025) | USD 205.7 billion |
| Projected Size (2035) | USD 344.7 billion |
| Value-based CAGR (2025 to 2035) | 5.3% |
In addition to parts, accessories such as interior and exterior additions are growing in popularity. From enhancing the aesthetic appeal of vehicles to improving their functionality, accessories offer drivers a personalized experience. Whether it's upgrading the vehicle's interior for comfort or adding features for protection, accessories cater to a wide range of customer preferences.
Services offered in the APEJ automotive aftermarket are equally important. General automotive repair ensures that any issues with a vehicle's performance are quickly addressed, minimizing downtime.
Transmission services are another key area, ensuring that vehicles shift smoothly and operate at optimal efficiency. Skilled service providers in the region are committed to ensuring that vehicles continue to perform at their best, even after years of use.
The growth of the automotive aftermarket in APEJ is driven by the increasing number of vehicles on the road and the demand for cost-effective solutions. As vehicles age, the need for replacement parts and repair services grows. Companies in the region are continuously adapting to consumer needs, providing a wide range of products and services to enhance vehicle safety, performance, and longevity.
The aftermarket remains an essential part of vehicle ownership, ensuring that transportation systems in the region remain safe and efficient.
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The table below presents the annual growth rates of the APEJ Automotive Aftermarket market from 2025 to 2035.
With a base year of 2024 extending to the current year 2025, the report examines how the sector's growth evolves from the first half of the year (January to June, H1) to the second half (July to December, H2). This analysis offers stakeholders insights into the industry's performance over time, highlighting potential developments that may emerge.
These figures indicate the growth of the sector in each half year, between the years 2024 and 2025. The industry is expected to grow at a CAGR of 5.1% in H1-2024. In H2, the growth rate increases to CAGR of 5.3%.
| Particular | Value CAGR |
|---|---|
| H1 2024 | 5.1% (2024 to 2034) |
| H2 2024 | 5.3% (2024 to 2034) |
| H1 2025 | 5.2% (2025 to 2035) |
| H2 2025 | 5.4% (2025 to 2035) |
Moving into the subsequent period, from H1 2025 to H2 2025, the CAGR is projected to slightly increase to 5.2% in the first half and relatively increase to 5.4% in the second half. In the first half (H1) and second half (H2), the sector saw a similar increase of 10 BPS.
Increased vehicle ownership in APEJ fueling the demand for regular maintenance and repair services
As vehicle ownership continues to rise across APEJ, the need for regular maintenance and repair services is becoming more critical. According to the International Organization of Motor Vehicle Manufacturers (OICA), vehicle sales in Asia-Pacific have steadily increased, with China and India seeing significant growth in car ownership.
With more vehicles on the road, there is a growing demand for routine maintenance services like oil changes, brake repairs, and tire replacements.
The increase in vehicle ownership also means more vehicles require specialized repair services as they age. For example, in India, with over 250 million vehicles on the road, the demand for spare parts and repair services has grown considerably. As a result, service centers are busy keeping up with repairs, creating opportunities for the automotive aftermarket industry to expand and cater to these growing needs.
The growing focus on vehicle longevity and performance driving the need for quality replacement parts
In APEJ, vehicle owners are increasingly focused on improving vehicle longevity and performance. As vehicles age, the need for quality replacement parts becomes crucial to ensure smooth operation and prevent costly breakdowns. According to the Indian Ministry of Road Transport and Highways, the average age of vehicles in India has been rising, further increasing the demand for high-quality aftermarket parts.
Consumers now prioritize parts that enhance engine efficiency, fuel economy, and vehicle durability. For instance, a focus on high-performance filters, better lubricants, and durable suspension parts helps extend a vehicle’s lifespan. As the demand for long-lasting parts grows, suppliers are continuously developing products that provide better functionality. This trend highlights the need for specialized replacement parts, which supports the growth of the aftermarket services sector in the region.
The rise of electric vehicles in APEJ presents opportunities for specialized aftermarket parts and services
Electric vehicles (EVs) are gaining significant traction across APEJ, creating a new and exciting opportunity for specialized aftermarket parts and services. According to the China Association of Automobile Manufacturers (CAAM), China's EV sales have surged, with electric vehicles accounting for a substantial portion of total car sales. This shift presents unique opportunities for companies that provide EV-specific services such as battery replacement, electric motor repairs, and charging infrastructure.
As more consumers embrace EVs, demand for related aftermarket services will rise. For example, battery maintenance and replacement will become critical as EV ownership increases. Companies focusing on EV-specific parts, such as charging stations, battery packs, and specialized tire types, will see growing demand for their products and services. This transition to electric mobility opens a new sector within the automotive aftermarket in APEJ, helping to shape the future of vehicle ownership in the region.
Integration of advanced diagnostics tools in workshops enhancing the efficiency of vehicle repairs
The integration of advanced diagnostic tools in workshops is improving the efficiency and accuracy of vehicle repairs across APEJ. Tools like computer-based diagnostic systems and advanced scan tools enable service centers to identify and address vehicle issues more quickly.
For example, in countries like South Korea, workshops are increasingly using digital platforms to diagnose engine malfunctions and electrical system issues, reducing repair time and improving customer satisfaction.
These tools not only speed up the repair process but also help service providers perform repairs with greater precision. With vehicles becoming more complex, diagnostic tools provide real-time data, allowing technicians to identify problems earlier and offer solutions more effectively. This innovation has made automotive workshops in APEJ more efficient and capable of handling the growing volume of vehicle repairs and maintenance requests.
The rapid pace of technological advancements is challenging service providers to keep up with complex repairs
The rapid pace of technological advancements in vehicles is creating challenges for service providers in APEJ. As cars become more sophisticated with features like autonomous driving systems, hybrid engines, and advanced safety mechanisms, repair shops are finding it difficult to keep up with the complexities of modern vehicles. For example, vehicles now include complex software that controls engine management, braking systems, and even suspension adjustments.
Technicians need continuous training to understand and repair these advanced systems, which often require specialized tools and equipment. The Indian Automotive Service Providers Association (IASPA) reports that many service centers struggle to find skilled labor capable of handling high-tech systems. As these technologies continue to evolve, service providers must invest in upskilling their workforce and upgrading their equipment to remain competitive in the changing landscape of automotive repairs in APEJ.
2020 to 2024 APEJ Automotive Aftermarket Demand Outlook Compared to Demand Forecast from 2025 to 2035
The Automotive Aftermarket recorded a CAGR of 4.5% during the historical period between 2020 and 2024. The growth of Automotive Aftermarket was positive as it reached a value of USD 195.3 billion in 2024 from USD 162.5 billion in 2020.
From 2020 to 2024, the demand for automotive parts and services in APEJ grew steadily as vehicle ownership increased and the number of older cars on the road rose. More cars meant higher demand for replacement parts like tires, batteries, filters, and exhaust components. Services such as general repairs, maintenance, and transmission work also saw growth.
In countries like India and China, more people bought vehicles, leading to a rise in the need for affordable, quality parts and services. The improvement in living standards also led to higher spending on car upgrades and accessories.
Looking ahead to 2025 to 2035, the rise of electric vehicles will bring new opportunities for the automotive sector in APEJ. Electric cars require specialized parts like batteries, electric motors, and charging equipment. As vehicles become more connected and autonomous, there will be a growing need for advanced diagnostic tools and expert repair services. Workshops will need to adopt new technologies and provide more training for technicians to keep up with these changes.
Over time, there will be a stronger demand for eco-friendly and lightweight parts, as concerns about the environment continue to grow and governments introduce stricter rules.
Tier-1 companies account for around 20-30% of the overall market with a product revenue from the Automotive Aftermarket market of more than USD 100 million. The Tier-1 manufacturers like Firestone, Pep Boys, Autoliv, Midas and other players would have prominent share in the market.
Tier-2 and Local Players and other companies such Advance Auto Parts, Napa Auto Parts and other players are projected to account for 70-80% of the overall market with the estimated revenue under the range of USD 100 million through the sales of Automotive Aftermarket.
The section below covers the industry analysis for APEJ Automotive Aftermarket in different countries. The demand analysis on key countries in several regions of the globe, including North America, Latin America, East Asia, South Asia Pacific, Western Europe, Eastern Europe, Middle East, and Africa is provided. This data helps investors to keenly observe and go through the recent trends and examine them in an ordered manner.
| Countries | Value CAGR (2025 to 2035) |
|---|---|
| Indonesia | 7.0% |
| Australia and New Zealand | 6.6% |
| India | 4.2% |
| South Korea | 3.8% |
| China | 3.5% |
China’s expanding automotive repair and service network is boosting demand for aftermarket products
The Automotive Aftermarket in China is projected to reach USD 120.7 billion and is estimated to grow at a 3.5% CAGR by 2035.
China's automotive repair and service network has seen rapid expansion in recent years, supporting the growth of aftermarket parts and services. The increasing number of service centers, repair shops, and auto part retailers across the country has made it easier for vehicle owners to access necessary repairs and replacements. With the rise of digital platforms, consumers can now easily find service providers, compare prices, and get parts delivered, driving convenience and accessibility. This network expansion is particularly important in tier-2 and tier-3 cities, where vehicle ownership has been growing steadily. The availability of low-cost parts and services is encouraging more people to maintain their vehicles and extend their lifespan, contributing to higher demand for tires, batteries, filters, and other common aftermarket products. As the vehicle park grows and older vehicles stay on the road longer, the demand for regular maintenance, parts, and repairs will continue to rise.
India’s increasing vehicle sales and infrastructure growth are boosting the demand for aftermarket automotive products
The demand in India for Automotive Aftermarket is projected to reach USD 62.1 billion by 2035 and is predicted to grow at an 4.2% CAGR.
India's automotive sector has seen a surge in vehicle sales, making it one of the fastest-growing automotive hubs. In 2023, the country witnessed a substantial rise in vehicle ownership, with millions of new cars joining the roads. As the vehicle fleet grows, the need for replacement parts, repairs, and vehicle accessories expands. The increasing availability of affordable aftermarket parts, combined with the growing number of service centers, has made vehicle maintenance more accessible to a wide range of consumers. Moreover, the rise in commercial vehicle sales, driven by the expansion of e-commerce and logistics, has further increased the demand for reliable parts and services. India's focus on developing its infrastructure, such as improved road networks and increased investments in transportation, supports the growing need for automotive aftermarket solutions.
South Korea’s technological advancements and high vehicle ownership are driving the demand for automotive aftermarket parts
The Automotive Aftermarket in the Germany is projected to reach USD 82.5 billion and grow at a CAGR of 3.8% by 2035.
South Korea’s rapid adoption of new technologies in the automotive sector has created a steady demand for aftermarket products. As one of the leading countries in automotive innovation, South Korea has a high vehicle ownership rate, with millions of vehicles on the road that require regular maintenance and parts replacement. The rise in demand for advanced vehicle components such as sensors, electric vehicle parts, and high-tech accessories reflects the country’s shift toward more technologically sophisticated vehicles. Companies like Hyundai and Kia are leading the charge in producing vehicles that need specialized parts, and as these brands gain popularity globally, so does the demand for aftermarket products. With an increasing number of consumers opting for vehicle upgrades and customization, the demand for performance parts and accessories is expected to grow, further fueling the aftermarket sector in South Korea.
The section explains the market value share of the leading segments in the industry. In terms of category type, the Parts segment will likely dominate and generate a share of around 36.2% in 2025.
Based vehicle type, the Passenger Cars segment is projected to hold a prominent share of 55.4% in 2025. The analysis would enable potential clients to make effective business decisions for investment purposes.
| Segment | Value Share (2025) |
|---|---|
| Parts (Category Type) | 36.2% |
In the APEJ region, the parts segment, including tires, batteries, starters, alternators, exhaust components, and spark plugs, is experiencing robust growth driven by the rising number of vehicles on the road. The growing middle-class population and higher disposable income in countries like China and India are leading to greater vehicle ownership, resulting in increased demand for regular maintenance and replacement parts. The automotive aftermarket for parts is supported by expanding retail networks, online platforms, and local distribution channels that make access to essential components more convenient and cost-effective. In countries like China, with a large and growing vehicle fleet, the demand for replacement parts such as tires, batteries, and spark plugs has surged, particularly for older vehicles. Similarly, in India, the increase in two-wheeler and passenger vehicle ownership is driving demand for components like exhaust systems and batteries. As consumer preferences shift toward DIY and independent service providers, the availability of affordable, quality aftermarket parts have become essential to keep vehicles running smoothly.
| Segment | Value Share (2025) |
|---|---|
| Passenger Cars (Vehicle Type) | 55.4% |
As urbanization increases and disposable incomes grow across the region, passenger cars are becoming the preferred mode of transportation. With a growing middle class, especially in countries like China and India, more people are purchasing vehicles for personal use.
Compact and mid-sized cars are particularly popular due to their affordability, fuel efficiency, and ease of maneuverability in crowded cities. As these cars become more common, there is a rising demand for regular maintenance and replacement of key parts to keep them in optimal condition.
Additionally, the shift towards electric vehicles in China is influencing the demand for specialized aftermarket components. This growth in passenger car ownership is driving the need for quality parts and services to ensure that these vehicles continue to perform well and meet evolving safety standards.
Advancements in technology are transforming the automotive aftermarket in the APEJ region. Workshops are embracing sophisticated diagnostic tools powered by AI and IoT, allowing for more accurate and efficient vehicle repairs.
As electric vehicles become more common, there is a rising demand for specialized parts, such as batteries and charging systems. Components like tires, spark plugs, and exhaust systems are being made with lightweight, durable materials, contributing to better vehicle performance and longevity. The increasing integration of connected vehicle technologies is also driving the need for smart parts and remote diagnostics, further shaping the region's automotive aftermarket landscape.
Recent Industry Developments:
The Automotive Aftermarket was valued at USD 195.3 billion in 2024.
The demand for Automotive Aftermarket is set to reach USD 205.7 billion in 2025.
Growing interest in vehicle customization, expansion of repair services, rising demand for electric vehicle parts, and increased government regulations will drive APEJ automotive aftermarket growth.
The Automotive Aftermarket demand is projected to reach USD 344.7 billion by 2035.
Automotive Parts is expected to lead during the forecast period.
The segment is further categorized into Parts, Accessories and Services.
The segment is further categorized into Passenger Cars and Commercial Vehicles.
Regions considered in the study include China, South Korea, India, Australia and New Zealand and Rest of APEJ.
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