The ASEAN automotive aftermarket comprises replacement parts, accessories, tires, batteries, oils, lubricants, and performance enhancement product for passenger, commercial, and two-wheeler vehicles. The continuous rise in vehicle parc, along with increasing average vehicle age, in the region is augmenting the demand for aftermarket components and consumables. This growing automotive production is driving the ASEAN automotive aftermarket.

ASEAN automotive aftermarket is estimated to be valued at US$ 33.07 billion in 2024 and is expected to exhibit a CAGR of 6.5% over the forecast period from 2024 to 2031.

Key Takeaways

Key players operating in the ASEAN automotive aftermarket are Dentsply Sirona Inc., Ivoclar Vivadent Ag, GC America Inc., Kulzer GmbH (Mitsui Chemicals, Inc.), Modern Dental Group Limited, COLTENE Group, VITA Zahnfabrik, Amann Girrbach AG, Formlabs, DIO Corporation, Shofu Inc., and Lang Dental Manufacturing Company, Inc. These players are focusing on new product launches and geographic expansions to cater to the growing demand and capture higher shares in the market.

The ASEAN automotive aftermarket offers significant opportunities for market players owing to ASEAN Automotive Aftermarket Growth in ASEAN vehicle parc and increasing demand for personalized and customized automotive parts. Additionally, rising consumer spending on vehicle maintenance and repair services will drive the aftermarket sales in the region.

Major players are expanding their businesses globally to leverage the high-growth opportunities. For instance, key companies have entered into partnerships with local distributors to strengthen their presence across Southeast Asian countries and augment their service offerings. Others have begun exporting their products to international markets like Australia, Europe, and North America.

Market Drivers

One of the key drivers for the ASEAN automotive aftermarket is the rapidly growing vehicle parc in the region. ASEAN countries are witnessing substantial economic growth along with a rise in disposable incomes, which is leading to higher vehicle ownership. This is directly increasing the demand for replacement parts and consumables. According to industry estimates, the total number of vehicles on road in ASEAN nations will cross 280 million by 2030.

Market Restraints

Presence of low-cost counterfeit and refurbished parts is a major challenge faced by legitimate aftermarket players. Pirated products capture a significant share of the total aftermarket in developing ASEAN countries due to price advantage. Their proliferation is negatively impacting the growth of reputed brands. Strict regulations and enforcement actions are required to curb this issue and protect original equipment manufacturers.

Segment Analysis

The Asean Automotive Aftermarket Regional Analysis is dominated by the replacement parts segment. The demand for replacement parts such as brakes, filters, batteries, shocks, and other wear and tear components is high due to the large vehicle parc in ASEAN countries. Consumers prefer purchasing replacement components from authorized dealers and workshops to avoidproduct failure and maintain vehicle performance.

Global Analysis

Regionally, Indonesia is expected to witness the fastest growth in the ASEAN automotive aftermarket during the forecast period. The country has a large and growing vehicle fleet along with positive economic outlook which will drive the demand for replacement parts and maintenance/repair services. Other high potential markets include Thailand and Vietnam supported by strong automotive production in these countries. The ASEAN region overall is poised to benefit from increasing motorization rates, rising disposable incomes, and growth in the used vehicle market. Key players operating in the ASEAN automotive aftermarket are focusing on expanding their distribution networks and service offerings across high potential countries to cater to the growing demand.

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