The emergence of electric vehicle (EV) technology is reshaping the global automotive industry landscape. Both automotive manufacturers and policymakers are experiencing positive outcomes as they concentrate their efforts, objectives, and strategies on the realm of electric vehicles. The adoption of EV technologies, including battery EVs and plug-in hybrid EVs, has garnered substantial momentum in pursuit of environmental and societal goals. EVs exhibit a notable efficiency advantage, being up to four times more effective than traditional internal combustion engine (ICE) counterparts, leading to a substantial decrease in reliance on fossil fuel-based vehicles. However, one of the most significant potentials of EVs is the reduction of greenhouse gas emissions or zero tailpipe emissions.
The global electric vehicle aftermarket is projected to reach $286.26 billion by 2032 from $44.52 billion in 2022, growing at a CAGR of 20.73% during the forecast period 2023-2032
The robust implementation of forward-looking policies remains indispensable in driving the expansion of the global electric vehicle market. Few domains within the realm of clean energy exhibit the same level of dynamism as the electric car market. Recent years have borne witness to exponential sales growth, accompanied by enhanced driving ranges, broader model portfolios, and heightened performance capabilities.
The aftermarket industry constitutes the secondary components market within the automotive sector, encompassing activities such as the production, remanufacturing, distribution, retail, and installation of diverse vehicle parts, chemicals, equipment, and accessories subsequent to the initial sale of the automobile by the original equipment manufacturer (OEM) to the end consumer. It's important to note that the items offered for sale within this context may originate from sources other than the OEM. This domain covers an array of replacement, collision, appearance, and performance components. The aftermarket sector offers an extensive range of parts featuring varying levels of quality and price, tailored to a wide spectrum of vehicle makes and models. The research study focuses on delivering a clear and concise idea of the current and future outlooks of the electric vehicle aftermarket, primarily focusing on the parts and accessories used in the EV industry.
On the basis of vehicle type, the market has been categorized into commercial vehicles and passenger vehicles. The passenger vehicles segment is expected to dominate the vehicle type segment in the global electric vehicle aftermarket by 2032. This prominence can be attributed to the rising adoption of passenger electric vehicles in both developing and developed economies. The upward trajectory is underpinned by the convergence of more rigorous emission regulations and the reinforcement of governmental initiatives, including subsidies, culminating in augmented demand for passenger EVs in recent times. This trend is poised to continue propelling product demand in the foreseeable future.
Battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), and plug-in hybrid electric vehicles (PHEVs) are the major propulsion types that are served by the global electric vehicle aftermarket. While BEV models have garnered significant traction in the market for a considerable period, concerns surrounding range anxiety and higher upfront costs have inclined customers toward opting for HEVs over BEVs. Additionally, the escalating stringency of vehicle pollution regulations is compelling original equipment manufacturers (OEMs) to invest in the advancement of both battery electric vehicles and hybrid vehicle technology. HEVs exhibit lower emission levels in comparison to traditional gasoline and diesel vehicles. As the prevalence of HEVs continues to grow, it becomes essential for the aftermarket participants to cater to the growing demand for spare parts for HEVs along with their parc size.
Offline Sales to be the Most Popular Mode of Sales in the Global Electric Vehicle Aftermarket
Based on mode of sales, the electric vehicle aftermarket has been classified into online sales and offline sales. Among the mode of sales, offline sales will dominate the market throughout the forecast period 2023-2032. Despite the digital transformation sweeping through the automotive sector, the brick-and-mortar presence of aftermarket retailers continues to cater to a diverse customer base seeking immediate solutions and personalized expertise. Offline players foster brand loyalty and trust by harnessing deep-rooted customer relationships and leveraging strategic physical locations.
China to be the Most Lucrative Region in the Global Electric Vehicle Aftermarket
China is one of the most prominent regions in the global electric vehicle aftermarket and is likely to witness the fastest growth during the forecast period. Currently, China boasts one of the most extensive electric vehicle (EV) fleets and holds a commanding position in global EV battery manufacturing. This preeminence is driven by evolving consumer preferences favoring EVs, rising environmental awareness, access to essential raw materials, robust economic growth, and cost-effective labor force. These pivotal factors collectively contribute to the robust growth of its domestic electric vehicle ecosystem, thus paving the way for a thriving aftermarket demand in the forthcoming years.
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Competitive Landscape
Major aftermarket solution providers are making various kinds of strategic moves to gain significant market share. Some key highlights with respect to major industry participants are:
- In April 2023, Robert Bosch GmbH launched the “Ultra White bulb range.” Enhanced color temperature is now available across a range of headlight types, spanning from XX to XX kelvin, delivering a more vibrant and brilliant light output. These Ultra White bulbs offer a remarkable 40 percent increase in luminosity compared to standard halogen bulbs.
- In January 2022, Continental AG achieved a significant milestone by becoming the inaugural tire manufacturer to showcase its esteemed brands, namely, Continental, Uniroyal, Semperit, Barum, General Tire, Viking, Gislaved, Mabor, and Matador, within the newly introduced tire product category in the TecDoc Catalogue. This advancement allows users to conveniently explore a comprehensive range of summer, winter, and all-season tires specifically tailored to their vehicles, accessible through size specifications or by conducting a vehicle search.
- In September 2021, ZF Friedrichshafen AG unveiled the TRW Electric Brake Booster, a cutting-edge brake technology specifically engineered for electric vehicles. This innovative system utilizes advanced electronic components to enhance brake actuation, offering superior performance and responsiveness. The introduction of the TRW Electric Brake Booster underscores ZF's commitment to delivering tailored solutions that cater to the unique requirements of electric vehicles, further solidifying its position as a leader in the aftermarket industry.
- In June 2022, Schaeffler AG launched a new four-in-one electric axle for e-mobility. The product offers increased comfort and range owing to innovative thermal management and enhances performance through the interaction of an electric motor, thermal management, power electronics, and transmission in one complete system.
- In April 2021, Michelin launched the new " MICHELIN X Incity EV Z" tires. It’s the first range of tires offered by the company for electric buses, which can also be used for traditional suburban and urban vehicles.
- In July 2022, Bridgestone Corporation announced that the DURAVIS R207A tires had been exclusively selected as the original equipment for the Hino Dutro Z EV, marking Hino's entry into the realm of full-scale light-duty battery electric trucks. These remarkable tires represent a significant milestone as they are the first in the light truck category to feature ENLITEN, Bridgestone's cutting-edge premium tire technology designed specifically to cater to the demands of electric vehicles. Incorporating ENLITEN in the DURAVIS R207A tires ensures optimal performance and compatibility with electric vehicles, delivering a seamless driving experience.
- In July 2023, The Yokohama Rubber Co., Ltd. unveiled its latest offering, the ADVAN Sport EV, an ultra-high-performance summer tire tailored specifically for electric vehicles (EVs). Starting in 2023’s autumn, this new tire would be introduced in overseas markets, including Europe, and would be available in XX different sizes. Building upon the success of the ADVAN Sport V107 tire designed for high-performance cars, the ADVAN Sport EV was developed with a keen focus on meeting the needs of premium EV owners. With a strong emphasis on reducing electricity consumption and ensuring quiet operation, this tire incorporates cutting-edge technologies derived from Yokohama Rubber's development of original equipment (OE) tires supplied to renowned EV manufacturers such as BMW and Mercedes-AMG.
