ASEAN Automotive
Aftermarket is Estimated to Witness High Growth Owing to Technological
Advancements

The
ASEAN automotive aftermarket refers to the secondary market of automobile
components, parts, and maintenance accessories. It comprises components such as
engine components, drive transmission & steering components, suspension
& braking components, electrics & electronics components, equipment and
service. The automotive aftermarket products offer cost-effective maintenance
and repair solutions to consumers as compared to buying a completely new
vehicle. With rising vehicle population and average age of vehicles in the
ASEAN region, the demand for automotive aftermarket products and services is
increasing steadily.

ASEAN Automotive Aftermarket is
estimated to be valued at US$ 33.07 Mn in 2024 and is expected to exhibit a
CAGR of 6.5% over the forecast period 2024 To 2031.

Advancements
in automotive technology such as introduction of electric and hybrid vehicles,
telematics, and development of smart components are driving the need for
specialized repair and maintenance services in the automotive aftermarket.

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.



Key opportunities in the ASEAN automotive aftermarket include rising ASEAN
Automotive Aftermarket Demand for used and refurbished parts, increase  of workshop chain stores, and increasing
do-it-yourself (DIY) culture. 3D printing technology is enabling localized and
on-demand manufacturing of automobile parts, thus improving supply chain
efficiency.



Technological advancements such as telematics solutions, advanced
driver-assistance systems (ADAS), and electric drivetrains are expanding the
scope of repair and diagnostic services offered in the automotive aftermarket.
Data-driven services for predictive maintenance and remote diagnostics present
new revenue streams.

Market Drivers

The key driver for the ASEAN automotive aftermarket is the rising average age
of vehicles in the region. As vehicles age, the requirement for repairs and
periodic maintenance increases, thus driving the aftermarket business. Other
factors such as improving road infrastructure, expanding middle-class
population and income levels are also contributing to the growth of the ASEAN
automotive aftermarket.

Current challenges in ASEAN automotive
aftermarket:

The Asean
Automotive Aftermarket Challenges And Opportunities is facing several challenges currently including
rising vehicle maintenance and repair costs, shortage of trained technicians,
lack of standardization and regulations. Maintenance and repair costs have been
increasing steadily over the years with the growing complexities in vehicle
electronics and engine technologies. Finding skilled technicians with expertise
in maintenance of modern vehicles equipped with advanced driver assistance and
infotainment systems has also become a challenge. The aftermarket in the region
also lacks standards and harmonization of regulations which hinders
cross-border movement of automotive spare parts and services.

SWOT Analysis

Strength: Growing vehicle parc in
ASEAN region with increasing demand for vehicle services and spare parts.

Weakness: Shortage of skilled labor and
technicians. Lack of regulations and quality standards in some countries.

Opportunity:
Potential for investments and partnerships between global automotive companies
and local players.

Threats: Threat from low-cost counterfeit
auto parts and growing preference for new vehicles over repairs among
customers.



In terms of value concentration, the ASEAN automotive aftermarket in countries
like Indonesia, Thailand, Malaysia and Singapore accounts for over 60% of total
market worth currently. Indonesia has the largest vehicle population as well as
a thriving services industry in the region. Another fast growing market is Vietnam,
driven by strong economic growth, rising incomes and vehicle sales over the
past decade. The Vietnamese aftermarket is projected to expand at an annual
rate of over 8% during the forecast period.

Get more insights: ASEAN
Automotive AfterMarket

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