Technology has always been a powerful influence in transforming business sectors on a global scale. Among different advancing domains, the aftermarket industry is benefiting from tech evolution as well. From internal collaboration to overall consumer interaction and service structure, so much has changed drastically in the past few years.
It is safe to say that the aftermarket sector has revived itself remarkably since the onset of COVID-19. However, there is more for automotive OEMs and dealerships to discover in terms of success opportunities.
As per a recent report released by Grand View Search, certain industry trends will widely affect the market dynamics. In this blog, we will discuss those trends to explore what’s new in the automotive aftermarket and how these trends will shape the future of this niche!
Top 5 Trends in Automotive Aftermarket
Increased Demand for Spare Parts
S&P Global mentioned in a report that the average age of vehicles is rising continuously, but the availability of new models is not keeping up with this development. Therefore, it is crucial for dealerships to upgrade their resources and align with the booming demand for repair and maintenance services. It will directly introduce more opportunities for OEMs to increase the sales of spare parts and accessories.
Unavoidable Need for Digital Transformation
The aftermarket industry is evolving exceptionally in the light of the digital revolution. From online marketplace to e-commerce for spare parts, OEMs are starting to count on digital means of interaction and collaboration to provide spare parts and aftermarket services.
As per the market report of Grand View Search, this impact of digital transformation on the aftermarket sector will easily surpass USD 217 billion by 2028 in the United States. This change will also be witnessed in other major markets such as the UK, Japan, and India.
Increased Popularity of Electric Vehicles
The invention of electric and hybrid vehicles has been one of the biggest advancements in the automobile industry, laying the scope of growth for the aftermarket sector as well. The popularity of electric vehicles is on the rise which itself is a tremendous opportunity for OEMs to upgrade their inventory of spare parts and components.
The next few years of the market will see an exceptional increase in the demand for EV batteries and other specialized parts along with maintenance services for electric and hybrid automobiles. This aftermarket industry trend is also a reminder for OEMs to boost their collaboration with dealers to maintain an active sales flow.
More Focus on Sustainable Practices
From automotive manufacturing companies to dealerships, there has been a significant shift in focus on sustainability. With more and more industry leaders showing interest in eco-friendly practices, the need for adapting to sustainable operations has turned into a prominent aftermarket trend.
People around the world are becoming more aware of the necessity of choosing electric vehicles over traditional automobiles. Therefore aftermarket service providers will need to upgrade their offerings with zero-emission logistics.
Mobile-Based Service Structure
Along with a substantial change in aftermarket collaborations, a mobile-based service structure will also gain prominence among other aftermarket industry trends. The conventional service setup looks more like a complex loop which may result in downtime and delays.
OEMs and dealerships require a mobile-based infrastructure to interact more efficiently, especially when it comes to managing hundreds of repair and warranty requests each day. A multi-dimensional optimization strategy for aftermarket operations will allow OEMs to simplify the service structure and boost spare parts sales with precision.
What Should OEMs Do to Keep Up With These Trends?
While some of these trends focus on embracing sustainable business practices, certain trends also address the need for digitization. Original equipment manufacturers who look forward to keeping up with what’s new in the automotive aftermarket will need to consider an all-inclusive approach to digitization.
Leading OEMs now trust automotive aftermarket software solutions to align various operations in a methodical pattern while maintaining transparent communication with the sales network.