Whether you have a bold new car or an old modest car, you can not deny the importance of the aftermarket parts. From a car security system to a remote starter or an OBD module, the aftermarket industry is fulfilling the needs of the customers for years. This is the reason, the size of aftermarket parts has rightly swollen to 378.9Billion USD. The aftermarket industry has evolved a great deal over the years and is exploring new avenues.
Factors responsible for the automotive industry’s evolution
An interesting study published by McKinsey discusses how the automotive aftermarket industry evolved over the years.
Digitization of channels and interfaces
The industry has been able to keep up with the current market trends. Major players were able to shift their focus to digital channels. Digital channels have gained an increasing influence on customers’ research and purchase processes. This trend is not only limited to emerging markets but also in developed markets as well. Customers turn to online communities and reviews, among other digital platforms, as a way to improve their purchasing decisions.
Suppliers, OEMs, distributors, and workshop chains will continue to increase their online participation and launch new platforms. As expected the e-commerce share of parts sales will increase to 20 to 30% by 2035, a level at which it is likely to drastically high.
OEM and their expansion in the aftermarket industry
Since the age of the vehicles has increased, OEMs needed another way to generate revenue. They cannot just rely on the manufacturer to keep them afloat. For this reason, OEMs have started to invest heavily in the aftermarket industry. For OEMs in emerging markets, the numbers are even tougher due to the higher average vehicle age.
Access to car-generated data
A massive wave of new data is cresting. Today’s connected vehicle already has about 40 microprocessors and generates 25 GB of data per hour, including telematics and driver behavior data. As processes beyond the car become digitized, additional data will also be captured. OEMs and aftermarket industry giants have started to capitalize on this and have started to work with entrepreneurs to set foot in the big data industry.
Frank Schlehuber, CLEPA very rightly said
While autonomous driving and electrification receive nearly daily press attention, the most considerable game-changer for the aftermarket will be connectivity and data-based business models. It is happening now and it is developing fast.
Impact of car sharing
Even though the sales of the car manufacturers have not been increasing as they were expected to. But the usage of cars has increased significantly. Aftermarket giants and OEMs are capitalizing on this as well. As the use of the car increases the need for new car parts becomes essential. Hence, the rise of car-sharing users and professional fleets opens up new opportunities to steer and optimize maintenance and repair services.
Another upcoming topic is fleet management, in a business as well as in a customer fleet context. Companies like MoboKey have taken a step to provide a software-based solution to this. Partnerships will likely emerge between intermediaries and workshop chains, and the workflow and parts logistics can be fully automated.
These factors combined have undoubtedly laid the path of a market that is billions of dollars and has the capacity to touch a trillion in the coming years. MoboKey may not be a big player but it is working with some major players to make its mark. MoboKey has become quintessential to the car-sharing market to provide remote access to a car in the most affordable way.
Link to the report by McKinsey: Here
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