Contactless Delivery of Parts and Services to Trigger a $75-Billion Market Opportunity in the Global Aftermarket Sector by 2025

Contactless Delivery of Parts and Services to Trigger a $75-Billion Market Opportunity in the Global Aftermarket Sector by 2025

PR Newswire

SANTA CLARA, California, Oct. 8, 2020

Health and wellness in-car care and digitization will be key to mitigating the impact of COVID-19 on the industry, says Frost & Sullivan

SANTA CLARA, California, Oct. 8, 2020 /PRNewswire/ -- According to Frost & Sullivan's recent analysis, Digital Business Models Mitigating COVID-19 Implications on Global Aftermarket Performance in 2020, aftermarket revenue expanded by 4.1% in 2019. This was largely driven by a 3.2% growth in vehicles in operation, with the contraction in global gross domestic product (GDP) growth stifling consumer expenditure on new vehicle purchases. For 2020, the market was initially forecasted to grow at a healthy 4%; however, following muted consumer demand and supply-chain disruptions caused by the COVID-19 pandemic, it is now expected to contract between 4.9% and 11.6%. New aftermarket demand pockets will rise from the need for customer safety and wellbeing, creating a $75-billion market opportunity for contactless delivery of parts and services by 2025.

Photo - https://mma.prnewswire.com/media/1309454/Global_Aftermarket_Performance_post_COVID_19.jpg  

For further information on this analysis, please visit: http://frost.ly/4i6 

"The global automotive aftermarket is at a crossroads and has severely impacted stakeholders at all levels. Supply chain reorientation, financial aid to channel partners and the digitization of traditional business models and services can help mitigate some of the adverse effects of the pandemic," said Anuj Monga, Research Manager, Automotive & Transportation at Frost & Sullivan. "Increased awareness about the significance of social distancing and enhanced personal hygiene is expected to drive service providers to adopt digitization of the aftermarket ecosystem as customers will prefer contactless provision of services at their preferred locations, thus diminishing footfalls at workshops. A whole new segment of health and wellness in-car care is opening up and looks promising well beyond the immediate aftermath of the crisis."

Monga added: "There is ample scope for turning adversity to advantage if appropriate investments are channeled towards the digitization of existing business models. E-retailing of parts and accessories, the uberization of vehicle services on aggregator platforms, and on-demand services are expected to be bright spots in an otherwise dismal business environment."

The global aftermarket performance is expected to temporarily shrink post-COVID-19. However, to mitigate risks, companies in this sector should take advantage of the growth opportunities by:

Digital Business Models Mitigating COVID-19 Implications on Global Aftermarket Performance in 2020 is part of Frost & Sullivan's global Automotive and Transportation Growth Partnership Service program.

About Frost & Sullivan

For over five decades, Frost & Sullivan has become world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion.

Digital Business Models Mitigating COVID-19 Implications on Global Aftermarket Performance in 2020
K527-18

Contact:

Zuzana Zukarnain
Corporate Communications
Phone: +60192657808
Email: zuzana.zukarnain@frost.com

http://www.frost.com

Voltar noticias em Inglês