Telematics, e-commerce and 3-D printing will form key foundations in the evolution of the original equipment manufacturer (OEM) aftersales channel, with OEMs attempting to integrate all aftersales services into a single digital platform, Frost & Sullivan says in its 2018 Global Automotive Aftermarket Outlook.
Frost & Sullivan expects global automotive aftermarket demand to increase by 4.4 percent during 2018, with a slowdown anticipated in some developed markets. Participants in the OEM aftermarket that embrace potential data-monetization opportunities that can be optimized by enhanced customer accessibility, widening B2B networks and expanding product and service portfolios will capitalize on current value-add opportunities and ensure future success, the firm asserts.
“The development of applications to leverage data collection from on-road vehicles will open up opportunities for data monetization with service providers aiming to deliver innovative predictive maintenance solutions around this trend,” said Vasudevan Rajesh, mobility senior industry analyst at Frost & Sullivan.
Frost & Sullivan’s analysis identifies the size of the global automotive parts and services aftermarket and its growth opportunities in 2018. Analysis of vehicles in operation and replacement rates, industry trends, challenges, market size potential, the impact of mega trends and major benchmarks are assessed across America, Europe, China, Latin America and India.
Frost & Sullivan offers five ways to leverage growth opportunities in the global automotive aftermarket sector:
- Develop localized offerings for repair and maintenance solutions in emerging high-growth markets.
- Adopt original equipment service channel engagement by developing e-retailing to boost online sales.
- Build innovative business models and solutions to leverage the potential of data monetization.
- Invest in manufacturing newer replacement parts to tap into the popularity of alternate powertrain vehicles.
- Manage global supply chains to maximize the incentives of globalization.
“A slowdown in replacement demand in some developed markets, including the United States and Western Europe, will impact overall aftermarket growth,” noted Rajesh. “This trend has forced the automotive aftermarket to look toward expanding in emerging markets like China, India and Eastern Europe.”