The automotive aftermarket is expected to show strong growth from 2020 to 2026 and that's a good new for Zimbabwe economy, according to a report from Global Market Insights. The flexibility of market competition in emerging economies, such as China, India, Thailand, and Vietnam, is another contributing factor that allows producers to contribute economically to the global market, enhancing global expansion.
Technological advances accompanied by rapid transportation improvements have enabled manufacturers to offer higher quality goods faster and more efficiently. In the United States, the growing sales of used cars enable the maintenance and repair side. According to Global Market Insights, the US Bureau of Transportation citing sales of used vehicles have risen from 37,255,000 in 2015 to 40,805,000 in 2019. In addition, older cars are also considered part of the growing demand for aftermarket services.
The shift segments dominated the 2019 car dealership marketThe Alliance of American Insurers (AAI) said the price of building a car worth $ 25,000 using OEM parts could cost more than $ 100,000. An ongoing consumer lifestyle that fits the growing demand for functional gadgets supports consumer demand. The domestic service segment is leading the market due to the increasing adoption of audio / video services, garages, and switches. In addition, new fast innovations and fast prototyping allow manufacturers to meet industry needs quickly, reports Global Market Insights.
With the rapid prototyping in the auto market, Xometry Inc. noted in a post on its website that as the lifespan of machines grows, so does the need for backup parts. "Changing car parts are in high demand," Xometry said. “The US automotive industry, for example, reached $ 318.2 billion in 2013, contributing more than 2.3% to GDP. Additionally, the average age of registered vehicles in the U.S is growing and is expected to reach 11.7 years by 2019. However, the extended car length increased the window failure, which increased the need for aftermarket parts. "
Xometry highlighted the demand for aerospace aftermarket components, which is growing rapidly, “the average age of the world's five largest aircraft carriers was 12.2 years. Xometry is a manufacturer that specializes in 3D printing through different processes. In addition, they also provide injection molding services. OEMs got the opportunity to profit from the production and sale of aftermarket components while protecting their intellectual property and preventing competition from third-party manufacturers who reverse-engineer and sell parts at OEM prices- unable to cope with traditional manufacturing methods.
Hedges & Company, a digital automotive marketing and research agency, has stated in its latest report, "Automotive Aftermarket: Transforming the Auto Parts Market 2021." It said personal use of car parts peaked in June 2020, reaching $ 50.509 billion repaired; July to $ 49.884 billion, and August to $ 50,303 billion.
According to Hedges' research, the market size of North American online car parts will be around $ 26 billion by 2021. Furthermore, it will increase by 30% or more from 2020. the entire automotive industry, including medium and heavy work, will be approximately 388 billion by 2021.
