by The growing vehicle parc across Southeast Asian countries due to rising incomes and ownership rates has significantly driven the demand for aftermarket products in the region.
ASEAN Automotive AfterMarket is estimated to be valued at US$ 33.07 Bn in 2024 and is expected to exhibit a CAGR of 6.5% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the ASEAN Automotive AfterMarket are Dentsply Sirona Inc., Ivoclar Vivadent Ag, GC America Inc., Kulzer GmbH (Mitsui Chemicals, Inc.), Modern Dental Group Limited, COLTENE Group, VITA Zahnfabrik, Amann Girrbach AG, Formlabs, DIO Corporation, Shofu Inc., and Lang Dental Manufacturing Company, Inc. These companies dominate the market with their diverse product portfolios and strong distribution networks across the region.
The growing vehicle parc across Southeast Asian countries is a major factor driving demand in the ASEAN Automotive AfterMarket. As economies grow and household incomes rise, vehicle ownership rates are increasing which is expanding the existing vehicle fleet. This large and increasing vehicle population requires regular maintenance and repair work which fuels the aftermarket.
The ASEAN Automotive After Market Size is also witnessing significant growth due to the expanding global operations of leading players. Several international brands are investing heavily in Southeast Asia to leverage the high growth potential. They are establishing R&D centers, manufacturing plants and distribution networks within ASEAN countries to cater to the local demand. This is improving access to both international and local aftermarket products.
Market key trends
E-commerce is emerging as a key trend in the ASEAN Automotive AfterMarket. Both international and local e-tailers are offering a wide selection of aftermarket parts, helping buyers to conveniently source products online. This is benefiting consumers in remote areas with limited access to physical stores. The increasing internet and smartphone penetration in Southeast Asia is supporting the rise of online platforms, making e-commerce an important sales channel.
Porter’s Analysis
Threat of new entrants: Low cost of production and price competition in the ASEAN region attracts new entrants in the market.
Bargaining power of buyers: Buyers have high bargaining power due to availability of substitute and quality products from local and international brand.
Bargaining power of suppliers: Local automotive parts suppliers have moderate bargaining power due to availability of alternative suppliers in the region.
Threat of new substitutes: Moderate threat as hybrid vehicles gaining popularity but combustion engine vehicles still dominating the market in ASEAN region.
Competitive rivalry: Intense competition among local and international brands to capture market share in fast growing ASEAN automotive aftermarket.
Geographical Regions
The ASEAN automotive aftermarket in terms of value is highly concentrated in Thailand, Indonesia and Malaysia. Thailand dominates the ASEAN automotive aftermarket with a value share of over 35% in 2024 owing to large production of automotive parts and presence of major OEMs and suppliers in the country. Indonesia and Malaysia together accounted for more than 40% share of the total ASEAN automotive aftermarket in 2024 due to growing vehicle parc and demand for replacement parts and services.
Vietnam is projected to be the fastest growing country for ASEAN automotive aftermarket during the forecast period of 2024-2031. The aftermarket is projected to grow at a CAGR of over 9% in Vietnam till 2031. Factors such as increasing disposable income, rising vehicle sales and expansion of domestic production facilities by OEMs are expected to drive the growth of the aftermarket in Vietnam.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
