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.
“The global automotive aftermarket is at a…
