APEJ Automotive Aftermarket to Accelerate Growth with Expanding Opportunities for Manufacturers

The Asia Pacific excluding Japan (APEJ) automotive aftermarket is entering a new phase of growth and transformation. Valued at USD 205.7 billion in 2025, the sector is projected to expand to USD 344.7 billion by 2035, achieving a compound annual growth rate (CAGR) of 5.3%. This momentum is underpinned by surging vehicle ownership, an aging vehicle fleet, and rising demand for cost-effective repair and maintenance services.

For manufacturers, the scale and pace of this market present both opportunities and challenges. Countries such as India, Indonesia, Vietnam, and Thailand are experiencing a surge in private and commercial vehicle use, driving sustained demand for replacement parts, diagnostic tools, tires, and lubricants. The need for reliable, accessible aftermarket solutions has never been greater.

Manufacturers at the Center of Vehicle Uptime

As ride-hailing services, logistics providers, and commercial fleets expand, vehicle uptime has become critical. This has accelerated demand for frequent aftermarket servicing across passenger and commercial vehicles alike. Preventive maintenance and affordable service alternatives beyond authorized dealership networks are now shaping consumer behavior.

Manufacturers who align with this shift by delivering durable parts, efficient diagnostics, and dependable servicing options are positioning themselves at the forefront of the aftermarket’s evolution.

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 Transformation Through Technology and Localization

Digital platforms, new service models, and localized supply chains are redefining the aftermarket landscape in APEJ. Manufacturers are expanding their reach through multi-brand workshops, service aggregators, and e-commerce channels that provide both convenience and competitive pricing.

Companies like Bosch, Denso, and TVS Automotive Solutions are pioneering initiatives that streamline distribution, leverage predictive diagnostics, and form alliances with local garages. These efforts are strengthening trust, accessibility, and service quality across urban centers and remote regions alike.

Unlocking High-Growth Segments

Analysis of key categories reveals where manufacturers should focus their investments. The parts segment—covering essentials such as tires, batteries, filters, lubricants, and wear-and-tear components—is forecast to grow at a CAGR of 6.2% through 2035. Passenger cars, projected to grow at 5.7% CAGR, represent another robust avenue for aftermarket expansion, particularly in emerging economies where ownership is rising rapidly.

Commercial vehicles, meanwhile, continue to fuel steady demand for high-frequency maintenance products, particularly batteries, lubricants, and transmission system services. For manufacturers, both passenger and commercial vehicle segments provide resilient and scalable growth pathways.

Regulatory Drivers and the Rise of Electrification

The aftermarket is also being shaped by regulation and electrification. Government policies enforcing stricter emission standards, vehicle inspections, and scrappage programs are amplifying demand for compliant components such as sensors, exhaust systems, and emission-control units.

At the same time, electric vehicles (EVs) are opening entirely new aftermarket frontiers. Demand for battery servicing, EV diagnostics, and thermal management systems is expected to surge as electrification accelerates across China, India, and Southeast Asia. Manufacturers equipped to deliver EV-specific parts and solutions are poised to capture a significant share of this emerging segment.

Regional Growth Hotspots

The pace of growth varies across APEJ markets, creating diverse opportunities. Indonesia leads with a projected CAGR of 7.0%, followed by Australia and New Zealand at 6.6%. India, a rapidly growing automotive hub, is forecast to reach USD 62.1 billion by 2035, expanding at 4.2%. Meanwhile, South Korea’s strong focus on technology and China’s rapidly expanding service network continue to underpin steady aftermarket demand.

For manufacturers, these markets present distinct opportunities—whether through scale in India and China, or innovation-led growth in South Korea and developed markets like Australia and New Zealand.

Challenges Driving Innovation

The complexity of modern vehicles presents challenges for service providers, but also opportunities for manufacturers. Advanced systems such as hybrid engines, autonomous driving technologies, and connected vehicle features require specialized diagnostics and skilled technicians. This environment creates demand for advanced tools, precision-engineered components, and continuous technical support from manufacturers.

By investing in training programs, digital diagnostics, and high-performance parts, suppliers can strengthen their relationships with workshops and ensure readiness for the next generation of vehicles.

Building the Future of APEJ’s Aftermarket

Between 2020 and 2024, the APEJ automotive aftermarket grew steadily at a CAGR of 4.5%, rising from USD 162.5 billion to USD 195.3 billion. Looking ahead, the period from 2025 to 2035 marks a decisive shift, with the rise of EVs, stricter regulations, and digitalization driving a more dynamic aftermarket ecosystem.

Tier-1 manufacturers already account for up to 30% of the market, but the majority—70% to 80%—is captured by Tier-2 and local players. For both established brands and emerging suppliers, the market’s future growth hinges on innovation, accessibility, and collaboration with workshops and service networks.

A Growth Engine for Manufacturers

The APEJ automotive aftermarket is more than a support system for vehicles—it is a growth engine for manufacturers ready to innovate and adapt. By aligning with rising consumer expectations, advancing electrification, and embracing new service models, manufacturers can play a pivotal role in shaping a sustainable, profitable future for the region’s mobility ecosystem.

About Future Market Insights (FMI)

Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analystsworldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.

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