Industry
Manufacturing
Future-Ready Manufacturing: Partnering in your journey to a sustainable manufacturing enterprise
Highlights
- Digital solutions are reshaping the aftermarket while adding complexity to fast-changing customer demand.
- Manufacturers must address supply chain disruption, inventory pressures, rising costs and technology gaps while tracking customer trends to deliver consistently high-quality products and services.
- GenAI synthesises real-time manufacturing data into actionable insights, enabling faster decisions and stronger competitive advantage.
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Overview
In the coming years the global market for aftersales is projected to reach USD 568 Bn mark with a CAGR of 3.5%. The aftermarket business is a continuous marketplace for parts and accessories for automotive customers. Even after a vehicle is discontinued, it is imperative that such services to support repair and maintenance of automobiles are required to achieve maximum customer services.
The following are some of the key growth factors that will lead to an increase in the aftermarket:
Digitalisation of sales and services
The digital era is revolutionising the global automotive market by improving stakeholder connections, efficiency and customer experience. This will further improve channels such as online marketplaces and mobile applications for reviewing options, purchasing, and scheduling the delivery of parts and services.
Imagine a customer whose car no longer fits their lifestyle. As they browse online, personalised guidance narrows the options, while timely offers, flexible finance and service packages ease the decision. After purchase, helpful reminders, practical tips and on-demand support continue the journey—turning a transaction into a lasting relationship.
In addition, automation minimises the need for physical store visits and reduces supplier costs, enabling more competitive offers. Digital solutions provide real-time updates on customer orders, manage inventories and deliver personalised recommendations based on customer preferences and vehicle specifications.
On-demand customisation
Growing interest in personalisation reflects the unique styles and preferences, driving the demand for aftermarket parts and accessories. This is expanding the range of products, from performance enhancements to modifications in appearance and feel, and is inspiring more customers to explore vehicle customisation.
Complexity in new cars
The increasing complexity of modern vehicles presents a challenge for the aftermarket industry. Advanced and specialised components make it more difficult for independent repairers to diagnose issues and service customers’ vehicles.
Connected ops
The automotive aftermarket industry experiences growth propelled by vehicle aging.
As vehicles age, worn brakes, tyres and other components require more frequent repair or replacement. Rising ownership and longer vehicle lifespans sustain aftermarket demand, creating growth opportunities for providers while helping customers keep vehicles safe and reliable.
Challenges
Despite its growth potential, the automotive aftermarket presents challenges that OEMs must overcome to increase revenue.
Fragmented aftermarket industry: The automotive aftermarket is not supported solely by OEMs; many third-party manufacturers also serve this market. They provide cost-effective alternatives to OEM parts and accessories.
Counterfeit products: Counterfeit parts and accessories are flooding the market, making it difficult for OEMs to curb their sale and protect revenue. OEMs must educate consumers about the benefits of genuine spares and help them distinguish original products from counterfeit ones.
Availability: Consumers often find it difficult to purchase original spares because they are available only through authorised dealers. As a result, many independent service providers rely on third-party spares. OEMs should consider expanding channels such as e-commerce.
Rising customer expectations: With advances in technology, customers expect seamless after-sales service. Acquiring customers is more costly than retaining them, so OEMs should focus on maximising revenue from existing customers.
Inventory management: OEMs often need help managing inventory because they must handle many SKUs and constantly fluctuating stock levels. High inventory costs can result in some OEMs neglecting this market.
Emerging tech
Emerging technologies such as blockchain, AI and IoT are transforming the automotive aftermarket.
These capabilities enable predictive maintenance, allowing vehicles to anticipate issues and support proactive repair planning. Data-driven analytics enhance inventory planning by ensuring the right parts and quantities are available, reducing vehicle downtime. Technologies such as blockchain strengthen supply chain transparency and security by helping to prevent counterfeit parts and build trust among stakeholders. By adopting these technologies, the automotive aftermarket can reduce costs, drive innovation and improve customer satisfaction.
These instances highlight how the automotive ecosystem is transforming as the boundaries between the automotive and tech industries becoming increasingly blurred.
The shift creates opportunities for designing vehicles defined with software capabilities that automakers have been conceptualising with vehicles supported by over-the-air (OTA) technology. A highly connected vehicle, capable of updating itself faster and more easily through to a centralised architectures, enables the integration or modifciation of on-board applications throughout its lifecycle.
Some of the use cases that OEMS can consider:
Digital agent: GenAI can provide hyper-personalised recommendations based on vehicle data and customer preferences. AI tools can generate tailored suggestions that simplify purchasing. GenAI can also enhance chatbot performance.
Claim management: AI solutions can help OEMs prevent fraudulent claims by analysing data patterns and identifying anomalies. This can save OEMs significant time and money. AI can also improve claims processing.
Support on the go: Field service technicians can use AI-powered search to find solutions to vehicle issues and accelerate troubleshooting. This enables them to analyse vehicle performance, create action plans and improve service outcomes.
Service contract management: Blockchain and AI can support reliable, optimised service contracts. AI tools can generate customised contracts based on customers’ needs and usage.
OEMs can prioritise these high-impact use cases to unlock near-term value without significant capital investment.
Outlook
In summary, connected vehicle architecture is exceptionally complex across manufacturing and operations. However, emerging technologies and greater standardisation in design processes could reduce this complexity by addressing key challenges faced by carmakers and equipment manufacturers.
The growing complexity of decentralised, domain-based architecture is driven by space and connectivity constraints, rising demand for network cabling, more ECUs and an expanding array of sensors within the vehicle body.
Faster time-to-market is also essential amid tougher competition and increasingly complex and costly development projects.
Vehicles on the road are ageing, while rapid technological advances and evolving safety standards accelerate the depreciation of their residual value.
Computing power must also increase to meet growing consumer demand for today’s ADAS and semi-autonomous vehicles, and tomorrow’s fully autonomous vehicles.
This shift is already underway, with the automotive ecosystem bringing technology players together with traditional manufacturers and equipment suppliers.