Automotive Fluid Aftermarket: Introduction
- Automotive fluids are used to power, lubricate, cool, and perform other vital operations. Optimal levels of automotive fluids ensure that the vehicle is in proper working condition. These fluids degrade or get depleted along with the use of the vehicle and miles traveled, thereby generating a need to replenish these fluids. This is fueling the demand for automotive fluids in the aftermarket segment, as fluid maintenance.
Key Drivers of Automotive Fluid Aftermarket
- Transportation and logistics activities are increasing across the globe due to growing globalization and cross-border trade activities. For instance, the European Union stated that road freight transport increased by 0.2% in 2018 and is further anticipated to increase by 33% by 2030. This rise in transportation activities leads to an increase in the number of miles traveled and carrying of higher loads, thus depleting automotive fluids and hampering the efficiency of vehicles. Vehicle fleet operators are adopting preventive maintenance by timely refilling automotive fluids in order to avoid costs and time associated with vehicle breakdown and loss of efficiency. Thus, the need to keep the fleet of vehicles in optimal working condition in order to cater to an increase in transportation activities is driving the global automotive fluid aftermarket.
- Transportation is a leading cause for rise in levels of pollution worldwide. Tailpipe emissions such as carbon dioxide, nitrogen oxides, hydrocarbons, carbon monoxide, and sulfur dioxide cause respiratory illnesses, heart conditions, and mental illness, which results in increased healthcare burden. The European Environment Agency stated in a report of 2018 that emissions from vehicles have worsened air quality levels across Europe resulting in more than US$ 80 billion of healthcare costs. Amidst these concerns related to pollution, government authorities have introduced multiple regulatory reforms on the emission levels of vehicles. Such emission norms enacted by governing bodies are boosting the demand for several types of automotive fluids associated with engine that help minimize vehicle emissions.
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Challenges in Automotive Fluid Aftermarket
- On-going developments in the automotive sector such as electric cars and automatic transmission have reduced the number of moving parts in vehicles and hence, lowered the consumption of lubrication oils. These developments have restrained the global automotive fluid aftermarket.
- Lack of awareness about benefits of timely replacement of automotive fluids and the high cost associated with frequent intervals of replacement is hindering the global automotive fluid aftermarket
- The recent outbreak of COVID-19 pandemic affected national as well as international supply chains, thus creating a shortage of aftersales automotive fluids. However, demand for automotive fluid in the aftermarket is anticipated to increase, as governments are lifting restrictions imposed to contain the coronavirus infection.
Opportunities in Automotive Fluid Aftermarket
- Synthetic-based automotive fluids are gaining popularity which offer enhanced performance and are less volatile; hence, provide better cost-efficiency to customers in terms of maintenance and operation costs. These synthetic-based fluids are expected to offer significant opportunities in the global automotive fluid aftermarket.
- Increase in penetration of digital technologies is transforming the traditional practices of automobile maintenance. Companies providing automotive fluids in the aftermarket segment are adopting digital channels to cater to the needs of new-age, tech-savvy consumers. For instance, Valvoline Inc. is providing engine oil change service through a mobile app, while Royal Dutch Shell plc partnered with Nephonine Solutions Private Limited to provide vehicle maintenance and automotive fluid replacing services through its web portal. This penetration of digital technologies is anticipated to fuel the share held by online sales channel segment of the global automotive fluid aftermarket during the forecast period.
Automotive Fluid Aftermarket in Asia Pacific to Expand Significantly
- The market in Asia Pacific is anticipated to expand at a high growth rate due to a rise in disposable income of people, which has increased the number of vehicle owners in the region. Moreover, growing industrialization has boosted the number of commercial vehicles operating in the region. This rise in number of vehicles is attracting companies to launch novel automotive fluid offerings for aftermarket maintenance. For instance, Schaeffler India Limited’s aftermarket division launched a wide range of automotive lubricants under the brand TruPower, in October 2020. These factors are anticipated to collectively drive the share held by Asia Pacific in the global automotive fluid aftermarket during the forecast period.
Key Players Operating in Automotive Fluid Aftermarket
The automotive fluid aftermarket is highly concentrated due to the presence of top manufacturers. A few of the key players operating in the automotive fluid aftermarket are:
- ANAND Group
- Brad-Chem Ltd
- CASTROL LIMITED
- Chevron Corporation
- Exxon Mobil Corporation
- Hinduja Group
- LIQUI MOLY GmbH
- PETRONAS Lubricants International
- Royal Dutch Shell plc
- Schaeffler India Limited
- SolvChem Custom Packaging Division
- Valvoline Inc.
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Global Automotive Fluid Aftermarket: Research Scope
Global Automotive Fluid Aftermarket, by Source
- Synthetic Base
- Mineral Base
- Others (Mixed Base)
Global Automotive Fluid Aftermarket, by Type
- Engine Oil
- Motor Oil
- Brake Fluid
- Transmission Fluid
- Power Steering Fluid
- Battery Fluid
Global Automotive Fluid Aftermarket, by Propulsion
- Internal Combustion Engines
- Battery Electric Vehicle (BEV)
- Hybrid Electric Vehicle (HEV)
Global Automotive Fluid Aftermarket, by Vehicle
- Passenger Vehicle
- Commercial Vehicle
- Light Commercial Vehicle
- Heavy Commercial Vehicle
Global Automotive Fluid Aftermarket, by Sales Channel
- IAM Product Line
- Single Brand Stores
- Multi Brand Stores
- OES Product Line
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