Will YOUR Organization survive the Aftermarket Mobility Transformation?
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Strategic
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Growth
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The Yellow Brick
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Transformational
Growth
Strategic Imperatives For Aftermarket Mobility
Adapting to the digitization of customer journeys across industries and sectors, leveraging innovative tools to fulfil evolving customer expectations.
Integrating disruptive technologies like artificial intelligence (AI) and wireless connectivity to accelerate innovation in diagnostics and serviceability.
Capitalizing on strategic partnerships with ecosystem players in fleet management, software, telematics, and shop management solutions to drive enhanced brand promotion.
How do you shift from where you are to what you want to become? How do you fill the gap?
Based on those strategic imperatives the gap between where you are now and where you need to be to achieve transformational growth is daunting.
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The Three Components Required for Transformational Growth
Growth Opportunities for Aftermarket Mobility
Digital Retail of Parts Across Channels
The online sale of vehicle replacement parts and accessories is increasingly becoming a mainstream distribution channel in the B2B and B2C automotive aftermarket sector.
Uberization of Vehicle Services
The use of innovative web-based applications for on-demand booking of vehicle services is fast emerging as a promising opportunity, as customers seek increasing levels of convenience.
The Proliferation of Electric Vehicles
This is unlocking new prospects for replacement components, battery diagnostics services, and 4R services.
ADAS-equipped Vehicles
The emergence of advanced driver assistance systems (ADAS) increases the replacement and servicing need for sensors, radars, cameras, and sensor re-calibration services.
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Driving Forward: Aftersales Innovation in the Electric Vehicle Era
Seamless Support for Autonomy: New Aftersales Avenues for Autonomous Vehicles
E-commerce in New Vehicle Retail - A Disruptive Force or Temporary Fad?
How Will the Implementation of Right to Repair Revolutionize Mobility?
Closing the Loop: How to Embrace the Circular Economy in the Mobility Aftermarket
How Does Consolidated Fleet Demand Drive Innovations in the Aftermarket?
How Can Aftermarket Providers Capitalize on the Proliferation of Electrified Commercial Vehicles?
How Evolving Buying/ Ownership Models Transform Off-Highway Equipment Aftersales?
Seizing New Applications & Opportunities in Automotive Tools & Equipment Manufacturing
How Can Data Monetization Revamp Downstream Mobility Channels?
Electronics Boom in New Vehicles: Will Dealerships Outpace the Independent Aftermarket?
Heavy Duty Diagnostics: A Lucrative Opportunity or an Independent Aftermarket Pain-point?
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Navigating the Evolving Landscape of the Automotive Aftermarket Sector
Navigating the Evolving Landscape of the Automotive Aftermarket Sector
The automotive aftermarket sector has witnessed a significant transformation driven by transformative megatrends and disruptive technologies in recent years, driven by the changing preferences and expectations of modern consumers. Today, consumers are more demanding than ever when it comes to after-sales operations. The availability of auto services and products at the right place and at the right time is key to securing customer loyalty and profitability. The automotive aftermarket, traditionally considered the secondary market, has now evolved into a customer experience-centric value proposition, leveraging innovative business models and digital technologies to unlock new business opportunities.
“Global Automotive Aftermarket expected to record 7.7% year on year growth, driven by the Chinese Aftermarket” – Frost and Sullivan (Global Automotive Aftermarket Outlook, 2023)
- How is your leadership team responding to the customer-centric shift in the automotive aftermarket driven by digital technologies?
- What steps is your organization taking to ensure the timely availability of auto services and products, and how does this impact customer loyalty and profitability?
Navigating Change and Collaboration in the Automotive Aftermarket
The Aftermarket sector stands at a crossroads where wise decisions and timely actions can either propel it forward or leave it in the dust. One of the key drivers of change in this landscape is the rise of electric vehicles (EVs). As EVs become more prevalent, the traditional parts and services offered by the aftermarket for internal combustion engine (ICE) vehicles will need to evolve in order to remain relevant in the changing automotive landscape. This necessitates a critical reassessment of the automotive aftermarket’s competitive strategy to ensure its continued relevance in the evolving automotive landscape.
- How is your organization adapting to the increasing prevalence of electric vehicles in the automotive aftermarket?
- What steps are you taking to reassess your competitive strategy for continued relevance in the evolving automotive landscape?
Original Equipment Manufacturers (OEMs), the primary manufacturers of vehicles, are also making aggressive moves to enter the aftermarket space. This shift has the potential to disrupt the traditional aftermarket players, but it can also lead to beneficial collaborations and partnerships. The rise of OEMs in the aftermarket reflects the growing importance of providing comprehensive services and products to consumers throughout the entire lifecycle of their vehicles opening up new growth opportunities for the industry.
- How is your organization adapting to the changing automotive industry, especially with the rise of electric vehicles in the aftermarket?
- How are you preparing for competition or collaboration with OEMs in the aftermarket, as they expand their offerings for the entire vehicle lifecycle?
One of the most significant factors affecting the automotive aftermarket is the in-depth penetration of digitalization. The advent of digital technologies has enabled aftermarket businesses to streamline their operations, enhance customer engagement, and create personalized experiences. With the help of data analytics and smart systems, companies can anticipate consumer needs and tailor their offerings accordingly.
In addition, digital platforms have made it easier for consumers to access information about auto products and services. They can read reviews, compare prices, and make informed decisions, making it imperative for aftermarket businesses to maintain a strong online presence. These platforms have also opened up new avenues for marketing and reaching a broader audience.
- How is your organization using digitalization to improve customer engagement in the automotive aftermarket?
- What steps are you taking to maintain a strong online presence and reach a broader audience in the aftermarket using digital platforms?
Adapting to the Future and Navigating Growth Gaps by Forging Partnerships
Growth gaps in the aftermarket sector are prevalent due to a combination of factors. Rapid technological advancements often outpace the sector’s ability to adopt and integrate new solutions, creating a technology lag. The Aftermarket sector’s vast data potential remains underutilized, with many businesses failing to harness analytics for predictive maintenance or inventory management effectively. Environmental concerns and sustainability expectations introduce another gap, as companies struggle to meet stringent regulations and provide eco-friendly solutions necessitating a focus on implementing and sharing best practices across the industry.
- How are your stakeholders bridging growth gaps in the aftermarket sector, especially in technology adoption, data utilization, and sustainability compliance?
Evolving consumer behaviour, characterized by demands for convenience, speed, and transparency, present additional challenges. Furthermore, fierce competition within the sector poses barriers to smaller players. Closing these growth gaps will necessitate a focus on forging strong partnerships. n a world increasingly focused on sustainability, strategic partnerships with eco-friendly entities offer a competitive edge by helping companies meet stringent environmental regulations. Moreover, strategically aligning with partners to meet evolving customer expectations for convenience, speed, and transparency positions businesses for sustainable growth.
- How is your organization forming partnerships to meet evolving customer expectations and sustainability requirements in a competitive aftermarket landscape?
CAN FROST & SULLIVAN BE YOUR PARTNER OF CHOICE FOR GROWTH?
Frost & Sullivan has six decades of experience analysing industry transformation and identifying innovative growth opportunities. Allow us to guide you through your transformation journey by working collaboratively with the ecosystem community of companies in your industry. Our transformation journey is fuelled by four powerful components, ensuring your success in navigating the ever-changing landscape of your industry.
- Schedule a Growth Dialog with our team to dive deeper into transformational strategies and explore specific needs within your company.
- Become a Frost Growth Expert in your area of specialization and share your expertise and passion with the community through our think tanks.
- Join Frost & Sullivan’s Growth Council and gain access to think tanks focused on the transformational growth strategies of the aftermarket industry.
- Designate your company as a Company to Action to increase exposure to investors, new M&A opportunities, and other growth prospects for your business.