Automotive Aftermarket - Greetings from the 2021 Service Logistics Asia Summit!

High level key note speeches, workshops and a great panel discussion with global Industry Experts discussing the challenges in Service Logistics and Aftermarket have been the highlights. There are challenging times ahead for the Automotive Aftermarket. Forecasted to record valuation of USD 800 billion by 2027 (Global Market Insight Inc,. 2021) or even higher with USD 1.200 billion by 2030 (McKinsey, 2018). With huge opportunities and risks. Challenged by the need to undertake comprehensive Business Transformations. Enabled and forced by digitization and new technologies. 

Besides the mega trends in the Mobility Industry (autonomous driving, connected vehicles, shared mobility, digitization) the question is: What are the specific Aftermarket trends and game changer? Which major topics are driving the Aftermarket agenda? 

• The shift towards Electric Vehicles (EV) will change the agenda in the mobility industry resulting in a new landscape in the Automotive Aftermarket business. According to the BBC News, June 2021 “By 2025 20% of all new cars sold globally will be electric, (...) That will leap to 40% by 2030, and by 2040 virtually every new car sold globally will be electric, says UBS.”

• New digital players will enter the aftermarket resulting in a new landscape with high level of competition. This new players with Digital Business Models will play a key role in resetting the aftermarket landscape. There is no time to wait for something. The Redesign of Aftermarket Business Models and the digitization of distribution channels are ultimate success folders. 

• Consolidations / Mergers & Aquisitions will play a pivotal role as well. Aquisitions of companies, consolidation of buying groups or/and new aftermarket conglomerate's will reinforce a new market structure. Especially in mature markets (Europe, North America), the consolidations can become a game changer. 

• Expanding Sales trough OEM factory fill will be a reinforced driver for profits and changes the traditional Aftermarket structure as well. Global Market Insight Inc. (2021) reports "that Industry experts speculate the OEM factory fill segment to account for USD 60 billion by the end of 2027." 

• The development of future-ready aftermarket organisations will become increasingly important as new Aftermarket Eco Systems evolves.That covers especially the area of Aftermarket Operations Management driving Supply Chain & Logistics towards next level of Excellence.