How auto aftermarket and feeding industries are positioned 2023

The world's habits are changing

Automotive aftermarket and feeding industries represent the secondary market supporting the vehicle production sector. After selling the vehicle by the original equipment manufacturer (OEM) to the consumer, this huge market involves producing, remanufacturing, distributing, selling, and installing all automotive parts, chemicals, equipment, and accessories. At the international level, the Certified Automotive Parts Association (CAPA) develops aftermarket part specifications due to its strict high
standards and quality testing, especially in terms of safety. 

Everybody who owns a car or performs routine maintenance and upgrades has probably bought an aftermarket product. What is unique about the aftermarket industry is that you can find the part you are looking for at any price.

Let’s understand how it is important to consumers, retailers, the automobile industry, and economies!

Global overview of automotive aftermarket

The outbreak of coronavirus worldwide has had a negative impact on the industry, resulting in a sharp drop in demand and widespread interruption to the supplychain. It has put additional pressure on the already stressed global automotive market. Yet, there are high expectations of recovery and restoring production. The size of the worldwide automotive aftermarket is expected to increase by USD 164.58 billion from 2022 to 2027, according to Technavio. 

Changes and new trends

According to a report issued by the McKinsey Center for Future Mobility (MCFM), the automotive aftermarket is a sector that has regularly and significantly increased profits for the entire auto industry. Now, it is undergoing major changes, including client expectations, faster adoption of new technologies, and shifts in competition. As a result, this transformation will impact value generation and organizational structures.


Leading changes and trends influencing the market

1. Digitalization of interfaces and channels

2. The significance of professionally run fleets

3. Development of emerging markets with a new focus on services

4. Emergence of advanced tech in auto sector

5. Decline in profits due to the conversion of systems to the use of electrical power

6. More importance is given to new software

7. Autonomous driving causes fewer accidents but requires less frequent maintenance

8. Changes in competition due to the emergence of new competitors (automotive spare part sales on e-commerce websites have recently surpassed the ones generated by the traditional methods. Also, vendors attract online buyers by publishing comprehensive

Why is the industry more likely to go digital?

There are several factors impacting the whole process as follows:

1. There is potential to shorten the value chain by using several distribution channels. 2. New players and logistical models entering the market (e.g. large-scale online merchandisers)

3. Increasing digital access among B2B and B2C users

Why will buyers increasingly shift to e-commerce?

- Many buyers nowadays shift to online channels to get a better idea of prices, quality, and reviews. In the UK, France, and
Germany, more than a quarter of aftermarket customers use internet resources to research factories. Also, more than a third use digital tools to guide their purchase of auto parts.

- Today, factories almost use traditional methods to buy auto components, with 85-95% of all purchases made on their B2B platforms or through physical channels. However, in the future, they are expected to engage more in e-commerce as end users increasingly depend on digital platforms to make part purchases online (e.g. via Amazon or eBay).

How global updates benefit this industry in Egypt

The autoaftermarket and feeding industries continue to be impacted by changes in the whole sector and overall economic conditions in general. Businesses need to understand where the market is going in order to remain competitive. That also helps aftermarket companies make informed business decisions and be on the right track.

Egypt four-wheeler aftermarket overview

Egypt's automotive aftermarket is expanding and has been one of Africa's most attracting sectors due to the country's rising vehicle ownership and sales. With over six million vehicles on the country's roadways, Egypt currently has one of Africa's largest fleets, which has benefited the aftermarket. According to Egypt Four-Wheeler Automotive Aftermarket Service Industry Outlook to 2027, the sector will see further expansion; thanks to a growing population, increased car sales, and government initiatives to reduce vehicle emissions. That has accelerated the rise of the Egyptian market for automobile parts and accessories. In addition, the country is gradually replacing internal petrol engines with more environmentally friendly alternatives. Also, the government has recently offered finance options to encourage consumers to replace their old vehicles with new ones powered by natural gas engines as part of its green program incentives. According to revenue, the market size is expected to achieve an annual growth rate of about 19%. Between 2021 and 2027E, the number of four-wheeler parks in Egypt is expected to rise at an annual growth rate of about 5%.

How e-commerce influences the industry

Platforms like Odiggo, Tawfiqia, and Egyparts are becoming more widely known to the public, indicating an increasing tendency in the Egyptian aftermarket in the e commerce channel. The sector is growing and will provide numerous opportunities for local manufacturers, distributors, and service providers.


The Egyptian automotive aftermarket and feeding industries still need support i.e. much work to be done to benefit from the expansion in the sector. As part of its leading role to gather the biggest trade professionals in the automotive aftermarket and feeding industries, Autotech will help you network with major players in the industry to grow your businesses and learn more about market outlook and trends. For more information about the huge event, industry insights, trends, and news, Get a Call:Stand Enquiry | Autotech (