The importance of the independent aftermarket in Europe has been highlighted in a new Roland Berger study at the recent FIGIEFA Conference in Brussels.

Roland Berger is one of the world’s leading strategy consultancies. It’s study focused on the crucial contribution of the Independent Multi-brand Automotive Aftermarket (IAM) to Europe’s economy and mobility for all. It surveyed 380 wholesale distributors from within FIGIEFA's membership and conducted 25 expert interviews with CEOs of independent parts distribution groups and aftermarket suppliers.

Some of the key findings were: 

• 82% of all vehicle workshops in the EU are not brand-affiliated. 
• 62% of the market volume of spare parts and components are sold in the independent aftermarket. 
• The IAM is worth some EUR 73 billion per year, excluding labour. 
• The sector supports some 1.1 million jobs across the EU. 
• There are around 280,000 independent workshops. 
• There are almost 280 million passenger cars and commercial vehicles on European roads, of these 190million are over 4 years old. 
• Wholesale distributors source on average more than three quarters of their parts from Tier-1 original equipment suppliers (OESs) and independent manufacturers of branded spare parts.

The report says that the majority of vehicles in the EU are serviced by the multi-brand independent aftermarket, particularly as vehicle manufacturers (OEMs) continue to reduce the numbers of their own sales and service locations. The IAM is therefore an important partner for manufacturers, suppliers, and fleet operators. 

"When people talk about the automotive industry, the focus is usually on new vehicle production and sales," said Sylvia Gotzen, Chief Executive of FIGIEFA, the international federation of independent automotive aftermarket distributors. "However, the spare parts, maintenance, and repair market is a crucial component of the industry and a key economic factor within the EU. This is evidenced by the fact that each vehicle costs more than EUR 15,000 on average for maintenance and repairs over the course of its lifetime, plus labour costs. Of this, 62% or EUR 73 billion per year is generated in the IAM, which also provides around 1.1 million jobs with its 280,000 workshops and parts dealers, more than twice as many as in the OEMs' service and repair network."

The analysis found that the focus within aftermarket is now on key trends such as vehicle connectivity and technology, access to data, and new market players from China. It furthermore showed that price pressure, supply chain risks, and the rising cost of components are seen as particular challenges. 

The survey found that more than 30% of wholesale distributors said they invest three to five percent of their revenues in innovation, while 15 percent even said they invest between six and ten percent, increasingly in digitalization and in training programs for workshops. These are significant numbers, given that the average investment in innovation in Europe is just 2.5 percent.

"Our study shows that no one should underestimate the importance of the automotive aftermarket in general and the independent aftermarket in particular," said Daniel Rohrhirsch, Partner at Roland Berger. "In view of the increasing electrification of the vehicle fleet, this also applies to OEMs, because they need the independent aftermarket to be able to efficiently repair electric vehicles long term and support their residual values, thus increasing customer acceptance."

"The study has shown that the automotive aftermarket is a key part of the broader automotive industry," said Gotzen. "Given the European Union's intention to boost the competitiveness of key industries within the single market, and in light of increasing global competition, it would be logical to recognize that the aftermarket, as the 'Vehicle Lifecycle Management Industry', plays a crucial role in maintaining the European Union's competitiveness."

You can see and download the full study HERE