The Importance of the UK Aftermarket to the UK Economy
The automotive aftermarket is a vital part of the UK economy. Through the franchised and independent networks, it provides motorists with choices over how they service and repair their vehicles. By keeping the country moving, the aftermarket delivers both direct and indirect financial benefits to the country.
To enable a deeper understanding of the aftermarket’s contribution to the UK economy and its growth potential in the coming years, in 2016 SMMT commissioned Frost & Sullivan to undertake an independent study. This report examines the fundamental structures of the aftermarket, the key factors which shape its operation, and the challenges and opportunities facing it in the future.
International Opportunities for UK Aftermarket Companies
The UK automotive aftermarket is thriving, ranking fourth in Europe and ninth in the world in terms of size, and turning over an annual £21.1 billion. The sector supports 345,600 jobs and contributes £12.2 billion each year to the economy. And it is growing: in line with the UK’s increasing car parc, the sector’s value is set to rise to £28 billion by 2022. The UK also enjoys robust trade with other European countries, with Germany its largest market, followed by France and Spain.
However, this new Frost & Sullivan report published by SMMT, shows that international markets and in particular emerging markets, offer the biggest potential for growth. International Opportunities for UK Aftermarket Companies shows that suppliers exporting to these regions can grow their businesses at rates four to five times higher than the annual 3% they can expect in the UK. The total global opportunity stands at some £500 billion for aftermarket business.