Europe's automotive sector is one of the continent's industrial and economic powerhouses, driving innovation and employment and a significant chunk of the EU's GDP. But amid the great attention paid to vehicle manufacturing, one vital piece of this economic sector remains overlooked: the Automotive Aftermarket, a sector providing solutions for the entire vehicle lifecycle. A recent Roland Berger study revealed how this under recognised sector is key to Europe's industrial competitiveness, economy, society and sustainability and why it must be included in the European Commission's Industrial Automotive Action Plan.
The numbers tell a compelling story. This sector has a market value of €236 billion (parts and labour) in the EU, and, of this the Independent Automotive Aftermarket (IAM) accounts for 62% of the total. This sector maintains and services the EU’s fleet of 280 million vehicles, ensuring that they remain safe and functional, providing affordable mobility for their owners.
The economic impact of the wider ‘Automobile Use’ is not just about the revenues it generates. It employs four million skilled professionals across the EU, sustaining the European mobility ecosystem. During the COVID-19 pandemic, the IAM kept essential services and supply chains moving when most of the world came to a standstill. From ambulances to delivery vehicles, the sector proved itself indispensable to Europe's resilience.
Beyond its economic contributions, the IAM has a profound societal impact. By offering affordable maintenance and repair options, it ensures that personal mobility remains within reach for millions of Europeans, fostering social equity and cohesion. Over the past decade, while vehicle manufacturers' dealership networks have shrunk from 71,000 to 54,000 workshops, the IAM's service outlets have grown from 241,000 to 250,000, expanding accessibility even in remote areas.
The sector's commitment to sustainability is another story worth telling. The IAM practices circular economy principles, promoting vehicle component reuse, refurbishment, and recycling. This reduces waste, conserves resources, and aligns with Europe's green ambitions. By extending the lifespan of vehicles and parts, the IAM helps cut the environmental costs of producing new components—a win for both the planet and consumers' wallets.
The Roland Berger study calls for better recognition by policymakers and states that it would only be logical that this important segment of the automotive industry be included as a central part of the European Commission's Industrial Automotive Action Plan to unlock the EU’s full economic potential and align it with Europe's goals of industrial strength, social cohesion, and sustainability.
The IAM is more than a network of workshops and parts suppliers. It's a critical enabler of Europe's mobility, a safeguard of affordable transportation, and a driver of environmental responsibility. As the European Commission charts the future of the automotive industry, it's time to give the Independent Automotive Aftermarket the recognition it deserves—because Europe's industrial strength depends on all its component parts working together.