Japan Automotive Aftermarket By Vehicle Type (Two-Wheelers, Commercial Vehicle, Passenger Cars), By Component (Tires, Body & Mechanical parts, Batteries, Accessories & Vehicle Care Products, Lubricants), By Sales Channel (Online, Offline), By Region, Competition, Forecast & Opportunities, 2021-2031F

Market Overview

Japan Automotive Aftermarket was valued at USD 5.9 Billion in 2025 and is expected to reach USD 7.2 Billion by 2031 with a CAGR of 3.4% during the forecast period. The Japan automotive aftermarket is poised for significant evolution between 2026 and 2030, fueled by technological advancements in vehicle diagnostics and service solutions. As vehicles become more complex with the integration of electronics, sensors, and driver-assist features, independent aftermarket players are expanding their capabilities to match OEM standards. Demand for connected services, predictive maintenance, and enhanced diagnostics is shaping the way workshops operate, encouraging adoption of digital platforms and telematics.

Growth in hybrid and electric vehicle (EV) sales is also prompting a shift in service patterns, creating demand for specialized components and technician training to support evolving driveline technologies. Consumer behavior is transforming as car owners prioritize reliability, cost-efficiency, and digital convenience in vehicle upkeep. Subscription-based services and app-based vehicle maintenance scheduling are gaining traction, streamlining the service experience. E-commerce platforms are becoming key distribution channels for parts, lubricants, and accessories, offering price transparency and a wide product range.  Cross-border e-commerce also experienced growth, with Japanese consumers purchasing JPY 2.43 trillion worth of goods from U.S. online retailers in 2023, up 7.7% from the previous year. This trend highlights the expanding global reach of Japanese consumers and the increasing importance of international e-commerce platforms.

Market Drivers

Aging Vehicle Fleet

A significant portion of vehicles in Japan is over a decade old, leading to increased demand for replacement parts and maintenance services. This aging fleet necessitates regular servicing, boosting the aftermarket sector. Independent service providers are capitalizing on this trend by offering cost-effective solutions tailored to older vehicles. The need for frequent repairs and part replacements in older vehicles ensures a steady demand for aftermarket products and services.

Technological Advancements in Vehicle Systems

Modern vehicles are equipped with advanced technologies such as ADAS, infotainment systems, and electric drivetrains. These innovations require specialized aftermarket parts and services. The complexity of these systems drives the need for advanced diagnostic tools and skilled technicians. As vehicles become more technologically advanced, the aftermarket industry must adapt to provide compatible parts and services. A cornerstone of Japan's automotive innovation is the development of Software-Defined Vehicles (SDVs). The Ministry of Economy, Trade, and Industry (METI) has set an ambitious goal for Japan to capture 30% of the global SDV market by 2030 and 35% by 2035. This strategy emphasizes public-private partnerships to advance in-vehicle semiconductors, standardize SDV systems, and foster data-driven services.

Government Support for Electric Vehicles (EVs)

The Japanese government has set ambitious targets for EV adoption, aiming for 100% of new vehicle sales to be electric by 2035. This policy shift encourages the development of EV-specific aftermarket parts and services. Subsidies and incentives for EV purchases further stimulate demand in the aftermarket sector. As the EV market grows, so does the need for specialized aftermarket solutions. The Japanese government is actively promoting the adoption of electric vehicles (EVs) as part of its environmental and economic strategies. The government offers subsidies for the purchase of new EVs, including battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell electric vehicles (FCEVs). Additionally, the government plans to increase the number of public charging stations from 30,000 to 150,000 by 2030, including 30,000 fast chargers. This initiative is expected to stimulate demand for EV-related aftermarket products and services.

Rise of E-commerce Platforms

The proliferation of online shopping has transformed the automotive aftermarket landscape. Consumers increasingly prefer purchasing parts and accessories through e-commerce platforms due to convenience and competitive pricing. This shift has expanded the reach of aftermarket products, allowing consumers access to a broader range of options. E-commerce platforms facilitate easier comparison and purchasing of automotive parts. According to the Ministry of Economy, Trade and Industry (METI), Japan's B2C e-commerce market reached JPY 24.8 trillion in 2023, marking a 9.23% increase from the previous year. This growth reflects a broader trend of increasing consumer reliance on online platforms for purchasing goods and services.

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Key Market Challenges

Complexity of Modern Vehicle Technologies

The integration of advanced technologies in vehicles has increased their complexity, posing challenges for aftermarket service providers. Specialized knowledge and equipment are required to service modern vehicles effectively. Independent repair shops may struggle to keep up with these technological advancements, limiting their ability to compete with OEM service centers. The rapid pace of technological change necessitates continuous training and investment in new tools. The automotive industry is subject to stringent regulations concerning safety, emissions, and environmental impact. Aftermarket parts and services must comply with these standards to ensure legality and safety. Navigating the complex regulatory landscape can be challenging for aftermarket businesses, especially smaller enterprises. Non-compliance can lead to legal repercussions and damage to brand reputation.

Supply Chain Disruptions

Global supply chain issues, such as shortages of raw materials and transportation delays, impact the availability of aftermarket parts. These disruptions can lead to inventory shortages and increased costs for aftermarket businesses. Dependence on international suppliers exposes the industry to geopolitical risks and trade policy changes. Supply chain resilience is crucial for maintaining consistent product availability.

Intellectual Property and Data Security Concerns

Modern vehicles generate vast amounts of data, raising concerns about data ownership and security. Aftermarket service providers require access to this data for diagnostics and repairs, but restrictions on data access can hinder their operations. Ensuring data security and compliance with privacy laws is essential to protect consumer information and maintain trust. Unauthorized access to vehicle data can lead to cybersecurity vulnerabilities. The automotive industry faces a shortage of skilled technicians proficient in servicing modern vehicles. The rapid advancement of vehicle technologies requires continuous education and training. Attracting and retaining qualified personnel is a significant challenge for aftermarket service providers. The aging workforce further exacerbates this issue, leading to potential gaps in service quality and availability.

Key Market Trends

Growth of Electric Vehicle Aftermarket

The increasing adoption of electric vehicles (EVs) has led to the emergence of a specialized EV aftermarket sector. This includes the development of EV-specific parts, charging solutions, and maintenance services. Consumers are seeking aftermarket options to enhance the performance and convenience of their EVs. The EV aftermarket is expanding rapidly to meet these demands.

Sustainability and Eco-friendly Products

There is a growing trend towards sustainability in the automotive aftermarket industry. Consumers are increasingly opting for eco-friendly products, such as biodegradable lubricants and recycled parts. Manufacturers are responding by developing environmentally friendly alternatives to traditional automotive products. This shift aligns with global efforts to reduce environmental impact and promote sustainable practices. Subscription models for vehicle maintenance and parts replacement are gaining popularity. These services offer consumers convenience and cost predictability. Subscription-based services can include regular maintenance, tire replacements, and access to a range of aftermarket products. This model fosters customer loyalty and provides steady revenue streams for service providers.

Advancements in Autonomous Vehicle Technologies

The rapid development of autonomous driving technologies is reshaping Japan’s automotive aftermarket industry. As vehicles become increasingly automated, demand is rising for specialized aftermarket services and components. These include advanced sensors, LiDAR units, high-performance computing systems, and software maintenance tailored to autonomous functionalities. In 2025, Waymo Alphabet's autonomous vehicle subsidiary launched its first international testing initiative in Tokyo. Approximately 25 Jaguar I-PACE vehicles are being manually operated by drivers from Nihon Kotsu and GO, two of Japan’s leading taxi platforms. This initial phase focuses on collecting operational data and adapting Waymo’s self-driving systems to Japan’s unique traffic environment, including left-hand driving and densely populated urban infrastructure. The project highlights how real-world autonomous testing is not only accelerating AV deployment but also opening new avenues for aftermarket innovation in calibration, diagnostics, and part replacement.

Segmental Insights

Component Type Insights

The Japan automotive aftermarket is segmented by component into tires, body and mechanical parts, batteries, accessories and vehicle care products, and lubricants. Each segment serves distinct vehicle maintenance and personalization needs, contributing to the aftermarket ecosystem. Tires remain a critical segment due to regular wear and seasonal changes, driving periodic replacements. Vehicle owners prioritize tire performance, durability, and safety, leading to consistent demand across all vehicle types. Technological enhancements in tread design and materials have expanded options available to consumers, with demand influenced by driving habits and environmental factors.

Body and mechanical parts represent a vital segment, encompassing components such as brakes, suspension systems, lighting, and transmission parts. These are essential for both routine maintenance and accident-related repairs. Increasing vehicle complexity has elevated demand for precision components and compatibility with specific vehicle systems. Replacement cycles for mechanical parts vary based on usage intensity and road conditions, prompting service providers to stock a diverse inventory. In parallel, batteries play a pivotal role in the vehicle’s electrical system, especially as hybrid and electric vehicles gain traction. Regular battery replacements are necessary to maintain performance, and evolving vehicle technologies have driven demand for advanced, maintenance-free, and high-capacity battery solutions. Accessories and vehicle care products appeal to consumers seeking to enhance aesthetics, comfort, and functionality. This includes items like floor mats, seat covers, infotainment systems, and car cleaning supplies.

Personalization trends and the desire for a premium in-car experience contribute to steady demand. Seasonal changes and gifting occasions also influence the purchase of care products and accessories. Lubricants are indispensable to vehicle performance, ensuring engine longevity and operational efficiency. The segment covers engine oils, transmission fluids, coolants, and greases. Advancements in lubricant formulations, including synthetic options, cater to a wide range of vehicle specifications and performance standards. Frequent oil changes and preventive maintenance practices sustain lubricant demand across all vehicle categories. Together, these components reflect the broad scope of the aftermarket, driven by functionality, convenience, and the evolving preferences of vehicle owners.

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Regional Insights

Chubu 

The Chubu region, encompassing Aichi, Gifu, and Mie prefectures, stands as Japan's automotive manufacturing powerhouse. Home to major production facilities, it remains a hub for automotive aftermarket services, including parts manufacturing and distribution. The region's robust infrastructure and proximity to key industrial centers facilitate efficient supply chains, ensuring timely availability of aftermarket components. This strategic advantage positions Chubu as a critical player in both domestic and international automotive markets.

Kyushu-Okinawa

In contrast, the Kyushu-Okinawa region, comprising Fukuoka, Kumamoto, and Okinawa, has emerged as a center for technological advancements in the automotive sector. The region's focus on research and development has led to innovations in electric vehicle (EV) technologies and sustainable automotive solutions. Kyushu's commitment to environmental sustainability aligns with global trends towards greener transportation options, influencing the aftermarket sector's evolution. Both regions have demonstrated resilience and adaptability, responding effectively to shifting consumer preferences and technological advancements. Their contributions underscore the dynamic nature of Japan's automotive aftermarket industry, highlighting the importance of regional strengths in driving national growth..

Recent Developments

• In 2024, HKS, a renowned Japanese automotive performance parts manufacturer, partnered with Studie AG, a BMW-focused tuning company, to launch the HKSTUDIE brand. This collaboration aims to produce high-performance tuning parts tailored specifically for BMW sports cars, including exhaust systems and coilover suspensions. The partnership reflects a strategic move to cater to the growing demand for personalized and performance-enhancing components in the luxury vehicle segment.
• In March 2024, Apollo Global Management affiliates agreed to acquire a majority stake in Panasonic Automotive Systems for ¥311 billion ($2.05 billion). This move allows Panasonic to retain a 20% minority stake and transition to a new entity, Star Japan Holdings, under Apollo's management. The acquisition is expected to close by Q1 2025 and aims to enhance Panasonic's focus on software development and electrification in the rapidly evolving electric vehicle (EV) market.
• Niterra, formerly known as NGK Spark Plug Co., Ltd., has been expanding its business portfolio beyond traditional automotive components. In 2024, the company launched a USD 100 million Corporate Venture Capital Fund to invest in new opportunities in areas such as smart mobility, medical technologies, and environmental solutions. This initiative underscores Niterra's commitment to sustainability and innovation, aiming to diversify its offerings and align with global trends towards carbon neutrality and digital transformation.
• In 2024, Denso continued to operate its Electrification Innovation Center in Anjō, Japan, which supports the development of products and technologies aimed at enhancing the performance and efficiency of electric drivetrains. This center plays a crucial role in Denso's strategy to lead in the electrification of the automotive industry, addressing the increasing demand for sustainable and energy-efficient vehicle solutions.

Key Market Players

• Denso Corporation
• Aisin Corporation
• Autobacs Seven Co., Ltd.
• Up Garage Co., Ltd.
• Trust Co., Ltd. (GReddy)
• SARD Corporation
• 5ZIGEN International Inc.
• Enkei Corporation
• Spoon Inc. (Spoon Sports)
• Blitz Co., Ltd.

Report Scope:

In this report, the Japan Automotive Aftermarket has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•       Japan Automotive Aftermarket, By Vehicle Type:

o    Two-Wheelers

o    Commercial Vehicle

o    Passenger Cars

•       Japan Automotive Aftermarket, By Component:

o    Tires

o    Body & Mechanical parts

o    Batteries

o    Accessories & Vehicle Care Products

o    Lubricants

•        Japan Automotive Aftermarket, By Sales Channel:

o    Online

o    Offline

•       Japan Automotive Aftermarket, By Region:

o    Hokkaido & Tohoku

o    Chubu

o    Chugoku

o    Kyushu

o    Others

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Japan Automotive Aftermarket.

Available Customizations:

Japan Automotive Aftermarket report with the given market data, TechSci Research offers customizations according to the company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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