{"id":4353,"date":"2023-03-04T12:41:36","date_gmt":"2023-03-04T07:11:36","guid":{"rendered":"https:\/\/www.autofacets.com\/insights\/?post_type=newsletter&p=4353"},"modified":"2023-04-11T19:08:29","modified_gmt":"2023-04-11T13:38:29","slug":"what-data-monetization-means-for-the-european-automotive-aftermarket","status":"publish","type":"newsletter","link":"https:\/\/www.autofacets.com\/insights\/newsletter\/2023\/03\/what-data-monetization-means-for-the-european-automotive-aftermarket\/","title":{"rendered":"What Data Monetization Means for the European Automotive Aftermarket"},"content":{"rendered":"

The automotive aftermarket business is committed to retail, distribution, reprocessing, and installing car components and equipment after selling the vehicle. The European automotive aftermarket business is predicted to grow consistently with the increased production demands. The automotive aftermarket and aftersales industry is a more challenging ballgame. It is multi-faceted and covers diversified segments, covering the complete repair, service, and maintenance spectrum from parts supply to servicing and fitment. The industry is also highly competitive and robust, supporting the network for a large volume of cars, trucks, buses, and vans across the European region.<\/p>\n

These vehicles are a rich source of data. Millions of cars that are transported generate voluminous information that automakers identify in how to monetize it. Creating business value out of corresponding vehicle data is a major technical challenge. Technologies like Machine Learning, AI, and data analytics solutions can help the industry solve and proceed with growth. Failure to collect vast data stores from losing value-added for customers might result in loss of revenue and business intelligence.<\/p>\n

Market Insights \u2013 Automotive Aftermarket EU<\/h3>\n

The automotive aftermarket is a part of the automotive industry<\/a><\/strong> with services and parts businesses. The service businesses are majorly on maintenance and repair of the vehicles, which generate more than 45% of the total aftermarket revenues in Europe. Simultaneously, retail and wholesale vehicle parts make up the remaining 55% of revenue. These businesses are significant in the overall automotive industry and deliver substantial income. Getting into the product side, the aftermarket executives have indicated that nearly half of the revenues come from wear and tear parts, crash-relevant parts, diagnostics products, and services. Due to increased quality, mobility, and price pressures, wear-and-tear parts are anticipated to slow down.<\/p>\n

According to an online data forecast by a leading research firm has revealed that the automotive aftermarket<\/a> was valued at $256 billion in 2021 and is expected to rise to $369.2 billion by 2026, recording a growth CAGR of 3.1%. A report published by Frost and Sullivan has said that the European aftermarket is worth over 100 billion Euros for components from Ireland to Russia, showing a 2.4% yearly growth in overall sales.<\/p>\n

\"Automotive<\/p>\n

Value of Data in Automotive Aftermarket<\/h3>\n

Apart from the numbers, one major challenge the automotive industry faces is handling silos. There is much data about thousands of vehicles and millions of automotive parts<\/a>, and you might have encountered the terms ACES and PIES and how businesses solve their data problems.<\/p>\n

After checking these words, you might be an independent business in the aftermarket parts if you feel the pressure. It is about more than just the standards; however, many other challenges are also involved. But companies in the automotive aftermarket look for the best solutions available for every problem they\u2019re going through.<\/p>\n

Now, first things first\u2026<\/p>\n

What are ACES & PIES?<\/h4>\n

ACES or Aftermarket Catalog Exchange Standard and PIES (Product Information Exchange Standard) are standardized data formats present in the automotive industry. These two standards manage and exchange the data of automotive application<\/a> fitment and product parts. If you adhere to these standards, managing and handling large data silos will be easy.<\/p>\n

However, the truth is that ACES and PIES data are not online tools or master databases of parts or fitment data, and manufacturers don\u2019t use these standards completely.<\/p>\n

Challenge with Data Silos<\/h4>\n

The vehicle parts dealers want a simple eCommerce website that makes it easy for the customers to buy, and businesses expect an automated purchase process. They would also aim to reduce the total returns owing to incompatibility existing in the vehicle parts and fitments, alleviating the problems in customer service.<\/p>\n

To get this aligned, businesses need to manage timely, accurate product information about all the parts, vehicles, and parts fitments. The data is the major problem, and the other one is choosing a good eCommerce platform to support large volumes of data and keep good vehicle fitment options for customers. Only when standardization is sorted will businesses face many challenges in cleaning up the data and mapping out different databases and information from various sources.<\/p>\n

Quick Snapshot of Data Challenges<\/h4>\n