Frost & Sullivan Maps the Automotive Aftermarket's Road to Efficiency and Growth

Truck mechanic is checking safety of truck.

March 31, 2026

Annie Schneider

Senior Director, Product Marketing

Table of Contents

Share On

A new Frost & Sullivan executive brief, Driving Efficiency and Growth in the Automotive Aftermarket, paints a picture of where the industry is headed and what it will take to succeed.

According to the report, the global automotive aftermarket is on a strong growth trajectory, expected to expand from under $500 billion in 2024 to more than $600 billion by 2029, with 6.3% annual growth in replacement revenues. There are several contributing factors, including deferred new vehicle purchases and an expanding population of out-of-warranty vehicles. eCommerce is also accelerating, projected to reach $153 billion by 2030.

But growth is only part of the story. The big challenge lies in navigating the complexity that comes with it.

A surge in data and complexity

The aftermarket’s rapid growth is driving a surge in data and operational complexity. Every new make and model introduces an entire vehicle’s worth of parts, fitment, and compatibility data that must be managed, updated, and accessed in real time.

As this information scales, aftermarket manufacturers, distributors, and service shops and dealerships face increasing pressure to keep data accurate, connected, and actionable across the supply chain.

But expertise is walking out the door

Another challenge is compounding this complexity: the loss of institutional knowledge.

As experienced employees retire, decades of expertise — especially around fitment data, supplier coordination, and operational workflows — are disappearing. Combined with the explosion of data, this creates a significant gap between what companies know and what they need to know to compete effectively moving forward.

Connected systems close this complexity gap

So how can aftermarket companies respond?

According to Frost & Sullivan, success depends on adopting connected software solutions that deliver real-time data, predictive analytics, and intelligent automation.

These solutions must be:

Purpose-built for the automotive aftermarket, with its unique data needs around fitment
Connected across the supply chain, from procurement to delivery
Real-time data that surfaces demand, inventory, and disruptions as they happen
AI that automates routine work and recommends next best actions

Frost & Sullivan’s concept of connected systems aligns with what Epicor calls the supply chain control tower.

What is a supply chain control tower?

A supply chain control tower connects data, systems, and decisions into one place, empowering teams to see what’s happening and act in real time.

In practice, it serves three vital functions:

A centralized dashboard integrating data across systems
A real-time, end-to-end view of operations
A decision-making hub, enabling faster, more confident actions

For automotive aftermarket businesses, this means you’ll get full visibility across parts, fitments, inventory, suppliers, and demand — so the right parts get where they’re needed, when they’re expected.

Turning insight into action with AI

Not surprisingly, Frost & Sullivan identifies AI-driven optimization as one of the most impactful applications of a connected system.

Companies can now use AI to optimize stock levels and minimize excess inventory by analyzing historical sales, seasonal trends, and demand variability. This enables more precise replenishment strategies, reducing carrying costs while ensuring product availability.

This is where visibility becomes value:

Data provides clarity
AI delivers recommendations
Teams act with speed and confidence

Frost & Sullivan sees this shift from reactive to proactive operations as a key to improving efficiency and profitability across the aftermarket.

Five best practices for driving performance

The report outlines five best practices for aftermarket leaders:

AI-driven inventory planning to improve forecasting and stock optimization
Intelligent last-mile logistics to automate routing and delivery
Document workflow automation to reduce manual processes
Mobile-enabled warehouse management for real-time tracking and accuracy
Frontline training and guidance to improve performance and consistency

These practices are most effective when powered by connected, real-time data across the business.

Our takeaway: control towers are the path forward

Frost & Sullivan asserts that the automotive aftermarket will be defined by connected systems, real-time insights, and AI-driven automation. A control tower approach brings this together, turning complexity into a single, actionable view so teams can move faster, operate smarter, and stay competitive.

As the aftermarket's most comprehensive data aggregator, Epicor is uniquely positioned to deliver a connected system for aftermarket manufacturers, distributors, and service operations. We’ve been integral to the automotive aftermarket supply chain for decades, and we bring together curated, real-time parts data with daily inventory and sales data from over 90% of wholesalers. Connected to AI-powered tools, this data helps businesses find, source, and deliver the right part for the right vehicle, faster, with less friction, and with better planning.