As a participant at the recent TEMOT CV Summit 2023 in Lyon, we had the opportunity to delve into the current state and future prospects of the commercial vehicles aftermarket in Europe. The presentations by Wolk After Sales Experts and BBE Automotive provided comprehensive insights into market dynamics, challenges, and growth opportunities. With this article, we want to share the conclusion of the insightful presentation. For those interested in more detailed information, the full presentation is available for download.
The Commercial Vehicles Aftermarket in Europe
The European market for commercial vehicle workshops is undergoing a phase of significant changes. With an impressive number of about 22,200 specialized workshops, the sector is experiencing a time of consolidation, technological innovation, and strategic realignment. This article highlights the current workshop structure of commercial vehicles in Europe, the evolving workshop concepts, the consolidation in the aftermarket, the leading distributors and manufacturers of spare parts, as well as the challenges and opportunities that arise in this dynamic environment.
Workshop Structure of Commercial Vehicles in Europe
There are around 22,200 workshops in Europe that specialize in the repair and maintenance of commercial vehicles. This figure includes both independent workshops and those tied to vehicle manufacturers. Excluded from this statistic are workshops that specialize in niche areas such as agricultural vehicles, as well as fleet-owned workshops and franchised workshops. Interestingly, brand-affiliated workshops account for 34% of all workshops.
Various Workshop Concepts
The independent market for commercial vehicle workshops in Europe is characterized by a variety of 29 different workshop concepts, which together bind 3,621 workshops in their networks. It is notable that 50% of these concept-bound workshops are located in Germany, while other countries have a smaller proportion of such workshops. Compared to the landscape of passenger car workshops, there is a significant difference. It is also noteworthy that only one concept, AllTrucks, is operated by parts manufacturers, and only three concepts operate internationally.
Consolidation in the Aftermarket for Commercial Vehicles
In recent years, there have been significant acquisitions in the commercial vehicle parts sector, particularly by large groups like the Fricke Group and the BPW Group. This consolidation has led to a concentration of the market, with large companies exerting growing influence. Looking at the revenues from 2018 to 2022, there is evidence of consolidation through acquisitions and a market displacement of smaller providers by larger players. Interestingly, growth in Eastern Europe is particularly pronounced, indicating a stronger expansion in these markets.
Top Distributors for Commercial Vehicle Spare Parts
Companies like Intercars, which achieved a turnover of approximately 550 million EUR in 2022 and thus replaced Winkler as the largest commercial vehicle spare parts dealer, are particularly noteworthy. The success of Intercars can be attributed to its international orientation and consistent market penetration.
Consolidation of Parts Manufacturers
The parts manufacturers in the commercial vehicle sector have experienced significant consolidation in recent years. Large acquisitions and mergers, such as Wabco by ZF or Meritor by Cummins, have changed the market dynamics. This development is also reflected in commercial vehicle manufacturing, where only a few large groups dominate the market.
Vehicle Manufacturers in the Independent Aftermarket
Unlike the passenger car sector, the share of parts sales by vehicle manufacturers in the independent aftermarket for commercial vehicles is relatively high. This suggests a strong position of the OEMs (Original Equipment Manufacturer) in the independent aftermarket, which is likely to be further expanded.
Private Label in the Commercial Vehicle Parts Market
In a market increasingly seeking cost-effective alternatives, private labels are gaining importance. This includes own brands of parts dealers, second brands of manufacturers, and multi-brand product lines of vehicle manufacturers. This development drives prices down and increases competitive pressure.
Challenges for Workshops
A survey among independent commercial vehicle workshops in Germany has revealed that the shortage of skilled personnel is the biggest challenge. In combination with a shortage of truck drivers, this is a major threat to the entire business segment. In addition, rising customer expectations must be met through better planning and more reliable parts deliveries. In both cases, parts dealers play an important role by supporting the workshops with expertise and reliable delivery.
- What percentage of the total market for commercial vehicle workshops in Europe is made up of brand-bound workshops? Brand-bound workshops account for about 34% of the total market.
- How many different workshop concepts are there in Europe, and how many workshops are involved? There are 29 different workshop concepts, comprising a total of 3,621 workshops.
- What distinguishes leading distributors like Intercars in the commercial vehicle spare parts market? Intercars has established itself as a leading distributor through international orientation and consistent market penetration.
- How has consolidation in the parts manufacturers’ market for commercial vehicles developed? There have been significant acquisitions and mergers, leading to a concentration of the market and strengthening of large companies.
- What role do private labels play in the commercial vehicle parts market? Private labels cater to the growing demand for cost-effective parts, intensifying competition in the market.
- What is the biggest challenge for independent commercial vehicle workshops? The lack of qualified personnel is the biggest challenge, followed by increasing customer demands and the need for reliable parts deliveries.
The European aftermarket for commercial vehicles is constantly evolving. The consolidation in both the workshop area, among parts and vehicle manufacturers and distributors shapes the market dynamics. Challenges such as a shortage of qualified personnel and rising customer demands require innovative approaches and efficient solutions. The future development, especially in the context of decarbonization and electrification, will continue to be exciting.