Skip to content 
The European auto parts market growth has seen impressive developments over the past decade, driven by increased demand, market consolidation, and strategic M&A activities. This comprehensive market analysis, based on our After Sales access database, draws from 12 years of meticulously collected turnover data. Our analysis encompasses observations from over 5,500 companies, covering all European countries. It delves into revenue development trends among both leading and smaller auto parts dealers and evaluates the shifts in market concentration across Europe. Read on to discover the key growth drivers, the impact of mergers and acquisitions, and our outlook for the years ahead.
1. European auto parts market growth (2012–2023)
The European aftermarket for auto parts experienced notable revenue growth over the past decade. In 2012, the market value was approximately €25.74 billion, increasing to €56.68 billion by 2023. This represents a compound annual growth rate (CAGR) of 7.2%, reflecting robust demand and expansion across various market segments.
The steady upward trajectory was driven by various factors, including an increasing and aging vehicle fleet, technological advancements, and increased demand for aftermarket parts. Additionally, the post-COVID recovery significantly influenced growth in several regions, as demand rebounded, fueling both domestic and international operations. This period also saw heightened inflation, which contributed to the nominal increase in revenue, affecting both parts prices and overall market valuations.
2. The Top 10 Auto Parts Dealers: Dominance through Consolidation
The market’s leading 10 companies have not only maintained but dramatically expanded their market share by leveraging mergers, acquisitions, and international expansion. These companies saw revenue increase from €6.6 billion in 2012 to €24.5 billion in 2023, achieving a remarkable CAGR of 12.7%. In contrast, smaller dealers experienced a slower CAGR of 4.8%, underscoring the advantages of scale and consolidation for the largest players.
The accelerated growth of these top companies indicates their ability to capitalize on economies of scale, streamline supply chains, and access new markets. Among these companies, LKQ and GPC were notably active in the M&A space, while Inter Cars pursued a unique strategy of internationalization without heavy reliance on acquisitions, establishing strong local structures across Eastern Europe.
3. M&A Activities and Their Impact on Market Concentration
Between 2015 and 2018, mergers and acquisitions were at a peak, shaping the European auto parts market growth significantly. This wave of consolidation was followed by a notable slowdown in 2020 due to the COVID-19 pandemic, but M&A activities regained momentum in 2022, spearheaded by the acquisition of PHE by the D’Ieteren Group.
From 2025 onward, the number of acquisitions may stabilize as major players shift their focus from aggressive market share expansion to organic growth and internal efficiencies. This phase of “mature consolidation” will likely see fewer but more strategic mergers, as top companies target specialized segments or enter emerging markets within the aftermarket.
M&A activities not only helped top players strengthen their market positions but also contributed to the concentration of market power in key segments. In particular, the mid-2010s saw aggressive acquisition strategies that led to high concentration levels in specific markets. This resulted in a competitive advantage for consolidated companies by enabling a wider distribution network, optimized logistics, and an expanded product range.
4. Geographic Market Concentration: Europe’s Market Share Dynamics
A detailed analysis of market concentration reveals a significant difference between small and large countries. Small nations such as Denmark, Switzerland and the Netherlands show a high level of consolidation, with the top three companies capturing up to 80% of the market. In contrast, larger countries like Germany, France and Spain display more fragmentation, with the top players holding as little as 12% of market share.
These geographic disparities highlight how different regulatory environments, economic conditions, and competitive landscapes affect market consolidation. In highly concentrated markets, the dominance of a few players often results in fewer choices for local customers, while fragmented markets maintain more diverse competitive dynamics.
5. Future Outlook: Expectations for 2025 and Beyond
As the European automotive aftermarket matures, the pace of M&A activity is expected to stabilize following years of rapid consolidation. While overall market growth is projected to continue, it will likely be at a more measured pace. Leading companies, particularly in Western Europe, are expected to shift focus from aggressive acquisition strategies to enhancing organic growth and driving technological innovation. Intercars exemplifies this approach, building a robust market presence across Eastern Europe through internationalization rather than acquisitions.
Broader market trends, including an aging vehicle fleet and heightened awareness around economic mobility, continue to support the aftermarket’s growth. However, as the industry faces a transformation in vehicle powertrains and tightening regulations toward environmentally friendly technologies, parts distributors are set to encounter both challenges and opportunities. Although they may be somewhat insulated from the impacts facing component manufacturers, the increasing competition will demand agility and adaptation from all players.
As automotive technology advances, companies will likely invest more heavily in digitalization, customer service improvements, and sustainable practices, which together are set to shape the aftermarket landscape of the future.
Conclusion
The European auto parts aftermarket is undergoing a profound transformation. The past decade’s growth, primarily driven by consolidation and international expansion, has redefined the competitive landscape. As major players continue to increase their influence, smaller and mid-sized companies must adapt to remain competitive. With a stabilized M&A landscape and evolving customer expectations, the European aftermarket is set for further innovation and growth.
