The market for spare parts for internal combustion engines may sharply decrease in the nearest years. According to the estimates of consulting firm McKinsey & Company, the decline in the segment can be catastrophic.
According to McKinsey & Company, cited by Drive, while the market for engine parts was estimated at $73 billion in 2019, by 2035 it could shrink to $17 billion. And the market for powertrain parts will fall from $93 billion to $25 billion.
The reason for such a serious reduction is the arrival of electric cars, which will displace our usual cars with internal combustion engines.
That is why McKinsey & Company experts advise manufacturers of spare parts for engines and transmissions to start transforming their business now. Otherwise, they will face a gradual decline in production.
For example, it makes sense to invest in the production and development of new driver assistance systems, autopilot systems, electric cars, etc.