Many OEMs are sitting on a goldmine… but not digging. While unit sales may drive revenue headlines, it’s aftermarket services that quietly generate the margins. From spare parts and repairs to support and training, aftermarket activities can deliver up to 4× higher profit margins than new product sales.
In a market where growth is hard won and loyalty is fragile, high-margin aftermarket revenue isn’t just a bonus, it’s a strategic priority. The most forward-thinking OEMs are turning to digital-first solutions to tap into this potential, and they’re seeing the results in both customer retention and bottom-line growth.
The Untapped Profit Goldmine in Aftermarket Services
Aftermarket vs New Sales
New equipment might bring in big revenue numbers, but spare parts and services bring in profit. Research shows:
- Spare parts often yield gross margins of 30–50%, compared to just 15–25% for new unit sales [BCG, 2025].
- In automotive, parts and service contribute up to 40% of an OEM’s total profits [ResearchGate].
- Across industries, aftermarket services can deliver margins up to 4× higher than new equipment sales [Makula]..
Why Margins Are Higher
- Low incremental cost: Selling a spare part doesn’t require reinventing the wheel.
- Premium pricing: Customers will pay for uptime, especially for mission-critical equipment.
- Proprietary control: Many OEMs own the rights to unique parts, giving them pricing power.
- Longer customer relationships: Support contracts and training deepen trust and extend the revenue cycle.
A Real-World Example
General Motors is doubling down on aftermarket investment as a strategic pillar beyond new vehicle sales. With car sales disrupted by chip shortages and rising vehicle prices, more consumers are choosing to maintain their existing cars, many of which are over 12 years old. In response, GM has seen double-digit growth in parts sales since Covid and is investing over $100 million to modernise its largest parts processing centre in Michigan.
“We know people are seeking out genuine GM parts” said John Roth, GM’s global VP of customer care and aftersales. “Now it’s time to lean into that even further.” The company currently ships over 15,000 parts orders daily, underscoring the rising importance of aftermarket operations in driving long-term profitability.
Source: Forbes, 2023 – GM’s Aftermarket Parts Sales Rise; So Does Warehouse Investment
Why Many OEMs Are Missing Out
Traditional Mindset
Too often, OEMs view the aftermarket as an add-on. Sales teams chase the next big unit deal, while service teams are underfunded and reactive. This mindset leads to:
- Underinvestment in parts tools and systems
- Missed revenue from service contracts
- Weak customer engagement post-sale
Customers Drift to Competitors
When your parts ordering process is confusing or slow, customers leave. Research shows that over two-thirds of spare parts sales are lost to e-commerce sites or local suppliers when OEMs fail to provide a digital, self-service experience
A slow PDF or clunky phone process can push even loyal customers toward Amazon or eBay.
Digitalisation – The Game Changer for Aftermarket Margins
From Paper Manuals to 3D Interactive Catalogs
Outdated PDFs and static diagrams cause friction, misorders, and support overload. A modern interactive 3D parts catalog, synced with your CAD and BoM, solves this by:
- Letting users visually identify parts in exploded views
- Reflecting real-time engineering changes
- Reducing ordering errors and part returns
Self-Service = Higher Sales
Customers expect 24/7 access and real-time part availability. A branded, mobile-optimised parts portal:
- Converts more sales
- Captures the 67% of parts revenue currently lost to third parties
- Builds trust with dealers and end users
When you meet buyers online, you stay in the revenue loop.
Efficiency and Cost Savings
Digital tools don’t just increase sales, they reduce cost:
- Fewer support calls and misorders
- Higher first-time fix rates
- Less manual data entry and catalog maintenance
These savings flow straight to the bottom line.
Better UX = Better Loyalty
Your customers compare your support to Amazon and Apple, not your competitors.
- A modern parts platform improves satisfaction
- Happy customers return for future units
- Fast, error-free service builds long-term trust
Data-Driven Growth
Digital parts platforms unlock insights. You can track:
- High-demand parts
- Failure trends
- Parts that confuse users (and need redesign)
How to Build Your Aftermarket Margin Growth Plan
Audit Your Aftermarket
Start by asking:
- What % of parts sales do we control?
- What % of service spend are we capturing?
- Are customers going elsewhere for easier ordering?
If you’re only capturing 25%, the opportunity is massive.
Embrace Digital Tools
Modern tools like interactive 3D catalogs, e-commerce integration, and mobile ordering improve:
- Sales conversion
- Service speed
- Customer satisfaction
Train and Align Teams
Make sure every part of your organisation, from dealers to engineers, understands the value of aftermarket. Incentivise parts sales and reward teams for customer retention, not just acquisition.
Expand Your Offerings
Offer more than just parts: maintenance contracts, digital upgrades, refurbishment, subscription features. More touchpoints = more margin opportunities.
Measure What Matters
- Repeat parts orders
- Contract renewal rates
- NPS and support satisfaction
Even small lifts in retention can unlock massive profit growth.
Conclusion
OEMs who embrace a digital-first aftermarket strategy are seeing 4× higher margins, better customer retention, and scalable growth.
They’re not just selling products, they’re building ecosystems.
Partful
