Overview of the U.S. Automotive Aftermarket and Market Size Growth
America's automotive aftermarket is also one of the biggest and most developed across the globe due to its huge vehicle parc, repair culture, and consumer maintenance spending. The sector comprises of replacement automotive parts, value-added service and repair, automotive tires, lubricants, automotive add-ons, diagnostic and performance aftermarket components, and automotive diagnostics. Over the last several years, due to the increasing complexity of vehicles and the scale of maintenance needed, the market has developed consistently. Americans, also seem to have developed a consistent preference to maintain and prolong the life of their vehicles. The aftermarket sector also has a solid and extablished repair service sector, distributer service sector, and a variety of retailers and internet sellers.
The growth of vehicle miles traveled, number of vehicles on the road, and costs of vehicle ownership, which impact consumers' behavioral maintenance of vehicles, facilitate market growth. Additionally, the aftermarket positively benefits from the demand of do-it-yourself (DIY) and do-it-for-me (DIFM) customer segments. The OEM and standalone aftermarket sectors are strengthening as technology-integrated diagnostics, ADAS, and electric vehicles become more mainstream, creating new avenues for parts and service revenue. With consistent demand fundamentals and innovations, the aftermarket is calculated to be positively impacted for the foreseeable future.
One of the strongest growth contributors is the aging vehicle fleet. The average age of vehicles on US roads continues to climb, surpassing 12 years as a result of improved engineering, superior built quality, and increased costs of new vehicles, which prompt consumers to retain vehicles longer. With the increased age of vehicles, more servicing is required, including the replacement of brake systems, suspension system components, filters, batteries, tires, and parts of the drivetrain. This essentially increases the aftermarket demand for products and repair services across both DIY and professional service sectors.
Increased vehicle longevity motivates consumers to spend on routine maintenance to keep their engines running and avert expensive repairs. Engines are in their most service-intensive years from 7 to 15 years of age, which corresponds with a rise in aftermarket spending. This is being further underscored by the growing share of used vehicles in the U.S. car market, as many consumers are moving up and maintaining their older vehicles. This demand is also being driven by commercial fleets like delivery vans, ride-hailing cars, and utility trucks, as their high mileage leads to faster wear and tear of components. Aging vehicles generally creates a need for replacement parts, aftermarket diagnostic services, and repairs. This is a fundamental factor in the growth of the U.S. aftermarket.
- Digital Transformation: E-Commerce Expansion and Online Parts Retailing
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Digital transformation has e-commerce in the forefront for retailing and servicing procurement in the aftermarket industry. Convenience and wide variety of products in the market has consumers running to online platforms for spare parts, tires, accessories, tools and maintenance products. Online shopping is more reliable and accessible due to compatibility check tools, user reviews and doorstep delivery. The pandemic pushed workshops, fleet operators, and consumers fastt to online purchasing. Digital retailers has closed the gap to market accessibility using omnichannel strategies by combining in-store availability with online ordering and same-day pickup. Digital catalogues with advanced inventory management systems integrated with workshop management of the servcing software decrease part identification and reduced waiting times of parts. E-commerce platforms are leveraging AI in more advanced ways to optimize search by recommending compatible products to decrease return rates. Subscription based auto maintenance kits and mobile services are some of the platforms more emerging offerings in the market.
It is really easy for professional mechanics to use digital procurement platforms to source supplies due to features such as stock visibility in real time, bulk order options, and automated restocking. Customer satisfaction has increased as delivery times become more efficient. In summary, the growth of online retailing of automotive parts is enhancing accessibility, driving competition, and changing the structure of the automotive aftermarket in the United States.
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