U.S. Automotive Aftermarket Size, Share & Trends Analysis Report By Replacement Part, By Distribution Channel (Retailers, Wholesalers), By Service Channel, By Certification, And Segments Forecasts, 2019 - 2025

Report Overview

The U.S. automotive aftermarket was valued at a market size of USD 75.31 billion in 2018, and is expected to register 1.8% CAGR from 2019 to 2025. The automotive industry has experienced a substantial boost in the sales of OEMs and aftermarket parts in the U.S. as the aftermarket business has created attractive margins and revenues in the emerging market. The increasing requirement of timely maintenance and parts activities for vehicles has created significant traction in the aftermarket sales. The automotive aftermarket is driven by stringent emission norms and government regulations related to heavy-duty vehicles market. Regional regulatory authorities such as the U.S. Environmental Protection Agency and other federal & international agencies have laid down various regulations pertaining to the quality and safety of automotive auto parts, owing to which manufacturers have started focusing on providing high-quality raw materials. 

Favorable government policies, regulations, and subsidies in the U.S. are driving the demand for electric vehicles industry. As electric vehicles are environment-friendly, their use supports the climate change and pollution control policies. Furthermore, these vehicles do not function on conventional fuels such as gasoline for their functioning as they are battery powered, thus eliminating the emission of hazardous gases. The increasing use of lightweight auto parts in electric vehicle to increase efficiency is also expected to lead to significant growth of automotive aftermarket over the forecast period.

Digitization ensures transparency in auto repair and maintenance service delivery. This enables various stakeholders, including car owners, to spectate the repair and part replacement costs. Through online services, car owners prefer ordering custom components such as mufflers and resonators from overseas for their peculiar specifications and reduced prices. Furthermore, the rapid advancement of digitalized technologies has created opportunities for automakers and service dealers to develop innovative products in order to remain competitive in the U.S. market.

Modern production technologies are anticipated to offer significant benefits to vehicle owners in terms of cost savings. For instance, the impact of 3D printing in car component fabrication is anticipated to increase globally with time as it enables lower production costs and higher efficiency with optimal material and time utilization. Moreover, increasing investments are being made by manufacturers and associations in R&D activities to offer high-quality and cost-efficient materials. This is expected to drive the growth of automotive aftermarket in the U.S.

U.S. Automotive Aftermarket Trends

With the advent of internationalization and consolidation in aftermarket trends, auto parts suppliers or distributors are required to work on scale operations to become a significant player in the aftermarket industry. For industry-leading service delivery, parts suppliers should develop their e-commerce strategy and provide an easy-access online system. Adoption of e-commerce is needed in the aftermarket industry since most installers go online to gather information on suppliers or distributors. Also, distributors can optimize their operations by focusing on services while outsourcing spare auto parts to the logistics experts.

Furthermore, data sovereignty has led towards the need for collaborations among suppliers to build a widespread OBD (onboard diagnostics) database to induce their third-party services or applications. For instance, Caruso GmbH, a German company, provides easily accessible data and services to the automotive mobility market players to drive digitalization. It helps automobile players to build news business cases and find customers at the global level.

Stringent automotive emission norms and the need for increased fuel efficiency are the major factors driving the demand for engine downsizing. Engine downsizing helps reduce emissions and provide cleaner vehicles. Better fuel economy can be achieved using smaller engines and fewer cylinders.

The primary concern of car manufacturers and Original Equipment Manufacturers (OEMs) is the adherence of small engines to performance and power requirements of the customers. Car manufacturers and OEMs are using turbochargers and superchargers to overcome the challenge.

The National Highway Traffic Safety Administration (NHTSA), a part of the U.S. Department of Transportation (DOT), regulates fuel economy standards. Similarly, the U.S. Environmental Protection Agency (EPA) regulates the standards pertaining to Greenhouse Gas (GHG) emissions. A turbocharger enables car manufacturers to produce engines compliant with different emission standards. The use of turbocharged engines reduces CO2 emissions. The dependence of transportation industry on heavy-duty diesel engines is further driving the growth of automotive aftermarket.

Replacement Part Insights

Based on replacement part, the U.S. automotive aftermarket has been segmented into tire, battery, filters, brake parts, body parts, wheels, lighting & electronic components, exhaust components, turbochargers, and others. In 2018, the others segments accounted for the maximum share in the U.S. market, followed by the tire segment. The turbocharger segment is expected to register a high growth rate over the forecast period. This can be attributed to the turbocharger’s ability to increase the volumetric efficiency of engines, making them compliant to strict emission standards.

The tire segment is anticipated to dominate the automotive aftermarket in the U.S. by 2025. This can be attributed to factors such as the frequent replacements of tires in comparison to their automotive component counterparts. Meanwhile, the turbocharger segment is expected to grow at the highest CAGR over the forecast period. The rising trend of engine downsizing and use of turbochargers to balance power requirements are expected to drive the demand for turbocharges over the forecast period.

Distribution Channel Insights

The automotive aftermarket in the U.S. has been segmented based on distribution channel into retailers and wholesalers & distributors. The distribution channel of the market for basic automobile models comprises members such as tier 1 distributors, automobile exhaust sale hubs, and aftermarket units comprising jobbers and ultimately repair shops. Tier 1 distributors majorly contribute to the overall sales of aftermarket parts, followed by direct channel sales. In 2018, the retailers segment accounted for the largest share in the market. Meanwhile, the wholesalers & distributors segment is expected to witness a high growth over the forecast period.

The adoption of modern distribution techniques such as e-commerce and online catalogs by vendors has enabled them to add value to their product offerings and distribution network. Manufacturers are rapidly expanding their global and regional presence by catering their products to automobile manufacturers across the globe using online platforms. They are also observed forming alliances with raw material and technology suppliers. Furthermore, several suppliers and distributors are adopting strategies such as collaborations with local market participants to gain a competitive edge in the domestic market.

Service Channel Insights

Based on service channel, the automotive aftermarket in the U.S. has been segmented into DIY (Do It Yourself), DIFM (Do It for Me), and OE (delegating to OEMs). In 2018, the OE segment accounted for the maximum share in the U.S. market, followed by the DIFM segment. The DIY segment is estimated to register a high CAGR over the forecast period. DIY car kits have gained popularity as they are easily available, convenient to use, and help save time.

DIY customers are highly price-sensitive and the growth of e-commerce has enabled customers to opt for online platforms for making economical purchases, which has led to an increase in the overall sales of aftermarket parts. Moreover, the increased adoption of new technologies in the U.S. market has enabled aftermarket players to evaluate their performance and maintain their market position in a rapidly changing environment. This has resulted in the shift of suppliers from the traditional platforms to online platforms. Meanwhile, other e-commerce prominent players such as eBay and Amazon continue offering their services through online platforms.

Certification Insights

The automotive aftermarket in the U.S. has been segmented based on certification into genuine parts, certified parts, and uncertified parts. Genuine parts are manufactured by vehicle manufacturers while certified automotive parts are tested and inspected by certified organizations, and uncertified parts can be used instead of original automotive parts. The genuine parts segment is anticipated to dominate the automotive aftermarket in the U.S. by 2025. Meanwhile, the certified parts segment is estimated to register a significant CAGR over the forecast period.

The industry is witnessing a trend of strategic alliances and collaborations between collision repair centers and leading auto insurance companies to gain a competitive edge and capture a significant share in the market. For instance, Utica Mutual Insurance Company, State Farm Mutual Automobile Insurance Company, and Progressive Casualty Insurance Company have tie-ups with certified automotive repair shops across the U.S. NSF International, a global organization, provides standards for safety and damage criteria for aftermarket auto parts. Furthermore, manufacturers are focusing on producing certified parts to comply with NSF standards. This is expected to boost the demand for certified parts in the U.S. market.

Key Companies & Market Share Insights

Key participants operating in the automotive aftermarket in the U.S. include 3M, Continental AG, Delphi Automotive PLC, Denso Corporation, and Federal-Mogul Corporation. High competition in the market has encouraged key players to gain a competitive edge by focusing on offering high-quality products. Moreover, the growing emphasis on strategic initiatives such as alliances, mergers, and acquisitions has led to market consolidation. This has enabled companies to increase their brand value and loyalty base along with establishing a global presence. With the increasing price competitiveness in the U.S. market, various companies are challenged to provide innovative offerings to help consumers address the changing technologies at an economical price. The rising number of domestic players in the country has led to an increased threat to leading players. Key players are adopting mergers and acquisitions with an aim to increase their market share and retain their market position.

U.S. Automotive Aftermarket Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the U.S. automotive aftermarket report based on replacement part, distribution channel, and service channel, and certification.

• Replacement Part Outlook (Revenue, USD Billion, 2014 - 2025)

  • Tire

  • Battery

  • Brake Parts

  • Filters

  • Body parts

  • Lighting & Electronic Components

  • Wheels

  • Exhaust components

  • Turbochargers

  • Others

• Distribution Channel Outlook (Revenue, USD Billion, 2014 - 2025)

  • Retailers

  • Wholesalers & Distributors

• Service Channel Outlook (Revenue, USD Billion, 2014 - 2025)

  • DIY (Do it Yourself)

  • DIFM (Do it for Me)

  • OE (Delegating to OEMs)

• Certification Outlook (Revenue, USD Billion, 2014 - 2025)

  • Genuine Parts

  • Certified Parts

  • Uncertified Parts