United States Automotive Aftermarket Market, By Replacement Part (Tire, Battery, Brake Parts, Filters, Body parts, Lighting & Electronic Components, Wheels, Exhaust components, Turbochargers And Others); Vehicle Type (Passenger Cars And Commercial Vehicles), Distribution Channel (Online and Offline), Trend Analysis, Competitive Market Share & Forecast, 2018-2028
United States Automotive Aftermarket Market to Grow at a CAGR of 2.5% during Forecast Period
United States automotive aftermarket market is growing at a high CAGR because of the growth in average age of vehicles coupled with the expansion of automotive dealer on online platforms and advancement in technology is driving the market.
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the United States automotive aftermarket market is projected to grow at a CAGR of 2.5% during the forecast period. The United States automotive aftermarket market is growing because the average age of vehicles and the expansion of automotive dealers on online platforms are driving the market. In addition, the market is propelled by motorists' desire to improve the performance of their vehicles in terms of exhaust sound, speed, and cosmetic standards, among many other elements. The United States Environmental Protection Agency keeps an eye on the environmental effects and built-up standards related to the operation of automotive components, such as the noise emission levels related to contemporary automotive resonators and mufflers in automotive exhaust systems. However, the adoption of vehicle safety technologies and rising electric vehicle sales to hinder market growth and may act as a huge restraining factor for the market growth.
Growth in Average Age of Vehicles Coupled With the Expansion of Automotive Dealer on Online Platforms Is Driving the Market
Aging and more prevalent in older vehicles, with passenger cars and the light truck class having an average age of 11.3 years, the average age of vehicles is still increasing. More parts are needed to keep vehicles on the road as they age. The fact that the average age of cars has risen by 14% over the last six years is encouraging for the market's growth. In the upcoming years, it is anticipated that the fleet of aged vehicles will increase demand for certain automotive components.
Due to the customers' easier experience on the digital platform, businesses are now making the switch. The web platform that Continental AG announced for the sector in January 2020 would include a portfolio of all of its services and details about its products. Several key industry categories exchange value through the automobile sector at various intermittent stages. The automotive aftermarket industry will be driven by the opportunity to access a comprehensive component assortment and simple transactions made possible by the digitalization of automotive component sales. As more individuals gravitate toward Internet-of-Things (IoT) and digitization trends as the automobile aftermarket expands, it is projected that the resulting digitalization will have a significant impact on the automotive aftermarket market in the United States.
Market Expansion Would Be Hampered By the Adoption of Vehicle Safety Technologies and Rising Sales of Electric Vehicles
As technology advances, automobiles are becoming more and more sensor-equipped, which results in great driving habits and reduces the wear and tear on brakes and other vehicle parts. This obstacle prevents component replacement and limits the expansion of the automobile aftermarket. The penetration of new raw materials being developed to lessen the deterioration of automotive components is another restriction. Smaller brake pads that are more economical and effective are projected to result from the carbon fiber-infused polymer-based brakes since the smaller brake pads can resist higher friction and temperatures.
Online Segment Is Propelling the Market Growth
Demand for the United States automotive aftermarket market is increasing due to changing automotive technology and the introduction of hybrid and electric vehicles. Digital platforms and social media have a rising impact on how customers conduct research and make purchases. Customers can quickly get pricing information on components through online sales channels, and they use these channels to choose which auto parts to purchase. Customers can access peer opinions on the value and quality of workshops through online forums. Suppliers, original equipment manufacturers (OEMs), distributors, and workshop chains are all becoming more active online. A digital sales model also makes it possible for the value chain to be leaner and shorter. By streamlining the distributor layer and getting rid of middlemen, suppliers can generate additional significant margins and savings that they can then pass on to end customers, thereby increasing the market growth with the online distribution channel.
Impact of COVID-19 on United States Automotive Aftermarket Market
The COVID-19 pandemic has had a significant negative influence on the US aftermarket market, which can be attributed to various manufacturing industry production halts brought on by lockdowns and travel bans implemented by governments. The manufacture of automotive parts on the market is impacted by the disruption of the supply chain for the whole automotive sector. Consumer traffic in showrooms and car sales both decreased during COVID-19. As a result, the fleet as a whole grew older, extending the time needed for maintenance by an additional 6 to 8 months. However, market growth is anticipated to be consistent since the demand for manufacturing auto components is closely tied to the success of automakers, the biggest consumers of automotive aftermarket parts production.
Key players operating in the United States Automotive Aftermarket market are 3M Company, Lear Corporation, O'Reilly Auto Parts, Advance Auto Parts, Cooper Tire & Rubber Company, Magna International Inc., Continental AG, ZF Friedrichshafen AG, DENSO Corporation, Aisin Seiki Co. Ltd., BorgWarner Inc., Robert Bosch GmbH, Valeo SA, Flex-N-Gate Corporation, Panasonic Automotive Systems Company of America, American Axle & Manufacturing Holdings Inc., Faurecia, Aptiv PLC, and other prominent players.
Proliferating technologies and rising R&D spending by manufacturers and associations are predicted to fuel industry expansion. To increase their market position, the largest corporations are concentrating on their expansion, acquisition, and partnership strategies. Additionally, Robert Bosch GmbH continues to dominate the global aftermarket for automobile parts. As these automotive businesses are anticipated to drive industry innovation in the next years, this factor is anticipated to have an impact on the market.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the United States automotive aftermarket market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the United States automotive aftermarket market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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