Report Overview

United States Automotive Aftermarket market is growing owing to the availability of automotive aftermarket parts on e-commerce platforms, demand for electric vehicle and used car sales. Moreover, rise in the automotive aftermarket driven by the advantages of original replacement parts propelling the United States automotive aftermarket market.

United States Automotive Aftermarket Market - Industry Trends & Forecast Report 2028

United States Automotive Aftermarket market exhibiting a CAGR of 2.5% in the forecast period. The market is growing predominantly due to the increasing availability of automotive aftermarket parts on e-commerce platforms and the surge in demand for electric vehicles and used car sales. Moreover, the rise in the automotive aftermarket driven by the advantages of original replacement parts also propelling the United States automotive aftermarket market.

Automotive Aftermarket - Overview

The "aftermarket" refers to parts installed after a car has left the factory. This industry includes items sold after a car has been purchased, such as accessories, spare tires, equipment, service repair, and collision repair. It covers businesses engaged in the production, transfer, retail, installation, and remanufacturing of all automotive components and add-ons. Technology improvements have led to the digitalization of auto maintenance and component sales, which in turn has accelerated the growth of the automotive aftermarket industry.

United States Automotive Aftermarket Market Forecast and Trends

Growth Drivers

Rise in the Automotive Aftermarket Driven By the Advantages of Original Replacement Parts

One of the difficult problems for a car owner seems to be replacing an old, worn-out element of a component. Users must make a careful choice among available options and costs in addition to checking whether the part or component is available in-store or online. Due to this, the process may get rather complicated and frantic. Confusion is further increased by the availability of fraudulent, illegal, or duplicate parts in the automotive aftermarket. This is due to the fact that such parts or components can damage the performance of the vehicle in addition to failing to match the performance of the original and genuine parts. Hence, the advantages of original replacement parts is one of the primary factors driving the growth of the automotive aftermarket.

Increasing Availability of Automotive Aftermarket Parts on E-Commerce Platforms

With online channels' growing popularity, e-commerce platforms play an important role in the rapid growth of revenues generated by the automotive aftermarket. The industry is witnessing a paradigm shift toward online platforms in the United States, which can be seen with online retail parts sales growing year on year. Due to digitization, sales of automotive aftermarket components on e-commerce platforms have recently surpassed those in traditional brick-and-mortar stores. The popular automotive aftermarket parts bought online by consumers in the United States are brake parts, filters, lighting components, tires, and batteries. The above factors have resulted in growth in the automotive aftermarket market in the United States.

Surge In the Demand for Electric Vehicle and Used Car Sales

The growing demand for hybrid and all-electric vehicles and the emergence of 3-D printing in the automotive aftermarket industry will further boost market growth during the forecast period. Additionally, the leading participants in the United States aftermarket automotive parts and components market are projected to benefit greatly from the increase in used car sales. The demand for electric vehicles is being fueled by favorable government policies, regulations, and subsidies in the United States. This is causing the production of electric vehicles to use more lightweight auto parts to increase efficiency, which is likely to support the expansion of the United States automotive aftermarket in the years to come.

Restraints

High cost of original replacement parts may hamper market growth

When opposed to unlicensed, duplicate, or fake components that are offered in the aftermarket, original and genuine aftermarket parts, also known as OE replacement parts, are more expensive and costlier. As a result, consumers face a cost barrier, which is one of the main obstacles to the market's healthy expansion. Additionally, the value chain and margin structures for the original, genuine aftermarket parts and the unlicensed or fake aftermarket are distinct. The majority of original and genuine aftermarket parts vendors operate on a higher margin and lower volume matrix. All these factors influence consumers to make impulsive purchases of fake and illegal aftermarket parts. As a result, the existence of such factors presents difficulties for the development of the automotive aftermarket market in the United States.

Impact of COVID-19 on United States Automotive Aftermarket Market

The market's growth for automotive aftermarkets has suffered due to all non-essential services being terminated in the United States. The majority of company ventures and investments came to a standstill in the first half of 2020. The aftermarket players have already been impacted by the liquidity and cash crunch, and due to budgetary restrictions, it is anticipated that the financial differences would prevent the acquisition of new vehicles. The lockdown and travel bans were lifted in 2021, and as a result, widespread vaccination programs allowed supply chain operations to resume. The demand for aftermarket auto parts for vehicle maintenance is anticipated to rise as used car sales rise. These elements are anticipated to propel the market throughout the forecast period.

United States Automotive Aftermarket Market - By Replacement Part

Replacement parts segment the automotive aftermarket into the tire, battery, brake parts, filters, body parts, lighting & electronic components, wheels, exhaust components, turbochargers, and others. The market is expected to be dominated by the tire segment, which would be the largest in terms of replacement parts. Due to the low replacement cycle of tires compared to their equivalents in the other component markets, this category is anticipated to continue to dominate the market. Other segments, such as the battery, brake parts, wheels, and lightning components, also hold substantial growth in the United States in the automotive aftermarket market. The growing demand for locomotives is projected to trigger the demand for the automotive aftermarket market.

United States Automotive Aftermarket Market - By Vehicle Type

The market is divided into passenger cars and commercial vehicles based on vehicle type. The automotive aftermarket market in the United States share growth by the passenger vehicles segment will be significant during the forecast period. The passenger car market is characterized by a variety of market dynamics and consumers' varying purchasing preferences. Some of the most reputable domestic and foreign automakers involved in the passenger vehicle market are based in the United States. Commercial vehicles are expected to fuel market growth owing to frequent repair and maintenance activities and upcoming emission norms for commercial vehicles that are likely to impact the repair side via increased adoption of engine electronics. These key variables are anticipated to have an impact on the commercial vehicles market.

United States Automotive Aftermarket Market - By Distribution Channel

By distribution channel, the automotive aftermarket was segmented into online and offline. The market is changing in favor of digitalization due to the growing effect of technological innovation. The marketplace is evolving as the aftermarket transitions to the internet. Original Equipment Manufacturers (OEMs), Original Equipment Suppliers (OESs), distributors, insurers, and workshops are the value chain participants responding to the expanding online aftermarket trend. Due to consumers using the internet more frequently, the United States automotive aftermarket market is predicted to grow positively. Due to the ongoing epidemic, e-commerce activity is expected to expand faster than expected. During the forecast period, the key market participants will benefit greatly from this pandemic. Online platforms like Amazon and eBay are likely to have an influence on the United States online automotive aftermarket.

Competitive Landscape

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.

The United States Automotive Aftermarket market is fragmented, with the presence of several manufacturing companies in the country. The market leaders retain their supremacy by spending on research and development, incorporating cutting-edge technology into their products, and tying up with local dealers to garner more market share.

Recent Development

• In January 2019, the automotive section of Romanian engineering services firm bee Speed Company was acquired by ZF Friedrichshafen AG. The purpose of the acquisition is to boost the company's market position and provide it with a competitive advantage over other market participants.

• In January 2020, the web platform that Continental AG announced for the sector would include a portfolio of all of their services and details about their products.

Scope of the Report

By Replacement Part

• Tire

• Battery

• Brake Parts

• Filters

• Body parts

• Lighting & Electronic Components

• Wheels

• Exhaust components

• Turbochargers

• Others

By Vehicle Type

• Passenger Cars

• Commercial Vehicles

By Distribution Channel

• Online

• Offline