AI Impact on US Automotive Parts Aftermarket Market growth, set to increase by USD 35 billionn from 2024-2028, Advantages and benefits of original OE replacement parts to boost the revenue, Technavio

NEW YORK, Aug. 22, 2024 /PRNewswire/ -- The automotive parts aftermarket market size in US is estimated to grow by USD 35 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 8.09%  during the forecast period. Advantages and benefits of original oe replacement parts is driving market growth, with a trend towards growing availability of automotive aftermarket parts on e-commerce platforms. However, relatively high cost of original and genuine oe replacement parts  poses a challenge. Key market players include 3M Co., Adient Plc, AISIN CORP., American Axle and Manufacturing Holdings Inc., Aptiv Plc, DENSO Corp., FlexNGate Group of Companies, Lear Corp., Magna International Inc., Niterra Co. Ltd., Panasonic Holdings Corp., Pioneer Corp., Robert Bosch GmbH, Samsung Electronics Co. Ltd., Schaeffler AG, Stellantis NV, Tenneco Inc., Valeo SA, Yazaki Corp., and ZF Friedrichshafen AG.

Get a detailed analysis on regions, market segments, customer landscape, and companies - Click for the snapshot of this report

Key Market Trends Fueling Growth

The US automotive parts aftermarket is experiencing a significant shift towards online sales channels. E-commerce platforms have become essential players in the market's growth, with online retail sales of automotive parts surpassing traditional brick-and-mortar sales. The advantages of purchasing through online portals include the ability to research parts in detail, compare prices, and access product specifications before making a purchase. Popular online sales of automotive aftermarket parts in the US include brake parts, filters (oil and air), lighting parts, tires, lubricants, and batteries. These factors contribute to the ease, convenience, and freedom of choice offered by online platforms, leading to substantial growth in the automotive parts aftermarket during the forecast period. 

The Automotive Parts Aftermarket in the US is experiencing significant trends shaped by logistics experts adapting to fuel economy standards and the transportation industry's shift towards turbocharged engines. CO2 emissions regulations drive the demand for automotive components that enhance fuel efficiency. Technological advancements, including digital platforms, online portals, and 3D printing, are transforming the industry. Automotive vendors employ production technologies like robotics and automation, while start-ups bring innovation through 3D printing and e-commerce. The stay-at-home orders and restrictions on movement due to the pandemic have led to increased wear and tear on vehicles, causing supply chain disruptions and raw material shortages, resulting in longer lead times and economic impact. Consumer spending habits have shifted towards aftermarket accessories, non-essential vehicle repairs, and tire segment due to rising fuel prices and environmental concerns. The Electric Vehicles (EVs) market is growing, impacting OEMs, retailers, wholesalers & distributors, and aftermarket players alike. Replacement Parts, OEM Parts, Accessories, and Performance Parts continue to be in demand, with heavy-duty diesel engines remaining a significant segment. 

Discover a Comprehensive 360° Market Analysis: Understand the Impact of AI. For detailed information- Request Sample!

Market Challenges

• The automotive parts aftermarket in the US faces challenges that hinder its growth due to the price disparity between original and unauthorized aftermarket parts. Consumers often opt for cheaper, unauthorized parts despite their inferior quality. Original parts, manufactured to meet specifications and standards, offer superior reliability and durability. However, their higher cost creates a barrier for consumers. The value chain and margin structures also differ significantly between the two markets, with original parts vendors operating on higher margins and lower volumes, and unauthorized parts vendors on thinner margins and potentially higher returns. These factors contribute to the prevalence of counterfeit parts in the market, which may hinder the growth of the automotive parts aftermarket in the US during the forecast period.
• The Automotive Parts Aftermarket in the US faces several challenges in various product categories. For suspension systems, components like Air Suspension Systems, Leaf Springs, Coil Springs, Shock Absorbers, and Struts require continuous innovation to meet car owners' demands. Steering components such as Columns, Racks, Ends, Arms, and Boxes, along with Dampers, Fluids, Hoses, Reservoirs, Lines, Coolers, and digitalized technologies like Steering Wheel Covers, Wheels, Locks, Buttons, and Steering Wheel Interfaces, need to cater to both domestic and overseas markets. Consolidation among auto parts suppliers, distributors, and service dealers, as well as the internationalization of automakers, necessitate an e-commerce strategy and an online system for seamless sales and installation processes. Custom components, including mufflers and resonators, also pose challenges due to their unique specifications and the need for precise fitment.

For more insights on driver and challenges - Download a Sample Report

Segment Overview 

This automotive parts aftermarket market in US report extensively covers market segmentation by

1. Type 
• 1.1 Passenger vehicles
• 1.2 Commercial vehicles
2. Distribution Channel
• 2.1 Offline
• 2.2 Online
3. Geography 
• 3.1 North America

1.1 Passenger vehicles-  The US automotive parts aftermarket is experiencing significant growth due to the high market share of passenger vehicles. Popular models such as hatchbacks, sedans, and estates require regular service and maintenance, leading to the replacement of worn-out parts. Additionally, the increasing sales of plug-in hybrid vehicles (PHEVs) and battery electric vehicles (BEVs) are further fueling the demand for automotive parts. The US passenger vehicle market is diverse, with prominent players like General Motors, Ford Motor Company, Tesla, Toyota Motor, Honda Motor, Nissan Motor, Hyundai Motor, Mazda, Subaru, and Daimler. The average age of light vehicles is increasing due to improved vehicle quality and durability, resulting in a longer product lifecycle and higher frequencies of parts replacement. Commonly replaced parts include wipers, brake pads, tires, air filters, oil filters, bulbs, spark plugs, batteries, timing belts, and headlights. Established vendors offering OE replacement parts include Continental, ZF Friedrichshafen, Delphi Technologies, DENSO, and Aisin Corp. Pure-play aftermarket parts players like AutoNation and AutoZone, and online retailers such as Amazon, eBay, and US Auto Parts Network, are also significant contributors to the market. These factors collectively contribute to the growth of the passenger vehicles segment in the US automotive parts aftermarket.

For more information on market segmentation with geographical analysis including forecast (2024-2028) and historic data (2018 - 2022)  - Download a Sample Report

Research Analysis

The Automotive Parts Aftermarket in the US is a significant and diverse industry, catering to the demand for replacement parts, accessories, performance parts, car care products, filters, brakes, batteries, tires, wheels, lighting, exhaust systems, suspension, engine parts, automotive electronics, fluids, tools, and body parts for both passenger cars and commercial vehicles. This market serves as a crucial source for consumers seeking to maintain, repair, or enhance their vehicles beyond the original equipment manufacturer (OEM) offerings. It offers a wide range of options, from standard replacement parts to high-performance components, allowing consumers to customize their vehicles according to their preferences and budgets. The market's growth is driven by factors such as increasing vehicle parc, rising consumer disposable income, and the growing popularity of DIY car repair.

Market Research Overview

The Automotive Parts Aftermarket in the US is experiencing significant digitization, with car owners increasingly turning to digitalized technologies for purchasing custom components online. Mufflers and resonators, turbochargers, and heavy-duty diesel engines are popular segments driving growth. Overseas automakers and service dealers are internationalizing their presence, leading to consolidation among auto parts suppliers and distributors. E-commerce strategies, online systems, and digital platforms are transforming the industry, with logistics experts playing a crucial role in ensuring timely delivery. Fuel economy standards and CO2 emissions regulations are pushing technological advancements in automotive components, from 3D printing and robotics to start-ups like CarParts and Auto Parts Warehouse. The transportation industry's economic impact, consumer spending habits, and supply chain disruptions due to stay-at-home orders and restrictions on movement have affected vehicle usage and wear and tear, leading to increased demand for replacement parts. The tire segment, Electric Vehicles (EVs), and rising fuel prices are other significant trends shaping the market. Aftermarket accessories, non-essential vehicle repairs, and vehicle modifications continue to be popular, with retailers, wholesalers & distributors, OEMs, and automotive vendors adapting to meet changing consumer needs.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• Passenger Vehicles
• Commercial Vehicles
• Distribution Channel
• Offline
• Online
• Geography
• North America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED