Aftermarket Market Research Reports, Analysis & Trends
Aftermarket industry consists of companies that supply goods after remanufacturing, retailing, and distribution. Typically it is secondary market where the goods, accessories, spare parts, and second hand equipments are supplied. Automotive industry is one of the growing industries; employing total of 4.07 million people in the aftermarket industry in 2012 as it improved over 2011’s total of 3.97 million. Over 99,200 jobs were added to the employment roll, according to Automotive Aftermarket Industry Association (AAIA).
From renting and leasing agencies to products, services and repairs, the automotive aftermarket industry has been one of the most fruitful sources of business opportunities. Segments of the automotive industry where business opportunities play a leading role include transmission repair, tune-ups, appearance care, quick oil change, body repair, painting tires, brakes, exhaust systems, and parts and accessories.
Automotive aftermarket consists of five broad segments: Automotive segment, which accounts for almost $18 billion in sales, in this segment companies provide replacement parts and accessories and maintenance with repair services for passenger cars and trucks, minivans and sport utility vehicles (SUVs). Heavy Duty Segment, in which distributors and manufacturers provide parts and service for commercial, industrial and agricultural vehicles. In Paint and body equipment segment, companies provide vehicle refinishing products and services. Tools and equipment segment, consists of firms that supply the tools and equipment needed to repair and maintain motor vehicles and lastly Trim segment, which covers companies that manufacture, distribute or install interior and exterior fabrics, associated hardware and products for the repair of cars, trucks, boats and aircraft.
Aftermarket Current Trends
The increasing miles record driven by growing vehicle population is one of the key drivers of growth and the massive amount of vehicle maintenance that goes unperformed each year that is valued at almost $60 billion.
The automotive aftermarket is a vast and diversified industry, generating some $248 billion in annual sales, according to the AAIA; despite the industry's large size, car care businesses continue to grow at a faster rate than the overall economy, and forward-looking indicators suggest there is plenty of room for additional growth in the future.
The automotive aftermarket includes do it yourself (DIY) parts and accessories, which generated $29.1 billion in sales in 2001 is expected to be overtaken by the light vehicle aftermarket which is projected to rise 3.2% annually to $85.5 billion in 2016.
The temporary slump of Sweet Spot, the vehicles typically 6 to 12 years old recently has been a strong support for aftermarket growth, is expected to grow as strong wave of new vehicle sales come into the market. Another factor is aftermarket supplier technology executives’ focus on technology initiatives for aftermarket which could create more employment for skilled resources specializing in automotive and IT industries.
Major Aftermarket Players
Major Automotive Aftermarket players are Royal Dutch Shell plc, ExxonMobil, BP America, Federal-Mogul Corp, Standard Motor Products Inc, and Spectra Premium Industries.