The automotive aftermarket industry in 2022
The latest auto parts industry trends.
How big is the automotive aftermarket industry?
The light duty auto parts industry is projected at $341 billion in 2022 (parts and service). The entire automotive aftermarket/auto care industry including medium and heavy-duty parts is projected at $439 billion in 2022 (parts and service). Stats are from the Auto Care/AASA Channel Forecast Model.
Auto aftermarket trends: Consumer spending on auto parts
CLICK TO ENLARGE: Auto aftermarket trends to watch include consumer spending on auto parts and accessories and inflation. Here we track consumer spending by month, going back to January 2010 and adjust for inflation using 2010 dollars.
One of the auto aftermarket trends we’re watching closely in 2022 is consumer spending on aftermarket parts and accessories and the impact of inflation.
The aftermarket continues to have a strong upward trend despite the economic pressures of inflation. Here’s a chart showing consumer spending, adjusted for inflation using 2010 dollars. You can see that, other than a COVID-19 spike in 2021, even adjusted for inflation the aftermarket is trending upward.
The spike on this chart is from March through July 2021.
Adjusted for inflation, consumer spending on auto parts and accessories in the first four months of 2022 is up 2% over 2021. That is actually a fairly normal trend if you look at the decade prior to the pandemic.
Automotive eCommerce trends: Auto Care Association, AASA report
Free to AASA and Auto Care Association members, this automotive eCommerce report shows where eCommerce is for 2022 and projects it out through 2030. Hedges & Company contributed to the report.
Hedges & Company worked with GCommerce, Inc. and Jefferies to author a report on automotive eCommerce trends showing auto parts sales statistics for the aftermarket industry. The automotive eCommerce trends report is available on the Auto Care Association and AASA websites, with additional details on the auto parts eCommerce industry posted on this website.
Total automotive eCommerce is projected at $38 billion in 2022. $19.8 billion comes from eCommerce websites/first-party (1P) sales and $18.3 billion comes from third-party (3P) sales on marketplaces such as Amazon or eBay Motors. 1P and 3P combined are projected to reach $67 billion in 2030.
CLICK TO ENLARGE: Distribution channels in the auto parts industry. The dashed lines indicate a relatively new channel of distribution in the auto parts market, from internet retailers sending drop ship orders to WDs, who in turn ship directly to auto aftermarket consumers.
Automotive aftermarket distribution model in 2022
The automotive aftermarket is the after-sales auto parts market. This chart shows the complexities of distribution for aftermarket auto parts and aftermarket accessories.
“Two-step distribution” was the primary channel of distribution for aftermarket auto parts for decades. This distribution channel went from manufacturer, to warehouse distributor (WD), to the auto parts retailer/jobber, to the consumer.
This has given way to multiple channels of distribution in the auto parts market, as the internet has opened new channels of distribution and consumer buying. A prime example of this is shown with the dashed lines: internet retailers who take orders for parts and accessories, send orders to warehouse distributors (WDs), who then drop ship orders directly to consumers. Manufacturers are increasingly selling direct to consumer (DTC) on the internet, bypassing all other traditional distribution channels.
How many jobs are available in the automotive aftermarket?
The aftermarket employs about 4.5 million people in the US. That includes employment at parts manufacturers, dealerships, wholesale distributors, auto parts stores and tire stores, gas stations, and service repair companies. The industry’s employment shrank about 5% in 2020 according to the Auto Care Association, after growing 9% 2018-2019. Over the past decade or so employment has been growing just over 1% per year.
Demand for automotive technicians has been outpacing actual employment for over 10 years.
At a glance: Automotive aftermarket trends 2022
- Personal consumption of aftermarket auto parts in October 2020 increased 8% from October 2019.
- The US light duty auto parts aftermarket market size is projected at $341 billion in 2022.
- The entire US automotive aftermarket including medium- and heavy-duty is projected at $439 billion in 2022.
- Automotive eCommerce trends: the expected growth in 2022: 11.7%.
- Automotive DIY activity continues to rise in 2021-2022, which is a good sign for the auto parts market.
- 234.5 million people will be licensed to drive in the US by 2022.
- In the US auto parts market, eCommerce is projected at nearly $38 billion in 2022.
- More automotive eCommerce trends: North American eCommerce is projected at USD$26.1 billion in 2022.
- More companies are supporting the industry with automotive eCommerce solutions including heavyweights Shopify and BigCommerce.
- The medium- and heavy-duty parts market grew about 2% in 2021.
- Industry demand for automotive technicians continues to outpace the available pool of auto techs, continuing a pattern since 2009.
Learn the latest automotive aftermarket outlook for 2022, with our interpretation and analysis. We cover news and statistics from SEMA, AASA, CAN and the AutoCare Association, as well as other news on the automotive aftermarket industry. We also look at the impact of coronavirus and COVID-19 on the aftermarket industry.
Automotive aftermarket in 2022: Auto parts industry doing well
CLICK TO ENLARGE. Automotive trends: In June 2020, personal consumption of aftermarket tires hit an all-time record, $35 billion. In April it was at the lowest point since 2012. July 2020 was very close, at $35.462 billion, an 8% increase from July 2019. “Personal consumption” is retail only, no B2B, through brick and mortar and eCommerce, and includes specialty tires and OEM replacement tires.
Personal consumption of auto parts hit an all-time record in June 2020, reaching an adjusted $50.509 billion. July (revised) was $49.884 billion and August improved to $50.303 billion. Personal consumption of aftermarket tires also hit a record in June, at $35.504 billion. July was very close at $35.462 billion. Both metrics were down in April to 2012 levels.
The North American online auto parts industry market size will be about US$26.1 billion in 2022. It will be up more than 40% from 2020.
The light duty automotive aftermarket industry size is $341 billion in 2022. The entire automotive aftermarket/auto care industry including medium and heavy-duty will be about $439 billion in 2022.
Historically the auto parts industry has grown about 3.5% to 3.9% per year. However, auto parts eCommerce has been growing at about a 20% compounded annual growth rate (CAGR).
The power of digital influence on the automotive aftermarket industry is an aftermarket auto parts sales statistics trend to watch. About $174 billion in automotive through all sales channels, including online and brick and mortar, are influenced by digital. Digital influence on auto parts retail will grow to nearly $200 billion by 2025.
Automotive online shopping is growing, automotive technology is changing with more hybrids and electric vehicles, mobile shopping is on the rise, self-driving cars are supposedly on the horizon, and Amazon and eBay are going strong. How do you know what aftermarket information to follow, or even which automotive aftermarket trends are important in the first place?
Automotive accessories sales revenue
Learn about the latest developments in automotive accessories sales statistics, including performance parts and accessories sales forecasts and projections. In these articles we refer to our own market research, SEMA market research, AASA research and reports from the AutoCare Association. We also have the most recent projections on eCommerce for the aftermarket industry.
Performance accessories trends
We track auto parts performance accessories trend analysis over time, including online sales data, demographic data and more.
Auto repair and service outlook
The aftermarket industry employs about 4.5 million people and includes over 270,000 repair shops and over 265,000 retail parts outlets. Vehicles drive over 3 trillion miles per year on US roads.
Common automotive aftermarket questions
How big is the automotive aftermarket industry?
The light duty aftermarket is projected at $341 billion in 2022. The entire automotive aftermarket/auto care industry including medium and heavy-duty is projected at $439 billion in 2022.
Why is it called aftermarket?
This is a “market” for parts and accessories “after” a vehicle is sold, so it’s called the “aftermarket.” It’s the secondary market of the automotive industry. These are replacement parts and accessories sold after a vehicle is sold as new, intended for repair, customization or enhancement.
Which is better OEM or aftermarket?
There is no “better” level of quality when it comes to OEM or aftermarket parts. OEM replacement parts are made by the manufacturer of a vehicle or for the manufacturer according to the manufacturer’s specifications. Aftermarket parts can be made to similar specifications or in some cases may exceed OEM specifications. In some cases there is no OEM equivalent to an aftermarket part.