Auto Parts Industry Trends
For the latest in auto parts industry trends click on the articles below.
According to the Auto Care Association the auto parts industry is $380 billion in the US and an amazing $2 trillion worldwide. That includes parts for light-duty as well as medium- and heavy-duty vehicles.
Newest auto parts industry trends
- • GDP is contracting significantly in 2020 due to the COVID-19 pandemic.
- • Consumer spending in the auto parts industry is contracting in 2020. Auto parts revenue will drop 8% to 10% from 2019.
- • Personal travel by auto is nearly unchanged in 2020, while travel by air or rail is down dramatically.
- • New light vehicle sales will be about 14% to 17% below 2019. This will have a positive effect on auto parts industry revenue trends as vehicles get older.
- • The average age of a vehicle in the US is nearly 12 years old.
- • There are more than 230 million licensed drivers in the US.
Auto parts industry outlook
The auto parts industry has a positive outlook over the next several years. The economy is not good but the auto parts industry is historically recession-resistant, or non-cyclical as the investment community puts it.
- • Auto parts eCommerce revenue will be over $22 billion by 2023
- • Licensed drivers will be close to 240 million by 2025 as ride-sharing and public transportation sees a downturn due to COVID-19.
- • Miles driven has grown 1.3% per year over the past several years. There will be a decline in miles driven in 2020 but most industry experts forecast a return to driving activity.
- • The Auto Care Association forecasts robust growth for the auto parts industry in 2021 through 2023.
- • Demand for auto technicians will exceed actual employment for the next several years.
- • Trucks continue to be popular and outsell new cars by about a 2-to-1 margin, driving demand for truck parts.
Social distancing in garages drives DIY auto parts sales
Do-it-for-me (DIFM) retail revenue has dropped due to COVID-19. Developments driving this trend: consumers hesitate to have contact with others and some DIFM consumers are struggling with unemployment.
Fears of COVID-19 are also driving pent-up demand for auto parts and service repair as consumers defer DIFM services. Deferred service repair is in the multiple billions of dollars and rising.
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Below, we have linked to several latest articles where you can learn more about the amazing industry we love.
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