Auto Parts Industry Trends
CLICK TO ENLARGE: One of the biggest auto parts industry trends is the shift to eCommerce.
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
Auto parts chain stores and other retailers, as well as online auto parts retailers, have seen a surge in demand by do-it-yourself (DIY) consumers.
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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