Vehicle shortages lead to above average demand for replacement parts, especially for exhaust, steering, filters and braking
New York—The story throughout the pandemic all tied back to material shortages in numerous industries including the commercial vehicle market. Those shortages led to higher costs in inputs, labor, and logistics because inventory was exhausted.
New vehicle production shortages had a domino effect on current vehicles in operation. Class 5 vehicles on the road rose 8% from 2019-21 and class 8 vehicles rose 3% during that same period.
Overall, we saw a 5% increase for all vehicles on the road from 2019-21 resulting in almost 16.5 million class 3-8 vehicles on the road at the end of 2021. Since fleets were unable to replace older vehicles, we saw an increase in the average age by 5% for both class 7 and class 8 vehicles.
Increased VIO and the average age of commercial vehicles have led to large increases in replacement parts revenue for the commercial vehicle industry over the past few years. S&P Global Mobility (formerly IHS Markit |Automotive) tracks aftermarket parts replacement for more than 95 parts common to the commercial vehicle industry.
We are seeing double-digit volume increases for exhaust, steering, filters, and braking from 2019 to 2021. Across all 95 parts that S&P Global Mobility tracks there was $12.6 billion in replacement revenue and $5.7 billion in remanufactured revenue for 2021.
As we continue to deal with vehicle shortages we will continue to see older vehicles on the road which will lead to above average demand for replacement parts.
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