Automotive aftermarket industry analysis — 2023

With high inflation persisting, the industry is expected to grow 8.1% in 2023, according to new reports

Las Vegas—The automotive aftermarket grew 9.7% in 2022, outperforming expectations (previously forecast at 8.5%). With high inflation persisting, the industry is expected to grow an additional 8.1% in 2023, according to new analysis reports by MEMA and Auto Care Association, co-owners of AAPEX.

The auto care industry continues to show its reliability and ability to adapt across the service and retail sectors, continually adjusting to meet demand in an ever-dynamic market.

While new vehicle inventory is being replenished as the supply chain pressures have eased somewhat across the industry, the vehicle parc continues to age and increasing costs of both new and used vehicles continue to encourage owners to keep their vehicles longer.

Those factors have provided tailwinds to the automotive aftermarket as vehicle miles traveled have returned to pre-pandemic levels.

More than 539,000 businesses comprise the U.S. automotive aftermarket industry and form a coast-to-coast network of independent manufacturers, distributors, repair shops, marketers and retailers, small and large.

At its core, this integrated grid of professionals is dedicated to providing the quality parts, products and vehicle service and repair for 293 million vehicles (including light vehicles, medium and heavy duty) on the road today.

GLOBAL STATISTICS

• More than $1.8 trillion global automotive
  aftermarket industry.

• Approximately 1.5 billion vehicles on the road.

U.S. STATISTICS

• Projected for 2024, $534 billion U.S. automotive
  aftermarket industry (light, medium and heavy duty
  aftermarket).

• The light vehicle aftermarket built on 2021’s strong
  rebound with an additional 9.7% gain in 2022 and will
  continue with a gain this year of 8.1%. After 2023,
  continued consumer demand and economic conditions
  will provide gains in the 3%–4% range through 2026.

• 2.5% of the U.S. GDP generated by motor vehicle parts
  manufacturers.

• Vehicle parts suppliers manufacture 77% of the value
  in today’s cars.

• The value of aftermarket parts sold in the U.S. in 2022 was $204
  billion and is forecast to reach just under $214 billion in 2023.

• By 2030, 95% of new vehicles sold globally will be connected
  and are estimated to deliver revenue up to $400 billion.

• Represents 3.2% of total U.S. employment.

• Motor vehicle parts suppliers are the largest sector of
  manufacturing jobs in the U.S.: 907,164.

• Direct jobs and total industry employment impact of
  4.7 million jobs.