The light vehicle aftermarket is becoming more sensitive to economic changes and fluctuations in consumer income and purchase behavior
Fort Wayne, Ind.—Replacement Parts, products necessary for vehicle operation, are the largest of the four groups of light vehicle aftermarket products, which also include Chemicals, Accessories, and Tools & Equipment.
However, over the past five years, Replacement Parts have declined in aftermarket product share and pace of growth, as two other major product groups have achieved higher annual growth rates.
“In 2019, Replacement Parts represented nearly 65% of light vehicle product volume, but they failed to match the growth pace of the total light vehicle aftermarket during the following five years. This has created big changes in the aftermarket and how it works,” states the latest Lang Aftermarket iReport.
The following is a breakdown of the analysis.
Replacement Parts
During 2019, Replacement Parts represented nearly 65% of light vehicle aftermarket product volume. However, that “changed abruptly,” reports Lang Marketing. Since COVID-19 significantly reduced miles-driven and annual sales, Replacement Parts has continued to decline in aftermarket product share.
While a final analysis will not be completed for several months, Lang Marketing estimates that Replacement Parts accounted for just over 61% of light vehicle product sales in 2024. Despite their reduced product share, Replacement Parts recorded the largest dollar growth in product sales during those five years.
Chemicals
All types of automotive Chemicals, including those necessary for vehicle operation and discretionary Chemicals (waxes, polishes, cleaners, etc.), also declined in light vehicle product share between 2019 and 2024. Despite their share decline, Chemicals recorded a substantial sales increase and ranked second in overall car and light truck product volume during those five years.
Accessories
Accessories modify the appearance, performance, or handling of light vehicles. They are not required for vehicle operation (like Replacement Parts and some Chemicals) because they modify a vehicle rather than restore it to its original performance or appearance level.
Accessories recorded strong annual growth from 2019 to 2024, boosting their light vehicle aftermarket product share the most of any product group. Accessories topped a $3 billion product sales gain during those five years, significantly expanding their aftermarket product share.
Tools & Equipment
According to a preliminary analysis, Lang Marketing estimates that Tools & Equipment expanded their light vehicle product share by over one-tenth between 2019 and 2024, the largest percentage gain of any product group. Tools & Equipment more than tripled the annual percentage growth rate of Replacement Parts.
Aftermarket Growth Share
Despite their share decline, Lang Marketing estimates that Replacement Parts generated over 40% of light vehicle aftermarket product growth between 2019 and 2024, followed by Tools & Equipment and Accessories, each representing more than $3 billion in product growth at user-price. Chemicals were some distance behind with only about half as much sales expansion.
Product Growth Rates
Tools & Equipment achieved the highest annual product growth rate between 2019 and 2024, followed closely by Accessories. In contrast, Replacement Parts and Chemicals recorded annual growth rates lower than the average of all light vehicle aftermarket products.
Aftermarket Impact
Replacement Parts’ diminishing share of aftermarket product sales has “significant” consequences.
• The falling product growth and share of Replacement Parts make it more costly for aftermarket participants to manage parts proliferation since Replacement Parts represent the vast majority of aftermarket products necessary for vehicle operation. They are slipping in market share but must be readily available to keep cars and light trucks on the road.
• The changing aftermarket share of the four major product groups is shifting product volume among the five distribution channels supplying the light vehicle aftermarket. The declining share of Replacement Parts, which generally require local availability to enable the rapid repair of vehicles, is lowering a critical market-entry barrier and making it easier for e-Commerce to expand its aftermarket supply footprint.
• Replacement Parts recede in the share of aftermarket products, a growing portion of aftermarket sales comprises discretionary rather than non-discretionary purchases.
As an result, Lang Marketing projects that this rise in discretionary product share is making the light vehicle aftermarket more sensitive to economic changes and fluctuations in consumer income and purchase behavior. This makes the aftermarket less countercyclical to general economic conditions and less of a “recession-resistant” industry.
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