Although they have maintained a dominant aftermarket product position, replacement parts’ share of light vehicle products fell below 62% in 2023
Fort Wayne, Ind.—Replacement Parts’ share of light vehicle aftermarket products has declined over the past 10 years, but still represent approximately 62% of light vehicle product volume. Since 2013, however, their sales have grown at a slower annual pace than that of the overall aftermarket.
“Replacement Parts climbed more than $7 billion in aftermarket volume at user-price between 2013 and 2023,” states the new 2024 Lang Aftermarket Annual. “Nevertheless, they have been outpaced in average annual growth by two of the other three major groups of aftermarket products.”
Here are key takeaways from Lang’s report.
Four Major Product Groups
Light vehicle aftermarket products can be categorized into four major groups: Replacement Parts, Chemicals, Accessories, and Tools & Equipment. Each has recorded different growth rates during the past five years (2018 to 2023). Estimated data for 2023 are presented in this report, with the final results for last year available in June.
Replacement Parts
Replacement Parts recorded approximately 64% of 2018 car and light truck aftermarket product volume, at user-price. Although they have maintained a dominant aftermarket product position, Replacement Parts’ share of light vehicle products fell below 62% in 2023.
Despite this fallback in market share, Replacement Parts generated over $7 billion in product growth during these five years, the largest gain of any major product group.
Chemicals
Chemicals of all kinds, those necessary for vehicle operation and discretionary Chemicals (waxes, polishes, cleaners, etc.), also fell in their light vehicle product share between 2018 and 2023.
Chemicals dropped from approximately 15% of 2018 aftermarket product sales to 14% of 2023 volume. Nevertheless, Chemicals recorded a substantial sales increase and ranked second in overall car and light truck product volume during these five years.
Accessories
Accessories climbed significantly in light vehicle product share from approximately 11.5% during 2018 to nearly 13% of the 2023 market. Third in total aftermarket product volume over these years, Accessories carved out the second largest product gain, more than $3.5 billion at user-price.
Tools & Equipment
Tools & Equipment recorded the smallest volume among the four major product groups. Even so, they achieved significant growth, increasing from nearly 10% of the 2018 volume to over 11% of the 2023 market.
Tools & Equipment increased over $3 billion in annual sales at user-price during these five years, achieving the highest annual rate of growth among the four major product groups.
Share of Aftermarket Growth
Notwithstanding their falling market share, Replacement Parts generated the largest portion of light vehicle aftermarket product growth between 2018 and 2023, an estimated 45%, followed by Accessories, with over 22% of the estimated $16 billion gain in aftermarket product volume at user-price during these five years.
Tools & Equipment were third in growth share, at just under 20%, followed by Chemicals, with 12% of total light vehicle product expansion. Final results will be available in June.
Product Growth Rates
Although they are the two smallest product groups, Tools & Equipment and Accessories, ranked first and second in annual rate of product growth between 2018 and 2023.
Tools & Equipment recorded an estimated 4.5% annual growth, followed by Accessories with approximately a 4.3% gain in yearly product sales. Chemicals recorded 2.0% annual growth, followed by Replacement Parts with a 1.5% yearly increase.
Despite Accessories and Tools & Equipment each exceeding the average annual growth of all aftermarket products between 2018 and 2023, Replacement Parts added more than twice as much product volume during these five years than the combined increase of these two product categories.
Aftermarket Implications
The diminishing share of aftermarket products represented by Replacement Parts has significant consequences for the aftermarket, states Lang.
The aftermarket is becoming more sensitive to economic factors such as changes in consumer income and purchase activity, which affect discretionary purchases. In addition, the greater share of aftermarket volume generated by Accessories and Tools & Equipment will create shifts in product volume and share among distribution channels.
Future Developments
The market share of the four major groups of aftermarket products will continue to change. Lang Marketing projects that Replacement Parts and Chemicals will each decline in light vehicle product share over the next five years, while Accessories and Tools & Equipment will climb in product share.
Replacement Parts will still generate the largest portion of aftermarket product growth from 2023 through 2027, topping an estimated 40%.
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