The U.S. Aftermarket Automotive Parts & Components market was valued at $17 billion in 2020 and is expected to reach $19 billion by 2026, registering a CAGR of around 2% during the forecast period (2021 – 2026), according to ResearchandMarkets.
The impact of the COVID-19 pandemic on the U.S. aftermarket automotive market has attributed to several production halts in manufacturing industry due to lockdowns and travel restrictions imposed by governments across the world. The supply chain of the entire automotive industry has been disrupted, impacting the production of automotive parts and components in the market.
However, the market is expected to have steady growth as demand for auto parts manufacturing is directly related to the performance of automakers as they are the largest purchasers of industry products, says the research firm.
The advantages of original replacement parts is one of the primary factors driving the growth of the automotive parts aftermarket in the U.S. The increasing availability of automotive parts on e-commerce platforms is another major aftermarket trend in the United States currently.
Emergence of 3-D printing in the automotive aftermarket industry and the growing demand for hybrid and all-electric vehicles will further boost market growth during the forecast period, ResearchandMarkets says. Furthermore, rise in the sales of used cars likely to create numerous opportunities for the key players operating in the US aftermarket automotive parts and components market.
Key Market Trends
The US aftermarket automotive parts & components market is projected to have optimistic growth due to increased online activities.
Advancement in technology coupled with rapid improvement in logistics also has allowed manufacturers to offer high-quality goods faster and farther boosting growth of market. E-Commerce activities to grow at a higher rate than forecasted rate due to the ongoing pandemic.
In general, the growth rate of online parts sales has historically been about 16% per year but in 2020 due to the coronavirus pandemic e-Commerce activities surged to a 30% increase. This includes replacement parts, aftermarket parts and accessories. Thus, this pandemic has created lucrative opportunities to the major players in the market during the forecast period.
Automotive parts & components online shopping is growing, and as automotive technology is changing with more hybrids and electric vehicles are entering into market boosting growth of US aftermarket automotive parts and components market. In addition, mobile shopping is on the rise, online platforms like Amazon and eBay likely to have influence on U.S. online aftermarket automotive parts and components market.
Increasing Electric Vehicle Sales Likely To Impact Market
The market for electric vehicles is increasing year-over-year, impacting the growth of the automotive industry. The annual sales of plug-in electric cars crossed the 400,000 mark in 2019, gathering more than 1% of the United States’ overall vehicle sales share.
According to the International Energy Agency (IEA), the number of electric vehicles (EVs) likely to grow up to 125 million in 2030 from just 3.1 million in 2017. In addition, United States is the largest manufacturer of plug-in hybrid vehicles in the North America region. The country is also the largest market for these vehicles, with manufacturers, such as Cadillac, GMC, Tesla and Chrysler, leading the market.
With the automobile industry’s continuous shift toward e-mobility, the sale of plug-in electric vehicles has been increasing in the United States in the past few years. While conventional powertrain vehicles have more than 2,000 components within them, electric vehicles have far fewer.
For instance, Tesla revealed that in its drivetrain, there are only 17 moving parts, including two in the motor and since drivetrain is the heart of any electric vehicle, it is expected that automotive component manufacturers will first start off with their associated part manufacturing.
Also, it is estimated that out of the 590,000 U.S. employees engaged in auto parts manufacturing, nearly 150,000 are into component manufacturing for Internal Combustion Engines (ICE).
This number is expected to change over the forecast period as companies will dedicate some of them toward EV parts and component production. Power Inverters, DC-DC Converters,
Battery & related parts, Motor Control Unit (MCU) are some of the other important parts that will also be manufactured by companies over time to stay relevant in the market. The adoption of EV related spare parts will be slow in the aftermarket space initially, but with the industry seeing a paradigm shift, the rate is expected to grow considerably after some years, according to the research firm.
Click here to view the report “US Aftermarket Automotive Parts & Components Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026)” on ResearchAndMarkets.com.