U.S. Automotive Aftermarket Size, Share, Growth, Trends and Industry Analysis Report
by Susan Hill Business ConsultantThe U.S. automotive aftermarket size is expected to reach
USD 86.2 billion by 2025, registering a 1.8% CAGR from 2019 to 2025, according
to a new study by Grand View Research, Inc. The market is expected to grow
owing to the rising adoption of automotive technologies such as exhaust and
safety technologies coupled with other aspects influencing vehicular
performance. The market is estimated to remain innovation-led with the
introduction of new chemicals and metals that provide cost-efficiency and
weight reduction in automobiles. In addition, the increasing vehicle parc and
vehicle age in the U.S. are expected to contribute to the growing demand for
replacement parts, thus driving market growth in the country.
Rising disposable income in
the U.S. is creating a positive growth outlook for the sales of passenger cars.
The increasing demand for aftermarket parts is directly proportional to the
growing sales of passenger cars. Moreover, factors such as developing
infrastructure and increasing adoption of modern lifestyle across the country
are contributing to the growth of automotive aftermarket. Technological
proliferation and high investments in R&D by automakers are expected to
further drive demand for automotive aftermarket components over the forecast
period. Furthermore, increasing trade activities of goods and materials via
road transportation are expected to fuel the demand for heavy commercial
vehicles. This, in turn, is likely to result in the high demand for
products such as tires, towing, wheels, and other miscellaneous accessories,
thereby contributing to the market growth in future.
Efforts taken by vendors to
make aftermarket products available in adequate quantities and improve the
quality of recycled products have contributed to the high demand for
alternative parts such as engines; door assemblies; transmissions; sheet metal
products such as fenders, trunk lids, and hoods; bumpers; and lights assemblies.
In addition, maintaining a high inventory level and wide distribution network
allows higher fulfillment rates, which is also boosting the sales of
alternative parts. However, the increasing adoption of hybrid and electric
vehicles is hampering the growth opportunities for automotive aftermarket
components, mainly exhaust components. As a result, the threat of substitutes
for aftermarket parts is expected to remain high over the forecast period.
Further key findings from the report suggest:
- The rise in sales of automobiles,
increased purchasing power, and improved standard of living are expected
to drive growth for the automotive aftermarket industry.
- Increasing consumer awareness regarding
environment protection and the use of environment-friendly products with
minimum carbon footprint deliver positive growth prospects for the market
- The tire segment is anticipated to
dominate the market by 2025 on account of frequent changing of tires in
comparison to their automotive component counterparts
- The automotive aftermarket is shifting
toward the automation of various functions and processes as automation
increases accuracy, enhances efficiency, improves workplace safety, and
reduces human errors
- The trend of combining Industry 4.0 with
information technology and operational technology has resulted in a
landscape governed by supply chain digitalization, creating a sustainable
impact on the automotive aftermarket industry
Access full research report on U.S. automotive
aftermarket:
www.grandviewresearch.com/industry-analysis/us-automotive-aftermarket
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Created on Apr 5th 2020 09:48. Viewed 368 times.