Increasing number of vehicles, increasing disposable income of people, need for improved passenger safety in vehicles, and increasing average age of vehicles are the factors expected to boost the demand of automotive repair and maintenance services over the forecast period.
The automotive aftermarket parts industry is expected to see global sales grow by 6 percent over the next seven years as the need for parts worldwide increases. WardsAuto reports aftermarket companies should focus on these regions.
The U.S. automotive aftermarket is expected to grow 3.4 percent a year through 2021. In dollar terms, automotive aftermarket sales will grow to $327 billion in 2021 from $286 billion last year.
Vehicle repair outlets with above average growth of foreign nameplate volume increased their bay counts in the U.S. between 2011 and 2016. Bay losses were suffered by outlets that lagged in foreign nameplate business.
The report points out that mobility as a service is growing rapidly mainly due to the high adoption of online mobility services. Globally, the market is expected to grow to experience thriving growth by 2023, surpassing its previous growth records in terms of value.
The U.S. automotive aftermarket is expected to grow at a compound annual growth rate of 3.6 percent through 2020, according to the Automotive Aftermarket Suppliers Association and the Auto Care Association.
Replacement parts accounted for nearly two-thirds of 2016 aftermarket product volume, 64.7 percent, despite slipping from 65.4 percent of 2012 light vehicle products to 64.7 percent of the 2016 market.
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