Market Trends of United States Aftermarket Automotive Parts & Components Industry
This section covers the major market trends shaping the US Aftermarket Automotive Parts & Components Market according to our research experts:
Rising Online Aftermarket Automotive Parts and Components Sales
The US aftermarket automotive parts and components market is projected to have optimistic growth due to increased online activities by people. Advancement in technology, coupled with rapid improvement in logistics, has allowed manufacturers to offer high-quality goods faster and further boosts the growth of the market. E-commerce activities grow at a higher rate than the forecast rate due to the ongoing pandemic.
Despite the global COVID-19 pandemic, the automotive aftermarket once again demonstrated its resilience in 2020 with a greater-than-anticipated performance. The industry rebounded strongly in 2021. It is estimated that the overall light-duty vehicle aftermarket sales in the United States will rise around 11.2% to USD 325 billion in 2021. In general, the growth rate of online parts sales has historically been about 16% per year, but in 2021, 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 for the major players in the market during the forecast period.
Automotive parts and components online shopping is growing. As automotive technology is changing, more hybrids and electric vehicles are entering the market, boosting the growth of the US aftermarket automotive parts and components market. In addition, mobile shopping is on the rise, and online platforms like Amazon and eBay are likely to influence the US online aftermarket automotive parts and components market.
Increasing Electric Vehicle Sales Likely to Impact Market
The market for electric vehicles is increasing year on year, impacting the growth of the automotive industry. The annual sales of plug-in electric vehicles in the United States crossed 172.1 thousand units in 2021, indicating the high demand for parts and components to cater to the needs of this market. In addition, the United States is the largest manufacturer of plug-in hybrid vehicles in the North American 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 towards e-mobility, the sale of plug-in electric vehicles has been increasing in the United States for 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. Since the drivetrain is the heart of any electric vehicle, it is expected that automotive component manufacturers will first start 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 in 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, and Motor Control Units (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 after-market space initially, but with the industry seeing a paradigm shift, the rate is expected to grow considerably after some years.
