Us Aftermarket Automotive Parts & Components Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Us Aftermarket Automotive Parts & Components Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The US Aftermarket Automotive Parts and Components market was valued at USD 17 billion in 2020, and it is expected to reach USD 19 billion by 2026, registering a CAGR of around 2% during the forecast period (2021-2026).

The impact of the COVID-19 pandemic on the US aftermarket automotive market is severe, and this can be attributed to several production halts in the manufacturing industry due to lockdowns and travel restrictions imposed by governments across the world. The supply chain of the entire automotive industry is 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. The advantages of original replacement parts are one of the primary factors driving the growth of the automotive parts aftermarket in the US. The increasing availability of automotive parts on e-commerce platforms is one of the major aftermarket trends in United States.

The emergence of 3D printing in the automotive aftermarket industry and the growing demand for hybrid and all-electric vehicles are likely to further boost the market growth during the forecast period. Furthermore, the rise in the sales of used cars is likely to create numerous opportunities for the key players operating in the US aftermarket automotive parts and components market.

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 boosting the growth of the market. E-commerce activities grow at a higher rate than the forecast 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 for the major players in the market during the forecast period.

Automotive parts and components online shopping is growing, and as automotive technology is changing with more hybrids and electric vehicles are entering into the market, boosting the growth of the US aftermarket automotive parts and components market. In addition, mobile shopping is on the rise, online platforms like Amazon and eBay are likely to have an influence on the US online aftermarket automotive parts and components 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 cars crossed the 400 thousand mark in 2019, gathering more than 1% of United States' overall vehicle sales share. According to the International Energy Agency (IEA), the number of electric vehicles (EVs) is 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 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 United States for the past few years. While convention powertrain vehicles have more than 2,000 components within them, electric vehicles have far less. For instance, Tesla revealed that in its drivetrain, there are only 17 moving parts, including two in the motor, and since the 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 towards 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 after-market space initially, but with the industry seeing a paradigm shift, the rate is expected to grow considerably after some years.

The US aftermarket automotive parts and components market is neither consolidated nor fragmented due to the presence of major tier-1 and tier-2 component manufacturers and a large number of unorganized players in the market. Companies are focusing on marketing their products and tying up with local dealers to garner more market share. For instance,

• In January 2019, ZF Friedrichshafen AG’ completed the acquisition of the automotive division of Romanian engineering services provider bee speed company. The aim of the acquisition is to strengthen its position in the market and to gain a competitive edge over other players in the market.

Some of the major players in the market include Magna International Inc., Continental AG, ZF Friedrichshafen AG, DENSO Corporation, and Lear Corporation.

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