With vehicles at record age, U.S. automotive aftermarket sales to increase 8.5% in 2022

In accordance to a report from S&P International Mobility (beforehand the automobile group at IHS Markit), the normal age of gentle automobiles in procedure has climbed for five consecutive years, achieving a file age of 12.2 many years as of Jan. 1, 2022.

So, maybe it is not shocking that the automotive aftermarket continues to reveal its current market energy with higher-than-envisioned sales in 2021 in the wake of a sluggish financial restoration from the COVID-19 pandemic in the United States.

Whole U.S. gentle responsibility automotive aftermarket profits are forecasted to raise 8.5% in 2022, totaling $356.5 billion, according to the 2022 Joint Channel Forecast Design created by the Automobile Care Affiliation and the Automotive Aftermarket Suppliers Association (AASA).

The associations dispersed a information launch on Tuesday and stated an extra 5% expansion is envisioned for 2023 and growth will common much more than 3% in 2024, bringing the light-weight-obligation aftermarket to $401.5 billion by 2025.

Experts explained the compound ordinary annual progress level from 2019 to 2022 will be 5.7%, much more than creating up for losses found in 2020 due to the pandemic.

“Year immediately after yr, the car care industry carries on to exhibit its energy and dependability,” Automobile Treatment Affiliation president and chief govt officer Bill Hanvey reported in the news launch.

“In the midst of the maximum gasoline rates on file and an inflation charge at a 40-12 months higher, coupled with persistent supply chain disruptions and war in Jap Europe, automobile miles pushed, motor vehicles in operation and customer spending all amplified in 2021 and are projected to increase into the coming years, as very well,” Hanvey continued.

Other important facts in the joint channel forecast model include:

—Market trends influencing the aftermarket

—A 2021-2025 overview of marketplace progress and forecasts

—Industry sales by channel including heritage and forecasts

—Industry profits by distribution channel

The sector sizing and forecast are carried out on behalf of the Auto Treatment Affiliation and AASA by S&P World wide Mobility. The forecast is based mostly on the U.S. Census Bureau’s Economic Census IMR Inc. and proprietary knowledge, economic examination and forecasting models from S&P International Mobility.

“The automotive aftermarket as soon as once again shows its resiliency with a much better than predicted recovery from the pandemic,” AASA president and CEO Paul McCarthy said. “In reality, the automotive aftermarket rose practically 25% in the past two decades irrespective of ongoing headwinds, and we are enthusiastic to see the landmark industry sizing of $400 billion in 2025.

“But as the sector advancements to that landmark quantity, seem for a new problem to emerge as we may well shift from a sector supported by large desire and availability to a battle for industry share. With that, we’ll see a single far more power of the aftermarket arise, collaboration with the appropriate partners to assure the same pace of good results in this next period of market dynamics,” McCarthy went on to say.

The Joint Channel Forecast Design is readily available in the Vehicle Treatment Association’s 2023 Auto Care Factbook at digital.autocare.org/2023factbook and in AASA’s Aftermarket Dimensions & Forecast Report accessible at https://www.aftermarketsuppliers.org/resource.