Cleveland, Ohio -- A new study from the Freedonia Group Inc. says the automotive aftermarket in North America was valued at $73.6 billion in 2011. The North American light vehicle aftermarket is projected to grow 3.2 percent annually to $85.5 billion in 2016, with gains fuelled by the expansion in size and increasing age of the North American light vehicle fleet.
This now includes a rising number of vehicles in prime aftermarket service age: five to ten years for many components. Additionally, Freedonia says, as the regional economy improves and unemployment rates decrease, average miles driven per vehicle will climb along with travel to and from work.
Mechanical parts make up 38 percent, electrical 13 percent, electronic 12 percent and exterior & structural 37 percent of this segment.
According to the market research group, continuing improvements in vehicle component durability will prevent sales from rising more rapidly through 2016, as will increased monitoring of vehicle systems by advanced onboard electronics. These systems alert owners of any performance issues and will reduce the need to make major repairs, although these losses will be offset somewhat by the ensuing maintenance work and sales of minor repair parts.
Increasing price pressures from aftermarket parts sourced from low labour cost countries will also dampen sales growth in dollar terms, Freedonia says.
Electronic products will be the fastest growing segment, with suppliers of items such as controls, modules, and sensors beneficiaries of the further development of advanced vehicle systems and the rising amount of electronic content found in light vehicles.
Mechanical products -- which include automotive filters, brake parts, drivetrain components, engine hard parts, and transmissions -- will continue to be the largest aftermarket segment, accounting for 38 percent of all sales in 2016, the research indicates. "Demand gains will be tempered by the rising quality of these already highly durable mechanical products," Freedonia notes.
Aftermarket sales of exterior and structural products are forecast to grow in line with the overall market through 2016, decelerating from the 2006 to 2011 period.
This Freedonia study, Automotive Aftermarket in North America, costs $5100.
See more art www.freedoniagroup.com, e-mail: [email protected]