Aftermarket Car Parts Industry is Big Business
Looking for a way to save money? When you’ve got car repairs ahead, why not consider aftermarket car parts?
Aftermarket car parts are automotive parts that are manufactured by a company other than the original manufacturer. They include parts for appearance performance replacement and collision. They vary in quality and price and are available for nearly any vehicle make or model. Aftermarket parts are generic. This makes them more affordable than the original manufacturer’s parts while providing a similar level of effectiveness. Aftermarket parts can be used to replace parts in heavy equipment and automobiles but using them can alter insurance coverage.
Standards for aftermarket parts are issued by the Certified Automobile Parts Association (CAPA). CAPA sets the gold standard of safety for aftermarket car parts. The organization requires rigorous high-quality testing and high industry standards.
Aftermarket car parts for everything
Whether it’s car tuning devices or replacement parts for the suspension, consumers are sensitive to the cost of modifications and repairs. Motorists will often request aftermarket parts whenever possible to save money. However, some consumers have concerns about quality and safety when using aftermarket parts. Auto experts agree that there is no need for concern. Aftermarket parts are tested and can have longer warranties than original manufacturer parts.
It’s common for car insurance companies to suggest auto mechanics use aftermarket parts instead of OEM. However, the insurer may alter coverage moving forward.
In 2019 the global aftermarket industry size had a value of 378.4 billion dollars. From 2020 to 2027 it is expected to register at a 4% CAGR. The reason for this growth is a surge of automobile drivers who pursue enhancements to their vehicle’s performance with speed adaptations, exhaust, sound, and other aspects. Automotive component functioning can impact the environment. These impacts and built-up standards are monitored by the United States Environmental Protection Agency.
Component sales delivery and service are now digitized. There are also online portals that distribute aftermarket parts in sync with automotive suppliers worldwide. This is expected to attract significant investments from key players. In developing countries, the online aftermarket sector is expected to see massive growth. Increased online sales will further boost the market growth.
The aftermarket sector consists of two segments. There are parts suppliers and service enablers. These two primary segments exchange value at intermittent stages. Digitalization solves the obtainability issue for those consumers and drives aftermarket growth.
What can hinder market growth are high R&D expenditures. This is very impactful for automobile manufacturers as they face increased production costs. However, aftermarket filters, for instance, offer the choice to get parts that suit the condition of the vehicle.
The replacement part market includes lighting, electric components, wheels, exhaust components, body parts, brake parts, filters, tires, and batteries. Tires will continue to dominate in this market due to a low replacement cycle.
There is an increasing demand for vehicle durability. The DIY automotive industry generated over 100 billion in 2015 for aftermarket car parts. The availability of easy replacement parts is driving sales in the DIY automotive market size.
Amazon and eBay sell the most aftermarket accessories and parts in the US by revenue and units sold. DIY parts sales have softened the retail counter. Do-it-for-me commercial businesses now include chain stores. Chain store sales have decreased three to 5% for DIY as commercial sales have increased over 13% and have now top 10 billion.