Aftermarket for Automotive Components in North America to Exceed $76 Billion in 2014

The aftermarket for light vehicle components in North America will increase 2.9 percent annually to $76.1 billion in 2014.  Gains will largely be driven by the growth and aging of the North American light vehicle fleet, including an increasing share of vehicles reaching prime aftermarket service age, which is five to ten years for many parts and components.  In addition, the average miles traveled per vehicle is expected to rebound from low 2009 levels as the region’s economy improves.  The Mexican automotive aftermarket will post the fastest growth among the three nations in North America (United States, Canada and Mexico). Professional service providers dominate the aftermarket for motor vehicle parts, comprising 83 percent of the total in 2009.  These and other trends, including market share and product segmentation, are presented in Automotive Aftermarket in North America, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

The largest product category in the aftermarket will continue to be mechanical products, which include engine hard parts, chassis, drivetrain and suspension parts and components.  However, growth will be limited by the improved quality of these already highly durable products.  Electronic parts and components are expected to see the most rapid gains among the major product segments.  Demand for electronic products -- especially controls, modules and sensors -- will benefit from the ongoing rise in electronic content of the typical light vehicle and the continued introduction of advanced vehicle systems which rely on these components.

Demand in the structural and exterior segment will increase 2.8 percent annually through 2014, moderating from a strong 2004 to 2009 performance.  Growth will primarily be driven by rising demand for higher value products -- particularly performance tires and advanced glass products, such as solar control windows and electrochromic mirrors.  Still, the improved wear characteristics of tires, and moderating raw material prices, will restrain value gains.  The electrical parts segment will experience modest growth, restrained by the long service lives of many of these components, competition from electronic products and expected declines in prices for raw materials (particularly lead for batteries).

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.