BETHESDA, Md. and RESEARCH TRIANGLE PARK, N.C. – A joint forecast produced by the Automotive Aftermarket Suppliers Association and the Auto Care Association sees the U.S. automotive aftermarket growing at a compound annual growth rate (CAGR) of 3.6 percent through 2020.
Total aftermarket sales will grow from $277.1 billion in 2016 to $316.4 billion in 2020, an increase of nearly $39.3 billion over the four-year period, the “2017 Joint Channel Forecast Model” also predicts.
“The forecast model demonstrates that despite strong new-vehicle sales, moderating gas prices and improved miles driven are conditions conducive to continued steady growth,” said Bill Hanvey, Auto Care Association president and CEO. “Why? The average age of light vehicles, now up to 11.7 years, is the oldest ever, and the age mix of vehicles continues to favor older vehicles with 48.5 percent of total light vehicles in the 11-year-and-older category, therefore creating a robust opportunity for service and repair.”
“The pattern of continued growth in the aftermarket bears out the optimism among our supplier members and their customers – all companies are anticipating growth in 2017 and beyond,” said Bill Long, president and chief operating officer of the Automotive Aftermarket Suppliers Association. “We are a large, steady and stable industry, but advanced technologies are challenging traditional assumptions and knowns regarding the aftermarket. Industry analysis such as the Joint Channel Forecast Model assist suppliers and channel partners in preparing for the transformation occurring in mobility.”