ArticlesWhat is the automotive aftermarket?

WHAT IS THE AUTOMOTIVE AFTERMARKET?

The automotive aftermarket encompasses parts for replacement, collision, appearance, and performance. Aftermarket parts are also replacement parts that are not made by the original equipment manufacturer. They are typically used to replace damaged parts in automobiles and other equipment, and can also be used for enhancing and tune-ups. Similar to generic pharmaceuticals in that they’re less expensive than brand-name drugs, but they’re likely to be just as successful. The aftermarket provides a wide variety of parts of varying qualities and prices for nearly all vehicle makes and models. Leading brands and companies who participate in this market include:

  • NAPA
  • Bosch
  • DENSO
  • Magna
  • Wagner
  • Bower

Selection of Aftermarket Parts

Aftermarket parts are normally cheaper than OEM parts; however, the amount you save varies by brand. The aftermarket companies reverse-engineer the part and work the vulnerabilities out. There are a wide variety of companies that specialize in specific parts, leading to a great selection, a wider range of prices, and better availability.

  • Automotive aftermarket
  • Wear parts
  • Performance parts
  • Collision parts
  • Recycled parts
  • Vintage parts

Aftermarket Research & Analysis

Annual research and analysis is conducted by Ducker in the automotive aftermarket industry and therefore sees the following trends as important to watch for manufacturers of parts, distribution, and installation groups as well as investors and private equity firms looking to complete transactions in the aftermarket industry. Ducker’s trends in automotive aftermarket parts include:

  • The vast majority of aftermarket suppliers have weathered the Covid-19 storm and are outpacing 2019 sales
  • Wear parts providers did see a ‘divot’ in sales based on vehicle miles travelled – however, the decrease in plane travel is beginning to offset those losses
  • Upgrades – whether for performance, aesthetics or ‘outdoor/adventure’ themed parts -are continuing to grow

Analysis of aftermarket demand and trends include the following end use applications:

  • Performance
  • Enthusiasts
  • Classic vehicles
  • Off-road vehicles
  • Auto repairs
  • Independent installers
  • Auto maintenance
  • Auto DIY
  • Auto DIFM

Ducker Research and Consulting provides clients with in-depth global research, thoughtful analysis, and cutting edge market intelligence. Further, our teams have supported many buy-side and sell-side transactions. Ducker’s services and capabilities within the automotive aftermarket parts industry include:

  • M&A buy-side commercial diligence
  • M&A sell side market studies
  • Component sourcing forecast and planning
  • Technology testing, feasibility and launch assistance
  • Regional opportunity assessment
  • Production forecasting
  • Competitive analysis
  • Identifying acquisition and merger candidates
  • Price and cost analysis
  • Supply chain analysis
  • Market assessment

The  Automotive & Transportation team at Ducker is at the forefront key trends impacting the industry. Ducker’s unique expertise in running custom market research and consulting services helps clients address specific growth questions and business challenges. Visit here for the latest insights and implications for global business, or contact us to connect with a team member.