The light vehicle automotive aftermarket industry is expected to grow over the next several years, with the largest increase predicted for 2007, according to new research from the Automotive Aftermarket Suppliers Association (AASA). A detailed analysis of the size of the aftermarket is included in the 2007-2008 AASA Automotive Aftermarket Status Report.
According to AASA, the value of the light vehicle aftermarket (parts and labor) will break the $200 billon mark within the next few years. The light vehicle aftermarket reached $185.2 billion in 2006, a 2.9-percent increase over 2005. AASA estimates the light vehicle aftermarket will finish 2007 at nearly $193 billion, an increase of 4.0 percent.
"We expect the aftermarket to only increase in size in the future," said Steve Handschuh, president and COO of AASA. "Our industry is vital to keeping the 232 million vehicles on U.S. roads running safely and efficiently and, ultimately, in keeping Americans productive and mobile."
Vehicles more than 10 years old continued to comprise the largest share of dollars spent, reaching approximately $80.8 billion in 2006. This category, along with the six- to 10-year old vehicle group, is expected to continue to expand at a stable pace, while new to five-year-old vehicles are projected to reach a peak in 2007 before declining to just short of $45 billion in 2010.
According to Frank Hampshire, AASA senior director of research, AASA uses the "Survey Cost Method" to calculate the size of the industry. "This method involves multiplying the number of vehicles on the road for each model year by a survey-derived estimate of service and repair dollars spent on vehicles by model year," Hampshire explained. "This method accurately captures the full spectrum of aftermarket activity, but offers limited means of analyzing or estimating expenditures by DIY share or type of product/service."
AASA's estimates for the light vehicle aftermarket exclude warranty work, collision, and accessories, but include fleet maintenance and repair. AASA's estimates do not include parts for medium and heavy-duty trucks and trailers, off-highway equipment, farm machinery, motorcycles and scooters, snowmobiles, watercrafts, industrial equipment, or recreational vehicles.
In terms of aftermarket components and services, AASA's size of the aftermarket estimates is restricted to replacement parts and related services and does not include appearance products and services, gasoline, dealer preparation, car audio and entertainment centers, hand tools and service diagnostic equipment, and paint and body equipment.
