Published On: 2020-10-25

The U.S. automotive aftermarket was valued at a market size of USD 75.31 billion in 2018, and is expected to register 1.8% CAGR from 2019 to 2025. The automotive industry has experienced a substantial boost in the sales of OEMs and aftermarket parts in the U.S. as the aftermarket business has created attractive margins and revenues in the emerging market. The increasing requirement of timely maintenance and parts activities for vehicles has created significant traction in the aftermarket sales. The automotive aftermarket is driven by stringent emission norms and government regulations related to heavy-duty vehicles market. Regional regulatory authorities such as the U.S. Environmental Protection Agency and other federal & international agencies have laid down various regulations pertaining to the quality and safety of automotive auto parts, owing to which manufacturers have started focusing on providing high-quality raw materials.


Favorable government policies, regulations, and subsidies in the U.S. are driving the demand for electric vehicles industry. As electric vehicles are environment-friendly, their use supports the climate change and pollution control policies. Furthermore, these vehicles do not function on conventional fuels such as gasoline for their functioning as they are battery powered, thus eliminating the emission of hazardous gases. The increasing use of lightweight auto parts in electric vehicle to increase efficiency is also expected to lead to significant growth of automotive aftermarket over the forecast period.

Digitization ensures transparency in auto repair and maintenance service delivery. This enables various stakeholders, including car owners, to spectate the repair and part replacement costs. Through online services, car owners prefer ordering custom components such as mufflers and resonators from overseas for their peculiar specifications and reduced prices. Furthermore, the rapid advancement of digitalized technologies has created opportunities for automakers and service dealers to develop innovative products in order to remain competitive in the U.S. market.

Modern production technologies are anticipated to offer significant benefits to vehicle owners in terms of cost savings. For instance, the impact of 3D printing in car component fabrication is anticipated to increase globally with time as it enables lower production costs and higher efficiency with optimal material and time utilization. Moreover, increasing investments are being made by manufacturers and associations in R&D activities to offer high-quality and cost-efficient materials. This is expected to drive the growth of automotive aftermarket in the U.S.

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