The automotive aftermarket industry is all about the parts, services, and upgrades needed to keep a vehicle running after it leaves the dealership.
Over the past few years, this industry has seen big changes thanks to new technology, shifting customer needs, and evolving regulations.
According to Grand View Research, the global automotive aftermarket is expected to grow from $468.91 billion in 2024 to over $585 billion by 2030.
This growth means there are plenty of opportunities for those in the automotive industry. We will cover some of the major advancements shaping this industry and how they can benefit your business.
Vehicle Growth and Market Segmentation
The global vehicle fleet is growing steadily, with over 1.7 billion vehicles on the road today. By 2030, this number is projected to reach 2 billion, driven by increasing demand in emerging markets like India, China, and Southeast Asia.
However, this growth isn’t uniform. The market is becoming more segmented, with distinct categories like electric vehicles (EVs), hybrids, and traditional internal combustion engine (ICE) vehicles coexisting.
For those in the automotive industry, this means diversifying your services to cater to different vehicle types.
For example, while ICE vehicles will still dominate for the next decade, EVs and hybrids are gaining significant traction. By 2030, EVs alone are expected to make up 45% of new car sales globally.
This segmentation presents an opportunity to specialize in specific vehicle types or offer a broad range of services to capture a larger customer base in the coming years.
The Rise of Electric Vehicles (EVs)
Electric vehicles are no longer just a trend—they’re becoming a big part of the industry. In 2023, EVs made up around 8 – 10% of new car sales in the U.S., as reported by Kelley Blue Book and the International Energy Agency (IEA).
Experts predict this will jump to 14% by 2027. While this shift might seem scary, it brings new service opportunities.
EV maintenance is different from traditional car maintenance. Due to their higher weight, they need fewer oil changes but more frequent brake fluid services and tire rotations.
Battery diagnostics and thermal management system repairs are also becoming common services. Shops that learn these skills now can expect to see their EV service revenue grow by around 300% in the next five years.
Advanced Driver Assistance Systems (ADAS)
ADAS features like automatic braking and lane keeping are now standard in most new cars. By 2025, 90% of new vehicles will have these systems.
However, while these systems reduce accidents and improve driving experiences, they also require specialized maintenance and calibration.
For example, even a minor windshield replacement can disrupt the alignment of ADAS sensors, necessitating recalibration. This creates a growing demand for ADAS-specific services in the aftermarket.
This means new revenue opportunities for you. But it also means investing in training and equipment. You can capitalize on this trend by:
- Offering ADAS calibration services
- Investing in the necessary equipment and
- Training your technicians
This will position your shop as a go-to destination for these advanced repairs.
A complete ADAS calibration system can cost between $11,000 and $20,000, but shops can earn back this investment through higher-value services.
Mobile Service and On-Demand Repair
These days, many common car issues – like a flat tire or a dead battery – can be fixed wherever you are, thanks to on-demand repair services. Some mobile providers even offer specialized services, such as protective coatings for truck bedliners.
Between 2016 and 2021, mobile repair services grew by over 150%. Shops that added them to their list of offerings reported reaching 40% more customers.
The U.S. market for automotive repair (including mobile repairs) is expected to grow by 10.1% annually, reaching $436.2 million by 2032. This growth is driven by advancements in tech, such as remote diagnostic tools and the increasing availability of mobile service platforms.
Starting a mobile service unit, including the van and tools, costs between $10,000 and $50,000. However, businesses can start small with basic maintenance and grow over time, offering specialized services.
Tech Advancements in the Aftermarket
Tech is changing how we diagnose and fix cars. Remote diagnostics are becoming more common, and by 2030, most new vehicles are expected to have built-in diagnostic capabilities, driven by advancements in connected car technology, according to Frost & Sullivan research.
Artificial Intelligence (AI) is also helping auto businesses work better. AI tools are enhancing vehicle diagnostics, predictive maintenance, and inventory management. Businesses implementing these systems report improved diagnostic accuracy and faster repair times.
3D printing is another important advance. Some businesses are now printing hard-to-find replacement parts. The auto 3D printing market is expected to grow to $25.61 billion by 2034, creating new opportunities for auto shops to make custom parts.
Regional Differences and Regulatory Shifts
Different regions have different rules about car maintenance, driving habits, and regulations.
For example, while EVs are gaining popularity in Europe and North America, ICE vehicles still dominate in regions like Africa and the Middle East.
Regulatory shifts are also influencing the aftermarkets. Governments worldwide are implementing stricter emissions standards and promoting the adoption of cleaner technologies.
In the European Union, for instance, the “Fit for 55” plan aims to reduce greenhouse gas emissions by 55% by 2030, accelerating the transition to EVs and other sustainable solutions.
The “Right to Repair” movement is gaining ground in the United States. This could give independent auto businesses better access to repair information and tools.
The average age of vehicles also varies by region. According to S&P Global Mobility, the average car in the United States is now 12.6 years old, compared to 5.3 years in China and 3.8 years in Saudi Arabia, among other places.
Preparing for the Future of Aftermarket Services
Getting ready for these advancements doesn’t mean changing everything at a go. Here are some steps you can start with:
- Invest in Training
- Upgrade Your Tools
- Expand Your Services
- Leverage Technology like AI
- Keep up with industry trends
Also, look at what services your area needs most. If there are lots of new cars nearby, focus on ADAS services. If your customers keep their cars longer, build up your diagnostic and repair services for older vehicles.
Customer education is also essential. Businesses that take the time to explain new car technologies to their customers can build trust and loyalty.
Simple actions like sending maintenance reminder videos or explaining how ADAS systems work can position your auto shop as a leader in the aftermarket industry, helping you attract new customers while retaining existing ones.
Wrapping Up
You don’t need to do everything at once. Pick the changes that make the most sense for your business and customers and work with them.
