Lang Aftermarket iReport: 98% of aftermarket growth in 2 sectors

“Lang Marketing analyzes light vehicle aftermarket product volume across four market sectors. The Do-It-For-Me (DIFM) and Do-It-Yourself (DIY) markets are divided by domestic and foreign nameplate product use.

“Aftermarket product growth in the U.S. has become highly concentrated. Virtually all product expansion over the past five years (2014 to 2019) has been generated by just two of these four major market sectors.”

— Jim Lang, publisher, Lang Aftermarket iReport

Four Aftermarket Sectors

Light vehicle aftermarket product volume can be divided into four major sectors: domestic nameplate DIFM, domestic nameplate DIY, foreign nameplate DIFM, and foreign nameplate DIY product sales.

Each of these four light vehicle market sectors have made different contributions to the nearly $15 billion surge in aftermarket sales between 2014 and 2019 at user-price.

Sector Growth Rates

The dominant annual product increase has been achieved by the foreign nameplate DIFM market, which averaged nearly 7% annual growth during these five years.

This product surge was over twice the annual pace of all light vehicle product expansion during this time and generated more than 91% of total light vehicle aftermarket product growth.

Domestic Nameplates

The story was different among domestic nameplates. Their DIFM product volume fell more than $1 billion between 2014 and 2019 at user-price.

DIY Annual Increase

Domestic nameplate DIY product volume ranked second in average annual percentage growth over this five-year span, up 1.3%.

It was responsible for 7% of product growth, followed by foreign car and light truck DIY product sales, which represented 2% of total light vehicle aftermarket product expansion between 2014 and 2019.

DIFM & DIY Volume

Do-It-For-Me (DIFM) market volume climbed more than $13 billion at user-price during these five years, topping 3.0% average annual growth. The Do-It-Yourself (DIY) market achieved less than a $1.5 billion gain at user-price and averaged approximately 1.2% annual growth from 2014 to 2019.

Domestic Versus Foreign Nameplates

Domestic nameplates, accounting for a majority of light vehicle product sales, added less than $1 billion in product volume and represented less than 6% of annual growth because the decline in domestic nameplate DIFM sales offset much of their DIY product gain.

Foreign nameplates recorded much different aftermarket product growth, surging at an average 6.0% annual rate between 2014 and 2019 and generating more than 93% of the annual product growth, although they averaged only 45% of total vehicles in operation.

Foreign nameplates added over $14 billion in light vehicle aftermarket product volume at user-price between 2014 and 2019.

DIFM Market Share Expansion

DIFM light vehicle aftermarket segments climbed from 78% of car and light truck product volume in 2014 to over 80% of the 2019 market.

Do-It-Yourself sales have trended in the opposite direction, slipping one-tenth in light vehicle car and light truck product share over this five-year period.

Combined Growth Share Topped 98%

Two aftermarket segments generated over 98% of the nearly $15 billion product increase between 2014 and 2019.

The foreign nameplate DIFM market led the way and was responsible for over 91% of car and light truck product growth during this period.

The domestic nameplate DIFM market fell nearly $1 billion in market product sales during these five years.

For complete analysis, see the just released 2021 Lang Aftermarket Annual Report.

Both DIY Sectors Trail DIFM Growth

Domestic nameplate DIY volume contributed 7% of total aftermarket product growth between 2014 and 2019, followed by foreign nameplate DIY volume, which was responsible for 2% of product expansion.

Six Major Takeaways

  • Over 98% of light vehicle aftermarket product growth between 2014 and 2019 was generated by two of the four major aftermarket sectors.
  • Foreign nameplate DIFM sales generated more than 91% of total light vehicle aftermarket product expansion, followed by domestic nameplate DIY products with 7% of growth share.
  • Foreign nameplate DIY sales contributed 2% of the more than $15 billion product increase for cars and light trucks at user-price between 2014 and 2019.
  • The two sectors generating virtually all aftermarket dollar expansion averaged different annual growth rates: foreign nameplate DIFM products, 6.6%, and domestic nameplate DIY products, 1.3%.
  • The two DIY sectors trailed in annual product growth rates, with domestic nameplates averaging 1.3% annual growth followed by foreign vehicle DIY climbing at only a 1.1% annual pace.
  • Complete analysis of the growth of all four major sectors of the light vehicle aftermarket from 2014 to 2019 (along with a 10-year view of product volume changes) is presented in the all-new and just-released 2021 Lang Aftermarket Annual Report. To order now, click on the Order Form in the ad at the top of this report.

Copyright 2020 by Lang Marketing Resources, Inc.

NOTESpecial thanks to publisher Jim Lang for granting us permission to publish the Lang Aftermarket iReport.