Lang Aftermarket iReport: Four vehicle segments differ In growth
“Lang Marketing analyzes U.S. aftermarket product volume within four major vehicle segments: Cars, Light Trucks, Heavy Trucks, and Other aftermarket product use.
“The past five years have seen significant changes in the product volume of each of these major vehicle segments as well as in their contributions to aftermarket product expansion.”
– Jim Lang, publisher, Lang Aftermarket iReport
Changing Aftermarket: 2018 versus 2013 Product Sales
Cars slipped to less than 26% of the 2018 aftermarket product volume at user-price, more than a 250 basis point share loss from the 2013 light vehicle market.
This significant slide in Car aftermarket product share reflects the steady decline of new Car sales and their diminishing portion of vehicles in operation (VIO).
Light Truck Product Surge
Light Trucks, in contrast, surged from 43% of 2013 aftermarket product sales to more than 46% of the 2018 market.
This light vehicle aftermarket product expansion has been fueled by the growing Light Truck share of vehicles on the U.S. roads along with the increasing annual aftermarket product consumption of the average light truck.
Higher Average Product Use
During 2018, the average Light Truck represented over 50% more aftermarket product volume, at user-price, than the typical passenger car.
This greater annul aftermarket product use reflects the different age mix of Cars versus Light Trucks as well as the greater volume of Accessory products purchased for Light Trucks in the U.S. compared to that for the average Car.
Complete analysis and a historical perspective of these annual differences in product use between the two major groups of light vehicles in the U.S. is provided in the 2020 Lang Aftermarket Annual.
Heavy Trucks (including medium-weight trucks) accounted for over 19% of 2013 aftermarket product volume, the same aftermarket product share that they captured in 2018.
Despite their flat product share, Heavy Trucks added nearly $4 billion in aftermarket product sales during these five years, at user-price.
Other Product Use
The category of Other products includes all aftermarket product volume by units other than cars and trucks. This includes product use by off-road vehicles, agriculture equipment, and other applications to name just a few examples of Other types of aftermarket product use.
While topping $14 million in 2018 aftermarket product sales, Other product use declined in aftermarket product share between 2013 and 2018.
Growth Share of Market Segments
Light Trucks generated over 72% of product growth at user-price between 2013 and 2018, followed by Heavy Trucks, which created one-fifth of the product expansion at user-price.
Cars represented less than 7% of total product expansion over this five-year span; and the category of Other product use suffered a loss in annual volume.
Different rates of product growth among the four vehicle segments has consequences for aftermarket product volume and mix, the relative strength of aftermarket distribution channels, the market share of major types of repair shops and DIY parts outlets, as well as other key aftermarket developments.
Lang Marketing expects Light Trucks will be the primary driver of aftermarket product growth over the next three years (2019 through 2021), continuing to expand their product share during this time.
Cars will decline in aftermarket product share as will Other product use. Heavy Trucks will remain relatively static in aftermarket product share during the next three years.
Six Major Takeaways
- S. aftermarket product volume can be divided into four major vehicle segments: Cars, Light Trucks, Heavy Trucks, and Other product use.
- Cars slipped from 28% of 2013 aftermarket product sales to one-quarter of 2018 aftermarket product volume, at user-price.
- Light Trucks, in contrast, surged from just over 43% of the 2013 aftermarket product market to more than 46% of 2018 aftermarket product volume, at user-price.
- Heavy Trucks (including medium-weight units) recorded approximately the same share of 2018 volume as they did five years earlier.
- Light Trucks generated over 70% of aftermarket product growth at user-price over this five-year span, followed by Heavy Trucks, which accounted for approximately one-fifth of product expansion. Cars were responsible for less than 7% of aftermarket product growth between 2013 and 2018.
- Trucks of all sizes will combine to generate nearly all aftermarket product growth between 2019 and 2021, at user-price.
Copyright 2019 by Lang Marketing Resources, Inc.
NOTE: Special thanks to publisher Jim Lang for granting us permission to publish the Lang Aftermarket iReport.