Lang Aftermarket iReport: Product & Purchased Service changes
“Although Products have averaged more than 60% of total aftermarket light vehicle volume (Products and Services) over the past 10 years (2008 to 2018), light vehicle Purchased Service has recorded a much stronger rate of growth than Products during this time.
“Purchased Service has grown more than two-thirds faster than the growth pace of Products between 2008 and 2018, as it generated over half of total aftermarket product expansion (Products and Purchased Service).”
— Jim Lang, publisher, Lang Aftermarket iReport
Light Vehicle Products & Purchased Service
Light vehicle Products and Purchased Service have combined for a $48 billion aftermarket surge between 2008 and 2018.
Growth has been stronger over the past five years (2013 to 2018), $30 billion, than during the preceding five years (2008 to 2013), $18 billion, at user-price. Light vehicle Products and Purchased Service averaged a combined 2.9% annual growth between 2008 and 2018.
Product Growth
Light vehicle Products and Purchased Service have combined for a $48 billion aftermarket surge between 2008 and 2018.
Growth has been stronger over the past five years (2013 to 2018), $30 billion, than during the preceding five years (2008 to 2013), $18 billion, at user-price. Light vehicle Products and Purchased Service averaged a combined 2.9% annual growth between 2008 and 2018.
Purchased Service Versus Products
Light vehicle Purchased Service (the cost of diagnostic and installation work by automotive technicians) recorded 4.6% annual growth between 2013 and 2018, half-again greater than its average annual increase between 2008 and 2013.
Purchased Service for light vehicles soared by more than 45% between 2008 and 2018 and averaged 3.8% yearly growth.
Light Vehicle Aftermarket
The total light vehicle aftermarket (Products and Purchased Service) climbed nearly one-fifth between 2013 and 2018, $12 billion more than its increase during the previous five years.
This 3.5% annual gain was greater than the 2.4% yearly pace of the light vehicle aftermarket growth between 2008 and 2013.
Purchased Service for Light Vehicles
Light vehicle Purchased Service generated 78% of total Purchased Service during 2018, up from 72% of the 2008 market.
Purchased Service for light vehicles increased at an annual rate more twice the yearly pace of all other types of aftermarket Purchased Service during the past 10 years.
Growth Share: 2008 to 2018
Purchased Service generated 52% of total light vehicle aftermarket growth between 2008 and 2018 despite averaging less than 40% of total aftermarket volume during these 10 years.
Products, which generated over 60% of light vehicle aftermarket volume during this 10-year span, accounted for only 48% of light vehicle aftermarket growth.
Six Major Takeaways
- Light vehicle 2018 Product volume was up 26% compared to 10 years earlier. Aftermarket Products for light vehicles averaged 2.3% growth between 2008 and 2018.
- Light vehicle Purchased Services climbed nearly $25 billion over the past 10 years (2008 through 2018), $2 billion more than the growth in Products.
- Over half of total aftermarket product growth (Products and Services) was generated by Purchased Service between 2008 and 2018.
- Products, which generated over 60% of total light vehicle aftermarket volume (Products and Services), accounted for only 48% of total aftermarket growth over the past 10 years.
- Lang Marketing projects that Purchased Service will generate over 55% of the total light vehicle aftermarket (Products and Purchased Service) growth over the next five years.
- The just-released 2020 Lang Aftermarket Annual provides complete analyses of light vehicle aftermarket Product and Purchased Service volume.
Copyright 2019 by Lang Marketing Resources, Inc.
NOTE: Special thanks to publisher Jim Lang for granting us permission to publish the Lang Aftermarket iReport.
