LAS VEGAS – The U.S. automotive aftermarket continues to experience growth and is expected to generate $318 billion in revenue this year, according to industry officials.
During a presentation at the Automotive Aftermarket Parts Expo (AAPEX), Auto Care Association President and CEO Bill Hanvey and Automotive Aftermarket Suppliers Association President and COO Bill Long offered an overview of the aftermarket in relation to the growth in telematics and autonomous vehicle development.
The two association executives touted that the aftermarket is the third largest employer behind the health care and construction industries.
By 2020, the industry is expected to reach $421 billion in sales.
But the industry faces challenges from new companies and developing technologies, including autonomous vehicles.
New companies are entering the aftermarket and developing new distribution models, e-tailing, vehicle technologies and other disruptive business models.
"Data is an absolute must for our industry to prosper," Mr. Long said.
In addition, the autonomous vehicle and connected vehicle technologies will spur additional government regulations so the aftermarket has to be engaged in the political process, the executives said.
"Your voice carries more weight than ours," Mr. Hanvey told the audience.
"Bottom line is: Get off the sidelines, stand up and be heard."