SEMA: Specialty-equipment market sales flat in 2023

DIAMOND CAR, Calif. — The U.S. automotive specialty-equipment market is expected to show little if any growth this year after growing 2% in 2022 over 2021, according to new research from the Specialty Equipment Market Association (SEMA).

According to SEMA's 2023 Market Report, the value of the automotive specialty-equipment market this year will be on par with the $51.8 billion registered in 2022 before ramping back up toward the industry's historical growth trend or 4% to 5% annually in 2024 and beyond.

SEMA cited the range of economic challenges facing the industry as the reason for the slowing growth last year and this year.

"Even as economic uncertainty looms, particularly around inflation, consumers are passionate about customizing and continue to buy from our industry," Gavin Knapp, director of market research, said.

Key findings from the report include:

• Pickup accessorization remains the biggest segment for the industry, topping $15 billion in sales.
• The CUV accessory market continues to grow, reaching 14% of specialty-equipment sales in 2022.
• Younger people continue to be the most likely to accessorize and perform more upgrades; half of those modifying their vehicles are under age 40.
• Half of "accessorizors" own a powersports or recreational vehicle, opening up cross-selling opportunities.
• Over 80% of companies expect their sales to stay the same or grow in 2023.

The new report is available for download at sema.org/research. It's free for SEMA members; $2,000 for non-members.