Pickup truck customization drives auto aftermarket

When it comes to vehicle modification and accessorization, pickup truck owners are a prime target for tire dealers and parts retailers, according to a new Specialty Equipment Market Association (SEMA) study.

There are 283.9 million passenger vehicles in operation in the U.S.: CUVs account for a 24% share with pickup trucks a close second at 21%, followed by mid-range/large cars at 19%.

But pickup trucks most likely are to be customized and modified with bigger tires and wheels and other modifications, according the SEMA Pickup Accessorization Report 2022, which interviewed pickup owners.

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There are 59 million registered pickup trucks in the U.S., and the top five states with pickup trucks are Texas, California, Florida, Georgia and North Carolina.

The majority of pickups on the road are full-size models, such as the Ford F Series, Chevrolet Silverado/GMC Sierra and Dodge RAM, due to their flexibility to serve as a workhorse, a vacation vehicle or an off-road/recreation vehicle, according to the report.

For many Americans, owning a full-size pickup is a lifestyle choice.

"Even if they don't need the full capabilities these vehicles offer, there are plenty of 'truck people' out there who see their pickup as part of who they are," the report said.

Pickups are, by far, the biggest single segment for the specialty equipment market, according to SEMA.

"If we look at the specialty equipment sales for passenger vehicles, this last year we went over $50 billion in sales in total and the biggest individual chunk of that was for pickups — $16 billion last year was spent to accessorize and modify. So it really is a booming market for us," Gavin Knapp, SEMA director of market research, said.

"So overall, almost all trucks are used as daily drivers and most people consider their pickup a utility vehicle. You have a pickup because you can do lots of things. A lot of people utilize their pickups for travel, whether that be pulling a trailer or having a camper, using it to get off the road, or just because that's what they like to drive when they're on the road," he said.

"But if you have one of these specialized needs, you are much more likely to accessorize. You're much more likely to modify your truck to help meet the needs. Getting outdoors or pulling a boat or a UTV, being able to have a rack for work or a grade lift. These are the things that really are the driving forces for all of the accessorization."

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For many Americans, owning and modifying a pickup could be considered a part of their cultural identity, according to the SEMA report.

"The vast majority of pickup owners use their truck for daily tasks, short road trips, light utility and/or outdoor recreation. The market for off-road-focused parts extends beyond true off-road enthusiasts. Many of the people who buy off-road products want the look or function for other purposes," the report said.

About 29 million late-model (2010 model year and newer) pickups are on the road in the U.S. Nearly 15 million of those have been modified with specialty equipment parts, the report said.

New pickup owners usually don't waste any time with modifications and accessorizations, often starting shortly after taking ownership, and they tend to make multiple changes during the time they own their trucks, the report said.

Customizing the "look" of the truck is an overarching motivation for owners to modify their pickups, Knapp said. And they usually start with changing up the tires and wheels.

"We often think of that as the gateway drug to our industry. It's one of the most straightforward, easy ways you can change the look or appearance of your truck right away," he said.

Off-road and oversize tires topped the list of product categories purchased in 2021, followed by suspension products and maintenance oils/additives, according to the report.

About 26% of late-model pickups were modified with new wheels/tires, according to the report: 10% with all-terrain tires; 6% off-road tires; 5% with custom wheels; 5% performance tires; and 3% snow/winter tires.

Heavy-duty trucks, considered less practical for everyday use, are especially likely to be bought and customized for a specialized purpose, the report said.

About 42% of pickup owners plan to make modifications in the next year, according to the report, to adapt the vehicle for various applications.

The most common modifications are to improve the truck's utility or appearance. Some of the reasons for modification include for towing/hauling, make it look cool and for off-road use.

About 62% of pickups are used for off-road; 80% for outdoor recreation; 92% for travel/vacation; and 97% for utility/work.

Off-road products are a significant piece of the pickup accessorization market, the report said, with owners who describe their truck as an off-road vehicle tending to make more extensive modifications.

"When I say that 62% of late model pickup owners are engaged in this off-road category, that's not just people who are buying off-road parts, that's people who, even if they don't think of their truck as an off-road vehicle, are still getting off road on at least dirt and gravel, if not mud or even harder off-road challenges," Matt Kennedy, SEMA market research manager, said.

"That said, people who are making modifications to their pickup are a lot more likely to be buying parts that we might think of as being off-road-focused and that's going to be your off-road tires, your light bars, body protection, anything that we as an industry have developed as primarily, if not exclusively, to say this will help your truck get off road ...," he said.

"So there is absolutely an enthusiast off-road segment. But even for the folks who are just having a daily drive, a lot of them are still doing at least some off-roading on occasion. And so there's a potential need, a potential opportunity, to provide those products and either give them the look or the function for doing so."

When it comes to off-road tires, 6% of all pickup owners bought off-road tires while 22% of off-road pickup owners bought such tires, the report said.

"The market for off-road products extends beyond the off-road enthusiast as a sizable contingent don't take their truck over terrain more difficult than dirt or gravel, but they still want the option or at least the look," the report said.

About 35% of pickup owners view their vehicle as an off-road vehicle while 60% view their trucks as an outdoor recreation vehicle. About 64% said they have spent at least $2,000 on modifications.

Those modifications often allow them to more easily get anywhere, on or off the road, tow items or transport items.

Off-road travel may simply involve getting to an outdoor recreation activity, such camping, hunting, fishing or boating.

"Pickup owners in general are very much engaged in this outdoor recreation space. It's part of their lifestyle. A lot of them are getting out there and they're using their pickup," Kennedy said.

"Whether it's really a new phenomenon versus something that's just gotten a lot of buzz is up for debate. But what we do see is for the pickup owners in general, and especially for the real outdoor recreation truck guys, they want to get their pickup out there. They want to be able to use their truck to get them to where they can do the things they're passionate about. And we see that in terms of the gear that they own as well.

"When we look at the percentage of truck owners who have an ATV, a boat, a UTV, it's about half across the board. ... The guys who are really engaged and really use their pickup for the outdoor space are much more likely to have toys they want to carry in the bed or tow behind the vehicle."

Most (92%) pickup owners also use their trucks for travel, whether for a day trip or a road trip.

"In general, pickup owners are pretty engaged in the off-road space at least to some extent," Kennedy said, adding, "You can see where that goes out in their interest and in your potential touch points. If you're thinking about where you want to be marketing to these folks, there's definitely the truck enthusiast channels. You've got some of it on the truck shows, the off-road events or off-road forums.

"Engaging them in where their hobbies live is a great way for you to get your brand out there and your products out there. Online videos, especially YouTube, are an important channel for pickup accessorizers to engage with their passion and get ideas, information or tips for their next modification."

Businesses can attract customers with a strong online presence and help their sales by making sure visitors both in store and online have access to the advice and product information they need in order to make a decision, the report suggested.

Accessorizers are more likely to listen to people they know and trust than social media influencers.

Word-of-mouth and in-store visits are also important parts of the research process.

"But don't neglect your own website and your own staff," Kennedy said. "When people are coming into your store, especially if they're looking for a more complicated part or a more complicated job, you're going to have a lot more success if you have somebody there who can guide them through that process, make sure they feel comfortable about the difficult or expensive part they going to put on their vehicle and have the capability to put it on there for them."

He advised retailers to have a multi-channel marketing strategy and make sure they have someone on staff who is an expert.

While SEMA anticipates a slowdown in growth for 2022 due to lower new-vehicle sales, supply-chain challenges and weakening economy, the expectation is that sales will continue to grow and return to their historical trend as these disruptions ease.

Full-size trucks are well established as a key market segment, and mid-size pickups have been on a bit of an upswing in recent years, the report noted, but compact pickups may be making a comeback.

Compact pickups largely vanished from vehicle manufacturer lineups after the 1990s and are only now starting to be reintroduced. Their low price point can be attractive for budget-conscious buyers, but it is uncertain if sales will take off, the report said.

"Electric pickups face even more of an uphill battle, with limited charging infrastructure and uncertainty around how willing consumers will be to make the switch from gasoline- or diesel-powered trucks," the report said.