BETHESDA, Md. — The U.S. auto care industry exceeded expectations in 2023, growing 8.6% to $392 billion — surpassing the previous year's projections of 8.1%, according to the Auto Care Association (ACA).
The automotive aftermarket continues to experience growth in the number of vehicles in the automotive maintenance "sweet spot" — the percentage of vehicles aged 8 to 11 years has grown by 6.3% a year over the past five years, helping to drive the average age of light vehicles up to 12.6 years, according to data in the 34th edition of Auto Care Factbook, a joint effort of the ACA and the MEMA Aftermarket Suppliers.
The number of vehicles 4 to 11 years old account for 42.1% of light vehicles in operation in the U.S., while vehicles 16 years and older continue to be the largest percentage of the vehicle population, according to the report.
Other data of note for the automotive aftermarket include:
- The number of vehicle miles traveled increased 2.1% in 2023 but this metric is expected to increase only slightly this year.
- The value of general auto repair sales surged 15.5% in 2023.
- New vehicle sales grew 12.4% in 2023 — nearly double the anticipated 6.5% — but the 2025 target of 16.5 million units remains unchanged, so 2024 and 2025 sales may grow only 2.6% and 3.4%, respectively.
- The 2023 vehicle sales boom helped push the U.S. fleet up to 286 million light vehicles in operation in January, up 2 million over the prior year.
- The aftermarket service sector gained market share in 2023, ending the year with 35.9% of the market. New car dealers gave up the biggest share of sales in 2023, losing a full point and falling to 28.3%. Dealer market share is expected to fall to 28% in 2024 and stabilize.
- U.S. light-duty aftermarket sales increased 5.9% to $414.1 billion, and this sector is now 37% bigger than it was in 2019, growing by $112 billion in those five years, according to the report.
- Prices are predicted to continue to decline, helping to cool growth back to historical trends. The value of sales will grow an average of 4.5% yearly from 2025 to 2027 as inflation effects dissipate. By 2027, the value of light-duty sales is expected to approach $472 billion.
- A strong labor market continues to drive rising wages while empowering consumers to increase their spending in 2024, despite significant headwinds of persistent inflation, historically high gas prices and weak consumer confidence.
The Fact Book includes an industry forecast through 2027 by S&P Global Mobility, driving behavior event frequency by Arity L.L.C., aftermarket service satisfaction by J.D. Power, updated financial markets commentary by Jefferies L.L.C. and consumer behavior data by IMR Inc.
The Fact Book is free to ACA members and available for $2,750 for non-members.
