2020
9
UK Car Aftermarket Market Report 2020
2020-12-08T03:09:37+00:00
OX989666
2195
128412
[{"name":"Automotive","url":"https:\/\/store.mintel.com\/industries\/transport\/automotive"}]
Report
en_GB
“Despite the significant impact of COVID-19 on car sales, replacement parts largely weathered the difficulties posed by the pandemic. The continuing need for cars to remain roadworthy helped insulate the…

UK Car Aftermarket Market Report 2020

£ 2,195 (Excl.Tax)

Report Summary

Providing the most comprehensive and up-to-date information and analysis of the Car Aftermarket – UK market including the behaviours, preferences and habits of the consumer.The car aftermarket has performed relatively well during 2020 considering the impact of the COVID-19 pandemic on the wider economy and automotive market. Although demand has suffered in many areas as a result of reduced mileage and the growth in working from home, revenues are forecast to be down only 4.4% against 2019 at £5.61 billion in 2020. Much of the decline will come from sluggish demand for replacement tyres. Looking forward, Mintel expects revenues to surpass their 2019 level by 2022.

Quickly Understand

  • Trends in demand for key car aftermarket parts.
  • The impact of COVID-19 on the market for a number of key aftermarket parts.
  • How COVID-19 and other factors will likely impact the market’s future prospects.
  • The importance of different channels for accessing aftermarket parts.
  • The importance of maintenance and servicing in driving demand for replacement parts and reasons for maintenance.

Covered in this report

Car market report, automotive aftermarket size, automotive aftermarket report, automotive market report and automotive industry forecast.

Companies include: SKF UK, Michelin Tyre plc, Lydia Ltd Motokiki, Scuderia Car Parts, Maserati Parts, Ring Automotive Ring Automotive, Kwik Fit GB Ltd, Scuderia Car Parts,European Car Parts, Scuderia Car Parts, Halfords plc Halfords, Hankook Tyres UK, Brembo Motors Brembo, Turbozentrum UK, Superformance Superformance and Yuasa Battery Sales.

Parts covered in this report include: Shock absorbers and related parts, oil filters and related parts, tyres, exhausts and related parts, batteries, brakes and related parts, clutches and related parts and lightbulbs and related parts.

Expert analysis from a specialist in the field

Written by Neil Mason, a leading analyst in the Automotive sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Despite the significant impact of COVID-19 on car sales, replacement parts largely weathered the difficulties posed by the pandemic. The continuing need for cars to remain roadworthy helped insulate the sector from a major decline in sales. Going forward, the market will continue to face challenges, notably from the future use of cars and confidence towards expenditure.
Neil Mason
Category Director

Table of Contents

  1. Overview

    • Key issues covered in this report
    • COVID-19: Market context
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • Impact of COVID-19 on the car aftermarket
      • Figure 1: Short-, medium- and long-term impact of COVID-19 on the car aftermarket, November 2020
    • The market
    • Revenues are expected to suffer minimal disruption from COVID-19
      • Figure 2: Market size and forecast for the car aftermarket, 2015-25
    • Replacement tyres are the most valuable sector of the market
      • Figure 3: Segmentation of the car aftermarket, by value (%), at current prices, 2015-20
    • Independent garages dominate what are a number of channels
      • Figure 4: Aftermarket outlets for replacement parts, 2020 (est)
    • Growth of the car parc offers ever more opportunities for replacement parts
      • Figure 5: Number of licensed cars (Great Britain), million units, 2000-2019
    • Companies and brands
    • Fragmented supply chain with many companies focused on particular sectors
    • Innovations address sustainable challenges
    • Reduced expenditure by tyre sector drags down overall promotional spend
      • Figure 6: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, 2015-19
    • The consumer
    • Hybrid and electric models begin to challenge dominance of traditional cars
      • Figure 7: Vehicle ownership, September 2020
    • Older cars are growing in importance
      • Figure 8: Age of car owned, 2016-20
    • Majority of car owners are responsible for their own maintenance and servicing
      • Figure 9: Responsibility for maintenance and servicing, September 2020
    • Older drivers are important when it comes to preventative parts replacement
      • Figure 10: Reasons for maintenance, September 2020
    • Traditional retail channels are popular with young adults
      • Figure 11: Interest in in-store purchasing, September 2020
    • Men’s interest in specific retail channels changes by age
      • Figure 12: Preference for in-store channels, September 2020
    • Older adults are yet to be persuaded about shopping online
      • Figure 13: Interest in online purchasing, September 2020
    • Manufacturers are in a strong position to sell direct
      • Figure 14: Preference for online channels, September 2020
    • Young adults record strong interest in used or refurbished parts
      • Figure 15: Interest in purchasing used or refurbished parts, September 2020
    • New channels challenge existing routes when purchasing used or refurbished parts
      • Figure 16: Use of particular retailers/outlets for purchasing used or replacement parts, September 2020
  3. Issues and Insights

    • Outlets selling and fitting parts remain open, likely softening the impact of COVID-19
    • Online has the potential to benefit from the COVID-19 pandemic
    • Used and refurbished parts have the opportunity to grow their presence in the market
  4. The Market – Key Takeaways

    • COVID-19 is expected to have a limited impact on the car aftermarket …
    • … although its effect is expected to be greater on replacement tyres
    • Demand for used and refurbished tyres cannot be underestimated
    • Majority of channels focus on use of others for fitting replacement parts
    • Growth and ageing of the car parc are major drivers for sales
  5. Market Size and Forecast

    • Aftermarket is expected to perform better than the wider auto sector
      • Figure 17: Short-, medium- and long-term impact of COVID-19 on the car aftermarket, November 2020
    • Initial lockdown
    • Re-emergence
    • Recovery
    • Revenues benefit from recent steady growth
    • COVID-19 is forecast to have limited impact on demand during 2020
      • Figure 18: Market size and forecast for the car aftermarket, 2015-25
      • Figure 19: Market size and forecast for the car aftermarket, 2015-25
    • Replacement tyres dominate the aftermarket
      • Figure 20: Segmentation of the car aftermarket, by value, at current prices, 2015-20
    • Market drivers and assumptions
      • Figure 21: Key drivers affecting Mintel’s market forecast, 2015-2025 (prepared on 15th October 2020)
    • Learnings from the last recession
      • Figure 22: the car aftermarket, by value, 2007-2012
    • Forecast methodology
  6. Market Segmentation

    • Tyre revenues perform better than volumes
      • Figure 23: Tyre sales, by value (at current prices) and volume, 2015-20
    • Average tyre prices have been increasing since 2017
      • Figure 24: Average tyre price (fitted), 2015-20
    • Premium tyres remain popular… at least for now
      • Figure 25: Tyre sales, by price position (percentage volume), 2015-20
    • Summer tyres are preferred as all-season variants mount a challenge
      • Figure 26: Tyre sales, by type (volume), 2015-20
    • Part-worn sales have the potential to be stimulated by any future economic slowdown
    • Other replacement parts continue to be affected by inflationary pressure
      • Figure 27: Segmentation of the other replacement parts market, by value, at current prices, 2015-20
    • Sustainability injects new life into remanufactured sector
  7. Channels to Market

    • Intermediaries dominate key channels of distribution
      • Figure 28: Aftermarket outlets for replacement parts*, 2016, 2018 and 2020
    • Independent garages represent the largest number of outlets
    • Forecourt network sees stability after recent contraction in sites
    • Consolidation impacts franchised dealer sites
    • Growth in fast-fit reflects consumer demand for speed
    • Car accessory shop numbers in steady decline
    • Motor factor network sees stability
    • Internet purchasing is expected to grow in importance
  8. Market Drivers

    • Growth in UK car parc is vital for the aftermarket
      • Figure 29: Number of licensed cars (Great Britain), million units, 2000-2019
    • Owning two or more vehicles is increasing
      • Figure 30: Percentage of households with car availability, England, 2009-19
    • COVID-19 expected to depress new and used car sales
      • Figure 31: New and used car market volumes, 2015-20
    • An ageing car parc presents clear opportunities for after part sales
      • Figure 32: Age structure of the UK car parc in years, 2015-19
    • Dual-purpose cars have been the big winner since 2010
      • Figure 33: New car registrations by category, percentage point change, 2010 and 2019
    • Economic growth has been slowing since 2014
      • Figure 34: Real GDP (actual and forecast), 2010-24
    • Consumer confidence hit by COVID-19
      • Figure 35: Consumer financial confidence, January 2015-July 2020
    • MOT testing put on hold during pandemic
    • Cost pressures for car owners have moderated recently
      • Figure 36: Consumer expenditure on car purchasing, servicing and repair and motoring expenses, seasonally adjusted at current prices, 2015-19
    • A growing number of cars are passing their MOT without issues
      • Figure 37: Road vehicle testing scheme (MOT), selected reasons for failure, car tests, 2018-2019 *
    • Part failure and maintenance are the main reasons for replacement
      • Figure 38: Reasons for replacement, 2018 and 2020
    • Sluggish interest continues towards used or refurbished parts
      • Figure 39: Interest in purchasing used or refurbished parts, 2018 and 2020
  9. Companies and Brands – Key Takeaways

    • Trading up and innovation are helping premium marques in the tyre market
    • Innovations focus on sustainability
    • COVID-19 sees advertisers reduce promotional expenditure
  10. Market Share

    • Tyre market sees slowdown in progress from low cost imports
    • Established names re-assert their presence
      • Figure 40: UK – replacement tyres: company market share, by volume, 2015-19
    • ‘Other’ replacement parts
  11. Launch Activity and Innovation

    • Michelin announces the world’s greenest tyre
      • Figure 41: Michelin e.Primacy tyre
    • Imperial College innovates to reduce microplastic release from tyre use
      • Figure 42: Imperial College solution to issue of microplastics from tyres
    • Denso demonstrates sustainable approach to manufacturing
    • Nissan announces new process for using carbon fibre in parts production
  12. Advertising and Marketing Activity

    • Falling expenditure since 2017 expected to be followed by slump in 2020
      • Figure 43: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, 2015-20
    • Subdued expenditure for 2020 likely reflects more than just COVID-19
      • Figure 44: Total above-the-line, online display and direct mail advertising expenditure on car aftermarket products, 2019 and 2020 (January to September)
    • Passenger tyre promotion suffers as expenditure is scaled back
      • Figure 45: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by category, 2015-19
    • A number of key advertisers have recently reduced expenditure
      • Figure 46: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by advertiser, 2015-19
    • Activity in the promotion of individual car parts is high
      • Figure 47: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by advertiser and campaign, 2019
    • Digital is currently the largest channel for advertisers
      • Figure 48: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by media type, 2019
    • Nielsen Ad Intel coverage
  13. The Consumer – Key Takeaways

    • Initial worries about the risk of COVID-19 appear to be waning
    • Young adults record a high level of interest in hybrid and electric cars
    • Differences in vehicles by age offers opportunities for regional marketing
    • Women offer potential for greater engagement
    • Wealth is an important factor in encouraging the purchase of replacement parts
    • Urban areas bring opportunities for traditional retailers
    • Online needs further development
    • A number of groups would be interested in used or refurbished parts
  14. Impact of COVID-19 on Consumer Behaviour

    • Steady expansion in those less worried about the risk of COVID-19
      • Figure 49: Worries about risk of exposure to COVID-19, April-October 2020
    • Little evidence that COVID-19 has changed shopping habits
      • Figure 50: Shopping habits, April-October 2020
  15. Vehicle Ownership

    • While car ownership is high, a significant minority don’t own a car
      • Figure 51: Vehicle ownership, September 2020
    • Hybrid and electric cars are proving popular with young adults
    • Income is an important divide between those owning standard and hybrid/electric cars
    • Young adults are most likely to own another type of vehicle
  16. Age of Car Owned

    • Just over a quarter of cars were purchased in the last three years
      • Figure 52: Age of car owned, September 2020
    • Income plays a major part in the age of car owned
    • Young men favour newer cars
    • Regional differences in vehicle age shouldn’t be overlooked
    • Ownership of older cars is growing
      • Figure 53: Age of car owned, 2016-20
  17. Responsibility for Maintenance and Servicing

    • Most owners are responsible for their own vehicle maintenance
      • Figure 54: Responsibility for maintenance and servicing, September 2020
    • Men are more likely to have sole responsibility, while women share this with others
    • Lower income groups like to be involved personally
    • Can a lack of interest by women in maintenance be used as an opportunity?
  18. Reasons for Maintenance

    • Failure is not the only reason for replacing a part
      • Figure 55: Reasons for maintenance, September 2020
    • Older adults are more inclined to be influenced by professional recommendations
    • Wealth impacts regular parts replacement
    • Hybrid and electric car influenced by recommendations
    • Older car owners are more inclined to purchase parts when necessary
    • Older adults who are not working are an important group for replacing parts through regular maintenance and servicing
      • Figure 56: Car aftermarket – CHAID – tree output, September 2020
      • Figure 57: Car aftermarket – CHAID – table output, September 2020
  19. Interest in In-store Purchasing

    • In-store purchasing is popular …
      • Figure 58: Interest in in-store purchasing, September 2020
    • … with young adults a very important group
    • Locating stores in major urban areas brings big opportunities
    • Replacement part purchasing is popular with wealthy households
    • Advertising campaigns are likely to resonate with young families
    • Preventative approach towards maintenance attracts hybrid and electric owners
    • New car owners favour purchasing from traditional retailers
    • Purchasing intentions are lower for those with joint responsibility for maintenance
    • Automotive specialists are popular for in-store purchasing
      • Figure 59: Preference for in-store channels, September 2020
    • Men’s preferences vary by age
    • Low earners want more than just parts
    • Older car owners hold out better prospects for retailers
    • Automotive retail stores have retained dominance in recent years
      • Figure 60: Likely to purchase in-store, 2018-2020
  20. Interest in Online Purchasing

    • Online is less popular than traditional retail channels
      • Figure 61: Interest in online purchasing, September 2020
    • Young men have a strong interest in purchasing online
    • Cities offer additional opportunities
    • Wealthy adults are also a strong audience
    • Strong interest in online retailers from hybrid and electric owners …
    • … as well as owners of newer cars
    • Online is less popular with those who have joint maintenance responsibilities
    • Automotive retailers are also a popular choice for those online
      • Figure 62: Preference for online channels, September 2020
    • Older adults have a broad interest in online channels
    • Manufacturers’ websites can benefit from the loyalty of affluent car owners
    • Auction websites record highest popularity with those who own the oldest vehicles
    • Broadening appeal is key to building sales for those online
    • No obvious challenge to automotive websites
      • Figure 63: Likely to purchase online, 2018-2020
  21. Interest in Purchasing Used or Refurbished Parts

    • Refurbished parts are currently of limited interest
      • Figure 64: Interest in purchasing used or refurbished parts, September 2020
    • Young adults are a key market
    • It’s not all about income
    • Women appear uncertain about going for used or refurbished
    • Hybrid and electric cars record high levels of interest
    • Those with the oldest cars exhibit a high degree of interest in this market
    • Most buyers would look at a specialist outlet for such parts
      • Figure 65: Use of particular retailers/outlets for purchasing used or replacement parts, September 2020
    • Specialist outlets are popular with older adults and men
    • Young adults are focused on more informal channels
    • City dwellers more open to alternatives
    • Online and third parties both popular choices with those with older cars
  22. Appendix – Data Sources, Abbreviations and Supporting Information

    • Data sources
    • Exclusions
    • Abbreviations
    • Consumer research methodology

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