2021
9
UK Car Aftermarket Market Report 2021
2021-11-26T03:10:17+00:00
OX1050507
2195
145578
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Report
en_GB
“Helped by a need to keep vehicles on the road, the car aftermarket suffered only minimal impact from the COVID-19 pandemic. Going forward it faces both opportunities and challenges as…

UK Car Aftermarket Market Report 2021

£ 2,195 (Excl.Tax)

Description

The UK Car Aftermarket report identifies consumer attitudes towards car aftermarket, car aftermarket size, and the demand for key aftermarket parts in the UK. This automotive aftermarket market report covers the market size, market forecast, market segmentation and industry trends for the Car Aftermarket market in the UK. 

Current Market Landscape

When considering the impact of the COVID-19 pandemic, men under the age of 35 are the group that has been especially impacted through changes in how they interact with the market. One effect of the pandemic on younger men has been their willingness to explore new ways to interact with the aftermarket with fit-at-home services and DIY both more popular now than before the pandemic.

  • 46% of men under 35 are delaying the replacement of parts, with 65% prioritising the purchase of essential parts only.
  • There was a 5.8% dip in sales in 2020, which is forecast to be followed by a 6.9% rebound in 2021.

The COVID-19 pandemic has had less of an impact on the car aftermarket than other areas of the automotive sector such as car purchasing. Despite car use being impacted during lockdowns in 2020 and early 2021, the aftermarket benefited from garages remaining open as essential services.

Future Market Trends in Car Aftermarket

A projected slowdown in growth for the UK car parc is likely to be the biggest threat faced by the automotive aftermarket industry. After decades of expansion, the size of the car parc is already stagnating with a fall in number of cars expected by the second half of this decade. Such a development signals that those in the aftermarket are going to find conditions increasingly difficult, necessitating a focus on profitable segments.

In what is expected to be an increasingly challenging market, to ensure profitability manufacturers and those fitting parts will need to focus on value. Cars are becoming ever more complex which is already raising the average price of many parts. This is likely to continue boosted by drivetrain developments focused on EV and fuel cell vehicles. Taken with the arrival of C-V2X and the digitisation of personal transport, aftermarket opportunities are likely to emerge outside of traditional products.

Read on to discover more details or take a look at all of our UK Automotive market research.

Quickly Understand

  • The impact of COVID-19 on the UK car aftermarket.
  • How COVID-19 and other factors will likely impact the market’s future prospects.
  • Trends in demand for key car aftermarket parts.
  • 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.
  • Consumer preferences towards how parts are purchased and interest in the use of used or refurbished parts.

Covered in this Report

Brands: Goodyear, Nexen, Michelin, Continental, Pirelli, Bridgestone, Hankook, GT, Kumho, Landail, Cooper, BCN3D, Kwik Fit, National Tyre Service, ATS Euromaster, Chatani Tyres Service, Halfords, Euro Car Parts, SKF UK, Scuderia Car Parts, Ring Automotive, Fiat Chrysler, Subaru, Superformance, Brembo Motors.

Expert Analysis from a Specialist in the Field

This report, written by Neil Mason, a leading analyst in the Retail sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Helped by a need to keep vehicles on the road, the car aftermarket suffered only minimal impact from the COVID-19 pandemic. Going forward it faces both opportunities and challenges as a stagnating, and ageing, car parc faces change with the rise of hybrid and electric vehicles.

Neil Mason
Retail 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, 2021
    • The market
    • Market size and forecast
      • Figure 2: Market size and forecast for the car aftermarket, 2016-26
    • Innovation is important as a method to fight off price competition
    • Garages and fast-fit outlets are key channels for replacement parts
    • Expected fall in size of car parc will make competition tougher
    • Companies and brands
    • Branding adds value to aftermarket
    • Promotional investment falls back in line with lacklustre car market
    • The consumer
    • Better sentiment towards recovery is evident despite worries lingering for some
      • Figure 3: Worries about risk of exposure to COVID-19, 2020-21
    • Shift to hybrid and electric vehicles will increasingly impact the aftermarket
      • Figure 4: Vehicle ownership, 2021
    • Aftermarket suppliers shouldn’t overlook opportunities with older women
      • Figure 5: Age of car owned, 2021
    • Marketing needs to account for different roles of men and women towards maintenance
      • Figure 6: Responsibility for maintenance and servicing, 2021
    • Do-it-for-me opportunity with older adults and older cars
      • Figure 7: Reasons for maintenance, 2021
    • Demand for replacement parts varies with older cars an important market
      • Figure 8: Purchase of replacement parts, 2021
    • General retailers can take on specialists when offering replacement parts
      • Figure 9: Interest in purchasing used or refurbished parts, 2021
    • Young men most likely to have changed their behaviour during the pandemic
      • Figure 10: Changes in purchasing since COVID-19, 2021
  3. Issues and Insights

    • Bounce for revenues after pandemic hides wider challenges
    • Branding and breakthrough products offer a way to add value
    • Online can learn from developments outside of the sector
  4. The Market – Key Takeaways

    • Return to normality remains a critical factor for aftermarket
    • Product improvements are one way of boosting revenues
    • Remanufactured parts can benefit from their green credentials
    • Channels offering specialist skills place focus on added value
    • Expected fall in size of car parc will make competition tougher
  5. Market Size and Performance

    • Recovery for car aftermarket is expected in 2021
      • Figure 11: Short-, medium- and long-term impact of COVID-19 on the car aftermarket, 2021
    • Pandemic delivers short-term hit to the market
      • Figure 12: Market size and forecast for the car aftermarket, 2016-21
    • Replacement tyres are the biggest single product within the market
      • Figure 13: Segmentation of the car aftermarket, by value, at current prices, 2016-21
  6. Market Forecast

    • Aftermarket set for recovery from 2021
      • Figure 14: UK car aftermarket, revenues, 2016-26
    • Market drivers and assumptions
      • Figure 15: Key drivers affecting Mintel’s market forecast, 2016-26
    • Forecast methodology
  7. COVID-19 Scenario Performance

    • Mintel’s approach to predicting the impact of COVID-19
    • Fundamental differences in how COVID-19 is affecting consumer markets
    • Tyre sector performance cannot go unnoticed
      • Figure 16: COVID-19 scenario forecasts, 2016-26
    • Trading down and delays in parts replacement remain a concern
    • COVID-19 market disruption: risks and outcomes
      • Figure 17: Summary of Mintel scenario expectations and the impact on the car aftermarket, 2021
  8. Market Segmentation

    • Increasing average prices boost tyre revenues
      • Figure 18: Tyre sales, by value (at current prices) and volume, 2016-21
    • Tyre prices continue their upward trajectory
      • Figure 19: Average tyre price (fitted), 2016-21
    • Economic disruption brought about by pandemic stimulates budget tyre market
      • Figure 20: Tyre sales, by price position (percentage volume), 2016-21
    • All-season tyres remain the sector to watch
      • Figure 21: Tyre sales, by type (volume), 2016-21
    • Part-worn sales stagnate as buyers budget sector wins during the pandemic
    • Mixed performance from other areas of the market
      • Figure 22: Segmentation of the other replacement parts market, by value, at current prices, 2016-21
    • Remanufactured parts increasingly become a mainstream option
  9. Channels to Market

    • Independent garages and forecourts dominate market
      • Figure 23: Aftermarket outlets for replacement parts*, 2017-21
    • Independent garages represent the largest number of outlets
    • Forecourt network stabilises after period of consolidation
    • Franchised dealer network continues to shrink
    • Fast-fit outlets continue to make steady gains
    • Car accessory shops in steady decline
    • Motor factor network sees stability
    • Online is a challenger to traditional channels
  10. Market Drivers

    • Growth in the UK car parc falters…
      • Figure 24: Number of licensed cars (Great Britain), million units, 2000-20
    • …with stagnation expected over the long term
      • Figure 25: Number of forecast licensed cars in the UK, million units, central scenario, 2020-35
    • Used car sales likely to present a short-term opportunity
      • Figure 26: New and used car market volumes (United Kingdom), million units, 2016-21
    • Ageing of UK car parc offers further potential
      • Figure 27: Age structure of the UK car parc in years, 2016-20
    • A growing proportion of households own a car
      • Figure 28: Percentage of households with car availability, England, 2010-20
    • Steady improvement for those with a healthy financial situation as impact of pandemic eases…
      • Figure 29: Consumer financial situation, 2020-21
    • …as car use returns to pre-pandemic levels
      • Figure 30: Use of cars for personal transport (Great Britain), 2020-21
    • Expenditure associated with cars down 6.5% during 2020
      • Figure 31: Consumer expenditure on car purchasing, servicing and repair and motoring expenses, seasonally adjusted at current prices, 2016-20
    • Hybrid and electric account for a growing share of new car sales
      • Figure 32: Sales of new cars, by fuel type, 2016-21
    • MOT holiday in 2020 skews demand in the second half of 2021
    • Lamps, reflectors and electrical equipment dominate MOT failures
      • Figure 33: Road vehicle testing scheme (MOT), selected reasons for failure, car tests, 2019-20
    • Reasons for parts replacement in decline since 2019
      • Figure 34: Reasons for maintenance (top 5 responses), 2019-21
    • Interest in used and refurbished parts appeals to some car owners
    • Threat remains from a change to block exemption rules from 2023?
  11. Companies and Brands – Key Takeaways

    • Branding continues to be a popular way of adding value
    • New technology increasingly evident for innovations
    • Depressed car market reduces the appetite of advertisers
  12. Market Share

    • Brands are back in fashion…
    • …despite downtrading during the pandemic
      • Figure 35: UK – replacement tyres: company market share, by volume, 2016-20
    • Other replacement parts
  13. Launch Activity and Innovation

    • Retreadable tyre made from dandelions and rice
      • Figure 36: Continental GreenConcept Tyre, September 2021
    • Bridgestone collaboration brings about new tyre development
    • Nissan moving ahead with 3D-printed parts
      • Figure 37: BCN3D Epsilon W50 3D printer, June 2021
  14. Advertising and Marketing Activity

    • Investment in freefall prior to arrival of the pandemic
      • Figure 38: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, 2017-21
    • Lockdowns play a major part in affecting investment activity
      • Figure 39: Total above-the-line, online display and direct mail advertising expenditure on car aftermarket products, 2020 and 2021 (1 January-7 October)
    • Tyre promotion suffers more than that of components
      • Figure 40: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by category, 2017-21
    • Tyre sector dominated by household names
      • Figure 41: Recorded above-the-line, online display and direct mail total advertising expenditure on wheels and tyres, by advertiser, 2017-21
    • Major names reduce involvement in market as pandemic hits
      • Figure 42: Recorded above-the-line, online display and direct mail total advertising expenditure on motor – components and parts, by advertiser, 2017-21
    • Television and digital benefit from increased interest
      • Figure 43: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by media type, 2020 and 2021
    • Nielsen Ad Intel coverage
  15. The Consumer – Key Takeaways

    • Aftermarket purchasing should be boosted as pandemic worries recede
    • Communication with early adopters of hybrid and electric cars will assist this market
    • Opportunities to engage with women shouldn’t be overlooked
    • Promoting refurbished and used parts to low-income car owners
    • Older adults and older car owners are receptive to reassurance
    • Using digital as a way of engaging with particular groups
    • Changed priorities from young men offer new opportunities
  16. Impact of COVID-19 on Consumer Behaviour

    • Worries about COVID-19 are easing
      • Figure 44: Worries about risk of exposure to COVID-19, 2020-21
    • Non-essential spending is in decline
      • Figure 45: Shopping habits, 2020-21
  17. Vehicle Ownership

    • While car ownership is high, a significant minority don’t own a car
      • Figure 46: Vehicle ownership, 2021
    • Car ownership is popular amongst a wide range of adults
    • Young men and families are a key market for hybrid and electric cars…
    • …as are city dwellers
    • Income remains a factor for those owning a car
  18. Age of Car Owned

    • Older cars account for a sizeable share of the market
      • Figure 47: Age of car owned, 2021
    • Income affects ownership of the very newest cars
    • Aftermarket can’t afford to overlook hybrid and electric sector
    • Ownership of older cars in rural areas makes targeted promotion a possibility
    • Women are an important group of potential purchasers
    • Growth in older cars may not necessarily bring aftermarket sales
      • Figure 48: Age of car owned, 2016-21
  19. Responsibility for Maintenance and Servicing

    • Most owners are responsible for their own vehicle maintenance
      • Figure 49: Responsibility for maintenance and servicing, 2021
    • Different roles for men and women towards maintenance illustrate how marketing needs to be differentiated
    • Wider car maintenance opportunity exists with low income groups…
    • …as well as owners of hybrid and electric vehicles
  20. Reasons for Maintenance

    • Parts failure and regular maintenance are two main reasons for replacing a part
      • Figure 50: Reasons for maintenance, 2021
    • Reassurance from professionals offers opportunities with older adults
    • Involvement of others is key when engaging with younger adults…
    • …as well as owners of hybrid and electric vehicles
    • Stressing benefits of maintenance could boost reluctance amongst low income earners and those in cities
    • Older women are more likely to replace a car part when it fails
      • Figure 51: Reasons to replace car parts – CHAID – Tree output, 2021
      • Figure 52: Reasons to replace car parts – CHAID – Table output, 2021
  21. Purchase of Replacement Parts

    • Tyres are the part that is most likely to be replaced
      • Figure 53: Purchase of replacement parts, 2021
    • Age of car has a big impact on the need to replace parts
    • Younger adults are key purchasers
    • Lack of interest amongst women offers the opportunity to strengthen relationships
    • Raising brand awareness and using partnerships both need consideration
    • Demand for certain parts is high among owners of hybrid and electric cars
  22. Retail Channels

    • Retail stores are a major channel for purchasing parts
      • Figure 54: Interest in purchasing used or refurbished parts, 2021
    • Online is favoured by men
    • Older adults prefer the involvement of others
    • Other retailers are well placed to benefit from a broad customer base
    • Playing the safety card for families
    • Different reasons for replacement lead to different channel choices
  23. Changes in Purchasing since COVID-19

    • Pandemic prompts some car owners to access parts market differently
      • Figure 55: Changes in purchasing since COVID-19, 2021
    • Young men illustrate opportunities and challenges post-COVID
    • Sticking with COVID safety protocols is advantageous in the short term…
    • …with those who have less urgent needs likely to change their behaviour
  24. Appendix – Data Sources, Abbreviations and Supporting Information

    • Exclusions
    • Abbreviations
    • Consumer research methodology
  25. Appendix – Central Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 56: Market forecast and prediction intervals for the car aftermarket, 2021-26
    • Market drivers and assumptions
      • Figure 57: Key drivers affecting Mintel’s market forecast, 2020-25
    • Forecast methodology
  26. Appendix – COVID Scenario Performance Methodology and Assumptions

    • Scenario performance
      • Figure 58: COVID scenarios for the car aftermarket, 2016-26
    • Rapid COVID recovery, central and extended COVID disruption scenarios outline

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

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*databooks not available with UK B2B Industry reports.

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