2022
9
UK Car Aftermarket Market Report 2022
2022-11-25T03:03:14+00:00
OX1100571
2195
157910
[{"name":"Automotive","url":"https:\/\/store.mintel.com\/industries\/transport\/automotive"}]
Report
en_GB
“Rising prices, and associated pressures on car owners as a result of the current economic crisis affecting the UK economy, are expected to weigh heavily on the car aftermarket. Many…

UK Car Aftermarket Market Report 2022

£ 2,195 (Excl.Tax)

Description

The UK Car Aftermarket Market Report examines the automotive aftermarket demand, different channels for accessing car parts and the impact of the cost of living crisis on buyer activity in the car aftermarket. This report covers the automotive aftermarket size, market forecast, market segmentation and automotive aftermarket trends.

 

Current Landscape of the Car Aftermarket

The car aftermarket has not been immune to the inflationary pressures impacting the wider UK economy. Rising prices for raw materials, production, labour and transporting parts, have all been impacted. Although many manufacturers in the car aftermarket supplying parts to the consumer have looked to minimise the impact of these pressures, Mintel still expects price rises of between 5% and as much as 15-20% for some replacement parts during 2022.

 

Automotive Aftermarket Size and Industry Statistics

Rising prices are a major threat to the car aftermarket. Not only are they expected to dampen demand for some replacement of parts, but they are also set to lead to down trading when it comes to purchasing.

However, Mintel’s car aftermarket report identifies interest in purchasing replacement parts online shows significant potential for developing sales among women under 35. With many young women already using online channels for purchasing outside of this market, creating this engagement opportunity would significantly benefit the car aftermarket.

  • Automotive aftermarket size: The value of the aftermarket is forecast to reach £7.3bn in 2027.
  • Automotive aftermarket trends: 53% of car owners are likely to replace a part on their car if it cannot be repaired.
  • 68% of consumers use automotive retailer websites (e.g. Halfords) to purchase car replacement parts.
  • 82% of UK adults own a standard car, and 11% own a hybrid/electric car.

 

Future Automotive Aftermarket Trends

Mintel’s car aftermarket report indicates that the recent expansion in the number of older vehicles on the road will provide additional opportunities, as will the growing number of electric vehicles entering the market.

With manufacturers’ and consumers’ growing awareness of sustainability, remanufactured parts are an emerging opportunity for the car aftermarket. Automotive companies and those involved in scrapping vehicles are upping their game as part of net zero ambitions, and the phasing out of IC cars, remanufactured parts can be expected to account for an ever-bigger share of the car aftermarket.

To discover more about the UK Car Aftermarket Market Report 2022, read our UK Car Finance Market Report 2022, or take a look at our Automotive Market Research Reports.

 

Quickly Understand

  • The impact of COVID-19, and more recently, the cost of living crisis, on the car aftermarket.
  • Automotive aftermarket trends in demand for key car parts.
  • The importance of different channels for accessing car parts in the car aftermarket.
  • The importance of maintenance and servicing in driving demand for replacement parts and reasons for maintenance.
  • Interest and use of online channels, for purchasing replacement parts.
  • The impact of the current cost of living crisis on buyer activity within the car aftermarket.

 

Covered in this Report

Products: Shock absorbers, oil filters, tyres, exhausts, batteries, breaks, clutches, lightbulbs.

Brands: Goodyear, Nexen, Michelin, Continental, Pirelli, Bridgestone, Hankook, GT, Kumho, Landrail, 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 Car Aftermarket

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

Rising prices, and associated pressures on car owners as a result of the current economic crisis affecting the UK economy, are expected to weigh heavily on the car aftermarket. Many car owners are likely to postpone or delay the replacement of parts while others will look to trade down. For those in this market, identifying profitable segments will assume greater importance.”

Neil Mason
Retail Category Director

 

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Products covered in this Report
  2. Executive Summary

    • The five-year outlook for parts aftermarket
      • Figure 1: Parts aftermarket outlook, 2022-27
    • The market
    • Market size and forecast
      • Figure 2: Market size and forecast for the car aftermarket, 2017-27
    • Being active in different segments can help overcome price inflation challenges
    • Need for convenience continues to boost interest in fast-fit
    • A fall in multiple car ownership in 2021 illustrates possible difficulties for the aftermarket
    • Companies and brands
    • Budget brands can benefit if they can reach the consumer
    • Addressing sustainability is popular with aftermarket suppliers
    • Falling advertising expenditure may lead to change in choice of media
      • Figure 3: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by media type, 2018-22 *
    • The consumer
    • Ownership of electric and hybrid cars is highest among young men
      • Figure 4: Vehicle ownership, 2022
    • Modern cars are more likely to be owned by higher earners
      • Figure 5: Age of car owned, 2022
    • Marketing to couples could offer new opportunities to strengthen awareness
      • Figure 6: Responsibility for maintenance and servicing, 2022
    • Older adults offer an important market during current economic difficulties
      • Figure 7: Reasons for maintenance, 2022
    • Targeting older women could stimulate parts replacement
      • Figure 8: Purchase of replacement parts, 2022
    • Young women offer good potential for market development
      • Figure 9: Interest in online purchasing, 2022
    • Greater awareness of sites offering parts is needed
      • Figure 10: Use of online retail channels, 2022
    • DIY replacement of parts is currently popular with certain groups
      • Figure 11: Impact of cost of living crisis, 2022
  3. Issues and Insights

    • Price inflation and recession set to dampen market prospects
    • Sustainability has the potential to offer an edge to suppliers
    • Impact from the growing profile of EVs
  4. Market Size and Performance

    • Inflationary pressures boost value of market
      • Figure 12: Market size for car aftermarket, 2017-22
    • Tyres dominate the car aftermarket
      • Figure 13: Segmentation of the car aftermarket, by value, at current prices, 2017-22
  5. Market Forecast

    • Economic slowdown and higher prices set to present challenges into 2023
      • Figure 14: Parts aftermarket outlook, 2022-27
    • Short-term difficulties expected for sector as cost-of-living crisis bites
      • Figure 15: UK car aftermarket, revenues, 2017-27
    • Learnings from the last economic slowdown
      • Figure 16: the car aftermarket, by value, 2007-12
    • Forecast methodology
  6. Market Segmentation

    • Rising costs push up value of tyre market
      • Figure 17: Tyre sales, by value (at current prices) and volume, 2017-22
    • Cost pressures are expected to raise average tyre prices above £100
      • Figure 18: Average tyre price (fitted), 2017-22
    • Value sector benefits from recent price rises
      • Figure 19: Tyre sales, by price position (percentage volume), 2017-22
    • All-season tyres continue to make progress
      • Figure 20: Tyre sales, by type (volume), 2017-22
    • Demand for part-worn tyres remains constrained
    • Inflationary pressures stimulate prices across elsewhere in the replacement market
      • Figure 21: Segmentation of the other replacement parts market, by value, at current prices, 2017-22
    • Used parts occupy a similar market to part worn tyres
    • Remanufactured parts increasingly become a mainstream option
  7. Channels to Market

    • Independent garages and forecourts are key channels
      • Figure 22: Aftermarket outlets for replacement parts*, 2018-22
    • Independent garages represent the largest number of outlets
    • Forecourt network records slight expansion
    • Fast-fit outlets continue to make steady gains
    • Falling new car demand forces franchised sector into retreat
    • Car accessory shops in steady decline
    • Stability for motor factor network
    • Online is an option across many channels
  8. Market Drivers

    • Inflation is the key concern for consumers and brands…
    • …and will weigh down the post-COVID recovery
    • Consumer spending power will be curbed
    • The conflict in Ukraine is hurting the UK economy in a number of ways
    • Employment has held up better than expected
    • Consumers’ financial wellbeing has fallen from the highs of 2021…
      • Figure 23: Household financial wellbeing index, 2016-22
    • …and most people are feeling the effects of price rises
    • Used cars record much stronger performance than the new car sector
      • Figure 24: New and used car market volumes (UK), m units, 2017-22
    • Profile of oldest cars continues to expand
      • Figure 25: Age structure of the UK car parc in years, 2017-21
    • Car parc stagnates after period of steady growth
      • Figure 26: Number of licensed cars (UK), m units, 2000-20
    • Car parc forecast to peak later this decade and then fall back
      • Figure 27: Number of forecast licensed cars in the UK, m units, 2020-35
    • Multiple car ownership in decline
      • Figure 28: Percentage of households with car availability, England, 2011-21
    • Inflationary pressures increase costs of car ownership
      • Figure 29: Consumer expenditure on car purchasing, servicing and repair and motoring expenses, seasonally adjusted at current prices, 2017-21
    • Alternative fuelled vehicles set to capture over a third of sales in 2022
      • Figure 30: Sales of new cars by fuel type, 2017-22
    • Lamps, reflectors and electrical equipment dominate MOT failures
      • Figure 31: Road vehicle testing scheme (MOT), selected reasons for failure, car tests, 2020-21
    • Parts failure as a reason for replacement sees a sharp fall since 2019
      • Figure 32: Reasons for maintenance (top five responses), 2019 and 2022
    • New Block Exemption Order should continue to offer open access to vehicles
  9. Market Share

    • Premium brands benefit from changing demands
    • Budget brands continue to make gains
      • Figure 33: UK – replacement tyres: company market share, by volume, 2017-21
    • Other replacement parts
  10. Launch Activity and Innovation

    • Stellantis circular economy division to promote parts reuse
    • eBay for Business champions reclaimed automotive parts
    • Goodyear sustainable demonstration tyre
      • Figure 34: Goodyear sustainable demonstration tyre, 2022
    • Continental using recycled polyester yarn from PET bottles
      • Figure 35: ContiRe.Tex recycled tyre technology, 2021
    • Mando previews ‘brake by wire’ technology
    • Magna launches hidden tailgate lighting
      • Figure 36: Magna Breakthrough Lighting Solution, 2022
  11. Advertising and Marketing Activity

    • Market fails to recover after recent high
      • Figure 37: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, 2018-22
    • Current economic slowdown set to disrupt post-summer investment
      • Figure 38: Total above-the-line, online display and direct mail advertising expenditure on car aftermarket products, 2020, 2021 and 2022*
    • Tyres dominate investment
      • Figure 39: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by category, 2018-22
    • Michelin leads the tyre market
      • Figure 40: Recorded above-the-line, online display and direct mail total advertising expenditure on wheels and tyres, by advertiser, 2018-22
    • Fragmentation a feature of component and parts expenditure
      • Figure 41: Recorded above-the-line, online display and direct mail total advertising expenditure on motor – components and parts, by advertiser, 2018-22
    • Different media preferred by tyres and motor components/parts
      • Figure 42: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by media type, 2018-22*
    • Nielsen Ad Intel coverage
  12. Vehicle Ownership

    • Cars powered by petrol, diesel or similar dominate the market
      • Figure 43: Vehicle ownership, 2022
    • Car ownership is popular with those over 25
    • ‘Young men’ and ‘wealthy’ are key markets for electric and hybrid cars
    • Family focus offers potential for electric/hybrid market
    • Could interest in two wheelers offer way into car ownership?
  13. Age of Car Owned

    • Only 22% of cars are less than three years old
      • Figure 44: Age of car owned, 2022
    • Close link between income and new car ownership
    • Older cars are more likely to be owned by women 65+
    • Hybrid and electric cars present an emerging opportunity
    • Falling new car sales strengthens profile of older sector
      • Figure 45: Age of car owned, 2018-22
  14. Responsibility for Maintenance and Servicing

    • Most owners are responsible for their own vehicle maintenance
      • Figure 46: Responsibility for maintenance and servicing, 2022
    • Men are a key group for communication regarding maintenance
    • Joint maintenance responsibility for young adults and women suggests further opportunities
    • Launch of value lines can tap into DIY interest from low-income groups
  15. Reasons for Maintenance

    • Maintenance and failure of a part dominate as reasons for replacement
      • Figure 47: Reasons for maintenance, 2022
    • Demands for maintenance make over-65s a useful target
    • Stressing maintenance benefits could strengthen demand in cities
    • Discounts for those offering recommendations…
    • …and soft incentives for owners of newer cars
    • OE manufacturers should exploit their position in the electric and hybrid market
    • Regular servicing offers opportunities to target older car owners
      • Figure 48: Attitudes towards replacing car parts – CHAID – Tree output, September 2022
      • Figure 49: Attitudes towards replacing car parts – CHAID – Table output, September 2022
  16. Purchase of Replacement Parts

    • Tyres are the part most likely to need replacement
      • Figure 50: Purchase of replacement parts, 2022
    • Young adults are more likely to be purchasing replacement parts
    • Lack of interest among women offers the opportunity to strengthen relationships
    • Differences in demand between cities and rural communities
    • Tyres are a major issue for older car owners
    • Electric and hybrid car owners demand particular parts
  17. Online Purchasing

    • Mixed feelings towards purchasing online
      • Figure 51: Interest in online purchasing, 2022
    • Women are as eager to go online as men
    • Aftermarket retailers should look at smarter ways of serving urban customers
    • Online as a way of delivering value for price-conscious shoppers
    • Opportunities exist for non-automotive websites to grow their online presence
    • Manufacturer websites are an attractive route for owners of electric and hybrid cars
    • Automotive retailers are best placed in the online market
      • Figure 52: Use of online retail channels, 2022
    • Online sellers need to raise awareness with groups such as younger adults
    • New car owners prefer to buy from manufacturer websites
  18. Impact of Cost of Living Crisis

    • Essential car parts benefit most from cost of living crisis
      • Figure 53: Impact of cost of living crisis, 2022
    • Young women are expected to cause disruption for the market…
    • …as many older adults expect to be unaffected
    • Retailers and low-priced sellers can benefit from DIY boom and down trading
    • Over a quarter of under-25s would consider refurbished parts
  19. Appendix – Data Sources, Abbreviations and Supporting Information

    • Exclusions
    • Abbreviations
    • Consumer research methodology
  20. Appendix: Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 54: Market forecast and prediction intervals for the parts aftermarket sector, 2022-27
    • Market drivers and assumptions
      • Figure 55: Key drivers affecting Mintel’s market forecast, 2021-26
    • Forecast methodology

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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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