Despite high gas prices and financial worries, the market for vehicle service, repairs and upgrades is moving—albeit slowly—ahead, according to Automobile Aftermarket, a new report from research firm Mintel.
Mintel estimates the automobile aftermarket reached $106.5 billion in 2007, an 18 percent increase from 2002 when it was valued at $90.1 billion. The research firm expects today’s economic slowdown to put the brakes on auto service and repairs for 2008, but growth is expected again in 2009. Mintel predicts sales will surpass $120 billion by 2012.
“The market for auto service, repairs and upgrades isn’t growing robustly, but it is showing strength during rough economic times,” says Mark Guarino, senior analyst at Mintel. “People are driving less and spending less, but they’re still putting money into their vehicles.”
Guarino points to factors fueling growth in the automobile aftermarket. People are driving their vehicles longer and therefore, doing more maintenance on them. Mintel notes the median age of cars grew from 8.1 years in 2001 to 9.2 years in 2007. “Rather than buying a new car, more Americans saving money by fixing the ones they have,” he says.
The aftermarket is also helped by new cars’ complexity, a major hurdle to former do-it-yourselfers.
“Increasingly computerized vehicles are making more people turn to professionals for service,” Guarino says.
Mintel shows sales in professional repair shops growing faster than sales for do-it-yourself auto repair.
Mintel is a leading global supplier of consumer, product and media intelligence with offices in Chicago, London, Belfast, Sydney, Shanghai and Tokyo.
For more information on Mintel, please visit www.mintel.com.
