The aftermarket in North America for light vehicle components and parts is projected to increase annually at 3.2%, reaching $58.7 billion in 2010 according to The Freedonia Group.
The parts aftermarket's current moderate revenue growth results from improvements in light vehicle reliability and durability according to a report released by the Cleveland, Ohio-based research firm on Nov. 16.
Aftermarket parts sourced from China will apply increasing downward pressure on parts prices, as aftermarket retailers and wholesalers demand increasing shares of supplier margins and seek to pass more value on to consumers, research found.
Electronic parts and components will grow faster than other segments -- a direct result of the continued transformation of the automobile from a mechanical machine with electronic enhancements into a software-driven device explains Freedonia.
The dominance of professional service providers will continue to grow, with new vehicle dealers showing continued strength as they pursue additional shares in the lucrative parts and service market. General Motors' 2006 announcement of 5-year (100,000-mile) powertrain warranties for its 2007 and later model year light vehicles will boost GM dealer service business significantly, for example. The do-it-yourself (DIY) segment will continue to decline in terms of its overall share of the market as vehicles become more difficult to diagnose and repair.