## EV Aftermarket Trends Forecast: Cautious Growth and Market Opportunities
The automotive aftermarket is undergoing a significant transformation as the adoption of electric vehicles (EVs) continues to rise. To provide guidance for the industry navigating this dynamic shift, the Auto Care Association and MEMA Aftermarket Suppliers have released their 2024 Joint EV Trends and Outlook Forecast. This comprehensive report offers valuable insights and projections into the evolving EV landscape, unveiled at the AAPEX automotive trade show.
The report, supported by research and analysis from PwC Strategy&, paints a nuanced picture of the EV aftermarket. While last year’s forecast projected rapid growth in EV market share, this year’s report reflects a more cautious short-term outlook. This shift is attributed to factors like consumer concerns surrounding battery charging infrastructure, the price of EVs, and the frequency of service needs.
Despite the cautious forecast, the report highlights key opportunities for the aftermarket. It examines the addressable market for both warranty and post-warranty EV components, projecting potential incremental sales in the coming years. Although electrified vehicle part sales are expected to drive growth, the aftermarket will continue to rely on internal combustion engine (ICE) vehicle-related sales for a significant portion of revenue, transitioning as the EV market expands.
“Electrified components are set to drive incremental growth for the next several years before bringing significant aftermarket growth in the next decade,” said Philip Atkins, director of strategic research and planning at MEMA, the Vehicle Suppliers Association. “Understanding market shifts and their timing is crucial for suppliers aiming to capitalize on the opportunities in our electrified future. Our collaboration with the Auto Care Association equips the aftermarket with the data needed to plan strategically.”
The report emphasizes the need for strategic adjustments within the industry to adapt to evolving electrification trends. “This report shines a light on the strategic adjustments our industry must consider in response to evolving electrification,” said Michael Chung, senior director of market intelligence at the Auto Care Association. “Our partnership with MEMA Aftermarket Suppliers ensures our members are well-equipped with the insights needed to navigate this shift.”
The 2024 Joint EV Trends and Outlook Forecast is available to members of MEMA Aftermarket Suppliers and the Auto Care Association as a membership benefit. Non-members can purchase the report at digital.autocare.org or mema.org.