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The automotive aftermarket is the
secondary market The secondary market, also called the aftermarket and follow on public offering, is the financial market in which previously issued financial instruments such as stock, bonds, options, and futures are bought and sold. The initial sale of the ...
of the
automotive industry The automotive industry comprises a wide range of companies and organizations involved in the design, development, manufacturing, marketing, and selling of motor vehicles. It is one of the world's largest industries by revenue (from 16 % ...
, concerned with the
manufacturing Manufacturing is the creation or production of goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation. It is the essence of secondary sector of the economy. The term may refer to ...
,
remanufacturing Remanufacturing is "the rebuilding of a product to specifications of the original manufactured product using a combination of reused, repaired and new parts". It requires the repair or replacement of worn out or obsolete components and modules. P ...
,
distribution Distribution may refer to: Mathematics * Distribution (mathematics), generalized functions used to formulate solutions of partial differential equations *Probability distribution, the probability of a particular value or value range of a vari ...
,
retailing Retail is the sale of goods and services to consumers, in contrast to wholesaling, which is sale to business or institutional customers. A retailer purchases goods in large quantities from manufacturers, directly or through a wholesaler, and t ...
, and installation of all vehicle parts, chemicals, equipment, and accessories, ''after'' the sale of the automobile by the
original equipment manufacturer An original equipment manufacturer (OEM) is generally perceived as a company that produces non-aftermarket parts and equipment that may be marketed by another manufacturer. It is a common industry term recognized and used by many professional or ...
(OEM) to the consumer. The parts, accessories, etc. for sale may or may not be manufactured by the OEM. According to a report by the International Trade Administration in the US Department of Commerce, "''Aftermarket parts are divided into two categories: replacement parts and accessories. Replacement parts are automotive parts built or remanufactured to replace OE parts as they become worn or damaged. Accessories are parts made for comfort, convenience, performance, safety, or customization, and are designed for add-on after the original sale of the motor vehicle.''" The aftermarket encompasses parts for replacement, collision, appearance, and performance. The aftermarket provides a wide variety of parts of varying qualities and prices for nearly all vehicle makes and models. Consumers have the option of repairing their vehicles themselves (the "
do-it-yourself "Do it yourself" ("DIY") is the method of building, modifying, or repairing things by oneself without the direct aid of professionals or certified experts. Academic research has described DIY as behaviors where "individuals use raw and se ...
" or "DIY" segment) or can take the vehicle to a professional repair facility (the "do-it-for me" or "DIFM" segment). The aftermarket helps keep vehicles on the road by providing consumers the choice of where they want their vehicles serviced, maintained, or customized.


Size of the automotive aftermarket

The
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...
automotive aftermarket is estimated to be worth $383 billion (2020), contributing more than 2.3% to GDP. The aftermarket employs 4.4 million people who work at manufacturers, distributors, retailers and repair shops. In the United States, online sales of aftermarket accessories have showed year over year increases over traditional brick and mortar stores. In fact, according to Hedges & Company, "Online revenue for automotive parts eCommerce revenue will reach $38 billion in 2022 in the US." That includes $19.8 billion from first-party 1P eCommerce websites and $18.3 billion from third-party 3P marketplaces.
Singapore Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, bor ...
, which does not have a domestic automobile industry, is an especially important destination for businesses exporting automotive parts and accessories due to its high automobile turnover stemming from the peculiarities of its driving laws. (In short, car owners are legally required to get rid of their cars after ten years of use and Singapore's compensation scheme to offset the registration fee of new cars has incentivized more frequent turnover.) High automobile turnover and the preference for new parts means that the market for remanufactured and reconditioned auto parts is very small. Combined with a high demand for "accessories, car-care products, prestige items, and new spare parts," Singapore's automotive aftermarket is large. In fact, Singapore has become a major automotive ''components'' manufacturing base, as several leading multinational corporations (MNCs) have established international procurement offices as well as their
Southeast Asia Southeast Asia, also spelled South East Asia and South-East Asia, and also known as Southeastern Asia, South-eastern Asia or SEA, is the geographical south-eastern region of Asia, consisting of the regions that are situated south of mainland ...
distribution centers. In
Canada Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by to ...
, the automotive aftermarket is a C$19.4 billion industry that employs about 420,000 people. In
Australia Australia, officially the Commonwealth of Australia, is a sovereign country comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands. With an area of , Australia is the largest country by ...
, the automotive aftermarket industry in 2013 was estimated to generate a AUD$5.2 billion turnover, with 21000 staff, and 1400 manufacturers. in
Europe Europe is a large peninsula conventionally considered a continent in its own right because of its great physical size and the weight of its history and traditions. Europe is also considered a Continent#Subcontinents, subcontinent of Eurasia ...
, the total volume of Independent Aftermarket (IAM) amounted to 127 billion Euros in 2015 (end-user prices without labor and tax). At that moment there were 54 parts traders with annual turnover over 100 mio Euros in Europe, 6 of them exceeded 1 billion Euros. Meeting platform for the international automotive aftermarket is the B2B trade fair Automechanika which takes place every two years in Frankfurt. At last edition the hot topics were connected cars, autonomous driving, alternative drives and the workshop of the future.


Online versus brick-and-mortar aftermarket accessory vendors

Among online retailers, Amazon.com and eBay Motors are the largest sellers of aftermarket parts and accessories in the U.S. by both units sold and revenue, and are expected to grow 25% in 2014, far outstripping traditional chain stores. As DIY parts sales soften at the retail counter, chain stores have pushed themselves into the DIFM commercial business, eating into distributors’ and
wholesaler Wholesaling or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional or other professional business users; or to other wholesalers (wholesale businesses) and related subordinated services. In ...
s’ market share. Since 2007, DIY sales at the chain stores have fallen a total of 3% to 5%, while commercial sales have brought in a double-digit sales increase. AutoZone’s DIFM sales in 2013 alone increased over 13%. Online sales of auto parts and accessories in the United States, excluding online auctions and used parts, have been projected to pass $10 billion in 2018.


Legal issues

Automobile manufacturers have attempted to hinder or suppress automotive aftermarket sales by means of
copyright A copyright is a type of intellectual property that gives its owner the exclusive right to copy, distribute, adapt, display, and perform a creative work, usually for a limited time. The creative work may be in a literary, artistic, educatio ...
or
patent infringement Patent infringement is the commission of a prohibited act with respect to a patented invention without permission from the patent holder. Permission may typically be granted in the form of a license. The definition of patent infringement may v ...
litigation. For example, in '' British Leyland Motor Corp. v Armstrong Patents Co.'' in the UK, the
House of Lords The House of Lords, also known as the House of Peers, is the upper house of the Parliament of the United Kingdom. Membership is by appointment, heredity or official function. Like the House of Commons, it meets in the Palace of Westminst ...
decided in 1986 that Leyland could not claim copyright infringement in order to prevent the aftermarket sale of replacement tailpipes to purchasers of those motor cars. '' Aro Mfg. Co. v. Convertible Top Replacement Co.'' is a 1961 U.S. Supreme Court case in which the Court redefined the U.S. patent law doctrine of repair and reconstruction: "No element, not itself separately patented, that constitutes one of the elements of a combination patent is entitled to patent monopoly, however essential it may be to the patented combination and no matter how costly or difficult replacement may be.""''Aro Mfg. Co., Inc. v. Convertible Top Co.'' - 377 U.S. 476"
p. 343.
In 2005 Harley-Davidson filed a patent and trademark infringement lawsuit against two aftermarket engine manufacturers producing drop-in replacements for Harley's engines, namely S&S Cycle and Delkron, Inc. Harley accused S&S and Delkron of copying parts for Twin Cam engines and using Harley trademarks without permission. S&S argued that the suit was without any legal basis, and asserted that "a mutually beneficial relationship existed" between them and Harley.


See also

* Aftermarket exhaust parts


References

{{reflist Automotive accessories Automotive industry Electric vehicle conversion Vehicle modification