Canada Automotive Aftermarket: Ageing Fleet Demand, DIY/DIFM Trends, Rising Need for Essential Parts
Canada Automotive Aftermarket
Increasing Ageing Vehicle Fleet, High Vehicle Ownership Concentrating Replacement Part Demand
Expanding aftermarket activity in Canada, is due to high vehicle ownership and increasing age of vehicle fleet within the provinces. The average age of vehicles in Canada is above 10 years and continuning to rise as consumers are keeping their vehicles for long due to economic uncertainties and high interest rate/new vehicle prices. Alot of maintenance and replacement of essential vehicle components are required with increased vehicle age (e.g. brake parts, suspension systems, belts, and batteries). Harsh environmental factors (e.g. winter, road salt, potholes, high/low temperature) lead to increased aftermarket part consumption and accelerate the rate of vehicle age.
Rural and suburban areas that rely on personal vehicles create a significant portion of demand for vehicle replacement parts due to the combination of increased travel distances and poor road conditions that cause more rapid mechanical wear and tear. Commercial vehicle fleets (delivery vans, taxis, ride-share vehicles, service trucks) are another notable source of demand due to their high odometer usage and active maintenance schedules, as their usage is constant. The development of a market for imported used vehicles is another factor in vehicle replacement demand, as these vehicles often require servicing to be roadworthy. The combined impact of these factors creates a strong, reliable demand for vehicle replacement parts, making the aging vehicle stock one of the main factors in the aftermarket growing in size and importance to the Canadian economy.
As per GMI Research, the Canada Automotive Aftermarket Market is forecast to reach USD 29.0 billion in 2032
The Growing Influence of DIY and DIFM (Do-It FOR ME) Repair Trends
The growing popularity of DIY (Do-It-Yourself) and DIFM (Do-It-For-Me) repair trends is strongly driving Canada’s aftermarket. The rise of the DIY culture can be attributed to automotive enthusiasts and budget-contraints-passed consumers taking on basic maintenance tasks themselves (i.e. oil changes, battery changes, and filter installations), as online instructions and forums providing repair knowledge became widely available. Automotive retailers that support the culture (i.e. Canadian Tire, NAPA Auto Parts, PartsSource) provide in-store assistance and support to consumers.
More Info, Click to Access Complete Report – https://www.gmiresearch.com/report/canada-automotive-aftermarket-market/
DIFM trends also remain strong, as many drivers who decide to do these repairs and maintenance tasks themselves prefer to have professionals complete any complex repairs, diagnostics, and maintenance. Such services are supplemented by a dealerships and an independent garage, as well as national service chain garages, due to the high demand for brake work, suspension repairs, tire replacements, and electronic diagnostics services. Modern vehicles have advanced electronics, so drivers rely on trained technicians and DIFM positive repair growth. The Aftermarket captures a wide range of customers with its combination of DIY and DIFM, from customers who are hands on with their vehicles to those who are convenience oriented, thus making it possible for the trends to grow the market in Canada.
High Demand for Tires, Batteries, Filters, Lubricants, and Break Components
Fast moving replacement components, and specifically, tires, batteries, filters, lubricants, and brake parts, contribute to a large portion of the aftermarket demand in Canada. The country’s changing, seasonal, climate also plays a part in how vehicle parts change in their lifecycle: colder winters lead to more rapid tire wear and increased battery failures, while more slushy and salty roads lead to a quicker deterioration and corrosion of brakes. For these reasons, tire replacement, a mid range price battery replacement, and winter tires, as well as all season tires, are high frequency purchases throughout the country.
Due to the fact that Canadians stick to their maintenance schedules recommended for rough driving conditions, filters and lubricants experience consistent demand. The expansion of delivery fleets, e-commerce logistics, and ride-share services leads to higher consumption of these components due to the high mileage and frequent maintenance. Moreover, the demand for consumables and braking components is heavily bolstered by older automobiles and imported pre-owned vehicles. Fast-moving components are essential revenue drivers for retailers, distributors, and service centers.
Demand for these essential components will continue to fuel strong growth in the Canadian aftermarket as preventive maintenance is adopted more widely and consumers demand dependable vehicle operation in a variety of conditions.