Automotive Aftermarket Fragmentation Varies by Product Segment

The degree of industry fragmentation in the automotive aftermarket varies considerably from one product segment to another. Batteries, lamps and lighting, and spark plugs and other ignition system components are the most concentrated. In each of these product segments, the eight largest suppliers account for more than 70% of the regional sales total in value terms. The most fragmented industry segments are air conditioning and engine cooling components, electronic components, and powertrain components. These and other trends are presented in North America Automotive Aftermarket Competitor Analysis, a new study from The Freedonia Group, a Cleveland-based industry research firm.

The leading manufacturers in the batteries, lamps and lighting, and spark plug segments benefit from:

  • substantial economies of scale and scope
  • established supply arrangements with leading auto parts retailers
  • well-known brand names, supported by sizable advertising and promotion budgets

These factors prevent other suppliers from gaining significant market shares. Nevertheless, these more concentrated segments of the North American automotive aftermarket continue to attract additional competition because of their substantial size and the stable nature of demand.

In the most fragmented segments – air conditioning and engine cooling components, electronic components, and powertrain components – these factors play a significant role:

  • In the air conditioning and engine cooling and powertrain product segments, a sizable number of small remanufacturers and rebuilders are active in local marketplaces.
  • In the electronic component aftermarket, industry fragmentation reflects the participation of numerous parts producers operating out of China and other low-cost countries in Asia.

North America Automotive Aftermarket Competitor Analysis (published 11/2017, 303 pages) is available for $3500 from The Freedonia Group. For further details or to arrange an interview with the analyst, please contact Corinne Gangloff by phone 440.684.9600 or email pr@freedoniagroup.com.

North America Automotive Aftermarket Companion Studies