While the pandemic of 2020-21 required the auto care industry to make drastic changes, many of these challenges presented new opportunities for the aftermarket. According to the Auto Care Association’s 2022 Auto Care Factbook, the industry progressed better than forecasted and is now expected to be a $477 billion industry by 2024.
As the average age of vehicles and delayed maintenance increase, the need for maintenance and repairs increase. It’s also noted that miles driven are nearing pre-pandemic levels.
With the help from IHS Markit, a leader in economic and financial analysis, forecasting and market intelligence, here’s a look at market trends projected for 2022 from the Auto Care Factbook.
- The labor market is expected to improve steadily, with the unemployment rate dropping below 4 percent by early 2022.
- Gross domestic product (GDP) is forecast to increase 15 percent.
- Real consumer spending is set to increase 4.7 percent.
- Price increases will contribute to the nominal sales growth in the industry, as the consumer price index (CPI) is expected to average 2 percent through 2024.
- Gas prices are expected to fall slightly and level off through 2024.
- New vehicle sales are forecast to rise from 16.3 million to 16.5 million.
- Auto care industry is expected grow at a compounded annual growth rate (CAGR) of 3.4 percent per year, reaching 439.8 billion by 2022.
- Collision repair receipts are forecasted to be up by 6.3 percent.
For more information on the 2022 Auto Care Factbook, please visit digital.autocare.org/2022factbook/.
