SEMA Releases 2024 Market Report
The aftermarket showed a 1% increase in sales in 2023 as performance products, wheels & tires, & restyling all enjoyed growth...
Automotive specialty equipment market sales grew to $52.3 billion in 2023, an increase of about 1% over 2022, according to the newly released 2024 SEMA Market Report.
The report is the association’s largest report of the year and offers insights into the size and scope of the specialty equipment industry. It includes detailed market sizing by parts category, consumer spending data by vehicle segment and other key industry trends.
“The economy continues to offer uncertainty as we have emerged from the effects of COVID-19 and grapple with politics, global conflicts and international trade policies,” said SEMA Market Research Director Gavin Knapp. “Yet, consumers keep on spending, and that will always be good for our industry. Unless a big economic shock hits, we can expect a reasonable growth rate.”
The report finds that the light truck sector continues to drive the specialty equipment industry, with pickups (32%), CUVs (15%), and SUVs (12%) accounting for over half of accessory and performance parts sales.
“Light trucks are a growing group of vehicles that have overtaken cars to represent the majority of vehicles on the road in the United States,” added Knapp. “They present a significant opportunity for the specialty equipment industry due to their versatile platforms for accessorization, and this trend seems to be growing as more companies recognize the potential in this space.”
Drivers are also accessorizing their alternative power vehicles, such as EVs and hybrids, which brought in $2.5 billion in sales in 2023. While EV sales have climbed year-over-year, consumers aren’t flocking to this technology as some have predicted and many automakers are adjusting their transition plans.
SEMA has lowered its forecast for EV sales, with the expectation that internal combustion engine (ICE) vehicles will make up the majority of sales over the next decade.
Even with current economic uncertainty, sales across all sectors of the market continue to grow. Notably, sales of appearance and accessory products ($27.41 billion), engine and performance products ($12.56 billion), and wheels, tires and handling products ($12.38 billion) all increased over 2023.
Additional findings from the report include:
- Most accessorizers are modifying daily drivers; 58% of accessorized vehicles are used for commuting.
- Young people continue to drive the market, with half of accessorizers under the age of 40. Younger accessorizers are likely to do more extensive builds.
- More than half of accessorizers (58%) also own a powersports product, which can offer opportunities for cross-selling.
- The United States vehicle fleet comprises nearly 290 million passenger cars on the road. More cars on the road means more opportunities to personalize.
Over 90% of specialty equipment businesses surveyed expect their 2024 sales to equal or exceed 2023.
“This is positive news, as the industry prepares for the SEMA Show later this year, where more than 2,400 brands are set to exhibit and reveal their products and services to thousands of qualified buyers,” SEMA officials noted.
SEMA business members can download the new 2024 SEMA Market Report for free here.To learn more about SEMA membership, click here.
