SEMA’s 2024 Future Trends Report Eyes Industry Growth

SEMA revealed that the specialty equipment industry is showing signs of resilience and strength amidst the recovering U.S. economy and is poised for growth in 2024 and beyond, according the new 2024 SEMA Future Trends Report.

Sales of automotive specialty equipment parts are projected to have increased about 1% in 2023. With the economy showing signs of strength and improvement toward the year’s end, SEMA anticipates a similar trend heading into 2024, with a return to normal annual sales growth of 3-4% projected for 2025.

The 2024 SEMA Future Trends Report is the association’s latest study that recaps the issues and outcomes that affected the industry in 2023 and how these areas may affect the market in 2024 and beyond.

“While challenges persist, SEMA’s research found indicators suggesting that the market will continue to strengthen as it returns to normal growth,” said SEMA Director of Market Research Gavin Knapp. “The report offers insight into our latest forecast for industry growth. It also highlights key factors influencing consumer spending and business outcomes to help companies stay ahead of the curve.”

Additional report highlights include:

• The U.S. economy is currently growing while showing strong employment and spending trends.
• With inflation dropping, the Federal Reserve System should begin reducing interest rates in 2024, which will further lower cost for financed goods like automobiles.
• New and used vehicle prices leveled out in 2023 as the supply chain stabilized, though costs are still high for consumers.
• While electric vehicle sales will continue to grow, most companies have slowed their production forecasts for EVs.
• Motor vehicle insurance, along with vehicle maintenance/repair, saw some of the largest price increases in 2023, making transportation a significant cost in daily life.
• Cars are becoming more advanced with Advanced Driver-Assistance Systems (ADAS) installation rates rising every year. Over 91% of new vehicles sold had collision warning or collision mitigation built in by original equipment manufacturers (OEMs).

Most companies within the specialty equipment industry are optimistic and expect sales to remain level or grow over the next year. A 23% growth in 2023 SEMA Show attendance over 2022 was a strong indicator that the industry is committed to introducing new products and expecting robust sales in the market, SEMA officials added.