Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- Revenues boosted by rising prices
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- Figure 1: UK car aftermarket, by value, 2013-23
- Tyres dominate although their share of revenues is in decline
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- Figure 2: Segmentation of the car aftermarket, percentage value, 2013-18
- Budget brands suffer fall in share of tyre market
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- Figure 3: Tyre segmentation for replacement car tyres, by volume percentage, 2013-18
- Brakes are the largest segment in the other replacement parts market
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- Figure 4: Segmentation of the other replacement parts market, by value, at current prices, 2018 (est)
- UK car parc surpasses 31 million vehicles
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- Figure 5: Number of licensed cars (Great Britain), million units, 1995-2017
- Independent garages are the leading channel for replacement parts
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- Figure 6: Aftermarket outlets for sales of replacement parts*, 2018
- Companies and brands
- Replacement market supports a large number of suppliers
- Advertising expenditure shows evidence of recovery
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- Figure 7: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by category, 2014-17
- The consumer
- Cars are the most popular vehicle
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- Figure 8: Vehicle ownership, September 2018
- Over a fifth of cars are over 10 years old
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- Figure 9: Age of car owned, September 2018
- Nearly three quarters of car owners are responsible for maintenance and servicing
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- Figure 10: Responsibility for maintenance and servicing, September 2018
- Regular maintenance and servicing is key for parts replacement
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- Figure 11: Reasons for replacement, September 2018
- Mixed views towards the use of retail for purchasing parts
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- Figure 12: Interest in retail channels for purchasing, September 2018
- Automotive retail stores are the most likely channel
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- Figure 13: Use of particular retail channels for purchasing, September 2018
- Internet has more specific appeal
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- Figure 14: Interest in online channels for purchasing, September 2018
- Automotive website dominates when it comes to online purchasing
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- Figure 15: Use of particular online channels for purchasing, September 2018
- Used or refurbished parts are of interest to only a minority of buyers
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- Figure 16: Interest in purchasing used or refurbished parts, September 2018
- Specialist outlets are the key channel for used or refurbished parts
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- Figure 17: Use of particular retailers/outlets for purchasing used or replacement parts, September 2018
- What we think
Issues and Insights
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- Are rising prices halting progress made by the budget parts?
- The facts
- The implications
- Used and refurbished parts remain a threat to the sector
- The facts
- The implications
- Online remains a niche channel
- The facts
- The implications
The Market – What You Need to Know
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- Rising prices are the main driver for revenues
- Tyres dominate the market
- Budget brands lead market but share has fallen back
- Brakes are the largest segment in the other replacement parts market
- Independent garages are the leading channel for replacement parts
- Performance of the automotive market is key
Market Size and Forecast
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- Revenues boosted by rising prices
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- Figure 18: UK car aftermarket, by value, 2013-23
- Figure 19: UK car aftermarket*, by value, at current and constant prices, 2013-23
- Sluggish tyre volumes reduce share of market value
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- Figure 20: Segmentation of the car aftermarket, by value, at current prices, 2013-18
- Forecast methodology
Market Segmentation
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- Stable performance for tyre sector
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- Figure 21: Tyre sales, by value (at current prices) and volume, 2013-18
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- Figure 22: Average tyre price (fitted), 2013-18
- Value tyres out of favour as consumers switch to premium and budget lines
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- Figure 23: Tyre sales, by price position (percentage volume), 2013-18
- Summer tyres dominate although interest continues to grow in all-season tyres
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- Figure 24: Tyre sales, by type (volume), 2013-18
- Tyre market supports a sizeable part-worn sector
- Other replacement parts continue to be affected by inflationary pressure
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- Figure 25: Segmentation of the other replacement parts market, by value, at current prices, 2013-18
- Remanufactured sector is growing its presence in other parts market
Channels to Market
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- Physical channels available for purchasing replacement parts are in decline
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- Figure 26: Aftermarket outlets for sales of replacement parts*, 2014-18
- Independent garages dominate
- Forecourt outlets in decline
- Franchised dealers see consolidation
- Fast-fit network sees stability
- Car accessory shop numbers contract as market consolidates
- Motor factor market also seeing consolidation
- The internet is an emerging market
Market Drivers
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- Car sales move into reverse…
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- Figure 27: New and used car market volumes, 2013-18
- …although UK car parc now surpasses 31 million vehicles
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- Figure 28: Number of licensed cars (Great Britain), million units, 1995-2017
- Nearly a quarter of cars are 12 years or older
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- Figure 29: Age structure of the UK car parc in years, 2013-17
- Maintenance is the main reason for replacement
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- Figure 30: Reasons for replacement, September 2018
- Brexit worries…
- …continue to impact on Sterling
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- Figure 31: Sterling average monthly value versus US Dollar and euro, January 2016-July 2018
- Rising costs for servicing and repair evident since 2016
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- Figure 32: Consumer expenditure on car purchasing, servicing and repair and motoring expenses, seasonally adjusted at current prices, 2013-17
- Petrol is the most popular fuel in use
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- Figure 33: Number of licensed cars (Great Britain), million units, 2013-18
- Trips taken each year are down if walking is excluded
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- Figure 34: Trips, distance travelled and time taken, England, 2007-17
- Second car ownership is increasing once again
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- Figure 35: Percentage of households with car availability, England, 2007-17
- Tyres are the part most likely to be replaced on a 12-month basis
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- Figure 36: Fitting/purchasing of replacement parts in the last 12 months, September 2017
- Interest in used and refurbished parts of some concern
- Cars are becoming more reliable
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- Figure 37: Road vehicle testing scheme (MOT), selected reasons for failure, car tests, 2013/14-2016/17
Companies and Brands – What You Need to Know
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- Consolidation evident within the supplier market
- Suppliers are taking different routes to strengthen their market position
- Innovations increasingly focus on intelligence
- Michelin dominates promotional investment
Market Share
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- Consolidation a feature of the tyre market
- Premium marques record an improvement in share during 2016
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- Figure 38: UK – Tyres: company market share, by volume, 2014-17
- ‘Other’ replacement parts
Competitive Strategies
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- Liberty House in 3D venture
- ThyssenKrupp splits into two companies
- Euro Car Parts’ forced restructure
Launch Activity and Innovation
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- Covestro debuts a multi-material 3D-printed shock absorber
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- Figure 39: Covestro 3D-printed shock absorber, September 2018
- Schrader invests in Northern Ireland
- Goodyear offers intelligent tyre
- Ford offers UK model with pothole detection technology
- Michelin looks at recyclable materials
Advertising and Marketing Activity
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- Expenditure remains sizeable despite falling back from 2015
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- Figure 40: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, 2014-18
- Passenger tyres dominate expenditure
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- Figure 41: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by category, 2014-18
- Television dominates as the main channel for advertisers
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- Figure 42: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by media type, 2014-17
- Michelin leads the market
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- Figure 43: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by advertiser, 2014-17
- CrossClimate tyres dominate expenditure
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- Cars dominate the market
- Over a fifth of cars are 10 years or older
- Most car owners have sole responsibility for maintenance and servicing
- Regular maintenance and servicing is key for parts replacement
- Retail channels are not used by all
- Use of the internet is limited
- Around half of adults have no interest in used or refurbished parts
Vehicle Ownership
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- Cars dominate the market
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- Figure 44: Vehicle ownership, September 2018
- Standard cars are popular with older, middle-income consumers and those in rural areas
- Hybrid and electric cars appeal to the young and wealthy…
- …as do other types of vehicle
Age of Car Owned
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- Despite 22% of cars being over 10 years old younger cars are more prevalent overall
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- Figure 45: Age of car owned, September 2018
- Age is an important factor when it comes to age of car owned
- Men and women also record differences
- Income and socio-economic status impact strongly on age of car owned
- Newer cars account for a growing share of vehicles
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- Figure 46: Age of car driven, 2014-18
Responsibility for Maintenance and Servicing
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- Most car owners are solely responsible for their car
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- Figure 47: Responsibility for maintenance and servicing, September 2018
- Men and women have different roles when it comes to maintenance
- Young adults show a strong involvement with maintenance and servicing
Reasons for Replacement
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- Regular maintenance is the most important reason for parts replacement
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- Figure 48: Reasons for replacement, September 2018
- Older men are more likely to be replacing parts
- Safety campaigns and advertising work with men under 35
- Less affluent least affected by recalls, recommendations and advertising
- A problem with a part is an important reason for replacement for older car owners
- Joint responsibility raises chance of problems or failures being tackled
- Reasons for replacing parts – CHAID analysis
- Older and more affluent adults are key for replacing parts through regular maintenance and servicing
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- Figure 49: Car aftermarket – CHAID – Tree output, September 2018
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- Figure 50: Car aftermarket – CHAID – Table output, September 2018
Interest in Retail Channels for Purchasing
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- Retail channels are not as important as one might think
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- Figure 51: Interest in retail channels for purchasing, September 2018
- Young adults are more likely to purchase in-store
- Retail appeals strongest in cities…
- …as well as to those more affluent
- Young parents are another important market
- In-store purchasing less popular for those with older cars
- Single decision-makers are more likely to use retail channels
- Automotive specialists are preferred for retail purchases
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- Figure 52: Use of particular retail channels for purchasing, September 2018
- Automotive outlets popular with older adults and men…
- …while city dwellers favour automotive retail stores
- Young men are especially interested in non-automotive outlets
- Specialist automotive stores popular with owners of older cars
- Joint decision-makers likely to favour general stores
Interest in the Internet for Purchasing
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- Internet has much less appeal
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- Figure 53: Interest in online channels for purchasing, September 2018
- Internet is especially popular with young adults
- Affluent adults most interested in the internet
- Internet is less popular with owners of older cars…
- …as well as those who are jointly responsible for maintenance and servicing
- Automotive website dominates when it comes to online purchasing
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- Figure 54: Use of particular online channels for purchasing, September 2018
- Men and women prefer different online channels
- Manufacturer and auction websites are popular with older adults
- Automotive retail websites hold broad appeal
Interest in Purchasing Used or Refurbished Parts
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- Around half of adults have no interest in used or refurbished parts
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- Figure 55: Interest in purchasing used or refurbished parts, September 2018
- Young adults are more likely to consider such parts
- Used and refurbished parts are especially popular with wealthier adults
- Women are more likely to be uncertain about the use of such parts
- Polarised views from those with cars of different ages
- Specialist outlets lead as the main sources for such parts
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- Figure 56: Use of particular retailers/outlets for purchasing used or replacement parts, September 2018
- Older adults prefer different channels to younger adults
- More men than women are focused towards online
- Newer channels are popular with owners of younger cars
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data sources
- Exclusions
- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Market sizing and segment performance
- Forecast methodology
- Forecast data
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- Figure 57: Forecast of UK car aftermarket (value) – Best- and worst-case scenarios, 2018-23
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