By SEMA News Editors
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."
Produced by SEMA Market Research, the report is the association's largest report of the year and offers new insights into the size and scope of the specialty-equipment industry. The report includes detailed market sizing by parts category, consumer spending data by vehicle segment and information on where consumers shopped for aftermarket parts and accessories in 2023, along with other key industry trends.
"The economy continues to offer some uncertainty as we have emerged from the effect 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 to continue with a reasonable growth rate moving forward."
Free to SEMA business members as a benefit of membership, the report is an example of the many resources available to help industry professionals and businesses succeed in the market and stay ahead of the curve.
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 diverse and 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 only 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 ($12.38 billion) all increased over 2023.
Additional findings from the report include:
- Most accessorizers are modifying their 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 also likely to do more extensive builds, such as suspension and engine performance mods.
- More than half of accessorizers (58%) also own a powersports product, such as a trailer, UTV, or motorcycle, which can offer opportunities for cross-selling and promotions.
- New vehicle sales are likely to top 16 million in 2024.
- The United States vehicle fleet comprises nearly 290 million passenger cars on the road. More cars on the road means more opportunities for drivers to personalize.
Additionally, 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 business members can download the new "2024 SEMA Market Report" for free at sema.org/research. To learn more about SEMA membership, visit sema.org/membership.