The Increasing Age of Vehicles on U.S. Roads Presents Opportunities for Aftermarket Parts and Service Providers
It’s no secret that auto journalists and enthusiasts love getting their hands on the latest and greatest cars. However, the average person isn’t always as excited about the car-buying process. In fact, recent data from S&P Global Mobility reveals that the average age of vehicles on U.S. roads has been steadily increasing. In 2024, the average age reached 12.6 years, which is an increase of two months compared to the previous year’s study.
This trend is not only interesting from a consumer perspective, but it also presents a significant business opportunity for aftermarket parts and service providers. According to Todd Campau, S&P Global Mobility’s aftermarket practice lead, the growing average age of vehicles means that more cars are entering the prime range for aftermarket service, typically between six and 14 years of age. With over 110 million vehicles falling into this age range, accounting for nearly 38 percent of the total fleet, there is a clear expectation for continued growth in the volume of vehicles requiring aftermarket services. Campau predicts that this figure will rise to an estimated 40 percent by 2028.
Interestingly, this increase in vehicle age also means that fewer cars are being sent to scrapyards. Despite the steady growth in average vehicle age, the number of scrapped vehicles has not increased since last year. In fact, for every new passenger car registration, two cars are scrapped. This equates to a staggering 27 million vehicles leaving the roads since 2020, while only around 13 million new ones have been registered.
However, it’s important to note that despite the slow pace of scrapping, there has been a significant growth in the overall number of vehicles on our roads. As of January this year, there were 286 million vehicles in service, which is two million more than the previous year. It’s worth mentioning that the number of vehicles aged six years or less has actually decreased from 98 million in 2019 to 90 million in 2024. This decline can be attributed, in part, to pandemic-related shortages and supply chain issues that have impacted the availability of new vehicles.
While the average age of vehicles continues to rise, there is one category that is experiencing significant growth – electric vehicles (EVs). Despite some concerns and skepticism, the number of EVs in operation has been steadily increasing. At the beginning of this year, there were 3.2 million EVs on the roads, which reflects a growth of over 50 percent since 2022.
However, S&P Global Mobility also notes that the average age of EVs on the roads could soon see an increase as adoption rates begin to slow down. Currently, the average age of EVs is 3.5 years, but this figure could rise in the near future. Regardless, the continued growth of the EV market presents its own set of opportunities for aftermarket parts and service providers specializing in electric vehicles.
In conclusion, the increasing age of vehicles on U.S. roads is not only a reflection of consumer behavior but also creates lucrative opportunities for aftermarket parts and service providers. With millions of vehicles falling into the prime range for aftermarket service, there is a clear demand for maintenance and repairs. Additionally, while EVs are still a relatively small portion of the overall vehicle market, their growing numbers indicate a need for specialized aftermarket support in the electrified vehicle segment. As the automotive landscape continues to evolve, it is crucial for industry players to adapt and capitalize on these shifting trends.