Growth in the automotive aftermarket has been explosive over the past five years and will continue well into the future. 2022 sales growth for all aftermarket products was 9.7%, exceeding expectations. That growth continued through 2023, with final growth numbers expected to be finalized at around 8.1%. These post-Covid numbers reflect unrealized demand during that period, but future growth is still anticipated to exceed 4% yearly through at least 2026.

Transmission repair shops saw a 5-year compound annual growth rate (CAGR) of 2.8% from 2017 – 2022, and that trend is expected to accelerate to 6.3% yearly to 2026 and beyond. So, the hot transmission aftermarket trend is actually accelerating, with sales, just for transmissions, estimated to be $2.8 billion by 2026.

We are also seeing ever-stronger growth in the “do it for me” (DIFM) marketplace averaging 11.8%, substantially higher than the “do-it-yourself” (DIY) market at 2.5%. So, people are coming to general repair shops for their automotive work at an ever-increasing rate. And vehicles of all age groups underwent transmission rebuilds, while 1.38% had transmission replacements. The reman, replacement tempo continues to outpace rebuilds as transmissions go from 4-speeds to 6-speeds, and beyond.

Keep an eye out this year for even more market updates from ETE REMAN!