QREA Tenant Spotlight: Auto Parts Sector

AUTO PARTS FAST FACTS
•  3-year sector growth projections indicate a +4.1% compounded annual growth rate:
    2021:$153B
    2022:$160B
    2023:$166B
•  In 2020, the after markets sector declined by 7.3% to just $138B. As expected, the space was negatively affected by the pandemic. In 2019, the
    aftermarkets sector was valued at $149B in the U.S. alone. This implies a  3.5% annualized growth rate compared to the $134B recorded for 2016.
•  The US market has seen reasonable growth over many years. Key drivers of current and future long-term demand in automotive aftermarkets
    includes number of vehicle miles driven, number of registered vehicles, new light vehicle registrations and the average age of vehicles/fleet.
    Miles driven and fleet age indicators have had favorable tailwinds (excepting for the recent short-term impact of Covid –19).
•   Auto parts omni-channel sales continue to be of importance as Walmart loses its footing in the auto parts category to Amazon with a 6 percentage
    point loss of shares in the past year. The acceleration of internet retailers continues to fundamentally change how consumers plan shopping trips.

 

QREA Tenant Spotlight: Auto Parts Sector