Auto Parts Wholesaling in the US Industry Market Research Report Now Available from IBISWorld

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The industry has endured a bumpy road over the past five years, suffering through the recession as the entire automotive sector crashed. Because the industry primarily depends upon the level of automotive production, a revival in demand for cars over the next five years will drive modest revenue growth. Higher sales of industry goods in the long run will rely on the move toward technologically advanced, fully equipped amenities, such as on-board diagnostic systems and innovative safety features. Still, the slow growth rate in consumer sentiment remains a threat as many consumers still harbor doubt about the economy and opt to repair their existing vehicles rather than purchase new cars, limiting industry demand. For these reasons, industry research firm IBISWorld has updated its report on the Auto Parts Wholesaling industry.

IBISWorld Market Research

IBISWorld Market Research

Demand from automobile manufacturers will benefit auto parts wholesalers

The Auto Parts Wholesaling industry has been on a bumpy road over the five years to 2012. The industry suffered through the recession as the entire automotive sector spiraled downward. “During this period,” says IBISWorld industry analyst Antonio Danova, “key partnerships with original equipment manufacturers (OEMs) were lost, sales at auto parts retailers choked and consumers deferred auto repair services and parts replacements.” As a result, industry revenue is expected to decline at an annualized rate of 4.7% to total $131.7 billion. However, the automotive sector stabilized as the economy improved in 2010 and 2011, fueling revenue growth across the industry. Moreover, revenue is expected to increase 1.9% in 2012 as auto manufacturers, auto service providers and auto parts retailers increase demand for wholesaled parts.

As American wholesalers faltered during the recession, foreign-owned major players like Magna International and DENSO Corporation were able to boost their domestic presence. Major US-based wholesalers Delphi and Visteon incurred massive losses as their affiliated manufacturers, General Motors (GM) and Ford, decreased production due to fear of further losses. On the other hand, DENSO benefited from the mostly steady US productivity of its affiliated manufacturer, Toyota. Additionally, other foreign manufacturers like Honda, Nissan and Volkswagen all experienced better sales as major American automakers faltered. “Many of these automakers have established relationships with foreign wholesalers that undermine opportunities for growing US wholesalers,” adds Danova. “Still, increased foreign productivity is a positive movement for the Auto Parts Wholesaling industry that is expected to usher in further growth as it stabilizes.” The industry carries a low level of market share concentration, indicating that the industry is highly fragmented and that there is significant scope for consolidation by some of the industry's major players. Additionally, the low concentration of firms also accentuates the industry's level of competition.

Demand from automakers is expected to be the biggest driver for sustained industry growth, but higher sales of industry goods in the long run will rely on the move toward technologically advanced, fully equipped amenities, such as on-board diagnostic systems and innovative safety features. In turn, the sale of more technologically advanced, high-margin goods will revive industry profitability. Additionally, fuel economy standards will require auto manufacturers to outfit new vehicle platforms with fuel-efficient technology. Demand for these components will create new product focuses for wholesalers looking to expand sales accounts and increase revenue. As a result, industry operators are anticipated to achieve annualized revenue growth over the five years to 2017. For more information, visit IBISWorld’s Auto Parts Wholesaling in the US industry report page.

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IBISWorld industry Report Key Topics

This industry comprises firms that sell automotive parts wholesale to automobile manufacturers, automotive parts retailers and auto service providers. Sale of new tires and tubes is not included.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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Gavin Smith
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