A new industry survey reveals rising demand for automotive aftermarket parts and services. However, uncertainty, supply chain disruption, and labor shortages continue to challenge the sector. The AAPEX survey collected responses from 448 aftermarket professionals across the U.S. and Canada.
Highlights
- Six in 10 aftermarket businesses expect parts and services demand to grow in 2026, driven by high new vehicle prices keeping older cars on the road.
- Uncertainty ranked as the top industry challenge at 45%, followed by the skilled labor shortage.
- 70% of respondents are actively diversifying their supply chains, while 38% report managing higher parts inventories.
- Quality (34%) leads buying preferences over price (25%) and availability (20%), even as 53% of businesses see growing consumer interest in lower-cost parts.
High Vehicle Prices Fuel Aftermarket Growth
Respondents pointed to elevated new vehicle prices as the primary driver behind aftermarket demand growth. Consumers are holding onto existing vehicles longer. That trend is pushing more repair and maintenance work into the aftermarket pipeline.
Still, price sensitivity is showing up on the shop floor. A majority of respondents (53%) reported increased consumer interest in lower-cost parts and services. Yet the data suggests buyers prioritize value over bargain pricing. Quality topped buying preferences at 34%, followed by price at 25% and availability at 20%.
Despite the demand outlook, sales expectations for 2026 remain flat. That aligns with the aftermarket’s historical reputation for steady performance regardless of broader economic conditions.
Uncertainty Dominates Industry Outlook
Nearly half of respondents (45%) identified uncertainty as their top challenge. That sentiment surfaced repeatedly throughout the survey findings.
Many aftermarket businesses are responding by diversifying supply chains. According to the survey, 70% of respondents have either completed diversification (6%), are in planning stages (18%), or have efforts in progress (46%). Additionally, 38% of respondents are carrying higher parts inventories compared to just 20% managing fewer.
AI Adoption Gains Traction
About one-fifth (21%) of respondents have deployed enterprise-grade AI tools. Another 20% are in planning stages. Among those implementing AI, the top investment areas include:
- Customer service — 60%
- Inventory management — 42%
- Product development — 36%
EV Investment Sentiment Remains Mixed
The survey found divided sentiment on electric vehicle investments. More respondents (26%) plan to invest less in the EV segment than those planning to invest more (17%). Another 27% will maintain current spending levels. Notably, the largest share (29%) remains uncertain about their EV investment plans.
Labor Shortage Persists Across the Sector
Attracting skilled talent ranked as the second-biggest industry challenge. Automotive technicians are retiring faster than the industry can replace them. Rising demand for repair services compounds the problem.
Businesses are responding with a mix of strategies. These include expanded training programs (30%), higher compensation (27%), and improved benefits (22%). However, 25% of respondents reported taking no action to address the shortage.
The challenge extends beyond repair shops. Manufacturers comprised the second-largest respondent group in the survey. One manufacturing respondent called for a national apprenticeship program integrated into the manufacturing sector.
The full 2026 State of the Automotive Aftermarket Survey Report is available for free download on the AAPEX website.
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