U.S. specialty-equipment market topped $50 billion in 2021

DIAMOND BAR, Calif.—The value of retail sales of the U.S. specialty-equipment parts industry exceeded $50 billion for the first time in 2021, driven by strong consumer interest in working on their vehicle, according to new research from the Specialty Equipment Market Association (SEMA).

Restrictions on in-person shopping eased in 2021, SEMA said, prompting consumers to become more comfortable going back into stores to buy parts. The split of in-store versus online sales in 2021 was roughly 50/50, compared to a 54- to 45-percent split in favor of online sales in 2019. This normalization is expected to continue in 2022.

The value of industry sales rose 6.3 percent last year to $50.9 billion, but growth is forecast to slow this year, gaining only about 1.7 percent to $51.8 billion before picking up again at about 4.4 percent through 2025.

Pickup trucks remain the single biggest segment in the specialty-equipment parts market, SEMA said, accounting for a combined 32 percent of specialty-equipment parts sales.

SEMA estimates 13.6 million pickups were modified by consumers in 2021.

Ongoing supply-chain issues also are a concern in 2022. More than 90 percent of specialty-equipment manufacturers, distributors and retailers feel that their business has been impacted by supply-chain-related challenges. This, in turn, is softening expectations of 2022 sales.

SEMA's evaluation of the market is contained in the group's "2022 SEMA Market Report," a 90-page document available for download at sema.org/research.

The report "can help member companies identify key areas of interest for consumers, and where the most money was spent on parts in 2021," Gavin Knapp, SEMA director of market research, said. "As our biggest research report of the year, this is a must-read for any business that wants to make strategic, data-driven decisions."

Among SEMA's findings:

• Auto parts chains and online specialty retailers/installers were the largest sales channels, each accounting for 14% of sales;
• Tire shops accounted for 10 percent of sales—6 percent through the physical locations and 4 percent online;
• The value of tires and wheels sold through specialty market channels is estimated at $6.47 billion, with growth to $6.6 billion forecast for 2022;
• The value of suspension/brakes/steering components was $5.47 billion, with growth to $5.58 billion forecast for 2022;
• Wheels and tires are the top category in terms of in-store installation, as two-thirds of such products purchased through specialty-equipment channels were installed at a physical store location; and
• The U.S. consumer vehicle fleet increased by nearly 2.5 million cars and light trucks in 2021 versus 2020 to 2021, based on 15.3 million new vehicles sold/registered versus 12.9 million scrapped/taken out of circulation.

SEMA will elaborate on the report and findings in a June 8 webinar. Register online here.