As per MRFR analysis, Canada’s automotive aftermarket size was estimated at 28.5 (USD billion) in 2023. The Canada automotive aftermarket industry is expected to grow from 29.7(USD billion) in 2024 to 43.3 (USD billion) by 2035. The Canada automotive aftermarket CAGR (growth rate) is expected to be around 3.5% during the forecast period (2025-2035).
The Canada automotive aftermarket is undergoing prominent changes due to specific market drivers. Compared to other drivers, the increasing age of cars on the road is one of the most important. A significant portion of the Canadian population would rather maintain and repair their cars than buy new ones. This is supported by high retention rates of vehicles within Canada where a notable portion of the vehicle fleet exceeds a decade in age.
Furthermore, the introduction of electric and hybrid vehicles poses several problems for automotive repair shops and parts suppliers, however it also opens considerable opportunities. Consequently, the aftermarket is shifting to support these new technologies and parts, which calls for more qualified technicians and more specialized parts supply.
Shifts in consumer behavior towards online purchasing are creating new prospects in the Canadian automotive aftermarket. There has been an increase in e-commerce in the aftermarket sector due to the pandemic, which resulted in more companies building comprehensive digital platforms to serve consumers directly. Many Canadians are becoming more concerned with sustainability and green practices which makes eco-friendly parts and services more in-demand.
Recent trends indicate an increasing adoption of technology in the aftermarket business, such as telematics and diagnostic tools. Canadian automotive companies are investing in sophisticated customer service and operational technologies due to the growing number of connected vehicles. It makes maintenance and repair easier for the consumer as well. Therefore, the Canadian Automotive Aftermarket is continually exchanging due to new technologies, shifting consumer needs, and an aged vehicle stock, creating an exciting landscape for innovation and growth.
In Canada, the number of registered vehicles has consistently risen over the years, with the Canadian Vehicle Survey indicating that in 2021, there were approximately 25 million light-duty vehicles registered across Canada. This driver is significant for Canada Automotive Aftermarket as a higher number of vehicles in operation directly leads to increased demand for replacement parts, maintenance, and repair services. More vehicles mean more opportunities for automotive aftermarket services, contributing to market growth.
As the population continues to grow and urban areas expand, vehicle ownership is expected to rise further, boosting the demand for aftermarket products and services necessary for the upkeep of these vehicles. Established automotive associations and institutions such as the Automotive Industry Association of Canada (AIA Canada) underline this trend by providing reports that suggest a steady increase in vehicle ownership correlates strongly with aftermarket sector growth.
The advancement of technology, including the integration of advanced diagnostic tools and sophisticated repair technologies, is significantly influencing Canada Automotive Aftermarket. According to the Ontario Ministry of Transportation, the rise of electric and hybrid vehicles is contributing to these advancements, with the province experiencing an increase in electric vehicles by over 400% between 2017 and 2021. This rapid evolution mandates specialized training and tools in the aftermarket realm, thus pushing the industry forward.
Due to the complexity of modern vehicles, repair shops that adopt cutting-edge technology can offer better services, attract more customers, and ultimately drive revenue in the aftermarket sector. Integrating technology not only improves efficiency but also enhances customer satisfaction, further catalyzing market growth.
The conversion to e-commerce has dramatically influenced buying habits in the automotive aftermarket, particularly during and after the pandemic. Research indicates that online sales of automotive products in Canada surged in 2020-2021, with several reports showing an increase of approximately 30% in online auto part sales within a year. Major players in the aftermarket have begun to invest heavily in online platforms to meet consumer demand.
Automotive aftermarket suppliers like Canadian Tire and PartSource have adapted their business models to include comprehensive online shopping experiences, ensuring they capture a larger share of this growing market segment. The ease of accessing automotive parts online is proving to be a strong driver of market growth as Canadians increasingly prefer the convenience of procuring automotive products from the comfort of their homes.
Canada’s automotive aftermarket, focusing on the channels segment, presents a diverse landscape critical to meeting the growing needs of vehicle maintenance and repair. With a substantial portion of the market being driven by consumer preference for service quality and reliability, authorized repair channels often see significant patronage. These facilities, typically associated with vehicle manufacturers, boast highly trained technicians and original equipment manufacturer (OEM) parts, making them a trusted option for consumers looking for assurance in service quality.
On the other hand, independent repair outlets have carved out a major niche by offering competitive pricing and a wider variety of services tailored to individual customer needs. Many Canadian motorists opt for independent repair shops for their personalized service and the convenience of location, often contributing to great customer loyalty. The diversity in Canada Automotive Aftermarket segmentation reflects varied consumer budgets, which leads to different service preferences in urban versus rural regions. Furthermore, trends indicate that increasing vehicle age in Canada, combined with a rise in the number of vehicles on the road, bolsters the demand for repair services across both authorized and independent channels, resulting in a steady influx of business opportunities.
While authorized repair facilities tend to dominate in newer vehicles under warranty, independent repairs flourish in servicing older models, which necessitate regular maintenance and affordability. The evolving technology in automotive repairs, alongside the increasing complexity of vehicle systems, poses challenges and opportunities for both channels, as they must continuously adapt to meet the evolving expectations of Canadian consumers. The importance of these channels in contributing to overall market dynamics cannot be understated, as both authorized and independent repair channels complement each other, allowing for flexibility in consumer choices across diverse economic segments while enhancing the overall health of Canada Automotive Aftermarket.
This segmentation provides a comprehensive view essential for understanding market growth and consumer behavior, reinforcing the critical role of both channel types within the broader automotive landscape across Canada. As the industry evolves, these channels continue to adapt, reflecting shifts in market demand and technological advancements that shape the future of automotive repair and maintenance in Canada.
The vehicle age segment within Canada automotive aftermarket reveals significant insights into consumer behavior and maintenance trends. Vehicles aged 0-4 years often require minimal aftermarket services, typifying a market dominated by warranty coverage and factory maintenance. As vehicles transition into the 4-8 age bracket, a sizeable shift occurs where owners seek more specialized maintenance and replacement parts, driven by increasing wear and tear. The segment of vehicles aged above 8 years represents a substantial opportunity for aftermarket growth.
Owners in this category frequently invest in repairs, enhancements, and upgrades as they aim to extend vehicle longevity. Notably, the rising average age of vehicles on Canadian roads, currently recorded at around 10.4 years, amplifies the relevance of the above 8 years segment.
Factors including a growing preference for vehicle ownership over purchasing new cars, alongside enhanced vehicle reliability, contribute to this trend. Understanding the dynamics within Canada Automotive aftermarket segmentation related to vehicle age provides manufacturers and service providers with valuable insights into tailoring offerings and addressing specific consumer needs in this evolving landscape.
The Canada automotive aftermarket is characterized by a diverse landscape within the Vehicle Type segment, mainly encompassing Passenger vehicles and Commercial vehicles. Passenger vehicles have historically dominated this segment due to the high number of personal vehicles in urban areas, coupled with the growing need for repairs and customizations driven by changing consumer preferences. Furthermore, the emphasis on vehicle maintenance and a growing trend towards electric and hybrid vehicles are contributing factors in the aftermarket space.
Commercial vehicles are vital for the Canadian economy, significantly influencing aftermarket activities as they require regular servicing and parts replacements due to their intensive usage. The rising logistics and delivery sectors in Canada further stimulate the demand for maintenance and repair services, presenting substantial opportunities in the aftermarket ecosystem. Overall, the segmentation highlights the dynamic interaction between consumer demand and commercial utility, shaping the extensive landscape of Canada Automotive Aftermarket.
The market is moving towards advanced technologies and solutions such as digitized services and telematics, presenting new avenues for growth across both vehicle types, thereby underscoring the importance of adaptability in a rapidly evolving automotive industry.
The Canada automotive aftermarket, particularly within the service type segment, showcases significant contributions from various components, chiefly parts and services. The parts category typically encompasses a broad range of products such as replacement and enhancement components for vehicles, which play a critical role in sustaining functionality and performance.
Services, on the other hand, generally involve maintenance and repair work, ensuring vehicles function efficiently and safely on Canadian roads. With the growth of vehicle ownership and increasing average age of cars on the road, there is an upward trend in demand for both parts and services in Canada.
Government initiatives aimed at enhancing vehicle safety and environmental standards have propelled the need for regular maintenance and parts replacements, driving the market forward. Additionally, advancements in technology have led to an increase in aftermarket services, responding to evolving consumer needs and preferences.
The Canada automotive aftermarket is characterized by a diverse range of players, each vying for a significant share of this lucrative sector. The competitive landscape encompasses various segments, including repair and maintenance parts, accessories, and services, with companies continually adapting to customer needs and technological advancements.
Factors such as the rise in vehicle ownership, the growth of the online sales channel, and the increasing demand for aftermarket products have intensified competition among established and emerging firms. Additionally, market dynamics are influenced by changing consumer preferences, regulatory standards, and the ongoing transition toward more environmentally friendly vehicle options. This environment necessitates that market players adopt innovative strategies to differentiate themselves and capture consumer interest effectively.
O'Reilly Automotive holds a notable position within the Canadian Automotive Aftermarket, demonstrating a strong commitment to customer service and product availability. The company is recognized for its extensive inventory of high-quality automotive parts and accessories, catering to both professional mechanics and DIY enthusiasts.
O'Reilly Automotive has garnered a reputation for its knowledgeable staff, who provide valuable insights and recommendations, enhancing customer experience. Furthermore, the company's robust distribution network enables it to maintain an efficient supply chain, ensuring that retailers and customers have access to a wide range of products without substantial delays. O'Reilly's focus on continuous improvement and customer-centric initiatives sets it apart as a formidable player in the market.
NAPA Auto Parts has established itself as a key competitor in the Canadian Automotive Aftermarket, recognized for its extensive selection of automotive parts, tools, and accessories tailored to meet the needs of both consumers and professionals. The company not only offers aftermarket parts but also provides an array of services, including repair and maintenance options, enhancing its value proposition.
NAPA Auto Parts has developed a strong brand presence across Canada, supported by a comprehensive network of stores and partnerships with various repair facilities. The company has a history of mergers and acquisitions that have bolstered its market capabilities and expanded its product offerings. NAPA's focus on quality and customer satisfaction, combined with its proactive approach to supply chain management, solidifies its strengths and ability to respond effectively to the evolving demands of the Canadian automotive aftermarket.
Recent developments in Canada Automotive Aftermarket indicate a growing trend in online parts sales and increased demand for aftermarket products due to the rising age of vehicles on the road. Companies like O'Reilly Automotive and NAPA Auto Parts are expanding their e-commerce platforms to cater to the shift towards online shopping, while RockAuto continues to enhance its product offerings. Additionally, in September 2023, Genuine Parts Company announced an acquisition of a regional distributor, strengthening its presence in Canada and expanding its supply chain.
The introduction of electric vehicles (EVs) is also influencing product demand, with aftermarket companies such as Lordco Auto Parts and Canadian Tire focusing on EV parts and accessories to capture this market segment. The Automotive Aftermarket Alliance, which includes members like Aftermarket Auto Parts Alliance, is working to optimize supply chain efficiency amid rising material costs.
Overall market valuations are witnessing growth, particularly with the infusion of technology in the supply chain processes driving innovation and improved customer experiences. This evolution reflects a robust shift in consumer behavior and technological integration within the Canadian automotive aftermarket landscape.
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2018 | 28.52 (USD Billion) |
| MARKET SIZE 2024 | 29.66 (USD Billion) |
| MARKET SIZE 2035 | 43.26 (USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 3.491% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | O'Reilly Automotive, NAPA Auto Parts, RockAuto, Carquest, Pace Supply, Aftermarket Auto Parts Alliance, Genuine Parts Company, Murray Automotive, Bumper to Bumper, Lordco Auto Parts, Canadian Tire, AutoZone, Pioneer Automotive, UniSelect, PartSource |
| SEGMENTS COVERED | Channels, Vehicle Age, Vehicle Type, Service Type |
| KEY MARKET OPPORTUNITIES | Growing electric vehicle servicing, Advanced driver-assistance systems, E-commerce auto parts sales, Increased demand for custom accessories, Enhanced vehicle maintenance technologies |
| KEY MARKET DYNAMICS | Increasing vehicle ownership, Rising demand for vehicle maintenance, Growth in e-commerce platforms, Technological advancements in automotive parts, Shift towards sustainable practices |
| COUNTRIES COVERED | Canada |
Frequently Asked Questions (FAQ) :
The market is expected to be valued at 29.66 USD Billion in 2024.
By 2035, the market is anticipated to reach a valuation of 43.26 USD Billion.
The market is projected to grow at a CAGR of 3.491% between 2025 and 2035.
The market is segmented into Authorized repair and Independent repair channels.
The Authorized repair segment is expected to be valued at 21.1 USD Billion in 2035.
The Independent repair segment is expected to be valued at 14.83 USD Billion in 2024.
Major players include O'Reilly Automotive, NAPA Auto Parts, and Canadian Tire among others.
The Independent repair segment is anticipated to grow to a value of 22.16 USD Billion by 2035.
The market may face challenges such as supply chain disruptions and increasing competition.
There are opportunities for growth through technological advancements and increased vehicle ownership.
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