Industry research
Scope
US
Companies
79
Table of contents
What does the automotive aftermarket services market landscape look like in the US?
The US automotive aftermarket services industry is highly fragmented, with the largest players holding only single-digit market shares. Herein, incumbents compete with OEM service channels operated by automakers and their dealership networks (e.g. Toyota Service Center). Large players continue to expand their presence through M&A. For example, Mavis Discount Tire’s acquisition of Midas expanded its portfolio to ~3.5k service centers across North America. Some incumbents operate through a one-stop service model (e.g. Driven Brands), while others focus on a particular niche (e.g. Tint World claims to be the US’s largest automotive styling and tint franchise). Additionally, some players engage in strategic partnerships with reputable automotive part suppliers (e.g. 3M, Sony). To compete, the long tail differentiates by focusing on a particular region or local market. For instance, Custom Sounds & Tint caters to customers in Texas, Missouri and Oklahoma.
What is the level of investor activity in the US automotive aftermarket services industry?
Investor-led interest has been moderate, with ~42% of identified assets backed by financial sponsors (as of July 2025). Herein, sponsor-led interest mainly stems from (i) the aging US vehicle fleet, which increases aftermarket demand as consumers retain older vehicles longer, (ii) the emergence of advanced technologies (e.g. AI, digital twins) that enable predictive maintenance and digital service delivery and (iii) rising vehicle costs that prompt consumers to delay new purchases and invest more in maintaining existing vehicles. On the other hand, deterring factors for investors include (i) the growing adoption of electric vehicles, which reduces demand for routine maintenance services, (ii) a persistent shortage of skilled technicians, which hampers capacity and drives up labor costs and (iii) heightened price transparency through digital channels, which intensifies price competition and compresses margins.
What are the key ESG considerations in the US automotive aftermarket services industry?
ESG topics primarily revolve around environmental and social matters. Environmental concerns primarily relate to hazardous waste generated during vehicle servicing, tire waste accumulation in landfills, the release of volatile organic compounds (VOCs) and greenhouse gas emissions. To address this, incumbents adopt waste mitigation protocols such as oil recycling programs, closed-loop solvent systems, tire recycling initiatives and the use of low-VOC or waterborne alternatives for vehicle paints. Social topics mainly relate to wage disparities for entry-level technicians and occupational hazards linked to the handling of hazardous materials and heavy equipment. To manage this, incumbents offer apprenticeship and credentialing programs, tuition reimbursement initiatives, implement safety protocols to reduce workplace injuries and offer safety training programs.
Technavio (February 2025) estimates that the global automotive repair and maintenance services market generated ~$480.0bn in revenue in 2024 and forecasts it to reach ~$634.1bn by 2029 (+5.7% CAGR 2024-2029)
The global car modification market was valued at ~$55.8bn in 2022 and is projected to grow to ~$70.8bn by 2029 (+3.4% CAGR 2022-2029; Filmshoppee, March 2024)
The aging US vehicle fleet, with an average passenger vehicle age of >13 years and ~85% of vehicles in operation being >4 years old, fuels the demand for automotive aftermarket services. Herein, improved vehicle durability and economic pressures lead consumers to retain their vehicles longer, which increases the need for aftermarket maintenance and repairs (WSJ, December 2024; KPMG, 2023)
The emergence of advanced technologies (e.g. AI, digital twins) boosts the US automotive aftermarket services market through predictive maintenance, enhanced diagnostics via telematics and efficient service delivery using connected platforms and mobile service models. Additionally, a global automotive consumer survey by Deloitte shows a shift toward digital service preferences, which creates opportunities for service providers to increase customer retention, streamline operations and drive higher revenue (Deloitte, March 2025; S&P Global, February 2025; IoT Business News, November 2024; TyreSwift, July 2024)
The rise in costs of new and used vehicles, driven by tariffs and supply chain disruptions, leads consumers to delay new car purchases in the US. As a result, consumers choose to maintain and repair existing vehicles, which raises demand for automotive aftermarket services (Assurant, May 2025; The New York Times, May 2025; AftermarketNews, May 2025)
Electric vehicle adoption poses a significant threat to traditional automotive aftermarket services due to lower requirements for routine maintenance such as oil changes, spark plug replacements and filter swaps. To illustrate, electric vehicles generate ~40% less service revenue than traditional vehicles. In the US, EVs accounted for ~5% of new car sales in 2023 and are projected to reach ~50% by 2030 (PDM Automotive, May 2024; AlixPartners, October 2023; KPMG, 2023)
The shortage of skilled technicians continues to increase across the US automotive aftermarket services industry, which pressures service capacity and raises labor costs. Key reasons include competition from other industries, negative perceptions of the profession and low compensation (PartsTech, May 2025; Fleet Owner, May 2022)
The shift toward digital sales channels and e-commerce has increased price transparency for consumers. As a result, automotive aftermarket service providers face intensified competition and downward price and margin pressure, as consumers can easily compare offerings across multiple channels (Alvarez & Marsal, August 2024)
With the full report, you’ll gain access to:
Detailed assessments of the market outlook
Insights from c-suite industry executives
A clear overview of all active investors in the industry
An in-depth look into 79 private companies, incl. financials, ownership details and more.
A view on all 415 deals in the industry
ESG assessments with highlighted ESG outperformers
