Hit the gas: Rebounding travel will lead to an increased need for replacement auto parts
Auto parts wholesalers in Canada has contracted over the five years to 2023, stemming from COVID-19, which substantially impacted demand from downstream markets in 2020 and 2021. These wholesalers struggled with cementing its place within the automotive supply chain with auto parts manufacturers expansively solidifying their ties with automakers directly. In 2020, a steep reduction in the production and sales of new vehicles, as well as less driving by consumers, reduced demand for auto parts. Overall, auto parts wholesalers are expected to drop at a CAGR of 1.2% to $18.9 billion through the end of 2023, despite higher downstream demand in 2023 that is estimated to contribute to a 2.2% boost in revenue during the year. Auto parts wholesalers' profit is expected to inch down during the current period as negative domestic economic conditions brought upon by COVID-19 negatively influenced demand for new auto parts in 2020 and 2021 and a global semiconductor shortage led to reduced production from domestic automobile manufacturers.
The Auto Parts Wholesaling industry in Canada is primarily engaged in wholesaling new and rebuilt automotive parts and accessories, auto body and upholsterers’ suppliers and automotive chemicals. Sales of new tires and tubes are not included.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
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