Connect with us

Hi, what are you looking for?

News

Automotive Specialty-Equipment Industry Projects Growth in 2024 and Beyond

The automotive specialty-equipment industry is showing signs of resilience and strength amidst the recovering U.S. economy and is poised for growth in 2024 and beyond, according the new 2024 SEMA Future Trends Report.

Sales of automotive specialty-equipment parts are projected to have increased about 1% in 2023. With the economy showing signs of strength and improvement towards the year’s end, SEMA anticipates a similar stable growth trend heading into 2024, with a full return to normal annual sales growth of 3-4% projected for 2025.

The 2024 SEMA Future Trends Report is the Association’s latest study that recaps the issues and outcomes that affected the industry in 2023 and how these areas are likely to affect the market in 2024 and beyond.

“While challenges persist, SEMA’s research found several indicators suggesting that the market will continue to strengthen as it returns to normal growth,” said SEMA Director of Market Research Gavin Knapp. “The report offers valuable insight into our latest forecast for industry growth. It also highlights key factors influencing consumer spending and business outcomes to help companies stay ahead of the curve.”

Additional report highlights include:

  • Even with some conflicting indicators, the U.S. economy is currently growing while showing strong employment and spending trends.
  • With inflation dropping, the Federal Reserve System should begin reducing interest rates in 2024, which will further lower total cost for financed goods, like automobiles.
  • New and used vehicle prices leveled out in 2023 as the supply chain stabilized, though costs are still high for consumers.
  • While Electric Vehicle (EV) sales will continue to grow, most companies have slowed their production forecasts for electrics.
  • Motor vehicle insurance, along with vehicle maintenance/repair, saw some of the largest price increases in 2023, making transportation a significant cost in daily life.
  • Cars are becoming more advanced with Advanced Driver Assistance Systems (ADAS) installation rates rising every year. Over 91% of new vehicles sold had collision warning or collision mitigation built in by Original Equipment Manufacturers (OEMs). 

Despite some uncertainty, most companies within the specialty-equipment industry are optimistic and expect sales to remain level or grow over the next year. A 23% growth in 2023 SEMA Show attendance over 2022 is a strong indicator that the industry is committed to introducing new products and expecting robust sales in the market.

SEMA Business Members can download the 2024 SEMA Future Trends Report for free at www.sema.org/research.

This story was originally published on March 6, 2024. Drag Illustrated

You May Also Like

News

The star-studded STREET OUTLAWS: No Prep Kings series is set to return for its 6th season in the summer of 2023. Fans can expect to...

News

Street Outlaws: No Prep Kings star and renowned engine builder Pat Musi joined the recent episode of The Wes Buck Show and provided an update...

News

Street Outlaws: No Prep Kings star Lizzy Musi announced today that she has been diagnosed with stage four breast cancer via her Youtube channel....

News

Tony Christian, one of the pioneering drivers of the Pro Street movement, passed away Thursday, June 9. Christian was infamous for his battles with...

Since 2005, DI has informed, inspired and educated drag racers from every walk of the racing life - weekend warrior and street/strip enthusiasts to pro-level doorslammer and Top Fuel racers. From award-winning writing and photography to binge-worthy videos to electric live events, DI meets hundreds of thousands of racers where they live, creating the moments that create conversations.