Source: Strategy&, IHS, Frost & Sullivan

Industry is being ‘transformed’ with technology that presents challenges, opportunities

Internal combustion engines will still represent 82 percent of the total vehicle population in 2030

Las Vegas—There is a broad range of opinions and debate about the future impact of technology and the advent of new business models and services. However, there is one thing where there is no debate — that the industry is being transformed, said Bill Long, Automotive Aftermarket Suppliers Association (AASA) president and COO, at the recent 2018 AASA Media and Member Briefing at AAPEX.

Suppliers, though, will continue to adapt, as they have through the course of aftermarket history.

In March, AASA released a study that assessed new technologies and opportunities for growth, which states that 36 percent of the growth in aftermarket product volume by 2030 will come from products that don’t yet exist today.

“Although we already see signs of electrified, shared and autonomous vehicles, they will still represent a small percentage of the vehicle parc even as far out as 2030,” Long said.

Electric vehicles will continue to increase. However, he added that internal combustion engines will still represent 82 percent of the total vehicle population in 2030. 

Similarly, fully automated vehicles will represent less than 1 percent of the vehicle parc in 2030, with level 1, 2 and 3 vehicles comprising 99 percent of the population.  

In the marketplace of the future, vehicle technology will:

• Enable vehicles to give advanced notice when service is required;

• Allow for wireless or remote repairs;

• Offer repair location availability, special offers and ability to schedule service; and

• Identify vehicle and parts operating performance and parts.

“As we all know this environment will create opportunities and potential barriers for the independent aftermarket to service vehicles, and creates serious concern for parts suppliers, their channel partners and the independent repair community,” Long said. “That is why access to vehicle data is vital to our industry and why AASA, along with CARE and the Auto Care Association and other aftermarket organizations are working together to ensure motorists have the freedom of choice for vehicle maintenance and repair.

“Together, we support the adoption of the Secure Vehicle Interface. We also believe that for the industry to fully realize the promise that telematic technology brings, we also support an open data marketplace that would provide a way to house and distribute data for diagnostics, analytics and prognostics, once we are assured the industry will have access to data directly from the vehicle.”

He added that they are also working with industry organizations to develop the path for the training and certification of service professionals and repair facilities, which Long said will be essential to assuring motorists, the government and the broader automotive industry that the independent aftermarket is ready and can repair and maintain connected technology-enabled vehicles.

Parts & People

Parts & People is published monthly by Automotive Counseling and Publishing Company, Inc., a Colorado corporation, P.O. Box 18731 Denver, CO 80203, 303-765-4664. President-Lance Buchner. Founded by Lance Buchner and Dave Lucia.