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SEMA Market Report

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SEMA Market Report MARKET SIZING SEMA CONSUMER PROFILE INDUSTRY INDICATORS MARKET REPORT WHAT’S INSIDE TRACKING THE AUTOMOTIVE SPECIALTY-EQUIPMENT INDUSTRY COMPREHENSIVE REVIEW OF THE AUTOMOTIVE SPECIALTY-EQUIPMENT MARKET, DETAILING RETAIL SALES, PURCHASE CHANNELS, AND VEHICLE SEGMENTS. INDICATES THE OPPORTUNITIES AND TRENDS TO HELP SEMA MEMBER COMPANIES MAKE BETTER BUSINESS DECISIONS. USA 2020 2020 SEMA Market Report INTRODUCTION It seems we are always telling ourselves “this has been a crazy year.” But… 2020 has been a crazy year. There seems no other way to put it than crazy. The year 2020 has been a test for so many aspects of our society. And as I write this, the year isn’t even halfway through. The COVID-19 outbreak, shelter-in-place orders, and ongoing demonstrations are potentially shifting the way our society thinks and acts. For years, pundits have touted the coming online sales revolution and now people stuck at home are flocking to ecommerce. But is this a lasting shift or just a normal reaction to their in-the-moment needs? Travel ground to a halt during the lockdown, but surveys show people are still eager to get away and get on the road. Many have speculated that car travel and camping will see an uptick, offering a way to travel while avoiding close contact with others. Some in-person events have been cancelled or gone “virtual.” Consumers and the industry are missing out on a spring and possibly summer of car shows, big and small. It has been a challenge for trade events, so it’s fortunate that the SEMA Show is in November, which gives us all time to prepare for the best show of the year. The specialty-equipment industry came into 2020 on a high note. The market has shown great growth over the last 10 years. Industry retail sales climbed nearly 4% to a new high of $46.2 billion in 2019. Last year, most businesses were experiencing growth and expectation were strong for the future. But 2020 has been a crazy year. The turmoil of spring deeply curtailed consumer spending for several months. Some businesses have done well in the lockdown, but many others are feeling a sharp pain. New-car sales, miles driven, unemployment, and discretionary spending—all indicators tied to our industry—have all taken a hit this year but are currently moving in a positive direction again. Overall, our research indicates that industry retail sales will likely be down 12% in 2020. As the country re-emerges from the shutdown, sales in Q3 and Q4 should rise back towards previous levels. If there is a possible silver lining in this, many economists were predicting a recession in 2020. The COVID lockdown forced that to happen quickly. Maybe like “ripping off the band-aid,” we have gotten through the downturn stage in a matter of months, rather than years. It’s likely that mid-April was the worst of the economic recession and signs point to increasing recovery from that point forward. I expect 2021 and the next few years to continue this recovery growth in our market and related areas, such as auto sales. This may have been the deepest, quickest recession in history, but our industry is nimble, built on innovation and ready for the challenge. I know many companies have been using this time to come up with new ideas, develop products, and prepare for the next phase of growth. I look forward to seeing all these new products at the SEMA Show in November. If you have any questions, please contact me or the market research team. SEMA is here to help. Gavin Knapp Director, Market Research SEMA 1 Table of Contents 2020 SEMA Market Report MARKET OVERVIEW Overview ................................................................................................................................................................................................4 Specialty-Equipment Retail Sales ....................................................................................................................................................4 Consumer Purchase by Sales Channel ...........................................................................................................................................5 Consumer Purchase by Vehicle Segment .......................................................................................................................................6 MARKET SIZING CONSUMER PURCHASE BY PARTS CATEGORY ............................................................................................................................... 7 CONSUMER PURCHASE–PARTS OVERVIEWS ................................................................................................................................. 9 Maintenance Oils and Additives.........................................................................................................................................9 Wax and Cleaning Products ..............................................................................................................................................10 Paint Powdercoating and Plating ....................................................................................................................................11 Fender, Hood and Body Upgrades ...................................................................................................................................12 Exterior Appearance Upgrades .......................................................................................................................................13 Body Finishing Products ...................................................................................................................................................14 Trailer and Towing Products ............................................................................................................................................15 Racks and Carriers ............................................................................................................................................................16 Truck Bedliners and Other Bed Accessories.................................................................................................................17 Truck Bed Covers ...............................................................................................................................................................18 Truck Caps ...........................................................................................................................................................................19 Seats and Upholstery ........................................................................................................................................................20 Floor Mats and Interior Appearance Products .............................................................................................................21 Dash System and Gauges .................................................................................................................................................22 Head / Tail Lights ...............................................................................................................................................................23 Exterior Accessory Lighting .............................................................................................................................................24 Interior Lights .....................................................................................................................................................................25 Sound System and Audio Accessories ...........................................................................................................................26 Alarms and Security Products .........................................................................................................................................27 Navigation Systems ..........................................................................................................................................................28 Mobile TV and Video Cameras ..........................................................................................................................................29 Wireless and Smartphone Integration Products ..........................................................................................................30 Driver Assist Systems .......................................................................................................................................................31 Transmission Products .....................................................................................................................................................32 Axles and Differential ........................................................................................................................................................33 Clutches and Related Products .......................................................................................................................................34 Shifters .................................................................................................................................................................................35 Ignition Products ...............................................................................................................................................................36 Batteries and Related Products .......................................................................................................................................37
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