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Please research the fragmentation of auto parts distribution industry in the U.S.
Hello! Thank you for asking Wonder to research the fragmentation of the auto parts distribution industry in the US.
The most useful sources I found to answer your question are reports from IBIS world and an article from Forbes.com.
The short version is that the auto parts distribution market in the US has a revenue of $58 billion, 50% of which is garnered by 10 large distributors. E-commerce sales account for 12.7% of the revenue and roughly 40% of the revenue is divided amongst smaller shops.
Below you will find a deep dive of my findings.
METHODOLOGY
I began by searching for the auto part store industry size in the US, the market revenue and number of businesses. I then looked up the wholesale distribution industry for comparison. I searched out the e-commerce side of the distribution industry to compare how much is sold online vs. in stores. I found the total revenue for the largest auto parts distributors in the US. I could not locate the total number of 'Mom & Pop' auto parts shops.
FINDINGS
US Auto Parts Distribution Market
According to a report by IBIS World, the United States has 43,525 auto parts businesses with a total of $58 billion in revenue. The wholesale auto parts distribution industry in the US contains 13,052 businesses with a total revenue of $186 billion.
E-Commerce
Auto parts sales reached $7.4 billion by the end of 2016. This is 12.7% of the total auto parts distribution market. The growth of online sales will far surpass that of brick and mortar sales. By the end of 2015, the growth in stores was nearly 1% for brick and mortar. Though for online sales, "Hedges & Company is forecasting annual sales growth of 12% to 16% over the next four years. Each of the next four years will break a new billion-dollar barrier. Online sales in 2017 are projected to hit $8.4 billion, with approximate $1 billion increases each year. Online sales are currently projected to break $10 billion in 2019."
The total revenue of the top 10 distributors is more than $27 billion. These large companies capture 50% of the auto part distribution revenue. If you add in the total online sales of $7.4 billion, then roughly 40% or $23 billion would be the remaining revenue left to the smaller auto parts distributors in the US.
CONCLUSION
To wrap it up, the US auto parts distribution industry is fragmented into 4 parts. 1. Wholesale auto parts industry with 13,052 and $186 billion in revenue. 2. Retail auto parts industry with 43,525 businesses and $58 billion in revenue. The top 10 distributors in the US generate 50% of the revenue. 3. 12.7% of the auto parts market is sold online with a total of $7.4 billion in revenue. 4. The smaller shops in the US account for the remaining 40% of the revenue or $23.2 billion.
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