Passenger cars and light trucks in the United States had an average age of 12.6 years in 2024. This figure represents a slight increase from 12.5 years in 2023. New vehicle sales decline amid pandemic Long-term auto loans and good quality might be reasons why American motorists keep their automobiles longer. That said, vehicle sales in the United States declined dramatically in the second quarter of 2020. As a result, U.S. vehicle age is expected to rise further as U.S. motorists put off vehicle purchases among the COVID-19 crisis in the country and took an interest in buying used cars. Throughout 2022 and 2023, U.S. vehicle sales remained relatively stable, despite geopolitical disruptions. Amid supply chain shortages, North American automobile sales are projected to increase to around 19 million units by 2024. The future market At 12.6 years old, the average vehicle age in the United States is at a record high but the newest cars on the market are entering the next era of automotive technology. Shared mobility, automation, and electrification are several key aspects of the modernization of the motor industry. Electric vehicles are anticipated to witness growing demand in the U.S. Already, electric cars are the favored choice in other important auto markets, including China.

On average, motorists in the United States continue to hold on to their vehicles for a longer time. In 2021, the average age of light vehicles on U.S. roads stood at 12.1 years, up from 10.3 years in 2009.

Around half of all car owners in the U.S. are over the age of 60 years old. High upfront and running costs can be expensive, and many Americans must either save up or wait until they have the income to afford vehicle ownership.

Graph and download economic data for Consumer Unit Characteristics: Number of Vehicles by Age: from Age 25 to 34 (CXUVEHICLESLB0403M) from 1984 to 2023 about consumer unit, age, 25 years +, vehicles, and USA.

As of 2020, Russia was the country with the highest average vehicle age when compared to China, the United States, and Germany. All of the country's registered vehicles were on average just under 14 years of age. By contrast, China's licensed vehicles fleet was overall younger, with a mean of 5.3 years of age.

16-year-olds paid the highest amount for full coverage car insurance in the United States in 2023. It was found that 16-year-old drivers in the U.S. had to pay approximately *** U.S. dollars per year for car insurance, whereas their 21-year-old counterparts paid only *** U.S. dollars for the same coverage.

In 2024, the average selling price of used vehicles came to around 28,400 U.S. dollars. In 2024, new automobiles and light trucks were on average almost 19,200 U.S. dollars more expensive than used light vehicles. The used car boom As the price for new vehicles has been increasing, more Americans are turning towards buying second-hand cars and light trucks. Buying new cars and light trucks is typically seen as a privilege that few may do often. Generally, used vehicle sales are on the rise in most countries. Thanks to ever-improving technology, automobiles may keep running for many years and remain in good condition. This allows the average age of light vehicles in operation in the United States to increase slowly. Although new cars are often seen as status symbols, vintage cars are also very popular in the United States, the main reason for this trend being aesthetic and cultural values.

This statistic illustrates the average age of North American freight rail cars from 2014 to 2020. In 2020, the average age stood at 19.6 years, a slight increase from 19.5 years in the previous year.

In the fourth quarter of 2024, there were around ***** million vehicles operating on roads throughout the United States. Almost **** million used vehicles changed owners in the U.S. between the fourth quarter of 2023 and the fourth quarter of 2024, while new registrations of vehicles came to about **** million units during that period. Automotive market disparities The number of licensed drivers had been steadily increasing up to just under ******* in 2023, but the automotive market has been impacted by economic developments over the past few years. The U.S. vehicle fleet is aging, reflected by the slow increase in the average vehicle age from **** years in 2018 to over ** years in 2024. This is in part due to market disparities. The average selling price of new vehicles has been increasing to nearly ****** U.S. dollars in 2024, up from under ****** in 2016. Used car prices have been declining after the chip shortages linked to the COVID-19 pandemic, reaching around ****** U.S. dollars in 2024. The majority of U.S. car owners earned more than ****** U.S. dollars per years, with the ****** to ****** income group owning over ** percent of the vehicles in use. The boom of the used vehicle market Close to ************* of new car buyers were born between 1946 and 1981, with Gen X being the leading consumers by age group for both the new and used vehicle market. Used light vehicle sales have been steadily increasing since 2010, representing well over double the size of the new light vehicle market in 2024. With a product range priced below new vehicle prices, used vehicles are gaining momentum in the United States. The average American household spends some ***** U.S. dollars on vehicle purchases annually, with consumers in income groups earning above 100,000 U.S. dollars per year spending above ***** dollars annually on car buying. Used vehicle financing options are naturally more affordable than new vehicle financing options, with an average monthly payment over *** dollars for loan payments for new vehicles.

This statistic represents the average vehicle purchase expenditure by Americans in 2016, with a breakdown by type of expenditure and age of consumer. Americans aged between 25 and 34 spent, on average, 1,906 U.S. dollars on gasoline and motor oil in 2016.

The US Automotive Engine Oil Market size was valued at USD 6.36 Billion in 2024 and is projected to reach USD 7.17 Billion by 2032, growing at a CAGR of 1.9% from 2026 to 2032

Key Market Drivers:

Increasing Vehicle Fleet and Miles Driven: The growing vehicle fleet in the United States, as well as increased vehicle miles travelled (VMT), directly influence engine oil consumption. According to the Federal Highway Administration of the United States Department of Transportation, Americans will drive 3.27 trillion miles in 2022, up 0.9% from 2021.

Extended Vehicle Age and Maintenance Requirements: The average age of automobiles on US roadways is increasing, demanding more regular oil changes and maintenance.

This statistic represents the average age of the U.S. Amtrak rail car fleet in 2015, with a breakdown by type. In that year, the average age of passenger and other train cars in Amtrak's fleet was 30.7 years.

The Auto Extended Warranty Providers industry has climbed over the past five years. Industry servicers provide automobile owners warranties that extend past the warranty a car's manufacturer provides for a new vehicle. Participants in this industry include car manufacturers, car dealers and other third-party warranty providers. During the period, the industry has benefited from the average age of the vehicle fleet in the United States increasing, as consumers typically purchase auto extended warranties or vehicle service contracts after their manufacturing warranty expires. In addition, despite an increase in per capita disposable income, new car sales fell due to the negative impact of the pandemic and inflationary pressures in the latter part of the current period, limiting industry growth. Overall, industry revenue increased at a CAGR of 1.0% to $22.0 billion over the past five years, including an expected 0.9% increase in 2024 alone. Evolving trends in warranty plans offered by auto manufacturers and dealerships have led to increased competition for third-party auto extended warranty providers. Automobile manufacturers are increasingly offering more comprehensive warranty plans, making extended warranties less attractive. To stay competitive with extended warranty offerings from auto manufacturers and dealerships, third-party providers were forced to cut prices. Additionally, increased competition within the industry has led to some merger activity among the largest operators. These mergers look to achieve economies of scale that allow the new company to more competitively price policies. Nonetheless, rising inflationary pressures that ate into consumers' purchasing power lowered their propensity to acquire vehicles, causing industry profit to slump. Over the next five years, the industry is poised to rebound in large part due to rebounding economic conditions. An increase in the average age of the vehicle fleet, per capita disposable income and new car sales are all expected to support the industry. Nonetheless, growth is expected to be pressured early in the period as high inflation is expected to be persistent. In addition, industry servicers may be challenged as price-based competition increases. Overall, industry revenue is expected to grow at a CAGR of 2.3% to $24.7 billion over the next five years.

Passenger Cars MRO Market Outlook

The global passenger cars MRO (Maintenance, Repair, and Overhaul) market size was valued at approximately USD 150 billion in 2023 and is projected to reach USD 210 billion by 2032, growing at a CAGR of around 3.8% during the forecast period. The continuous growth of the automotive industry, coupled with increasing vehicle longevity and consumer awareness regarding vehicle maintenance, is driving this market expansion.

The expanding fleet of passenger cars globally is one of the significant growth factors for the MRO market. With more vehicles on the road, the demand for maintenance and repair services naturally increases. Moreover, the aging of the global car fleet means more vehicles are falling out of warranty periods provided by manufacturers, which pushes owners towards independent service providers and aftermarket services for cost-effective maintenance solutions. This trend is notably observed in mature markets such as North America and Europe, where the average age of vehicles is steadily increasing.

The rapid technological advancements in the automotive sector also fuel the growth of the MRO market. Modern passenger cars are equipped with advanced electronic systems, which require specialized maintenance and repair services. The integration of IoT, AI, and telematics in vehicles has led to the development of predictive maintenance solutions, which are becoming increasingly popular among consumers for their ability to prevent major breakdowns and reduce repair costs. These technological advancements are expected to continue driving the demand for specialized MRO services in the coming years.

Additionally, the increasing emphasis on safety and environmental regulations is propelling the demand for regular vehicle maintenance and repair services. Governments across various regions are implementing stringent emission norms and safety standards, which necessitate regular vehicle inspections and maintenance to ensure compliance. This regulatory environment encourages vehicle owners to adopt preventive maintenance practices, thereby boosting the MRO market. The trend is particularly strong in regions such as Europe, where regulatory frameworks are highly developed.

The role of Automotive Repair And Maintenance Services in the MRO market is becoming increasingly significant as vehicle owners seek reliable and cost-effective solutions for maintaining their cars. These services encompass a wide range of offerings, from routine maintenance tasks such as oil changes and brake inspections to more complex repairs involving engine and transmission systems. The growing complexity of modern vehicles, with their advanced electronic components and systems, necessitates specialized skills and equipment, which these services are well-equipped to provide. As a result, the demand for professional automotive repair and maintenance services is on the rise, driven by the need for expertise and the assurance of quality service.

From a regional perspective, the Asia Pacific region is witnessing robust growth in the passenger cars MRO market, driven by rapid urbanization, rising disposable incomes, and a burgeoning middle class. Countries like China and India are experiencing a significant increase in vehicle ownership, which, in turn, drives the demand for MRO services. Similarly, Latin America shows promising growth due to improving economic conditions and increasing vehicle sales. However, the market in North America and Europe is relatively mature but continues to grow steadily due to the aging vehicle fleet and high consumer awareness regarding vehicle maintenance.

Service Type Analysis

Engine overhaul services constitute a substantial segment of the passenger cars MRO market. Engine maintenance is critical for the longevity and performance of a vehicle, and this segment encompasses a wide range of services including complete engine rebuilds, part replacements, and performance enhancements. The increasing complexity of modern engines, with their advanced fuel injection systems and turbochargers, necessitates specialized skills and equipment for maintenance, thereby driving the demand for professional engine overhaul services. Additionally, the growing trend of remanufactured and refurbished engine parts offers a cost-effective solution for vehicle owners, further propelling the segment's growth.

Transmission services are another vital part of the MRO market. Tr

The global passenger car aftermarket service market is experiencing robust growth, driven by an aging vehicle fleet, increasing vehicle complexity, and a rising preference for vehicle maintenance over replacement. The market size in 2025 is estimated at $500 billion, exhibiting a Compound Annual Growth Rate (CAGR) of 5% from 2025 to 2033. This growth is fueled by several key factors. Firstly, the increasing average age of vehicles globally leads to a higher demand for repairs and maintenance services. Secondly, modern vehicles incorporate advanced technologies, making repairs more specialized and expensive, thus contributing to market expansion. Lastly, consumers are increasingly opting for cost-effective maintenance and repair options rather than purchasing new vehicles, particularly in the face of economic uncertainty or rising new car prices. This trend significantly boosts the demand for aftermarket services. The segment is further segmented by service type (cleaning, general repair, overhaul) and vehicle type (passenger cars, vans, SUVs, pickup trucks). Passenger cars constitute the largest segment, reflecting their higher penetration rates globally. Within the passenger car segment, the general repair and maintenance sub-segment dominates, driven by routine servicing needs and the relatively lower cost compared to overhauls. However, the overhaul segment is projected to witness faster growth due to the increasing age and mileage of vehicles in operation. Geographically, North America and Europe currently hold the largest market share, benefiting from a high density of vehicles and a well-established aftermarket infrastructure. However, rapidly developing economies in Asia-Pacific, particularly China and India, are emerging as significant growth hotspots, driven by expanding vehicle ownership and increasing disposable incomes. The competitive landscape is characterized by a mix of large multinational corporations and smaller, regional players, catering to diverse needs and service levels. Companies like Dynatrade, Allison Transmission, and ZF Friedrichshafen AG are key players, while numerous independent garages and specialized workshops also contribute significantly to the market's vibrancy.

As of March 31, 2024, passenger cars in Japan had an average age of approximately 9.34 years. Over the past decade, the average age of passenger cars increased steadily, hinting at improved durability of vehicles owned in Japan. The Japanese automobile landscape The Japanese automotive industry developed rapidly during the 'economic miracle' post-World War II, making the country one of the largest motor vehicle producers in the world. While international competition within the automobile sector is tight, Japanese engineering is highly valued in its home market and abroad. Domestically produced cars are primarily exported to North America, whereas imported passenger cars arrive predominantly from Europe, followed by imports from Africa and other Asian regions. Domestic passenger car usage Japan’s usage rate of passenger cars was much higher among car owners from rural regions compared to those living in the country’s metropolitan areas, such as Tokyo or Osaka. Due to rising environmental awareness, green vehicle technologies, and car-sharing services that started to pick up in Japan, a new approach to vehicle usage and purchase behavior has likely been sparked.

Auto parts manufacturers build miscellaneous parts and equipment, including exhaust systems, airbags, heating, ventilation, air conditioning systems (HVAC) and filtration devices. Manufacturers faced significant challenges through the current period, with the COVID-19 pandemic, inflationary pressures and supply chain disruptions eroding underlying conditions for auto parts production. Similarly, new tariff policies threaten supply chains while potentially making domestic auto parts more attractive. However, this will likely come at the cost of less favorable exchange rates and retaliations, limiting revenue from export markets in Canada and Mexico. Overall, revenue for auto parts manufacturers has stabilized at an expected CAGR of 1.5% to $ 70.8 billion through the current period, including a 0.8% spike in 2025, where profit reached 5.5%. Auto parts manufacturers also endured significant supply chain volatility following the pandemic and the Russian invasion of Ukraine. Skyrocketing steel and semiconductor prices limited profit growth, especially in 2021, though prices have started to normalize. Once again, tariffs threaten supply chains, potentially leading to a new wave of costs. Offshoring trends have also battered auto parts manufacturers; low wages in Mexico and China have encouraged massive offshoring. Similarly, competition from countries with advanced technology, manufacturing and automotive sectors, like Japan, South Korea and Germany, has added to foreign pressure for producers, leading to significant import penetration and market saturation. Auto parts manufacturers will benefit from an economic resurgence during the outlook period. Stable economic growth and muted inflation will support consumer confidence and real incomes, boosting car sales. Average vehicle age will also increase, supporting aftermarkets, specifically demand for repairs on existing vehicles. However, the dollar may appreciate further, driven my protectionist trade policies. Electric and autonomous vehicles, alongside other safety and sustainability innovations, will also create more niche markets for auto parts manufacturers. Overall, revenue for auto parts manufacturers will expand at an expected CAGR of 1.8% to $77.5 billion through the outlook period.

In 2021, Baby Boomers were the main new car buyers in the United States, representing around ** percent of new car sales. By contrast, Gen X made up the majority of the used car buyers, at close to ** percent of the sales.

The US Automotive Service & Repair Industry is Segmented by Vehicle Type (Passenger Cars and Commercial Vehicles), Service Type (Mechanical, Exterior and Structural, and Electrical and Electronics), and Equipment Type (Tires, Seats, Batteries, and Other Equipment Types). The report offers market size and forecasts for the United States Automotive Service Market in value (USD Billion) for all the above segments.