AIA Canada has released the 2022 edition of its flagship Outlook Study research report which predicts a healthy aftermarket landscape ahead, but does also say to expect some headwinds to continue.

Macro trends, says the report authored by Ernst & Young, has seen vehicles in operation (VIOs) grow steadily since 2020, with consumer preferences continuing to shift from passenger cars to light trucks.

VIOs are projected to see healthy increase over the next few years, indicating growing demand for aftermarket products and services.

The study says that kilometers travelled rebounded quickly in 2021, returning to pre-pandemic levels, but notes that continuing higher fuel prices may have a longer term dampening effect, deterring non-essential travel.

Echoing sentiments from many corners of the automotive space, the study also says the number of electric vehicle (EV) registrations in Canada is expected to grow exponentially over the next few years with electric vehicles projected to make up nearly half of total new vehicle registrations by 2028.

To date in 2022, 12.7% of new vehicle registrations in Canada were battery electric, hybrid electric, or plug-in hybrid electric vehicles.

Those vehicles are likely to draw on different skill set, and the study looks into more detail about what is being required to add these capabilities.

In the face of these opportunities for the aftermarket, the study does identify some key headwinds, with inflation heading the list.
The study says that this will particularly affect input prices for goods, putting pressure on profitability and sustainability.

The study singled out small and medium enterprises as expected to be bearing the brunt of the impacts.

The AIA Canada Outlook Study is free to members.

To obtain a copy, visit AIA Canada 2022 Outlook Study

An interactive Data Visualization Tool is also available

Key finding of the Outlook Study are covered in an AIA Canada webinar recording below.