Is the Automotive Aftermarket Still a Good Investment in the Age of EVs?

The rise of electric vehicles (EVs) is changing the automotive industry, but does that mean the traditional automotive aftermarket is heading for decline? Not necessarily. While EVs have fewer moving parts and need less routine maintenance, millions of gas-powered and hybrid vehicles will remain on the road for years.

The EV market is growing quickly. According to Fortune Business Insights, the global electric vehicle market was valued at $927.69 billion in 2025. It is projected to grow from $1.02 trillion in 2026 to $2.19 trillion by 2034, at a CAGR of 9.97%. As more buyers turn to battery-powered and hybrid vehicles, the aftermarket will need to adapt to changing service and repair needs.

So, is investing in the automotive aftermarket still a smart move? The answer depends on where businesses focus their efforts. From traditional repair and refinishing to EV-related services, there are still opportunities for businesses willing to evolve.

The Numbers Still Point to Growth

The shift toward electric vehicles does not mean the automotive aftermarket is losing relevance. In fact, the market continues to grow, supported by the large number of vehicles already on the road.

Older vehicles typically need more maintenance and replacement parts, creating steady demand for aftermarket services. According to Grand View Research, the global automotive aftermarket industry was worth $489.5 billion in 2025. It is projected to reach $643.8 billion by 2033, growing at a CAGR of 3.4% from 2026 to 2033.

EVs are also creating new opportunities within the industry. While they may require less routine maintenance, they still need specialized diagnostics, battery-related services, charging equipment, tires, brakes, and collision repairs.

For aftermarket businesses, the opportunity lies in adapting their services and equipment to meet the needs of a vehicle market that is becoming more diverse.

Why EVs Aren't Killing the Aftermarket, Just Reshaping It

EVs are changing the automotive aftermarket, but they are not making it disappear. Some traditional revenue streams, such as oil filters, exhaust systems, and transmission repairs, are largely unnecessary for EVs.

However, electric vehicles are creating demand for new products and services. According to the latest report by IMARC Group, the global electric vehicle aftermarket reached $98.6 billion in 2025. This market covers products and services for maintaining, repairing, customizing, and upgrading EVs, including tires, batteries, power electronics, inverters, and charging systems.

Tires and brakes also remain relevant, as EVs are generally heavier and use regenerative braking alongside conventional friction brakes. For aftermarket businesses, the shift presents an opportunity to expand into EV-compatible products, equipment, and services. Businesses that adapt to these changing needs can remain competitive as the vehicle market evolves.

Collision Repair Could Remain a Resilient Segment

Collision repair could remain a steady part of the automotive aftermarket as EV adoption grows. Even as vehicles become more advanced, accidents will continue to create demand for bodywork, refinishing, replacement parts, and specialized repair services.

Florida is a useful example of why this segment could remain relevant. An analysis of National Highway Traffic Safety Administration data found that Florida recorded a 200% increase in fatal road rage crashes from 2023 to 2024.

As collision repair shops handle increasingly diverse vehicles, they may also need to update their facilities and equipment to meet changing repair requirements.

For local collision repair shops, investing in modern equipment through Florida paint booth sales can help create the controlled refinishing environments needed for today's vehicle materials. Modern paint booths can support efficient refinishing while helping shops maintain consistent results.

GSB Industries notes that properly maintained booths can improve customer satisfaction and retention by delivering consistent results. They can also create a safer workplace by helping protect crews from hazardous fumes and supporting compliance with state codes and regulations.

An Aging Vehicle Fleet Could Keep Repair Demand Strong

The growing number of EVs on the road does not mean gas-powered vehicles will disappear anytime soon. Many drivers are keeping their existing vehicles longer, particularly as the cost of buying a newer vehicle remains high. Older vehicles typically require more maintenance, repairs, and replacement parts, creating steady opportunities for the automotive aftermarket.

According to S&P Global Mobility, the average age of U.S. light vehicles rose to 12.8 years in 2025, increasing by two months for the second consecutive year. Todd Campau, Aftermarket Practice Lead at S&P Global Mobility, notes that the vehicle fleet remains resilient despite high new and used vehicle prices and economic uncertainty. Many consumers are continuing to hold onto their existing vehicles rather than replacing them.

This trend can help sustain demand for aftermarket services and replacement parts.

For repair shops, parts suppliers, and service businesses, an aging fleet creates opportunities to serve both traditional ICE vehicles and newer EVs. Businesses that can accommodate both types of vehicles may be better positioned as the market gradually shifts toward electrification.

The Skills and Equipment Gap Is the Real Opportunity

One of the biggest opportunities in the automotive aftermarket may be the gap between growing demand for EV services and the number of shops prepared to provide them. Electric vehicles require different tools, diagnostic systems, safety procedures, and technical knowledge than many traditional vehicles.

Yet, many independent repair shops may still lack the equipment and trained technicians needed to handle these requirements confidently. This creates an opportunity for businesses willing to invest ahead of the curve.

Shops can prepare by training technicians in high-voltage systems, upgrading diagnostic tools, and adapting facilities for EV servicing. As more EVs leave their original warranties and enter the independent repair market, demand for qualified service providers is likely to increase.

Businesses that develop EV capabilities now can serve growing demand while continuing to support traditional vehicles.

FAQs

Will EVs reduce demand for traditional auto repair?

EVs are likely to reduce demand for some services, such as oil changes, exhaust repairs, and certain transmission work. However, traditional vehicles will remain on the road for many years, and they will continue to need maintenance and repairs. Businesses that can serve both ICE and EV customers can adapt as the vehicle mix changes.

What opportunities do EVs create for the automotive aftermarket?

EVs are creating demand for specialized diagnostics, battery and high-voltage system services, charging equipment, tires, brakes, collision repair, and technician training. Repair shops that invest in the right equipment and develop EV-specific skills can position themselves to serve this growing segment.

Why are older vehicles important to the automotive aftermarket?

Older vehicles can sustain aftermarket demand because they typically need more maintenance, repairs, and replacement parts. With high vehicle prices, many owners are keeping their cars longer, extending the need for servicing. This aging fleet can provide steady opportunities for aftermarket businesses even as EV adoption grows.

Key Statistics at a Glance

The automotive aftermarket is not losing relevance because of EVs. Instead, it is evolving alongside them. Traditional services linked to combustion engines may decline over time, but new opportunities are emerging around batteries, tires, brakes, and specialized repair equipment.

The overall aftermarket continues to grow, while EV-related services are creating additional demand. For investors and operators, the focus should be on adapting to these changes rather than choosing between traditional and electric vehicles. Businesses that upgrade equipment, train technicians, and expand services can stay competitive as the industry shifts toward electrification.