12/5/2024 Industrial Thought Leadership

Baird's Aftermarket Week Recap and 2025 Outlook

Baird’s Vehicle Technology & Mobility team recently had a strong presence at the Vehicle Aftermarket’s premier trade show – SEMA & AAPEX (“Aftermarket Week”). Baird’s Aftermarket Week presence has spanned the last 15+ years, and the team continues to enjoy the intriguing dialogue with the industry’s most active and influential investors and executives.

2024 Aftermarket Week was highly active for the Baird team, including over 180 client / executive interactions and nearly 150 reception attendees. This strong engagement drives our insights around how key themes of 2024 have developed over the year and informs our expectations for the Vehicle Aftermarket in 2025.

Report cover for Baird's aftermarket week recap and 2025 outlook

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Top 5 Expectations for the Vehicle Aftermarket in 2025

M&A activity in the aftermarket is positioned for a continued rebound, especially as earnings growth continues to improve with long-hold sponsor-backed assets; strategic portfolio reviews will also create opportunities

Needs-based categories are expected to maintain momentum, with continued relative strength in consumable and wear-part categories; vehicle affordability increasing average age also likely to persist

Consumer discretionary sales volumes will continue to gain momentum, though improvement expected to be gradual absent a substantial catalyst

Supply chain diversification and value chain strength will be one of the largest determinants of success in 2025 as policy changes impacting global trade loom large

Aftermarket fundamentals will prevail, driving continued investment from both financial sponsors and well-capitalized strategics

Contact a member of our team to discuss these takeaways or any Vehicle Technology & Mobility and Aftermarket related opportunities.