Canada Auto Parts Market Research Report By End-User (OEM, Aftermarket) and By Distribution Channel (Offline, Online) - Forecast to 2035

Canada Auto Parts Market Overview:

As per MRFR analysis, the Canada Auto Parts Market Size was estimated at 28.04 (USD Billion) in 2023. The Canada Auto Parts Market Industry is expected to grow from 29.78 (USD Billion) in 2024 to 40 (USD Billion) by 2035. The Canada Auto Parts Market CAGR (growth rate) is expected to be around 2.72% during the forecast period (2025 - 2035).

Key Canada Auto Parts Market Trends Highlighted

The Canada Auto Parts Market is currently experiencing significant growth driven by several key market drivers. A noticeable shift toward electric and hybrid vehicles is pushing manufacturers to adapt and innovate. As Canada works towards its emissions reduction targets, there is an increasing demand for auto parts that support electric vehicle (EV) technologies, including batteries and charging systems. This transition is supported by government initiatives promoting environmentally friendly vehicles, which presents opportunities to be explored in the realm of sustainable auto parts production. Recent market trends indicate a growing preference among consumers for high-quality and durable auto parts, prompting retailers and manufacturers to prioritize product reliability.

Also, the growing trend of e-commerce is transforming how people purchase auto parts, spurring the development of online and direct sales avenues. These changes are critical in serving consumers who prefer fast and accessible information about products. In addition, an increased focus on regional sourcing of auto parts in order to reduce supply chain risks. Canadian companies dealing in auto parts are considering collaborations with domestic sourcing firms to strengthen the supply chain. Along with these observations, there seems to be a shift towards adopting new technologies such as AI and robotics in manufacturing processes, which signals a broader digital transformation for those companies.

The Canadian government continues to support innovation in the auto parts sector, creating an environment ripe for growth and advancement as it aligns with broader national labor and economic goals.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Canada Auto Parts Market Drivers

Rise in Vehicle Ownership in Canada

The CanadaAuto Parts Market Industry is experiencing significant growth due to the rising ownership of vehicles. According to Statistics Canada, the number of registered vehicles has increased consistently, reaching approximately 25 million in 2021, which is projected to grow as urban populations expand. 

This trend drives demand for auto parts as maintenance and replacement parts become essential for the growing vehicle fleet. With an established automotive industry in Canada, major companies such as Magna International Inc. and Linamar Corporation are well-positioned to benefit from this trend, supplying a variety of parts to meet the needs of Canadian consumers. The increasing trend towards personal vehicle ownership, particularly among younger demographics, further supports the forecasted growth in the Canada Auto Parts Market.

Technological Advancements in Automotive Industry

Technological innovation is a key driver in the Canada Auto Parts Market Industry, with advancements such as electric vehicles (EVs) gaining traction. The Canadian government has implemented programs promoting the adoption of EVs, which is expected to increase the demand for specialized auto parts. In 2020, the Canadian Automotive Partnership Council reported that the EV market share in Canada could reach 24% by 2030. Companies like Tesla and Canadian manufacturers are gearing up to provide the necessary components for EVs, propelling the market forward.

The impact of these technological advancements is evident as consumers show a growing preference for vehicles equipped with modern technologies.

Growing DIY Culture among Canadian Consumers

The rise of the do-it-yourself (DIY) culture among Canadian consumers is significantly influencing the Canada Auto Parts Market Industry. Recent surveys indicate that nearly 70% of Canadians are increasingly engaging in DIY automotive repairs and maintenance to save costs. This trend has prompted local retailers and online platforms to stock a wider variety of auto parts, responding to consumer preferences for repairs and upgrades. Additionally, major auto parts retailers like Canadian Tire Corporation have reported increased sales in spare parts over the past few years, highlighting the opportunities within the market fueled by consumer-driven initiatives.

Government Regulations and Environmental Standards

Government regulations aimed at reducing carbon emissions and promoting environmentally friendly vehicles are driving growth in the Canada Auto Parts Market Industry. For instance, Canada has set ambitious targets to increase the number of zero-emission vehicles on the road, with regulations mandating that at least 20% of all new vehicle sales be zero-emission by 2026. This regulatory framework encourages automakers to innovate and develop green technologies, creating a demand for new types of auto parts suited for these vehicles.

Companies like Ford Motor Company and General Motors are investing heavily in research and development (R) to transition their fleets, thereby positively impacting the auto parts market in Canada.

Canada Auto Parts Market Segment Insights:

Auto Parts Market End-User Insights

The Canada Auto Parts Market, with its robust growth trajectory, serves various End-Users primarily categorized into Original Equipment Manufacturers (OEM) and the Aftermarket. OEM plays a crucial role, as it includes parts that are manufactured specifically for integration into new vehicles. In Canada, automakers rely heavily on OEM parts to ensure their vehicles meet safety and performance standards, thereby enhancing customer satisfaction and brand loyalty. Given Canada's rich automotive industry presence, which ranks among the top automotive manufacturing nations, OEM components continue to experience significant demand throughout the region.

Conversely, the Aftermarket segment provides a wide range of replacement parts and accessories for vehicles already in circulation. This sector is vital not only for maintaining vehicles but also for fulfilling the needs of an increasing number of consumers who prefer cost-effective repair solutions and upgrades. The Aftermarket in Canada benefits from extensive vehicle usage, with a record number of vehicles on the road, leading to ongoing and growing demand for replacement parts. Moreover, consumer trends toward customization and eco-friendly upgrades further drive this market segment's growth.

Challenges such as rising raw material costs and evolving regulations continue to shape the landscape of both segments. However, the growing emphasis on sustainability and innovation presents opportunities for companies operating in the Canada Auto Parts Market, allowing them to develop more efficient and eco-friendly products. This shift not only enhances the overall market landscape but also aligns with Canada's commitment to reducing its carbon footprint. Thus, as these segments evolve, their significance continues to reshape the Canada Auto Parts Market dynamics, establishing a clear path for future advancements.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Auto Parts Market Distribution Channel Insights

The Distribution Channel segment of the Canada Auto Parts Market plays a vital role in the accessibility and availability of products to consumers and businesses alike. With a growing emphasis on convenience and customer preference, both Offline and Online channels are significant contributors to market dynamics. The Offline segment traditionally represents a majority holding in the distribution of auto parts, as it encompasses local automotive supply stores and dealerships, allowing consumers to see and evaluate products firsthand. This segment benefits from established relationships with consumers, providing personalized service and expert advice.

Conversely, the Online segment has started gaining traction, driven by the increasing penetration of e-commerce in Canada. The convenience of online shopping and the availability of a wide array of parts at competitive prices cater to the evolving consumer behavior toward digital transactions. Furthermore, the rise of mobile technologies and improved online platforms has enabled consumers to access auto parts seamlessly while facilitating a wider market reach for suppliers. As the industry grows, innovation in delivery logistics and increased consumer trust in online shopping are expected to sustain progress within the Canada Auto Parts Market, driven by both these channels.

The evolving preferences and technological advancement emphasize the importance of product availability and customer-centric strategies within the distribution landscape in Canada.

Canada Auto Parts Market Key Players and Competitive Insights:

The Canada Auto Parts Market has increasingly become a dynamic arena characterized by robust competition among various players, each striving to capture a significant share of the market through innovative solutions and strategic positioning. Factors such as consumer demand for advanced automotive technologies, the shift toward electric vehicles, and the rising need for enhanced vehicle performance have augmented the competitive landscape. Additionally, the necessity for lightweight, durable, and performance-oriented components drives manufacturers to invest in research and development, further intensifying competition. By analyzing the market trends, understanding consumer preferences, and navigating regulatory landscapes, firms in this sector are focused on leveraging technological advancements to differentiate their products and improve operational efficiencies, ultimately shaping the future of automotive aftermarket and manufacturing in Canada.

Readylift Suspension consolidates its presence in the Canada Auto Parts Market by offering high-quality suspension leveling kits and lift systems that are designed to enhance vehicle performance and aesthetics. The company is well-regarded for its extensive range of products catering to various vehicle categories, including trucks, SUVs, and certain off-road vehicles, enabling it to build a loyal customer base. One of the significant strengths of Readylift Suspension lies in its reputation for producing durable and reliable products that meet the rigorous demands of Canadian terrain and weather conditions. Furthermore, its commitment to innovative designs and user-friendly installation processes provides an edge over competitors, allowing consumers to experience enhanced driving dynamics without compromising safety. As such, Readylift Suspension is well-positioned to capitalize on the growing interest in vehicle customization and performance upgrades among Canadian consumers.

Hickok Incorporated showcases a strong presence in the Canada Auto Parts Market as a significant provider of automotive diagnostic tools and components. The company provides key products and services, such as electronic control module testing and automotive connectors, which are essential for advancing vehicle diagnostics and repairs. Hickok Incorporated’s strengths lie in its commitment to quality and innovation, facilitating the development of products that meet the high standards prevalent in the Canadian automotive industry. The company has also undertaken various strategic mergers and acquisitions to enhance its capabilities and market reach within Canada, ensuring it remains competitive and relevant in the ever-evolving landscape of auto parts manufacturing. By focusing on quality, embracing innovation, and expanding its product range through strategic acquisitions, Hickok Incorporated solidifies its role as a trusted partner for automotive technicians and service providers across Canada, contributing to the overall growth of the auto parts market in the region.

Key Companies in the Canada Auto Parts Market Include:

• Readylift Suspension


• Hickok Incorporated


• Valeo


• Delphi Technologies


• Magna International


• Bosch


• Tenneco


• Continental AG


• Spectra Premium


• Mann+Hummel


• Denso


• Aisin Seiki


• Martinrea International


• Linamar


• KSR International

Canada Auto Parts Market Industry Developments

Recent developments in the Canada Auto Parts Market have been marked by significant activities among major players. In July 2023, Magna International announced its plans to invest in electric vehicle components, reflecting a shift towards eco-friendly production methods. This transition is supported by the increasing demand for sustainable auto parts in Canada. In August 2023, Denso unveiled its new manufacturing facility in Windsor to enhance its production capacity of advanced automotive technologies such as sensors and control units.

Additionally, Valeo has been expanding its operations in Canada as part of its commitment to innovation in vehicle electrification. There have been notable mergers and acquisitions within the sector; for instance, in September 2023, Tenneco completed the acquisition of a minority stake in a Canadian cleantech company focusing on automotive emissions reduction technologies.

This move is part of a broader trend toward consolidation aimed at increasing market share and capability in the rapidly evolving automotive landscape. Over the past few years, companies like Linamar have also expanded their operations domestically, resulting in job creation and enhancing their market valuation, contributing to the overall growth of the Canadian auto parts sector as it adapts to technological advancements and environmental regulations.

Auto Parts Market Segmentation Insights

Auto Parts Market End-User Outlook

• OEM


• Aftermarket

Auto Parts Market Distribution Channel Outlook

• Offline


• Online

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	28.04(USD Billion)
MARKET SIZE 2024	29.78(USD Billion)
MARKET SIZE 2035	40.0(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	2.72% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Readylift Suspension, Hickok Incorporated, Valeo, Delphi Technologies, Magna International, Bosch, Tenneco, Continental AG, Spectra Premium, Mann+Hummel, Denso, Aisin Seiki, Martinrea International, Linamar, KSR International
SEGMENTS COVERED	End-User, Distribution Channel
KEY MARKET OPPORTUNITIES	Electric vehicle components demand, Aftermarket parts growth, Sustainable material sourcing, Connected vehicle technologies, E-commerce expansion for auto parts
KEY MARKET DYNAMICS	increasing electric vehicle production, growing online auto parts sales, stringent government regulations, rising consumer maintenance awareness, supply chain disruptions
COUNTRIES COVERED	Canada