Auto Repair Industry Outlook 2025–2026

The U.S. automotive aftermarket is one of the most resilient and essential sectors in the economy. For entrepreneurs evaluating franchise opportunities in the auto repair industry, this sector offers consistent growth, driven by millions of vehicles on the road that need ongoing repair and maintenance.

AAMCO, long recognized as the nation’s leader in transmission repair and complete car care, stands out as a trusted partner for franchise owners ready to enter this thriving market.

Industry Growth and Market Size

The key to doing well in this area is to be positioned for what is to come. Here’s how to prepare. Keep in mind, traditional and emerging markets have drivers behind the wheel of a variety of vehicles. Those cars will need upgrades, maintenance, and repair. So, having techs who can work on an assortment of styles and types will serve you well moving U.S. light-duty automotive aftermarket sales grew to $413.7 billion in 2024, up 5.7% year-over-year. Including medium and heavy-duty vehicles, the entire U.S. aftermarket is projected to reach $664.3 billion by 2028, reflecting a steady compound annual growth rate (CAGR) of about 5.1%.

This upward trajectory is fueled by multiple factors: more vehicles on the road, greater average vehicle age, and consumer reliance on aftermarket service providers over dealerships. In fact, roughly 75% of all repair work occurs in independent shops or franchise networks like AAMCO rather than at manufacturer dealerships.

Vehicle Age and Consumer Behavior

• One of the most significant drivers of aftermarket demand is the age of the U.S. vehicle fleet. The average vehicle age reached a record 12.8 years in 2024, with nearly 30% of all vehicles on the road 16 years or older. Older cars require more frequent maintenance and complex repairs, a trend that will keep aftermarket demand strong for years to come.
• Consumers are also holding onto their cars longer. Delayed maintenance, which represents $36.2 billion in potential sales. For repair centers positioned to offer convenience, trust, and expertise, there is ample opportunity to convert deferred maintenance into real business.

Employment and Skilled Labor

The aftermarket also provides strong employment opportunities. As of 2024, more than 4.9 million people were employed in the U.S. auto care industry. Technician wages have steadily increased, averaging $24.15 per hour (up nearly 4% annually over the past decade). This underscores both the value of skilled labor in the sector and the importance of franchise systems, like AAMCO, that offer training and workforce development to keep talent pipelines strong.

Driving Forces in the Industry

• Aging Vehicle Fleet – Older cars mean higher demand for repair.
• Longer Vehicle Retention – Consumers keep cars longer to avoid high new car costs.
• Telematics & Data Access – Without protections, independent shops risk exclusion from repair data.
• Sustainability & Efficiency – Pressure is mounting to reduce environmental impact, pushing demand for eco-friendly repair solutions.
• Evolving Consumer Expectations – Convenience, digital engagement, and transparency are now central to customer loyalty.

Why AAMCO

Founded over 60 years ago, AAMCO has become synonymous with expertise in complex automotive repair, especially transmissions. Today, the brand represents far more: full-service repair and maintenance, training and support for franchisees, and a trusted name with consumers across North America.

• Nationally Recognized Brand: AAMCO’s reputation for technical excellence attracts customers seeking specialized repair services.
• Comprehensive Training: Ongoing education ensures franchise owners and technicians can adapt to EVs, hybrids, ADAS, and telematics.
• Marketing & Lead Generation: AAMCO leverages national advertising and digital campaigns, driving leads to local centers.
• Operational Support: From site selection to financing, franchisees benefit from proven systems designed for profitability.
• Industry Leadership: With a focus on innovation, AAMCO is preparing franchisees for the next wave of technological disruption in auto care.

Conclusion: A Growing Industry, A Trusted Partner

The aftermarket automotive repair sector continues to expand, powered by older vehicles, new technologies, and consumer reliance on trusted repair facilities. With nearly $664 billion in projected U.S. aftermarket sales by 2028, the opportunity is enormous.

AAMCO franchise owners are well positioned to benefit from this growth. With a respected brand, strong support infrastructure, and a track record of adaptation, AAMCO offers entrepreneurs the chance to build a profitable and sustainable business in one of the most resilient industries of our time.

To learn more about starting a successful transmission and auto repair franchise, request your free franchise information report today.