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Strategic Analysis of the North American Light Vehicle Ride Control Aftermarket
Frost & Sullivan, Dec 2010, Pages: 80
This is a powerpoint based research service that provides strategic analysis of the North American Light Vehicle Ride Control aftermarket. Industry challenges and opportunities are highlighted across the forecast period, and strategic recommendations are made where appropriate. Market drivers and restraints for shock absorbers, struts, coil springs, strut mounts, and performance products are outlined. Unit shipment, revenue, and average pricing forecasts from 2010 to 2016, along with historical data from 2006 to 2009, are provided at the total level and at each product level. A competitive analysis of major manufacturers, along with information on market share by revenues for each manufacturer, is presented.
This Frost & Sullivan research service titled Strategic Analysis of the North American Light Vehicle Ride Control Aftermarket outlines market drivers and restraints for shock absorbers, struts, coil springs, strut mounts, and performance products. In this research, Frost & Sullivan's expert analysts thoroughly examine the North American automotive aftermarket, advanced automotive technologies and the light vehicles (class 1-4) sectors, in particular.
Market Overview
Light Vehicle Ride Control Aftermarket to Grow Rapidly in the Immediate Future
The light vehicle ride control aftermarket is expected to grow in the immediate future, despite historical declines. This is due to a combination of favorable circumstances for shock absorbers, struts, coil springs, and strut mounts in the standard replacement aftermarket, as well as increased consumer participation in the performance aftermarket. “The light vehicle ride control aftermarket is expected to see a period of growth stability through 2016 due to an increase in consumer maintenance spending and performance of deferred maintenance jobs,” says the analyst of this research service. “Another contributing factor is an increase in average vehicle age.” Increased spending is expected to drive the purchase of premium replacement parts, as consumers invest in quality components that will be maintained instead of traded in. This will drive up the average price of replacement parts. While entry-level parts will remain the largest revenue-generating category, consumers are expected to target entry-level products with a high degree of differentiation, even if these products also carry a modest price premium.
A key restraint in this category continues to be a lack of consumer maintenance. Underperformed ride control maintenance acts to concentrate and commoditize the market mainly due to low margins that are created by inter-manufacturer price competition. This, in turn, challenges all industry participants, including distributors and installers. “The potential for market expansion depends greatly on a company’s ability to avoid commoditization of its products and remain price-competitive with competing manufacturers,” observes the analyst. “Product innovation and strategic product placement will be very significant factors for success in this market.”
Going forward, manufacturers in the light vehicle ride control aftermarket should invest in installer and consumer education and develop products that compete on features and functionality basis. Differentiation in terms of product applications and technology is critical to avoid growth limitations due to eventual market stagnation. “Manufacturers should understand that consumers are interested in keeping and maintaining their current vehicles,” states the analyst. “Thus, market share leaders must identify opportunities to drive the sales of premium products by competing in terms of quality per dollar.”
Market Sectors
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
- Automotive Aftermarket
- North American Advanced Automotive Technologies
- Light Vehicles (class 1-4)
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