Tightening Emission Regulations in the United States Drive Growth in Automotive Sensors Aftermarket
As more states in the United States adopt the California Air Resources Board’s (CARB) emissions standards, emissions testing for all vehicles are being made mandatory. The growing number and importance of sensors for managing emissions in North American vehicles is expected to bolster the automotive sensors aftermarket. The twice-yearly emissions testing increase the likelihood of regular detection and replacement of failed sensors, giving a major boost to the aftermarket, especially oxygen and mass airflow (MAF) sensors.
This Frost & Sullivan research service analyses the North American selected automotive sensors aftermarket, segmenting it into engine and emission sensors such as oxygen sensors, manifold absolute pressure (MAP) sensors, and MAF sensors. It discusses the various trends and opportunities while providing market share analysis, forecasts, drivers, restraints, and revenues. The study enables companies to align their positioning strategies to benefit from the changing and obtain maximum return on investment.
Growth in Installed Base of
Automotive Sensors and Rising Fuel Prices Boost Replacement Potential
The rapidly growing installed base of sensors and increasing fuel prices present good opportunities for existing and emerging participants in the automotive sensors aftermarket to promote the regular replacement of engine and emission management sensors. Rising fuel prices are expected to accelerate a shift to diesel-powered vehicles that use MAF sensors. Original equipments installations and advanced technology engines need these sensors. Some in-line four-cylinder engines now have split exhaust manifolds, equipped with an oxygen sensor.
On the other hand, the installation rate of MAP sensors is supported by their price advantage and continued use by General Motors, thus maintaining their replacement demand. Introduced in the year 1996, the oldest wide band oxygen sensors are entering their replacement age, driving the aftermarket demand. In addition, a considerable number of vehicles are currently operating with non-functional or less than optimally functional sensors. Hence, leading aftermarket suppliers are promoting fuel cost savings assured by oxygen sensor replacement as a regular maintenance activity, thereby improve the automotive sensors market.
Introduction of Technologically Sophisticated and Expensive Sensors Bolster Market-Wide Average Prices
In terms of the entire oxygen sensors aftermarket, the introduction of the more-expensive wide band sensors is a price driver, since the market-wide weighted average price is expected to rise as the unit share of wide band sensors increases. Also, heated oxygen sensors that are more expensive compared to unheated ones are generating an increasing amount of unit shipments. This is likely to boost the total average price of oxygen sensors and of the average automotive sensor.
Demand for replacement of MAP sensors is comparatively low. Hence, MAP suppliers are enjoying greater pricing freedom with limited market participation and competition. Next-generation single-chip MAP sensors use monolithic integrated circuits that combine the sensing and signal conditioning functions in one chip. They come at a higher price and is expected to affect the aftermarket prices when these units start generating replacement demand Expensive MAP sensors that combine temperature/pressure are also anticipated to drive the weighted-average price of the automotive sensors.
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