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North American Commercial Vehicles Aftermarket Overview, 2018

  • Report

  • 110 Pages
  • December 2018
  • Region: North America
  • Frost & Sullivan
  • ID: 4721851

Aftermarket Parts Replacement Revenue is Expected to Reach $28.98 Billion by 2025

The goals of the study are to analyze the North American medium and heavy duty (Class 4–8) commercial vehicles (CV) aftermarket and to project this market’s future outlook and the opportunities it offers to different participants in the value chain.

The study discusses the impact of various factors based on economic, legislative, operational, technological, and aftersales trends on the CV aftermarket industry. It also examines how these factors influence the below elements.

  • Aftermarket dynamics, such as freight demand and new revenue stream opportunities
  • Aftermarket related factors, such as new vehicle sales, average age of vehicle, and vehicle miles traveled
  • Consumer behavior, such as preference towards value label and remanufactured parts

The impact of the above elements on each other and on various stakeholders of the aftermarket such as OES players, IAM suppliers, distribution channel participants, fleet operators, garages, and third-party service providers are also discussed.

This study also covers major disruptions in this market and discusses the implications on the aftermarket participants, which are as listed below.

  • OES (Original Equipment Supplier) participants are targeting to eat into the market share of the IAM (Independent Aftermarket) channel, through their private label parts for all make and model vehicles
  • Connected ecosystem – stakeholders across the value chain are partnering with TSP (Telematics Service Providers)
  • Electric and Autonomous vehicles – All major OEMs have vehicles under trials and are expected to account for a significant share of sales by the end of forecast period
  • Right to repair – Enables IAM players to have access to technical details and repair procedures, which were earlier restricted to the respective OEMs (Original Equipment Manufacturers)

The study additionally discusses what drives the connected ecosystem and digitization related trends such as prognostics, in-vehicle sales and service scheduling, adoption of technology by service chains, and telematics solutions.

Research Scope

  • To research, analyze, and predict key strategies for all aftermarket stakeholders in the CV aftersales market
  • To understand the impact of key factors and their respective sub-factors on CV aftersales business opportunities
  • To present key trends impacting the trucking industry and how they affect the aftermarket
  • To understand the shift in OEMs’ approach towards aftersales and services
  • To assess the current and expected future changes in the CV aftersales market with respect all stakeholders

Key Issues Addressed

  • What are the major factors affecting the CV aftermarket and what is their impact?
  • How are the stakeholders adapting to the changing dynamics and what are the opportunities available?
  • Which are the replacement parts that would experience growth or decline?
  • What are the emerging trends in parts sales and vehicle servicing?
  • Will the CV aftermarket have a significant impact with the introduction of electric and autonomous vehicles?

Table of Contents

1. Executive Summary
  • Executive Summary - Key Findings
  • Executive Summary - Key Trends
  • Opportunities for Major Parts
  • Factors Affecting CV Industry
  • Current & Future Outlook

2. Research Scope, Objectives, Background, and Methodology
  • Research Scope
  • Research Aims and Objectives
  • Key Questions this Study will Answer
  • Research Background
  • Research Methodology

3. Definitions and Segmentation
  • Market Definitions
  • Vehicle Segmentation

4. Market Overview
  • VIO by Class
  • Average Annual Vehicle Miles Traveled (VMT) by Class
  • Market Size by Revenue for Major Replacement Parts
  • Revenue Share by Distribution Channel
  • Factors Affecting CV Industry
  • Impact Level on Various Stakeholders Based on Factors

5. Economic Factors
  • Overview of Economic Factors
  • GDP - Impact on CV Aftermarket
  • GDP - Aftermarket Implication
  • Fuel Price - Impact on CV Aftermarket
  • Fuel Price - Aftermarket Implication
  • IPI - Impact on CV Aftermarket
  • IPI - Aftermarket Implication
  • Economic Factors - Impact on Various Stakeholders

6. Legislative Factors
  • Overview of Legislative Factors
  • ELD Mandate
  • ELD - Aftermarket Implication
  • Overview of Right to Repair
  • Right to Repair - Current Scenario
  • Right to Repair - Aftermarket Implication
  • CSA Violations
  • CSA Violations - Aftermarket Implication
  • Legislative Factors - Impact on Various Stakeholders

7. Operational Factors
  • Overview of Operational Factors
  • Truck Tonnage Index (TTI)
  • TTI - Aftermarket Implication
  • Aging Truck Population Impact on Replacement Parts
  • Aging Truck Population - Aftermarket Implication
  • Shortage of Skillsets (Drivers and Diesel Engine Specialists)
  • Shortage of Skillset - Aftermarket Implication
  • Operational Factors - Impact on Various Stakeholders

8. Technology Trends
  • Overview of Technological Factors
  • Connected Trucks
  • Connected Trucks - Installed Base
  • OEMs and Suppliers Focus on Multiple TSPs
  • Connected Trucks - Aftermarket Implication
  • Electric Trucks
  • Electric Trucks - Aftermarket Implication
  • Autonomous Trucks
  • Platooning
  • Autonomous Trucks - Aftermarket Implication
  • Blockchain
  • Technological Factors - Impact on Various Stakeholders

9. Aftersales Factors
  • Overview of Aftersales Factors
  • Overview of Remanufacturing Industry
  • List of Manufacturers Offering Reman Parts
  • Reman Parts - Aftermarket Implication
  • OEMs’ Focus on IAM / Private Labels
  • Private Labels - Aftermarket Implication
  • eCommerce
  • eCommerce - Aftermarket Implication
  • Aftersales Factors - Impact on Various Stakeholders

10. Growth Opportunities and Companies to Action
  • Growth Opportunity
  • Strategic Imperatives for Success and Growth

11. Profiling of Key Players
  • Daimler Trucks North America LLC (DTNA)
  • Business Strategy and Growth Opportunity (DTNA)
  • Navistar
  • Business Strategy and Growth Opportunity (Navistar)
  • Business Strategy and Growth Opportunity (PACCAR)
  • Cummins
  • Business Strategy and Growth Opportunity (Cummins)
  • Meritor
  • Business Strategy and Growth Opportunity (Meritor)
  • Allison Transmission
  • Business Strategy and Growth Opportunity (Allison Transmission)
  • Dana
  • Business Strategy and Growth Opportunity (Dana)

12. Conclusion and Future Outlook
  • Key Conclusions and Future Outlook
  • The Last Word - 3 Big Predictions
  • Legal Disclaimer

13. Appendix
  • Market Engineering Methodology
  • List of Exhibits

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Allison Transmission
  • Cummins
  • Daimler Trucks North America LLC
  • Dana
  • Meritor
  • Navistar