Automotive Aftermarket in North America Forecasts for the US, Canada and Mexico aftermarkets to 2010 and 2015
Released on = April 20, 2007, 2:39 am
Press Release Author = Bharat Book Bureau
Industry = Marketing
Press Release Summary = Demand in North America to reach $59 billion in 2010
The North American aftermarket for light vehicle components and parts is forecast to rise 3.2 percent per year, reaching $59 billion in 2010. While this rate duplicates historical trends, some segments of the market, such as electronics, will experience much faster growth.
Press Release Body = Automotive Aftermarket in North America Forecasts for the US, Canada & Mexico aftermarkets to 2010 & 2015
Demand in North America to reach $59 billion in 2010
The North American aftermarket for light vehicle components and parts is forecast to rise 3.2 percent per year, reaching $59 billion in 2010. While this rate duplicates historical trends, some segments of the market, such as electronics, will experience much faster growth. The parts aftermarket's current moderate revenue growth results from improvements in new light vehicle quality, reliability and durability. However, the emergence of aftermarket parts sourced from China will apply increasing downward pressure on parts prices.
Overall new vehicle quality and resulting durability began to improve significantly during the 1980s, as new technologies and improved electronic systems were gradually introduced into the vehicle platform. In the years since, the aftermarket has experienced a resultant slowing of demand, which is likely to continue for a few more years. However, as these "new quality" vehicles remain in the vehicle park for longer periods of time than prior vehicles, they will require additional service and repair, thus lifting future aftermarket demand.
Mechanical products aftermarket to remain dominant
Mechanical products, which include nonelectrical/ electronic engine hard parts and chassis, drivetrain and suspension parts and components, will continue to be the largest aftermarket product category. However, growth will be limited by the improved quality of these already highly durable products. Electronic parts and components will witness the highest annual growth. Demand for electronic controls and modules will remain strong, despite continued quality increases, as more vehicle systems shift to electronics. The OEM industry's hesitance to develop an integrated approach to elecronics control and embedded software virtually guarantees continued high levels of electronicsrelated quality issues and thus the need for parts replacement and repair. Solid demand for autosound equipment will continue, and should receive a significant boost from the advent of satellite radio. Replacement rates for electrical parts will grow moderately, with some categories seeing demand suppressed due to new technologies such as highly durable light emitting diode (LED) lighting. Finally, growth in the exterior and structural parts category will decline somewhat due tobetter technology.
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