Expert Analysis Of The North American Starters And Alternators Aftermarket: New And Remanufactured.

DUBLIN, Ireland -- (http://www.researchandmarkets.com/reports/c45597) has announced the addition of "North American Starters and Alternators Aftermarket" to their offering.

This Frost & Sullivan research service entitled North American Starters and Alternators Aftermarket provides a comprehensive assessment by outlining revenues and shipments in different market segments as well as analyzing key market drivers and restraints, trends, and competitive structure. In this research service, Frost & Sullivans expert analysts thoroughly examine the following segments of the starters and alternators aftermarket: new and remanufactured.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

* New starters and alternators

* Remanufactured starters and alternators

Technologies

The following technologies are covered in this research:

* Starters: Starters are electric motors with high torque capability that uses energy stored in the battery to initiate the engine. A gear mechanism is used to transfer energy to the engine flywheel. The gear is declutched from the engine flywheel once the engine starts and thereafter, the engine operates on its own. Damage to starters occurs due to overheating when excessive cranking occurs. Present day starters have permanent magnets that replace the copper windings, thereby reducing weight. Most of these types of starters provide gear reduction to increase torque and maintain the size of the starters to be as compact as possible.

* Alternators: Alternators convert mechanical energy to electrical energy, thereby replenishing the battery with the electric energy necessary to operate automotive systems and start the engine. Automotive systems include motors, lights, and electronic components. Alternators are stronger in construction, allowing them to rotate at higher speeds, which improves power output when the vehicle's engine is idling. Even though the vehicle's battery supplies current, it cannot do so for extended periods of time as it needs to be replenished with charge from the alternator. This steady flow of current is supplied by the alternator.

Market Overview

Aftermarket Faces Rising Competition from Offshore Manufacturers

The growing phenomenon of globalization has led many low-cost Asian countries - notably, China, India and Korea - to export starters and alternators to the North American aftermarket. Countries in Asia have the advantage of low manufacturing and labour costs, enabling them to price their products far more attractively than those of North American manufacturers and remanufactures. With the initial problems faced by offshore manufacturers in terms of quality and reliability now largely resolved, new units pose more of a threat than ever to the remanufactured units produced in North America.

Additionally, a important factor acting in favour of new units is that they do not involve core charges, unlike remanufactured units. "This has led to an erosion of the market share of domestically remanufactured starters and alternators, while new units are making inroads," observes the analyst of this research service. "New units have slowly but steadily been gaining an edge over remanufactured ones in this contracting market, perhaps further driven by consumer perception that new is always preferable to remanufactured." In such a scenario, the issue of who should bear the burden of core charges has become a subject of strong debate between remanufactures and retailers. While some remanufactures have taken the initiative of providing partial relief on core charges to their customers, others have started taking ownership of the cores.

New Starters and Alternators Take Away Market Share from Remanufactured Units

Although new starters and alternators are finding increasing favour with many distribution channel participants as they eliminate the need to invest in core deposits, these units are likely to experience relatively slow growth throughout the forecast period. Revenues for new units are expected to increase from $77.2 million in 2005 to $82.9 million in 2012. Remanufactured units are likely to marginally decline in terms of unit shipments and revenues. "While unit shipments of remanufactured units are declining, new units are gaining a stronger foothold in the aftermarket," says the analyst. "This does not necessarily mean that overall unit shipments are increasing, but merely that new starters and alternators are cutting into the revenue market share of remanufactured ones."

Given the higher growth potential of new units, some remanufactures have started to source and manufacture new starters and alternators. The aftermarket is highly mature and competitive, and many remanufactures are offering new units to widen their product range and provide comprehensive coverage in order to capture new revenue generation opportunities. This trend is also due, in some part, to the fact that starters and alternators are becoming more difficult to remanufacture, as technology progresses. Constantly increasing emphasis on improved product quality, performance, and space engineering have resulted in more complex systems that are not easy to remanufacture.

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Source: Frost & Sullivan