Frost & Sullivan Forecast Predicts Youthful Surge in End Users to Revitalize Automotive Gauge Aftermarket.Business Editors and Automotive Writers SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--Aug. 28, 2000 The customizing, restoring and upgrading of cars and trucks continues to drive the automotive gauge aftermarket. Automotive gauge manufacturers have always relied on aging baby boomers See generation X. to support this market, but now, with a new, younger generation emerging, the market is poised to experience healthy future growth. New, exclusive strategic market research from Frost & Sullivan (www.frost.com), "U.S. Automotive Gauge Aftermarket," reveals that the industry's revenues may top the $99-million mark by 2006. That's nearly $20 million more than revenues generated in 1999. An older, more affluent customer base is currently driving the market. This older segment consists primarily of automotive enthusiasts who use gauges to modify older vehicles into street rods or increase vehicle performance. "Baby boomers have substantial discretionary income Discretionary Income The amount of an individual's income available for spending after the essentials have been taken care of. Notes: Essentials are things like food, clothing, and shelter. because they are in their peak earning years Peak earning years refers to the time in life when workers earn the most money per year. US perspective Given their initial lack of experience, workers' earnings start out low. Earnings peak when workers hit middle age, then begin to fall as retirement approaches. ," says Frost & Sullivan analyst Joerg Dittmer. "They have more leisure time because many are now 'empty nesters.' Predictably, though, their numbers will decline in coming years." Frost & Sullivan projects a younger generation of end users will pick up the slack. A rise in younger drivers that are modifying their Japanese-made vehicles, opening the add-on gauge market to unfamiliar growth. The replacement market is not a viable channel yet, since the standard gauges in new-model cars are virtually upgrade-free. "Japanese-nameplate vehicles have increased their share of the vehicle population," says Dittmer. "Since these vehicles are popular with younger drivers, interest in modifying them can be expected to increase in proportion to their discretionary income growth." This new group of end users is often seen as an extension of the domestic performance vehicle segment, but Dittmer warns that this may not be the case. "Market participants perceive this new segment as being separate from the domestic performance market, with a very different customer base," says Dittmer. Frost & Sullivan presents the 2000 Marketing Engineering Awards to companies that have worked hard to make a positive contribution to the U.S. automotive gauge aftermarkets industry. The Market Engineering Leadership Award goes to Auto Meter Products. The Business Development Strategy Award is presented to Dolphin Instruments and Gauges Inc. Actron Manufacturing Co. receives the Internet Marketing See Internet advertising. Strategy Leadership Award. Dakota Digital Inc. is awarded the Product Differentiation Product Differentiation A source of competitive advantage that depends on producing some item that is regarded to have unique and valuable characteristics. Innovation Award. Companies that participated within this industry include: Actron Manufacturing Co.; A'PEX Integration Inc. (A'PEXi); Auto Meter Products Inc.; Beede Electrical Instrument Co. Inc.; Blitz Performance Products; Clark Brothers Instrument Company; Classic Instruments Inc.; Cyberdyne Gauges; Dakota Digital Inc.; Dolphin Instruments and Gauges Inc.; Electrodyne Inc.; GReddy Performance Products; HKS HKS Harvard Kennedy School (John F. Kennedy School of Government at Harvard University; Cambridge, MA) HKS Hrvatski Košarkaški Savez (Croatian Basketball Federation) HKS Silver Hake HKS Hong Kong Standard USA Inc.; Stewart Warner Instrument Corporation/Maxima Technologies; Teletronics; and VDO VDO Vereinigte DEUTA-Ota (Villingen, Germany; gauge manufacturer founded 1929) VDO Varus Derotation Osteotomy VDO Very Distant Object(s) VDO Voltage Drop-Out VDO Video Data Organization North America LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control . Frost & Sullivan, which is headquartered in San Jose, Calif., is a global leader in international strategic market consulting and training. Frost & Sullivan's industry experts monitor the automotive industry for market trends, market measurements and strategies. This ongoing research is used to complement the Automotive Aftermarket Custom Subscription, which includes studies on the U.S. Automotive Fuel Injector Aftermarket and the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Shock Absorber shock absorber, device for reducing the effect of a sudden shock by the dissipation of the shock's energy. On an automobile, springs and shock absorbers are mounted between the wheels and the frame. and Strut Aftermarket. Executive summaries and interviews are available to the press. Along with publishing in-depth strategic market consulting research, Frost & Sullivan also provides custom consulting needs to variety of national and international companies. U.S. Automotive Gauge Aftermarkets Report: 5394-18 Date: September 2000 |
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