NORTH AMERICAN AUTOMOTIVE AFTERMARKET TO REACH $56 BILLION IN 2004.
in flat or lower prices in most product segments. These factors will be offset by the rising age of the light vehicle park, as well as by the number of vehicles added to the park during the strong new light vehicle market between 1994 and 1999, which will create aftermarket opportunities for frequently replaced items. The number of vehicle registrations in Mexico is expected to increase at a significant pace, further broadening the market base for replacement parts and components. These and other trends are presented in Automotive Aftermarket in North America, a new study from The Freedonia Group, Inc., a Cleveland-based industrial market research firm.
Mechanical products, which include non-electronic or non-electrical under-the-hood parts, will continue to be the largest product segment in the aftermarket. Growth for many items in this segment will be limited by the improved durability of OEM products. Even the more commonly replaced mechanical parts will be impacted by the intense pricing competition among suppliers of these products. The Internet will also increase price competition by providing end users with additional options for parts purchase.
Among the various automotive aftermarket product groups, the best growth prospects will be for electronic parts and components, due to the rising electronic content of the average light vehicle. Electronic controls and modules will experience strong gains, as will security systems. Gains in aftermarket electronics will be limited by the rising rate of compact disc player installation at the OEM level. Electrical replacement parts demand will slightly outpace the aftermarket in the aggregate, due to steady replacement demand for lighting equipment and batteries. The aftermarket for exterior and structural products will be restrained by the improved quality of originally installed components.
Professional automobile service providers are the dominant distributors of aftermarket products, accounting for over two-thirds of sales in 1999. Gains in the professional segment will outpace do-it-yourself demand through 2004, due to the rising complexity of light vehicle repairs, in particular those involving electronics. These providers will continue to benefit from the rising time consciousness of North American consumers, many of whom are increasingly unwilling to trade off potential leisure time to save money by performing their own service.
Automotive Aftermarket In North America (published 09/2000, 283 pages) is available for $3,700 from The Freedonia Group, Inc., 767 Beta Drive, Cleveland, OH 44143-2326. For further details, please contact Corinne Gangloff by phone 440.684.9600, fax 646.0484 or e-mail firstname.lastname@example.org. Full text is also available online through commercial database companies and the www.freedoniagroup.com Web site.
NORTH AMERICAN AUTOMOTIVE AFTERMARKET (million US dollars)
% Annual Growth Item 1994 1999 2004 99/94 04/99 By Product 34100 45180 55815 5.8 4.3 Mechanical 14340 18755 22625 5.5 3.8 Electrical 5785 7210 8935 4.5 4.4 Electronic 4185 6890 9755 10.5 7.2 Exterior & 9790 12325 14500 4.7 3.3 Structural
Freedonia Group, Inc. (Cleveland, OH)
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|Comment:||NORTH AMERICAN AUTOMOTIVE AFTERMARKET TO REACH $56 BILLION IN 2004.|
|Publication:||Research Studies - Freedonia Group|
|Date:||Oct 13, 2000|
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