Automotive Aftermarket in North America available through Bharatbook

March 25, 2010 - PRLog -- Automotive Aftermarket in North America

Demand to grow 3.1% annually through 2014
The aftermarket in North America for light vehicle components and parts will rise 3.1 percent yearly to $71.8 billion in 2014, a slowdown from the 2004 to 2009 performance. Growth will be restrained by the expected rebound in new vehicle production and sales, which will help to remove older vehicles of prime aftermarket service age from the North American fleet. In addition, continued improvement in light vehicle reliability and durability will limit aftermarket opportunities, although the greater cost and complexity of vehicle systems will provide some offsetting support. Moderating raw material costs from high 2009 levels will also restrict value gains to some extent. ( http://www.bharatbook.com/detail.asp?id=133063&rt=Automotive-Aftermarket-in-North-America.html )

Electronics to be fastest growing segment
The largest product category in the aftermarket will continue to be mechanical products, which includes non-electrical/electronic engine hard parts; and chassis, drivetrain and suspension parts and components. However, growth will be limited by the improved quality of these already highly durable products. In contrast, the smaller electronic parts and components segment will see the fastest increases, a direct result of the continued transformation of the automobile from a mechanical machine with electronic enhancements into a software-driven device. Demand for electronic controls and modules will remain strong, despite continued quality increases, as more vehicle systems shift to electronics. However, improvements in some OEM electronic systems, particularly entertainment devices, will limit aftermarket upgrading of these products. The large aftermarket tire segment will also see above average growth, supported by the expected rebound in average miles driven, which had declines in 2008 for the first time in recent history and remained weak in 2009.

Professional service performers to remain dominant
The dominance of professional service providers will continue to grow, as vehicles become more difficult to diagnose and repair. For much of the past decade, vehicle dealerships had been capturing a rising share of the professional market, supported by longer-term warranties and more complex vehicle systems requiring diagnostic devices that communicate with the vehicle’s onboard computer. While these trends will remain in place, the large number of dealer closures in 2008 and 2009 as the Big Three US automakers faced financial difficulties should restrain growth in dealer service. Smaller, more local service providers such as garages and service stations, as well as large specialist repair chains are expected to benefit, since they offer consumers convenient locations.

The increasing vehicle complexity and greater difficulty diagnosing vehicle repair needs will continue to limit DIY aftermarket opportunities. Furthermore, the key reason given by most DIYers for opting to perform their own repairs is to save money, and as consumers become both more affluent and older, they tend to prefer do-it-for-me service for all but the most basic repairs and maintenance.

While the US dominates the North American aftermarket, accounting for approximately 85 percent of the regional total, both Canada and Mexico are expected to see more rapid gains through 2014. The Mexican automotive aftermarket will see the fastest growth among the three nations, spurred by the rising affluence of Mexican consumers who increasingly demand more complex, fully-featured vehicles and by Mexico’s rapidly expanding vehicle park.

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