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Safety and Emissions Regulations Ensure Steady Revenues for the North American CV Maintenance and Repair Market Finds Frost & Sullivan - A vehicle parc of 6.5 Million units presents a plethora of opportunities for the medium/heavy-duty CV aftermarket - Automotive.Frost.com
Safety and Emissions Regulations Ensure Steady Revenues for the North American CV Maintenance and Repair Market Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Mountain View, CA, United States, 2012/06/13 - A vehicle parc of 6.5 Million units presents a plethora of opportunities for the medium/heavy-duty CV aftermarket - Automotive.Frost.com.

   
 
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The maintenance and repair market's revenue lines are directly linked to those of the commercial vehicle (CV) market. Regardless, aftermarket participants have little to no fear, as the number of CVs in operation are expected to multiply from 6.5 million units in 2010 to 7.6 million units in 2017.

New analysis from Frost & Sullivan (automotive.frost.com), Strategic Analysis of North American Medium/Heavy-duty Commercial Vehicle Maintenance and Repair Market, finds that the market for replacement parts will grow from $16.0 billion in 2010 to $22.8 billion in 2017 at a compound annual growth rate (CAGR) of 5.2 percent.

If you are interested in more information on this research, please send an email to Jeannette Garcia, Corporate Communications, at jeannette.garcia[.]frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

The last few years have been tough on the North American CV repair and maintenance market. The downturn compelled many fleet owners to defer major repairs and maintenance, causing a steep drop in demand for replacement parts.

If freight activity decreases and fleets start to cannibalize parts from their unused vehicles, it could further dampen the demand for replacement parts. However, as the economy slowly improves, both freight tonnage and average annual miles travelled are expected to increase for medium and heavy-duty trucks. At the same time, fleets will continue to be cautious about replacing their trucks, leading to greater component wear and tear in an aging truck population.

Apart from a rebounding economy, end-user concerns about lifecycle costs and tighter regulations regarding emissions, idling and safety are likely to stoke a revival in the CV aftermarket. With new government safety and emissions regulations such as Compliance Safety and Accountability (CSA) 2010 and Environmental Protection Agency (EPA) 2010 in place, fleet operators will have to do their due diligence in maintaining their trucks.

"Components and services related to safety, fuel efficiency and emissions will keep the revenue streams flowing at a steady pace," said Frost & Sullivan Research Analyst Kumar Saha. "The North American CV aftermarket will show strong growth in services related to braking, aftertreatment, filtration and replacement tire parts."

As components grow more complex in nature, fleet operators will seek to outsource complicated services, leading to higher revenues for the repair market in the next six years.

Whatever the growth scenario may be for the CV aftermarket, the ability to undertake advanced repair, competitive pricing and quick turnaround times will set service providers apart in this intensely competitive market.

The original equipment service (OES) channel has made significant strides in these areas and is poised to gain significant market shares in the future. Conversely, independent participants must strive to improve in the area of advanced diagnostics to maintain or expand their business in a tight economic climate. Aftermarket service providers have to reinforce their value proposition to stay competitive.

"With increasing verticalization of components and rising repair complexity, the OES channel has been successful in demonstrating their viability in the aftermarket," said Saha. "Independent participants that desire to catch up with the dealers will have their work cut out."

Strategic Analysis of North American Medium/Heavy-duty Commercial Vehicle Maintenance and Repair Market is part of the Automotive & Transportation Growth Partnership Services program, which also includes research in the following markets: 2011 Vehicle Owners' Attitudes and Behaviors of Vehicle Maintenance, 360 Perspective of the North American Automotive Aftermarket and Strategic Analysis of the North American Starters/Alternators Aftermarket. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

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Strategic Analysis of North American Medium/Heavy-duty Commercial Vehicle Maintenance and Repair Market / N9DD-18

 
 
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Safety and Emissions Regulations Ensure Steady Revenues for the North American CV Maintenance and Repair Market Finds Frost & Sullivan

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