Increasing proliferation of suspension parts along with greater consumer spending in the performance segment are likely to positively influence unit shipments as well as prices of products in the North American suspension parts aftermarket. Having said that, market participants will be considerably challenged by the improving durability and underperformed maintenance of these parts which is largely contributing to the markets overall decline.
In arresting this trend, industry participants should focus on steps towards educating installers so that they can justify periodic replacements of suspension parts to vehicle owners, increase media exposure to convey the necessity of replacement and application of improved technologies to provide greater value to standard replacement and racing customers.
New analysis from Frost & Sullivan, North American Suspension Parts Aftermarket, reveals that revenues in this market totaled $568.2 million in 2005 and can reach $430.4 million in 2012.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the North American suspension parts aftermarket, then send an e-mail to Tori Foster, Corporate Communications, at tori.foster[.]frost.com with your full name, company name, title, telephone number, fax number, and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.
“The ever increasing number of new vehicle models is likely to provide a significant boost to aftermarket unit shipments, especially as it requires distributors to stock a greater number and variety of suspension parts to meet market demand,” notes Frost & Sullivan Industry Manager Avijit Ghosh. “In fact, the number of parts increases at a rate faster than vehicle models because of multiple applications of suspension parts per vehicle model.”
This apart, the market is likely to benefit from the emergence of the performance aftermarket segment, which is still in its growth stage. Suspension parts and kits targeted at the performance market usually contain patented products and this is a major selling point with performance enthusiasts. Moreover, technology is a prime driver of competition within the performance market, and this is expected to support prices of suspension parts, contributing significantly to an overall increase in the average price of suspension parts.
With respect to the challenges, the major issue confronting market participants is declining replacement rates of suspension parts. Durability and reliability of shock absorbers, struts, and coil springs are currently higher than earlier, resulting in longer life spans with extended cycle times between replacements. Other major reasons for the decline in replacement rates include negative consumer attitudes and low awareness among service technicians, because of which they cannot convince vehicle owners to replace parts when approached for vehicle maintenance.
“Underperformed maintenance is most prevalent in the coil springs category of the suspension parts aftermarket,” says Ghosh. “While springs are prone to fatigue, owners often opt to continue with reduced spring performance as coil spring replacements can prove expensive.”
Confronted with these challenges, manufacturers are increasingly undertaking programs to help installers educate customers on the need for periodic replacement of suspension parts. Since vehicle owners largely consult with installers for the replacement of parts, such programs are likely to improve awareness, increasing sales of suspension parts in the aftermarket.
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Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership service, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.