The utilization of ceramic friction as standard equipment on many new vehicle models drives this growth. However, high gas prices will restrain demand for brake pads and shoes in the foreseeable future. To maintain growth, manufacturers must promote higher-priced parts that increase profits at the manufacturer, distributor and installer levels.
New analysis from Frost & Sullivan (automotive.frost.com), North American Brake System Parts Aftermarket: Friction Parts, finds that the market earned revenues of $1.21 billion in 2007 and estimates this to reach $1.58 billion in 2014.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the North American brake system parts aftermarket for friction parts, then send an email to Sara Villarruel, Corporate Communications, at svillarruel_pr[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by email.
"With higher raw material costs and increased competition from foreign producers, manufacturers are looking for ways to improve the profit margins on brake pads and shoes," notes Frost & Sullivan Senior Industry Analyst Stephen Spivey. "Moving customers in the low-priced product line into the mid-grade line, and those in the mid-grade line into the premium line, increases profits and allows manufacturers to invest in researching and developing the next generation of friction parts."
Increasing sales of higher-priced parts will drive revenue growth in the friction parts aftermarket. Manufacturers will work to up-sell their customers from lower-priced product lines into higher-priced lines in an effort to support profitability across the value chain. Friction parts that have less ceramic content, but are positioned as traditional ceramic pads, will drive revenue growth in the short to medium term.
However, increasing gas prices act as a key restraint for the sale of friction parts, since drive mileage determines the service life of most brake pads and shoes. Currently, people drive less because they cannot afford gas, which means they do not need to service their brakes as often.
"High gas prices have an exacerbated effect on the friction parts aftermarket because demand is closely tied to how much gasoline people buy and use," says Spivey. "Because of high gas prices, vehicle owners are also postponing servicing their vehicles, which further slows market growth."
Given the challenging economic environment, manufacturers must emphasize product differentiation, customer service and profitability throughout the value chain. These represent the main pathways for suppliers to add value to their product offerings, thereby giving distributors an incentive to buy from one manufacturer instead of another. Additionally, suppliers should strive to offer full coverage of all vehicle makes and models as well as carry complementary products such as rotors and calipers.
North American Brake System Parts Aftermarket: Friction Parts is part of the Automotive & Transportation Growth Partnership Service program, which also includes research in the following markets: Analysis of the Attitudes and Behaviors of U.S. Vehicle Modification Enthusiasts, the North American School Bus Telematics Markets, and the North American Wiper Blades and Refills Aftermarket. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.
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North American Brake System Parts Aftermarket: Friction Parts