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EPA Regulations Help Drive Class 6-8 Truck Chassis Systems and Components Aftermarket - New analysis from Frost & Sullivan North American Class 6–8 Truck Chassis Systems and Components Aftermarket, reveals that this market earned revenues of $2,401.3 million in 2005 and estimates to reach $2,740.4 million in 2012.
EPA Regulations Help Drive Class 6-8 Truck Chassis Systems and Components Aftermarket

 

PRZOOM - /newswire/ - Palo Alto, CA, United States, 2006/06/13 - New analysis from Frost & Sullivan North American Class 6–8 Truck Chassis Systems and Components Aftermarket, reveals that this market earned revenues of $2,401.3 million in 2005 and estimates to reach $2,740.4 million in 2012..

   
 
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As the Environmental Protection Agency (EPA) regulations on reducing emissions from class 6-8 trucks approach their final implementation phase in 2007, the trend of pre-buying trucks is becoming more prevalent. As replacement opportunities increase with the age of the truck, unit shipments for class 6 -8 truck chassis systems and components in the short to medium term will increase.

New analysis from Frost & Sullivan North American Class 6–8 Truck Chassis Systems and Components Aftermarket, reveals that this market earned revenues of $2,401.3 million in 2005 and estimates to reach $2,740.4 million in 2012.

If you are interested in a virtual brochure, which provides manufacturers, end-users, and other industry participants an overview of the latest analysis of the North American Class 6–8 Truck Chassis Systems and Components Aftermarket, then send an e-mail to Tolu Babalola - Corporate Communications at tolu.babalola[.]frost.com with the following information: full name, company name, title, telephone number, e-mail address, city, state, and country. The brochure will be e-mailed to you upon receipt of this information.

Strict EPA regulations, which aim to control emissions of nitrogen oxides (NOx), hydrocarbons (HCs) and particulate matter (PM) by mandating the installation of advanced engines that utilize exhaust gas recirculation (EGR), are helping drive the pre-buying trend.

Starting in 2007, the trend to install advanced powertrain and chassis systems in new trucks is also likely to increase truck prices. These and other factors are contributing to the pre-buying trend as truck purchases intensify ahead of anticipated price hikes.

“However, while the 2007 EPA regulations are driving the unit shipment of Class 6-8 truck chassis systems and components, the increasing penetration of lower-priced Asian imports could cannibalize the market shares of North American suppliers,” observes Avijit Ghosh, Frost & Sullivan industry manager.

Priced at approximately 30-40 percent less than products manufactured in North America, Asian imports are likely to negatively affect price growth in the aftermarket, and place immense pressures on North American suppliers.

These pressures are likely to further intensify with the increase in EPA-compliant imported trucks beyond 2007, which are likely to extensively use less-expensive Asian chassis systems and components to meet their replacement needs.

Suppliers will also face increasing demands from truck makers to lower prices, a move that could be inevitable given the highly competitive environment of the chassis systems and components aftermarket. This will not only affect suppliers’ profit margins, but will also deter the introduction of advanced systems and components that are required for replacement in newer truck models.

“Nevertheless, a continuous focus on new technologies that can upgrade products to meet the demands of new truck models can help mitigate the competition from Asian imports,” says Ghosh. “North American truck manufacturers and aftermarket suppliers are working to implement advanced technologies that could help them overcome the competition from offshore manufacturers.”

For instance, manufacturers are equipping class 6-8 trucks with higher torque engines that require stronger axles with greater payload carrying capability. This is creating significant replacement opportunities for axle components. Air-ride suspensions provide greater ride comfort, reduce the chance of damage to cargo, and reduce wear, leading to increased longevity of trucks. Most class 8 trucks now are equipped with air-ride suspension systems, which are higher priced and this in turn boosts aftermarket revenues for suspension systems and components.

North American Class 6-8 Truck Chassis Systems and Components Aftermarket, part of the North American Automotive Aftermarket Subscription, provides unit shipment and revenue forecasts, trends by product type, distribution channel analysis, and market share analysis, among others. In this research service, Frost & Sullivan's expert analysts thoroughly examine the following chassis systems and components: driveline components, axles and components, suspension systems and components, as well as brake system components. Analyst interviews with the press are available.

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 services, 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.

North American Class 6-8 Truck Chassis Systems and Components Aftermarket
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EPA Regulations Help Drive Class 6-8 Truck Chassis Systems and Components Aftermarket

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