With new EPA regulations set to be enforced in 2007, heavy-duty fleet managers are forced to purchase new trucks that comply with the modified emission norms. Recognizing this opportunity, aftermarket filtration component manufacturers who saw relatively modest gains in the light-vehicle replacement components market are paying particular attention to their heavy-duty offerings.
However, as the filtration component manufacturers branch out from the OE ties to create aftermarket brands, they face pressure to reduce prices. These pressures intensify as North American fuel prices pass arbitrary milestones.
New analysis from Frost & Sullivan North American Heavy Duty Selected Filter Aftermarket, reveals that revenues in this market totaled $594.2 million in 2005 and estimates to reach 934.2 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 Heavy Duty Selected Filter 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.
In addition to the impending EPA regulations, the continued increase in the trucking share of freight movement is expected to be a key driver for the North American heavy-duty selected filter aftermarket. North America has, by and large, preferred on-road shipping to rail transport because of its ability to provide more consistent, just-in-time, and door-to-door delivery of goods in smaller quantities. The loss of freight carried by rail has been a gain for road transport; and in keeping with this growth, fleet managers are further reducing the average age of their trucks through new purchases.
“Much of the growth in the North American heavy-duty selected filter aftermarket is being fuelled by new EPA emission guidelines. The burgeoning demand for Class 6-8 trucks is also expected to be a significant growth propellant,” explains Frost & Sullivan Industry Analyst Avijit Ghosh. “Conversion of old engine technology to EPA compliant exhaust gas recirculation (EGR) is not economically feasible and in order to insulate themselves from future price hikes, fleet managers are increasingly opting to pre-buy new trucks.”
While these trends make for a promising outlook, the ability to create an USP, challenges filtration component manufacturers, as they seek to expand the aftermarket beyond the OES channel. One factor that may support OE brands in the HD filtration market is the short-term increase in the number of new heavy-duty vehicles. This may propel OE volumes, as fleet operators would look to conform to OE products as a means of supporting the warranty and protecting their investment.
“With distribution channels continuing to expand, the growing trend toward competitive pricing and price discounting is threatening to undermine the revenue growth of the industry,” notes Frost & Sullivan Senior Consulting Analyst Mary-Beth Kellenberger. “Hence, the challenge for competitors will be to refrain from undercutting each other and drive the profitability down on the complete category in their quest to increase unit shipment market share.”
“Overall, while the evolution of new channels offers many of the smaller market participants the opportunity to create and market new brands, it will be hard to capture new business on product value alone due to the minimal difference in quality,” say Ghosh and Kellenberger. “The key to penetrating the market will be in enhancing brand value by providing better product offerings, value for price, distribution support,\ and application coverage.”
North American Heavy Duty Selected Filter Aftermarket is part of the Automotive Growth Partnership Services. It evaluates the key market trends as well as the major participants, their competitive positioning, and strategic advantages with respect to the expected development path of the industry. The study defines the market share position of each product and how those products are getting into the market at present and in the future. This study is expected to assist the reader in evaluating competing positions and plot a path that will allow to successfully capitalize on emerging opportunities. 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 Heavy Duty Selected Filter Aftermarket