Long-term growth will depend on the participant's ability to develop and sustain interest among general vehicle owners, with a particular focus on younger owners.
New analysis from Frost & Sullivan (automotive.frost.com), Analysis of the Attitudes and Behaviors of U.S. Vehicle Modification Enthusiasts, finds that between 2006 and 2008, the market experienced a modest increase in the level of interest in modifying personal vehicles. In 2008, 60 percent of vehicle owners performed at least one vehicle modification versus 57 percent in 2006.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an analysis of the attitudes and behaviors of the U.S. vehicle modification enthusiasts, 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.
Since younger enthusiasts view vehicle modification as a status symbol and older enthusiasts believe it benefits their quality of life, Frost & Sullivan does not expect an immediate drop in the popularity of modifications. However, Frost & Sullivan does expect all enthusiasts to become more discriminating shoppers. The market prospects remain bright as enthusiasts enhance their experience, skill, and the number of vehicles they modify.
While most modification enthusiasts fall into multiple categories, Frost & Sullivan's research found that more than 49 percent are modern vehicle enthusiasts – people who own vehicles less than two years old. Furthermore, more than 44 percent of enthusiasts said they would next modify a 2008 model or a newer vehicle. An increasing number of vehicle owners consider new vehicles as the basic canvas and the modified version as the finished product.
"Enthusiasts stated that the availability of components for the model they intended to buy was a primary consideration during the vehicle purchase process," says Frost & Sullivan Senior Consultant Mary-Beth Kellenberger. "This factor presents many new opportunities that industry participants can capture by repositioning themselves."
This shift toward newer vehicles has a dramatic impact on the modification component industry. New vehicles have short track records, which makes it difficult to determine their likelihood for modification. To stay buoyant in the market, vehicle modification businesses will have to hone the ability to identify the vehicle models and parts that will drive revenue.
Meanwhile, the locations where enthusiasts buy modification components have changed. Owners have begun to pay closer attention to dealer's parts departments for customized original equipment accessories. Enthusiasts have also started relying on Internet bidding sites to save costs.
"Vehicle manufacturers have already started the process of providing add-on modification components for the vehicles they sell," notes Kellenberger. "Dealers have the advantage of incorporating the cost of the modifications into the vehicle purchase price to allow the owner to finance the modifications."
Dealerships often offer this financing option for new and premium pre-owned vehicles. Dealers who vigorously promoted their aftermarket brands are now seeing returns on those marketing investments.
Analysis of the Attitudes and Behaviors of U.S. Vehicle Modification Enthusiasts is part of the Automotive & Transportation Growth Partnership Service program, which also includes research in the following markets: Brake System Parts Aftermarket (Friction Parts), School Bus Telematics, Wiper Blades and Refills Aftermarket, Aftermarket for Belts Hoses Gaskets & Seals, Selected Accessories Aftermarket, Heavy-Duty Truck Aftermarket, Automotive Remanufacturing, Emission and Idling Reduction Technologies for EPA 2010 and Idling Regulations Compliance, Steering System Hard Parts Aftermarket, and Access Control and Security System Market. 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.
Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's TEAM Research, Growth Consulting and Growth Team Membership™ empower clients to create a growth-focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents.
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