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Aftermarket for Selected Fractional Horsepower to Leverage on Replacement Opportunities Finds Frost & Sullivan - Replacement opportunities for fractional horsepower motors in the North American aftermarket increase, as installation rates of power windows and rear wiper systems at the original equipment (OE) level continue to rise
Aftermarket for Selected Fractional Horsepower to Leverage on Replacement Opportunities Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Mountain View, CA, United States, 2009/04/30 - Replacement opportunities for fractional horsepower motors in the North American aftermarket increase, as installation rates of power windows and rear wiper systems at the original equipment (OE) level continue to rise.

   
 
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Aftermarket demand continues to sustain as the failure of engine cooling fan motors makes engine replacements inevitable. The latter, however, will remain low volume products in the aftermarket as demand shifts to assembled units and service life of the OE-installed part improves.

New analysis from Frost & Sullivan (automotive.frost.com), Total North American Aftermarket for Selected Fractional Horsepower Motors, finds that market earned revenues of over $127.0 million in 2008 and estimates this to reach $130.5 million in 2015.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the total North American aftermarket for selected fractional horsepower motors, then send an email to David Escalante, Corporate Communications, at david.escalante[.]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, a brief brochure will be sent to you by email.

In order to complement the American lifestyle, there is a growing trend towards the installation of power windows in vehicles at the OE level. As drive-through services also increase for automated teller machines (ATMs), meal pick-ups, and other services, so does the demand for features that can be activated with the push of a button. Similarly, rising concerns over passenger safety are boosting the installation of rear wiper systems, especially in sport utility vehicles and minivans.

"The North American selected fractional horsepower motors aftermarket will be primarily driven by rising installations of power windows and rear wiper systems at the OE level," says Frost & Sullivan Research Analyst Ratika Garg. "This is attributed to a larger vehicle parc, with installed motors, resulting in more replacement opportunities in the aftermarket."

Engine cooling fan motors will remain low volume products in the aftermarket as demand shifts to assembled units, along with an enhanced service life of the OE installed part.

The lifespan of fractional horsepower motors normally last from eight to twelve years, with at least one replacement opportunity per motor per vehicle, making it imperative for repairers to focus on these model years. Nonetheless, improvements in the quality of fractional horsepower motors at the OE level could restrain replacement opportunities in the aftermarket.

Ironically, as production of light vehicles in the short term decreases due to the prevailing economic crisis, a large number of vehicle owners will still spend on vehicle maintenance to keep their vehicles running longer. This will add to the average age of the vehicle and drive unit shipments of replacement products.

"However, the proliferation of low-cost, imported products, especially window lift motors and engine cooling fan motors is causing downward price pressures on domestic market participants, forcing them to cut prices with a dip in revenues," notes Garg. "The prevailing credit crisis further exerts a downward price pressure on vendors, who gradually are offering favorable pricing to their distributors, adversely affecting their profits and operating cash flow, while increasing the need for additional capital to finance business."

Vendors should differentiate their offerings through forward integration and invest in strengthening relationships with customers through product awareness programs. Also, they should offer more customer credits and discounts and provide on-demand delivery for non-stock parts. This will then give vendors an opportunity to expand their product offerings to customers and reap more revenues.

"In a market competing on the basis of price with small and declining margins, market participants need to intensify their focus on improving efficiencies and reducing product costs, to balance the impact of price pressure," concludes Garg. "The ability to cater to customer needs in a short turnaround time, coupled with the provision of a full line supply will emerge as critical success factors."

Total North American Aftermarket for Selected Fractional Horsepower Motors is part of the Automotive & Transportation Growth Partnership Service program, which also includes research in the following markets: Protect Your Assets: an Analysis of the North American Spray-On and Drop-In Bed Liner Market, North American Heating, Ventilating, and Air-Conditioning (HVAC) Aftermarket, North American Selected Accessories Aftermarket, and the North American Selected Brake Components 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.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents.

Total North American Aftermarket for Selected Fractional Horsepower Motors / N535

 
 
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Aftermarket for Selected Fractional Horsepower to Leverage on Replacement Opportunities Finds Frost & Sullivan

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