The adoption of direct-fit systems in the standard replacement market and cat-back units in the performance exhaust segment has added to the increase in average price of exhaust components. This growth presents an opportunity for manufacturers to introduce new and exciting products.
New analysis from Frost & Sullivan’s Automotive & Transportation group, North American Exhaust Components Aftermarket reveals that revenues in this industry totaled $751.1 million in 2005 and expect to reach $991.7 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 Exhaust Components Aftermarket, then send an e-mail to Tolu Babalola, Corporate Communication 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.
“Stricter emission control drives aggressive inspection and maintenance (I/M) programs and this requires vehicle owners to present the vehicle for testing. It is expected that many states will continue with more aggressive I/M programs during the forecast period, thus leading to an increase in aftermarket unit shipments of exhaust components,” explains Research Analyst Avijit Ghosh.
Vehicle registration is renewed only if the vehicle passes testing requirements. If the vehicle does not pass the test, the defective converter must be replaced. With a sign of growing inspection and maintenance programs, few manufacturers have started a program with maintenance chains to detect problems with exhaust components. Literature on common defects and solutions are circulated and toll free numbers set-up to clarify issues. This is expected to drive replacement of exhaust components through the forecast period.
Unless there are overt indications of a fault, consumers do not replace standard exhaust components. An educated technician who points this during routine maintenance is bound to increase replacement resulting in growth.
The proposed legislation against performance exhausts in states across North America is likely to pose a threat to the growth potential of this market. The manufacturers’ lobby has succeeded in thwarting such measures by deferring them; however, the states are set to discuss these again in the future. In addition, the increased adoption of stainless steel during the 1990s further compounds the depressed replacement rates.
“Apart from legislations that curb performance exhausts, many states have empowered police officers to issue citations to vehicle owners who have installed performance exhaust components, as these are very loud,” explains Ghosh. “The need for a uniform law pertaining to the sound limit is acute as it has the potential to place a damper on the adoption of performance exhausts by enthusiasts.”
The Specialty Equipment Market Association’s (SEMA) establishment of the SEMA Action Network (SAN) to work against legislative threats to automotive hobbyists will aid the growth of this market. SAN lobbies against adverse legislation with regard to performance exhausts by contacting legislators and arguing against these proposed laws. The shift to direct-fit systems and stricter emission control laws will also contribute to market growth.
North American Exhaust Components Aftermarket is part of the North American Automotive Aftermarket subscription and it evaluates the standard replacement and performance exhaust aftermarket. It also includes a discussion of trends by region, market drivers, and restraints with strategic recommendations for market participants. This study analyses the following applications in the market: standard replacement mufflers, exhaust pipes, catalytic converters, exhaust manifolds, performance mufflers, cat-back systems, and exhaust tips. Analyst interviews are available to the press.
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.