N. American auto aftermarket demand to grow 3.1% annually through 2014: study
The aftermarket in North America for light vehicle components and parts will rise 3.1 per cent yearly to US$71...
The aftermarket in North America for light vehicle components and parts will rise 3.1 per cent yearly to US$71.8 billion in 2014, a slowdown from the 2004 to 2009 performance, according to a new study from market research firm the Freedonia Group.
“Growth will be restrained by the expected rebound in new vehicle production and sales, which will help to remove older vehicles of prime aftermarket service age from the North American fleet,” the firm’s Automotive Aftermarket in North America report said. “In addition, continued improvement in light vehicle reliability and durability will limit aftermarket opportunities, although the greater cost and complexity of vehicle systems will provide some offsetting support.”
While the U.S. dominates the North American aftermarket, accounting for approximately 85 per cent of the regional total, both Canada and Mexico are expected to see more rapid gains through 2014, the report said. “The Mexican automotive aftermarket will see the fastest growth among the three nations, spurred by the rising affluence of Mexican consumers who increasingly demand more complex, fully-featured vehicles, and by Mexico’s rapidly expanding vehicle park.”
The largest product category in the aftermarket will continue to be mechanical products, which includes non-electrical/electronic engine hard parts; and chassis, drivetrain and suspension parts and components. However, growth will be limited by the improved quality of these already highly durable products. “In contrast, the smaller electronic parts and components segment will see the fastest increases, a direct result of the continued transformation of the automobile from a mechanical machine with electronic enhancements into a software-driven device.”
Demand for electronic controls and modules will remain strong, the report noted, despite continued quality increases, as more vehicle systems shift to electronics. For more on the study, visit this link.