Pocket Rockets Raise Demand for Underhood Components, Says Frost & Sullivan

SAN JOSE, Calif., Oct. 22, 2002; -- Surging vehicle and enthusiast participation in sport compact tuning is exerting a positive spillover effect on the sport compact tuning underhood component segment.

New analysis from Frost & Sullivan (http://www.transportation.frost.com ), North American Sport Compact Underhood Components Aftermarket, reveals that the market valued at $131 million in 2001 is poised to soar to an impressive $333.4 million by 2008.

The growth of organized races and shows has been a strong driver in expanding vehicle and enthusiast involvement in sport compact tuning leading to higher levels of consumer demand for sport compact modification products.

Sport compact vehicles have become a form of individual expression creating a unique sub-culture where personal style and performance attributes are paramount.

"Sport compact enthusiasts view their vehicle not just as transportation, but also as an entertainment center, a hobby, and a status symbol," says Frost & Sullivan Research Analyst Mary-Beth Kellenberger. "They want to incorporate the vehicle into all aspects of their lives to obtain full value."

As sport compact aficionados seek to enhance overall 'finish' levels and impart an individualized visual appeal to their vehicle, expenditures on vehicle modifications, including underhood components is burgeoning. Manufacturers with the ability to innovate and create unique new products, new finishes, and new colors are poised to make strong gains in this lucrative market.

"The number of vehicle models and vehicles applicable to sport compact modifications has significantly grown," says Kellenberger. "The vehicle base has expanded beyond imports to include all domestic and traditional racecars as well."

A broadening customer base for sport compact tuning is also stimulating demand for underhood components. The initial population segment, encompassing the 17-25 year range has now expanded to cover the 15-30 year age group.

"The development of unique marketing strategies targeted at the youth and young adult market is essential in attaining brand recognition and penetration of sport compact segment," says Kellenberger.