Research and Markets: The North American Starters and Alternators Aftermarket is Expected to Do Well Due to Rising Popularity of Truck Transport

DUBLIN--Research and Markets has announced the addition of Frost & Sullivan's new report "North American Class 4 - 8 Starters and Alternators Aftermarket" to their offering.

This Frost & Sullivan research service titled North American Class 4-8 Starters and Alternators Aftermarket provides the key industry challenges, market drivers and restraints, unit shipment, price and revenue forecasts, competitive analysis, distribution channel analysis, and market share analysis. In this research, Frost & Sullivan's expert analysts thoroughly examine the new starters, alternators aftermarket, remanufactured starters, and alternators aftermarket.

Market Overview

Increased Pre-buying of Trucks Prior to 2007 EPA Regulations Drives Unit Shipment

With increasing truck age, the North American class 4-8 starters and alternators aftermarket witnessed a spurt in replacement sales. Truck production had touched low levels during 2007, resulting in the increase in the average age of trucks in the short and medium term. This has had a positive impact on the shipment of starters and alternators. Increased pre-buying of trucks prior to 2007 Environmental Protection Agency (EPA) regulations, has contributed largely to market growth. Besides, the imposition of more stringent regulations will trigger the growth of the aftermarket in the long term. Greater electrical overload causes the failure of starters and alternators in class 4-8 trucks, driving unit shipment. Class 4-8 trucks are used for long haul freight transportation, requiring starters and alternators to function for extended periods during the day. Batteries in these trucks are more susceptible to damage. The numerous electronic controls impart a great deal of stress on the truck's battery and electrical system, leading to alternator failure. The impact of this factor will increase with increasing truck age.

Class 7-8 trucks are poised for the highest growth in this arena. "Class 8 trucks and high-end Class 7 trucks have recorded the maximum replacement rates for starters and alternators, usually occurring between one and a half to three years," notes the analyst of this research service. "In addition, Class 6-8 trucks constitute 80 percent of the trucks on road, representing more than 90 percent of starter or alternator replacements." Manufacturers must grasp market nuances and capitalize on these opportunities.

Increased Durability and Cost Factor Can Dampen Unit Shipment

"Technological advances in powertrain systems and rotating electric components for class 4-8 trucks have significantly enhanced durability, negatively impacting aftermarket shipment units," says the analyst. "In addition, with the imposition of EPA regulations, truck prices have increased tremendously and therefore, owner-operators and fleets will not undergo maintenance procedures and will delay replacement purchases until a truck's performance declines considerably." The rise in demand for brushless alternators, which last longer, has drastically cut down replacement rates. The average life of brushless alternators for class 4-8 trucks is three years on an average, which is higher than the average replacement period of one and a half to three years. These factors have combined to contribute to a reduction in unit shipment.

Quality, price, coverage, customer service, and brand recognition are the major competitive factors in the starters and alternators aftermarket. Installers are highly brand conscious, associating better quality with familiar names. As a result, brand recognition assumes great importance. In an attempt to deal with competition from original equipment service (OES) channel participants, who are adept at absorbing technological improvements, and therefore, stock a complete line, large, heavy duty warehouse distributors (HD WD) are rolling out complete lines of starters and alternators. HD WD are also particular about establishing the optimal overall pricing to limit price growth since the OES channel is higher priced. Overall, the starters and alternators aftermarket is expected to do well due to rising popularity of truck transport and increasing numbers of trucks in the prime repair age throughout the forecast period that will generate replacement opportunities.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

New starters and alternators
Remanufactured starters and alternators

Key Topics Covered:

1 EXECUTIVE SUMMARY
2 TOTAL NORTH AMERICAN CLASS 4-8 TRUCK STARTERS AND ALTERNATORS AFTERMARKET
3 NORTH AMERICAN CLASS 4-8 TRUCK NEW STARTERS AND ALTERNATORS AFTERMARKET
4 NORTH AMERICAN CLASS 4-8 REMANUFACTURED STARTERS AND ALTERNATORS AFTERMARKET
5 APPENDIX
6 DECISION SUPPORT DATABASE
List of Figures