Low-Cost Wheel End Brake Components Increasing Penetration in the Aftermarket

brakes (select to view enlarged photo)

MOUNTAIN VIEW, CA--Dec. 12, 2013: The growing Mega Trend of urbanization and the consequent increase in vehicles in operation (VIO) has culminated in more stop-and-go traffic than ever before. This has lead to higher wear and tear in wheel end brake components, creating a strong case for the class 4-8 commercial vehicle wheel end brake components market.

New analysis from Frost & Sullivan (Frost Automotive), Strategic Analysis of the North American Class 4-8 Commercial Vehicle Wheel End Brake Components Aftermarket, finds that the market earned revenue of $705.8 million in 2012 and estimates this to reach $906.5 million in 2019. The research covers the product segments of drums, rotors, calipers, and wheel hubs. Among these categories, pneumatic drum brakes and hydraulic brake rotors are the primary revenue drivers.

If you are interested in more information on this research, please send an email to Jeannette Garcia, Corporate Communications, at jeannette.garcia@frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Despite being at a mature phase, the class 4-8 wheel end market is expected to grow on the heels of economic recovery, CSA 2010 compliance, and tighter regulations. High standards of fleet equipment and maintenance practices are in place to minimize accidents and protect cargo. This along with an aging truck population has increased the demand for aftermarket service and maintenance.

"Technological advancements with a focus on the reduction in weight and form factor along with the advancement in the safety and durability of future wheel end components are a must," said Frost & Sullivan Automotive & Transportation Industry Analyst Wallace Lau. "Such improvements could also arrest the tapering of profit margins caused by the increasing instability in the price and availability of steel and other inputs."

Domestic manufacturers will do well to factor in the total cost of ownership when designing market positioning strategies. This will enable them to account for escalating fuel prices and transportation costs and help in securing higher margins and enhanced brand value.

"Furthermore, intense market competition from low-cost imports is pressuring domestic manufacturers to lower their prices to compete over the short-term," explained Lau. "Domestic players are expected to implement strategic plans to combat this issue using a good-better-best product portfolio to meet the unique needs of all fleet price points, age of trucks, and needs."

These premium, yet diversified product portfolios, coupled with competitive pricing strategies, are expected to meet the challenges posed by inadequate product differentiation, high price sensitivity, and the strong purchasing power of distributors. This, in turn, will drive distribution channel revenue in the original equipment service channel.

"Pricing, most of all, is the key competitive ingredient in a mature market," noted Lau. "Outsourcing from low-cost regions is one sure way to enhance price competitiveness. However, it is essential to enforce rigorous assurance testing to protect brand integrity."

Strategic Analysis of the North American Class 4-8 Commercial Vehicle Wheel End Brake Components Aftermarket is part of the Automotive & Transportation Growth Partnership Service program. Frost & Sullivan's related research services include: Strategic Analysis of the North American Class 8 Used Truck Market, North American Brake Pads and Shoes Aftermarket, Strategic Analysis of Exterior Mounted Accessories in the North American Light Truck Aftermarket, and Opportunity Analysis of eRetailing for Automotive Parts and Service in the North American Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation. The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Home | Buyers Guides By Make | New Car Buyers Guide | Used Car Super Search | Total New Car Costs | New Car and Truck Reviews
Automotive News | TACH-TV | Media Library | Discount Auto Parts

Copyright © 1996-2014 The Auto Channel. Contact Information, Credits, and Terms of Use. These following titles and media identification are Trademarks owned by The Auto Channel, LLC and have been in continuous use since 1987 : The Auto Channel, Auto Channel and TACH all have been in continuous use world wide since 1987, in Print, TV, Radio, Home Video, Newsletters, On-line, and other interactive media; all rights are reserved and infringement will be acted upon with force.

Privacy Statement | Size Does Matter | Media Kit | Affiliates

Send your questions, comments, and suggestions to Editor-in-Chief@theautochannel.com.

Submit Company releases or Product News stories to submit@theautochannel.com.
Place copy in body of email, NO attachments please.

To report errors and other problems with this page, please use this form.

Link to this page: http://www.theautochannel.com/