Increased Global Trade And Strict Environmental Regulations Augur Well For North American Class 6-8 Truck Chassis Systems And Components Aftermarket

DUBLIN, Ireland--Research and Markets (http://www.researchandmarkets.com/reports/c50456) has announced the addition of the new Frost & Sullivan Report “North American Class 6-8 Truck Chassis Systems and Components Aftermarket” to their offering.

This Frost & Sullivan research service entitled North American Class 6-8 Truck Chassis Systems and Components Aftermarket provides unit shipment and revenue forecasts, trends by product type, distribution channel analysis, and market share analysis, among others. In this research service, Frost & Sullivan's expert analysts thoroughly examine the following chassis systems and components: driveline components, axles and components, suspension systems and components, as well as brake system components.

Market Sectors

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

- Driveline components

- Axles and components

- Suspension systems and components

- Brake system components

Market Overview

Increased Global Trade and Strict Environmental Regulations Augur Well for Chassis Systems and Components Aftermarket

Due to significant technological improvements, chassis systems and components manufactured for class 6-8 trucks have become more robust and long lasting than ever before. Conversely, this has had the effect of extending their replacement cycles, which in turn has affected their unit shipment in the aftermarket. Further, rising truck prices are causing fleets to postpone their replacement purchases until the truck performance starts deteriorating beyond repair. Together, these two factors are expected to significantly restrain the growth of the aftermarket for class 6-8 truck chassis systems and components.

However, the increase in international trade volumes and trucks share of freight transportation could create strong growth opportunities in the aftermarket. In addition, Environmental Protection Agency (EPA) regulations on the reduction of nitrogen oxides (NOx), hydrocarbons (HCs), and particulate matter (PM) emissions by installing advanced engines that use exhaust gas recirculation (EGR) are set to enter their final implementation phase in 2007. This is expected to encourage pre-buying of trucks ahead of the impending and more stringent legislations on emissions, thereby providing a boost to the unit shipment of chassis systems and components in the short and medium term, says the analyst of this research service.

Strong Bargaining Power Enables Suppliers to Command Favourable Pricing

High entry barriers to the mature chassis systems and components aftermarket allow existing suppliers to have considerable bargaining power, thus enabling them to reduce the growing price pressures from truck manufacturers and command better prices in the medium to long term. With truck manufacturers preferring to maintain relationships with a few suppliers to streamline operations, the aftermarket is seeing growing consolidation among larger participants and the exit of smaller ones, which again increases their negotiating power. On the other hand, the rise in prices of key raw materials such as steel is likely to contribute to higher prices of chassis systems and components.

However, competitive pressures in the chassis systems and components aftermarket are increasing, due to growing demand from imported class 6 and 7 trucks for innovative and competitively priced products. This is leading suppliers to pay greater attention to improving their design, manufacturing, marketing, and distribution capabilities. Thus, technological innovations such as advanced chassis systems featuring enhanced vehicle stability and safety features are expected to be a key trend that are likely to support revenue growth in the aftermarket, says the analyst.

For more information, visit http://www.researchandmarkets.com/reports/c50456