Frost & Sullivan: Starter and Alternator Aftermarket Manufacturers Rethink Market Position
9 March 1998
Frost & Sullivan: Starter and Alternator Aftermarket Manufacturers Rethink Their Market Position Due to Structural Changes
MOUNTAIN VIEW, Calif., March 9 -- Dramatic change is in the
works for the large U.S. alternator and starter aftermarket. Currently
dominated by small or local remanufacturers, the expansion of major auto parts
retailers has thrown the market structure into disarray. Now it is up to the
smaller companies to place themselves securely within a niche market before
they are forced to close.
According to strategic research conducted by Frost & Sullivan
( http://www.frost.com ) U.S. Aftermarkets for New and Remanufactured Alternators and
Starters, alternators and starters are produced by the same companies through
manufacturing or remanufacturing processes even though remanufactured units
dominate the aftermarket in terms of unit shipments. The aftermarket for
remanufactured alternators and starters alone reached revenues of
$708.4 million in 1997.
Demand for starters and alternators has increased significantly over the
last decade due to increases in the average vehicle age, number of miles
driven annually, and on-board electronics in vehicles, as well as design
changes within the actual units. However, the market for new starters and
alternators is on the decline because remanufacturers' units cost less and are
offered with warranties from a variety of retail outlets.
The most competitive issue facing manufacturers is that retailers are now
controlling the distribution channel for starters and alternators, and they
are slowly entering the jobber market serving installers. This has put a
number of small remanufacturers out of business because they cannot compete
with retailers for price and selection. Although large companies are enjoying
an increase in business, they have been forced to make concessions in order to
supply retailers.
"Over 500 companies now participate in the U.S. new and remanufactured
alternator and starter aftermarket," said Automotive Analyst Monica Williams.
Most participants produce both alternators and starters, although only a small
number produce both remanufactured and new units. Market leaders vary by the
segment for which they supply. In remanufacturing, large manufacturers are
beginning to dominate. Generally suppliers for OEMs, new alternator and
starter manufacturers sell the majority of their products through dealerships.
Frost & Sullivan's new study, U.S. Aftermarkets for New and Remanufactured
Alternators and Starters, is a forecast and analysis report that provides a
detailed distribution analysis of the market and replacement rates for both
alternators and starters forecast for the years 1994 through 2004. The study
also covers revenues, market trends, competitive analysis and strategies for
market participants.
The companies participating in this market include: A & S Rebuilders,
Inc., Arrow Automotive Industries, Inc., AC Alternator & Auto Electric,
American Industrial Manufacturing Services, Inc., Auto Electric Warehouse,
Automotive Parts Exchange, Champion Parts, Inc., Chrysler Corporation,
Delco-Remy America Inc., EGR Products, Exide Corporation, Ford Motor Company,
Genco Auto Electric, Genuine Parts Company, GM Service Parts Operations,
Hitachi Automotive Products (USA), Inc., Motorcar Parts & Accessories (MPA),
Inc., Orange County Alternator Inc., Precision Parts & Remanufacturing Co.,
Robert Bosch Corporation, Startex, Unit Parts Company, World Wide Automotive,
Related Companies: Ace Electric Co., Aura Systems Inc., Denso of LA, Inc.,
IPM Products Corp., Midstate Automotive Parts Rebuilders, Inc., Distributors:
Automotive One Parts Stores, AutoZone, CSK Auto, Inc., CARQUEST Corporation,
Industry Associations, Automotive Parts Rebuilders Association, Automotive
Parts & Accessories Association, Society of Automotive Engineers, Motor
Equipment Manufacturers Association.
Frost & Sullivan is an international marketing consulting company that
monitors the automotive industry for market trends, market measurements and
strategies. This ongoing research is utilized to update a series of research
publications such as #5171-18 North American Automotive Electrical System
Component Aftermarkets and #5505-18 An Analysis of the U.S. Automotive Hard
Parts Market: The Installer's Perspective, and to support industry
participants with customized consulting needs.
Visit Frost & Sullivan's web site: http://www.frost.com
Report: 5634-18 Publication Date: February 1998 Price: $2450
SOURCE Frost & Sullivan