Long Term Growth Positive for Truck OE Powertrain Component Markets
20 July 1998
Long Term Growth Positive for Truck OE Powertrain Component Markets
MOUNTAIN VIEW, Calif., July 20 -- Since trucks are acquiring
an increasing share of the growing freight market, the long-term outlook for
the truck market is positive. Truck transport suits today's just-in-time
logistics, and is benefiting from problems in the railroad industry. The
growing air freight industry also gives truck transport an advantage, because
air freight is moved by trucks on its first and final legs.
According to strategic research conducted by Frost & Sullivan
(http://www.frost.com), North American Class 6, 7 and 8 Truck OE Powertrain Component
Markets, some slowing of the market may occur in the near term, due to
economic problems in Asia, which has decreased trade volume in North America.
There is also a possibility that the Federal Reserve Board may raise interest
rates to prevent inflation. But, the market is expected to pick up again by
2002.
Technological trends include electronically controlled engines and
transmissions, and increased engine size. Other technological advances include
automatic transmissions designed to function in class 8 trucks and more
sophisticated manual transmissions, according to Frost & Sullivan Analysts
Joerg Dittmer and Monica Williams.
Approximately 33 companies competed in all of the covered market segments
in 1997, states Dittmer. Most products in this study are shipped directly to
truck makers, although some products, such as turbochargers, are shipped to
engine makers and installed on engines. However, it is the truck buyers who
specify which engines and transmissions to install, so manufacturers need to
market directly to the buyers.
"The major competitive factors in truck OE powertrain component markets
are price, quality and availability of components," says Williams. Truck
makers and truck buyers both insist on value for their money. Downtime is a
major cost to truck operators, so quality reputation is an important
consideration when components are chosen. Quality includes durability, ease
of operation and servicing, economical operation, functionality, low
maintenance and noise, and reliability.
Despite industry consolidation, all market segments have become extremely
competitive. Competition is intense even when only two suppliers exist for a
product. To remain competitive, manufacturers are maximizing the efficiency
of all aspects of their operations. This includes automation, just-in-time
manufacturing, shipment and delivery, faster throughput, waste and scrap
reduction and efficient order taking and service support.
Frost & Sullivan's new study, North American Class 6, 7, and 8 Truck OE
Powertrain Component Markets, is divided into several market segments:
Batteries, alternators and starters, engines, turbochargers, cooling systems,
transmissions, clutches and driveline components. Included in the study are
revenue forecasts, unit shipments, market and technology trends, market
shares, competitive issues and strategies.
This automotive industry research has integrated the Market Engineering
consulting philosophy into the entire research process. Critical phases of
this research include: Identification of industry challenges, market
engineering measurements, strategic recommendations, planning and market
monitoring. All of the vital elements of this system help market participants
navigate successfully through the truck OE powertrain components market.
The companies participating in this market include: AlliedSignal
Turbocharging Systems, Inc., Allison Transmission Division of General Motors,
American Isuzu Motors, Inc., Behr Heat Transfer Systems, Inc., Caterpillar,
Inc., Cummins Engine Company, Inc., Dana Corporation, Delco Remy
International, Delphi Harrison Thermal Systems, Denso International America,
Inc., Detroit Diesel Corporation, Douglas Battery Manufacturing Company, East
Penn Manufacturing Company, Inc., Eaton Clutch Divison, Eaton Corporation,
Exide Corporation, G&O Manufacturing, General Motors Corporation, GNB
Technologies, Holset Engineering Co., Johnson Controls, Inc., Mack Trucks,
Inc., Meritor Heavy Vehicle Systems, Modine Manufacturing Company, Navistar
International Transportation Corp., Prestolite Electric Inc., Robert Bosch
Corporation, Schwitzer, Inc., Transmission Technologies Corporation, Valeo
Clutches & Transmissions Inc., Valeo Engine Cooling, Volvo Trucks North
America, Inc., Warner-Ishi Corporation, ZF Industries, Inc., Related
Companies: A-55 Limited Partnership, AlliedSignal, Inc., Allison Engine Co.,
American Standard Companies, Inc., Aura Systems, Inc., BBering Truck
Corporation, Borg-Warner Automotive, Inc., Cole Hersee Co., Dana Corporation,
DENSO Corporation, Eaton Corporation, Eaton Corporation, Exide Corporation,
Ford Motor Company, Freightliner Corp., GMC Truck Division, Hino Diesel Trucks
(U.S.A.), Inc., IMPCO Technologies, Inc., Jacobs Vehicle Systems, Kenworth
Truck Co., Lockheed Martin Control Systems, Lockheed Martin Corp., Mitsubishi
Fuso Truck of America, Inc., Nissan Diesel America, Inc., Oshkosh Truck Corp.,
PACCAR, Inc., Peterbilt Motors Co., Purkeys Fleet Electronics, Robert Bosch
GmbH, RODI Power Systems, Inc., Sterling Truck Corp., Telma Retarder, Inc.,
Transmisiones TSP, S.A. de C.V., Turbodyne Technologies, Inc., Valeo, Valeo
North America, Voith Transmissions, Inc., Voith Transmissions, Inc., WABCO
Automotive Products Group, Western Star Trucks, Industry Organizations:
American Automobile Manufacturers Association (AAMA), American Trucking
Association, Engine Manufacturers Association, Heavy Duty Manufacturers
Association (MEMA), Institute of Transportation Engineers, Insurance Institute
for Highway Safety/Highway Loss Data Institute, National Truck Equipment
Association (NTEA), Society of Automotive Engineers (SAE), Transportation
Research Board, Industry Publications: Automotive Engineering International,
Commercial Carrier Journal, Fleet Owner Magazine, GO-West, Heavy Duty
Trucking, Light & Medium Truck, Trailer Body Builders Magazine, Transport
Topics, Trucking Technology, Truck Fleet Management, Utility Fleet Management,
Government Agencies: Federal Highway Administration (FHA), National Highway
Traffic Safety Administration (NHTSA), U.S. Department of Transportation
(DOT), U.S. Environmental Protection Agency (EPA).
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 #5766-18 North American OE Engine Related Component
Markets, and #5163-18 North American Class 6, 7 and 8 Truck OE Chassis
Component Markets, and to support industry participants with customized
consulting needs. Free executive summaries of all Frost & Sullivan reports are
available to the press.