Electric Pumps Siphon Growth into Fuel Pump Aftermarket
5 January 2000
Electric Pumps Siphon Growth into Fuel Pump Aftermarket
SAN ANTONIO--Jan. 5, 2000--The growing number of vehicles in operation, a rise in the number of vehicles equipped with electrical fuel pumps and increasing vehicle age are contributing to strong growth forecasts for the U.S automotive fuel pump aftermarket.Besides shifting from mechanical to electrical pumps, the aftermarket is evolving into a less price sensitive mode, due to the incorporation of more sophisticated technology in electrical pumps. However, pump differentiation between manufacturers will require suppliers to increase inventory coverage.
According to new strategic research conducted by Frost & Sullivan (www.frost.com), "U.S. Automotive Fuel Pump Aftermarket," mechanical fuel pump revenues totaled an estimated $59.8 million in 1999, declining from $68.0 million in 1998. Meanwhile electrical pump revenues in 1999 are expected to reach an estimated $160.7 million, increasing nearly $15 million from 1998. Future growth trends project electrical fuel pump revenues to accomplish strong growth, while mechanical fuel pump revenues will continue to decline.
"As automakers shift to turbine and fuel module systems, the fuel pump aftermarket is expected to witness a decline in replacement rates," states Meenakshi Ganjoo, the lead analyst for this research. "However, rampant fuel contamination--which is the major cause of electric fuel pump failure--is currently fueling high demand. Consequently, OEMs and aftermarket manufacturers will be pressured to develop more reliable pumps."
"Competition will increasingly revolve around quality, innovation and service as technology improves and pump failure decreases," observes Ganjoo. "While price per unit increases, re-manufactured segments will grow as well. Competition should also increase due to the handful of companies that hold technology patents. Market participants are advised to improve inventory depth and focus on product and service quality."
Characterized by growing demand and the movement toward electric pumps, the fuel pump aftermarket will witness an influx of market entrants and further consolidation. Federal-Mogul Corporation's proposed divestiture of their fuel system, lighting and wiper blade businesses is expected to have a major impact on market dynamics -- depending on the acquiring company.
In addition to greater product availability and prompt customer service, suppliers must improve their distribution infrastructures in order to remain competitive. Robust demand will prompt many suppliers to reorganize supply chain management and distribution structures to meet high order-fill rate calls.
This Frost & Sullivan strategic marketing consulting research examines drivers, restraints and trends in the mechanical and electrical fuel pump aftermarket, as well as turbine, gerotor and roller vane segments.
Frost & Sullivan presents market engineering awards to companies that have endeavored to make a positive contribution to the transportation industry. This year's 2000 Product Innovation Award is presented to TI Group Automotive System (Walbro Division). They have demonstrated an unparalleled leadership in automotive fuel module technology in the United States.
Frost & Sullivan has recognized the following companies as market participants or related companies in the U.S. Automotive Fuel Pump Aftermarket: ACDelco; Airtex Products; Dana Corporation; Delphi Automotive Systems Corp.; Federal-Mogul Corp.; Holley Performance Products: The Pierce Co. Inc.; Robert Bosch Corp.; TI Group Automotive Systems (Walbro Division); Visteon Automotive Systems; Related Companies: Fuel Injection Corporation; Nitoma Inc.; Industry Association: Motor & Equipment Manufacturers Association (MEMA).
Frost & Sullivan is an international marketing consulting and training company that monitors the transportation industry for market trends, market measurements and strategies. This ongoing research is used to complement a series of research publications such as "U.S. Starter and Alternator Aftermarket" and is used to support participants with customized consulting needs. Free executive summaries are available to the press.
U.S. Automotive Fuel Pump Aftermarket
Report: 7240-18 Publication Date: January 2000 Price: $3,450