Off-Road and Performance-Upgrade Segments Gear Up for Sustained Growth

26 July 2000

Reports Frost & Sullivan

    SAN JOSE, Calif. - Performance-upgrade and off-road products emerge as the bright spots in the shock absorber and struts aftermarkets.

    These segments continue to grow steadily despite a slow market, mostly because of their client base. These consumers are enthusiasts that are much less price-sensitive than most vehicle owners, focusing on performance, technology and brand reputation. They are willing to spend money and replace perfectly good parts to modify their vehicles.

    According to new strategic research from Frost & Sullivan, "North American Shock Absorber and Strut Aftermarket," this industry, which generated $610.6 million in revenues in 1999, is growing slowly and should reach $695.5 million in revenues by 2006.

    Intense competition has forced most competitors in this aftermarket into niche market areas such as upgrade, performance and off-road products. Two major players dominate the field with a combined revenue share of more than 90 percent. These two companies also rule the major distribution channels and cover the market with a broad range of products, which has made survival difficult for many other participants.

    However, consumer awareness could bring renewed sales to the industry. In addition to making the ride smooth and more comfortable, shocks and struts allow the driver to maintain steering and braking control. They are safety as well as comfort components.

    "A marketing campaign to stress the importance of shock and strut replacement is in order," says Frost & Sullivan analyst Joerg Dittmer.

    "Replacement is often deferred for much too long. These products deteriorate slowly and drivers may not immediately notice that comfort and control are decreasing. But as consumer awareness increases through education efforts, the demand for shock absorbers and struts should grow proportionately."

    Frost & Sullivan presents 2000 Marketing Engineering Awards to companies that have worked hard to make a positive contribution to the ground transportation industry. The 2000 Market Engineering Business Development Strategy Award is presented to Gabriel Ride Control Products. The 2000 Market Engineering Product Innovation Award is given to Carrera Shocks. The 2000 Market Engineering Entrepreneurial Company Award is presented to Cardone Industries.

    Companies that participate in this industry include: BellTech Corporation; Cardone Industries Inc.; Carrera Shocks; Cofap of America Inc.; Dick Cepek Inc.; Doetsch Tech Inc.; Edelbrock Corporation; Explorer Competition Products Inc.; Gabriel Ride Control Products Inc.; General Motors Service Parts Operations-GMSPO; Ground Force; KONI North America; Krupp Bilstein of America; KYB America LLC; Monroe Auto Equipment Company; Motorcraft; Penske Racing Shocks; Rancho Industries; Sachs-Boge of America; Skyjacker Suspensions; Superlift Suspension Systems; Tokico USA Inc.; Trail Master Suspension and Warn Industries Inc.

    Frost & Sullivan, which is headquartered in San Jose, Calif., is a global leader in international strategic market consulting and training. Frost & Sullivan monitors the automotive aftermarket industry for market trends, market measurements and strategies. This ongoing research is used to complement the Automotive Aftermarket Custom Subscription, which includes studies on the U.S. Automotive Carburetor Aftermarket and the U.S. Automotive Fuel Injector Aftermarket. Free executive summaries and interviews are available to the press.

    Along with publishing in-depth market consulting studies, Frost & Sullivan also provides custom consulting needs to a variety of national and international companies.

    North American Shock Absorbers and Struts Aftermarkets

Report: 7251-18 Date: August 2000 Price: $3,450