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Vehicle Sales and Longevity Driving the Brake Parts Aftermarket

11 December 2000

Vehicle Sales and Longevity Driving the Brake Parts Aftermarket, Reports Frost & Sullivan

    SAN JOSE, Calif.--Dec. 11, 2000--Strong sales and better automotive design, which has resulted in longer lifespans, have led to an increasing number of vehicles on the road.
    This has led to strong demand for brake parts, as worn brakes cannot be ignored. Increased vehicle longevity, combined with new design and consumer trends, will continue to drive this industry to profitable growth.
    According to new strategic research from Frost & Sullivan (www.frost.com), "U.S. Brake System Parts Aftermarket," this industry generated revenues of just over $2 billion in 1999. Frost & Sullivan projects revenues to reach $3 billion in 2006.
    "The number of brake system parts sold each year is directly proportional to the number of vehicles in operation," says Frost & Sullivan industry expert Kavan Mukhtyar. "The number of light vehicles in use from 1996 to 1999 increased from 193 million to 203 million."
    "Vehicle longevity has also reached a new high," continues Mukhtyar. "Vehicle longevity strengthens demand for replacement parts as consumers continue to keep their vehicles longer and drive them farther."
    A number of trends in the manufacturing of cars will also help boost participants in this competitive industry. The increase in the sale of sport utility vehicles (SUVs) and front-wheel drive vehicles, as well as the use of less-durable original equipment parts, combines to open new growth opportunities.
    "Today's new vehicles are designed with smaller brakes made of lighter, less-durable materials which results in reduced brake life," says Mukhtyar. "SUVs lay higher demands on braking systems, leading to faster brake wear."
    The shrinking do-it-yourself (DIY) segment of the market is prompting many market participants to align themselves with professional installers to push their products. As the complexity of brake systems has increased, many users are opting to let professional installers handle their brake repairs. Brake parts manufacturers that distribute to these installers should increase the amount of units sold.
    "Professional installers generally opt for four-wheel brake repairs and have a tendency to replace brake components rather than repair them," says Mukhtyar. "It is common practice to replace wheel cylinders and associated hardware and kits to ensure proper functioning of the brake system."
    Frost & Sullivan presents the 2000 marketing engineering awards to companies that have worked hard to make positive contributions to the U.S. brake system parts aftermarket. The Competitive Strategy Award is presented to Dana Corporation . The Product Line Strategy Award is given to Universal Brake Parts (UBP). The Market Penetration Award goes to Cardone Industries.
    Companies that participated within this industry include: ABC Brake Company; American Remanufacturers Inc.; Airtex Products/Automotive Division; Akebono Corporation; Autoline Industries Inc.; Brembo North America; Cardone Industries; Coni-Seal Inc.; Dana Corporation/Aftermarket & Engine Control Divisions; Dana Corporation/Brake And Chassis Division; Federal-Mogul Corporation; General Motors Service Parts Operations/ACDelco Aftermarket; Honeywell/Friction Material Division; Morse Automotive Corporation; Performance Friction Corporation; Qualitee International; Satisfied Brake Products; TRW Autospecialty, and Universal Brake Products.
    Related companies include: GWR Specialty Automotive Products; Cooper Industries Inc.; Dana Corporation, and Federal-Mogul Solon Friction Products.
    Distributors and retailers include: Advance Auto Parts; Aftermarket Auto Parts Alliance Inc.; AutoZone Inc.; Bridgestone Firestone Inc.; BWP Distributors Inc.; Chief Auto Parts; Dana Engine Controls/Beck/Arnley Worldparts Corporation; Discount Auto Parts; Goodyear Tire & Rubber Company; Installer's Service Warehouse (ISW); Meineke Discount Muffler Shops Inc.; Midas International Corporation; National Automotive Parts Association; O'Reilly Auto Parts; Pep Boys/Manny, Moe & Jack, and Strauss Discount Auto.
    Frost & Sullivan, which is headquartered in San Jose, Calif., is a global leader in international strategic market consulting and training. Frost & Sullivan's industry experts monitor the ground transportation 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 North American Convertible Top, Sunroof, Seat Cover, and Floor Mat Aftermarket and the North American Radiator Aftermarket. Executive summaries and interviews are available to the press.
    Along with publishing in-depth strategic market consulting research, Frost & Sullivan also provides custom consulting to a variety of national and international companies.