SANTA CLARA, Calif. – July 13, 2017 – The North American aftermarket for Class 1-8 starters and alternators is expected to see revenue growth, even as overall unit shipments decline marginally until 2023. Higher prices will drive revenues, while technological improvement to products will reduce replacement rates and unit shipments. New technologies such as connected trucks that leverage big data will increase demand for sophisticated and high-output parts, boosting new parts sales and average unit prices. However, the market is mature with limited scope for innovation. To expand, players must acquire competitors’ market share by offering better services, such as refill rates and rebates, to distribution channel partners.
Frost & Sullivan’s recent analysis, North American Class 1-8 Starters and Alternators Aftermarket, Forecast to 2023, examines the starters and alternators aftermarket for passenger cars, light-duty trucks, medium-duty trucks, and heavy-duty trucks in the United States and Canada. The study finds the total manufacturer-level revenue is expected to grow from $1.8 billion in 2016 to $2.0 billion in 2023.
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“Market shares of leading manufacturers in the starters and alternators aftermarket have fluctuated and will continue to do so in the coming years,” said Frost & Sullivan Mobility Research Analyst Vasanth Raj. “With the market expected to be worth $2 billion by 2023, brand-building activities and good services to channel partners will help to grow and sustain market shares.”
Among distribution channels, warehouse distributors (WD) dominate the aftermarket due to their diverse brand selection and established relationships with service centers and independent garages, where most starters and alternators are replaced. WDs thus account for 55.5 percent of manufacturer-level revenues, followed by retailers with 27.6 percent.
“As representatives with key accounts, channel partners such as distributors and retailers play a crucial role in the market share of manufacturers,” observed Raj. “Channel partners like NAPA, AutoZone, and Advance Auto also procure products from manufacturers and sell them under private labels. This reduces the brand linkage of manufacturers with customers and further increases manufacturers’ dependency on distribution groups.”
Retailers are holding their ground by selling parts to garages and service centers, and offering more competitive prices when possible. They also cater to the small do-it-yourself (DIY) and expanding do-it-for-me (DIFM) type of customers. In the coming years, eRetail giants such as Amazon, eBay, and Rock Auto will try to develop a niche online market among DIY customers by offering discounted prices and free shipping.
North American Class 1-8 Starters and Alternators Aftermarket, Forecast to 2023 is part of Frost & Sullivan’s Automotive & Transportation Growth Partnership Subscription.
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North American Class 1-8 Starters and Alternators Aftermarket, Forecast to 2023
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