Older vehicles, EPS widens scope of steering, linkage components, Frost & Sullivan says

Feb. 4, 2015
The increasing average vehicle age in North America and new technologies such as electronic power steering will drive revenues and the the growth of higher-priced steering and linkage parts.

The increasing average vehicle age in North America has placed a large number of automobiles in the prime parts replacement range, widening the scope of the steering and linkage components market. As new technologies such as electronic power steering enter the aftermarket, the growth of higher-priced parts will also drive revenues.

New analysis from Frost & Sullivan, 2014 North American Category Management Report—Steering and Linkage Components, finds that the market earned revenues of $634.6 million in 2014 and estimates this to reach $739.7 million by 2020. Demand will be highest for control arm assemblies and steering gears.

“When ball joints fail in modern day vehicles systems, the replacement of the entire control arm is more feasible than changing individual ball joints,” said Frost & Sullivan Automotive and Transportation Senior Research Analyst Anuj Monga. “The replacement of these complete assemblies fetches higher revenues.”

However, the slow pace of technological development in the mature market has kept prices of other steering and linkage components in check, affecting revenues. Further, the improving quality of new original equipment (OE) parts has lowered replacement rates.

Establishing a strong market strategy that includes value line offerings for mature product categories will help sustain profits. Aggressive marketing for new products, especially in the steering gears segment, is also another way for aftermarket participants to strengthen their position in the North American domain.

“As bargaining power shifts from manufacturers to distributors, private-label brands will capture a larger share of sales,” concluded Monga. “Industry consolidation too will leave manufacturers with fewer customers to sell to, compelling them to engage in price competition to sustain profits in the aftermarket.”

This analysis is part of the Automotive & Transportation Growth Partnership Service program. Frost & Sullivan’s related studies include: North American Category Management Report: Selected Pumps Aftermarket, North American Category Management Report—Exhaust Components, North American and European Tire Pressure Monitoring Systems Aftermarket, and US Auto Technicians' Choice—Replacement Parts.

Subscribe to Aftermarket Business World and receive articles like this every month….absolutely free. Click here.

Sponsored Recommendations

ZEUS+: The Cutting-Edge Diagnostic Solution for Smart, Fast, and Efficient Auto Repairs

The new ZEUS+ simplifies your diagnostic process and guides you through the right repair, avoiding unnecessary steps along the way. It gives you the software coverage, processing...

Diagnostic Pre- and Post-scan Reports are Solid Gold for Profitability

The following article highlights the significance of pre-scans and post-scans, particularly with Snap-on scan tools, showcasing their efficiency in diagnosing issues and preventing...

Unlock Precision and Certainty: TRITON-D10 Webinar Training for Advanced Vehicle Diagnostics

The TRITON-D10 lets you dig deep into the systems of a vehicle and evaluate performance with comparative data, systematically eliminating the unnecessary to provide you with only...

APOLLO-D9: Trustworthy Diagnostics for Precision Repairs

The APOLLO-D9 provides the diagnostic information and resources you need to get the job done. No more hunting through forums or endlessly searching to find the right answers. ...

Voice Your Opinion!

To join the conversation, and become an exclusive member of Vehicle Service Pros, create an account today!