Abstract
High Performance and Racing Segments of the Aftermarket Create Demand for Ignition Parts, Countering the Challenge from Greater Installation of DIS and COP Systems
The rapid wear and tear of ignition parts in the high performance and racing markets make them very lucrative segments for the ignition parts aftermarket. The high replacement rates create heavy demand for distributor caps, ignition rotors, ignition distributors, spark plugs, and wire sets. The product life of distributors in racing applications is a mere two to four years, unlike normal distributors, which have a lifetime of ten to twelve years. Similarly, platinum and iridium spark plugs and premium wire sets also tend to wear out soon and have to be replaced after a certain number of races to ensure optimum engine performance. This is expected to mitigate the popularity of distributorless ignition system (DIS) and coil-on-plug (COP) systems, which do not need distributor caps, ignition rotors and distributors, and spark plug wire sets respectively.
This Frost & Sullivan research service provides data and analysis on the North American ignition parts aftermarket and covers ignitions parts such as spark plugs, ignition wire sets, engine control units, ignition caps and rotors, and ignition distributors. It provides a comprehensive discussion of industry challenges as well as market drivers and restraints. The research service enables companies to align their positioning strategies to benefit from the changing market and obtain maximum return on investment.
Higher Revenues from Premium Products Enable Manufacturers to Offset the Drop in Unit Shipment
Distributors in racing vehicles are considerably more expensive than the ones used in other vehicles. While distributors in racing applications cost approximately $300, the regular ones cost $175. The wire sets aftermarket has been predominantly receiving demand for premium replacement products of original equipment (OE) quality. The traditional market has responded to this demand by providing premium products. The increasing share of premium wire sets in the aftermarket has arrested the decline in the weighted average price of wire sets.
The use of double platinum in spark plugs not only enhances their durability but also substantially increases the cost of the plugs. The increased durability can be attributed to the platinum-to-platinum firing, which occurs over a large surface area. Spark plugs made of another precious metal, iridium, are priced higher and have longer product life than platinum plugs. "The continued use of precious metals will help improve revenues for manufacturers even though total units shipped are likely to decline," says the analyst of this research. "The premium segments of the ignition parts aftermarket are thus expected to aid price stability in the long term."
Aftermarket Gets a Huge Boost Due to Mandatory Vehicle Inspections
The increasing number of regulations from various authorities, including the National Highway Traffic Safety Administration (NHTSA) and the Environmental Protection Agency (EPA), has triggered a resultant raise in the number of vehicle safety and environmental inspections. These inspections have to be conducted once or twice a year or with ownership transfers.
To ensure that vehicles meet the emission regulations specified by the EPA, all ignition parts have to be frequently checked for wear and tear. "These requirements compel vehicle owners to replace ignition parts at regular intervals," notes the analyst.
Table of Contents
1. Executive Summary
- 1. Summary of Major Findings
2. Total North American Ignition Parts Aftermarket
- 1. Overview and Definitions
- 1. Market Overview and Definitions
- 2. Market Engineering Measurement Analysis
- 2. Market Drivers and Restraints
- 1. Market Drivers
- a. Performance Market Driving the Ignition Parts Aftermarket
- b. Mandatory Vehicle Inspection Increases Aftermarket Demand
- c. Increasing Demand for Premium Products Allows for Price Stability
- d. Technological Advancement Drives Aftermarket Prices of Ignition Parts
- 2. Market Restraints
- a. Increasing Installation of DIS and COP Systems Restrains Demand for Ignition Parts
- b. Reduced Replacement Rate Restrains Demand
- c. On-Board Diagnostics (OBD) Indicating Replacement Needs Hurts the Aftermarket
- d. Electronic Ignition Components Increase Product Life
- e. Downturn of the Economy Restrains Parts Replacement
- f. Overcapacity in the Market is Restraining Price Growth
- g. Distributor Consolidation Restrains Price Growth
- 3. Quantitative Analysis
- 1. Demand Analysis
- 2. Unit Shipment and Revenue Forecasts
- 3. Trends by Product Type
- 4. Trends by Geographic Region
- 5. Pricing Analysis and Trends
- 4. Competitive Analysis
- 1. Competitive Analysis and Trends
- 2. Market Trends
- 3. Distribution Channel Analysis
- 4. Revenue Market Share Analysis
- 5. Product Analysis
3. Appendix
- 1. Acronyms and Equations
- 1. Acronyms and Abbreviations
- 2. Currency Exchange Rates
- 3. Conversion Equations
- 4. Compound Annual Growth Rate
4. Decision Support Database
- 1. Decision Support Database
- 1. Automotive Technicians
- 2. Automotive Retailers
- 3. Automotive Dealers
- 4. Repair Shops
List Of Figures
Chapter 2
- Total Ignition Parts Aftermarket: Market Drivers Ranked in Order of Impact (North America), 2005-2011
- Total Ignition Parts Aftermarket: Market Restraints Ranked in Order of Impact (North America), 2005-2011
- Total Ignition Parts Aftermarket: Light Vehicle Sales by Geographic Region (North America), 2001-2011
- Total Ignition Parts Aftermarket: Average Age of Light Vehicles in Use (North America), 2001-2011
- Total Ignition Parts Aftermarket: Average Annual Use per Light Vehicle (United States), 2001-2011
- Total Ignition Parts Aftermarket: Unit Shipment and Revenue Forecasts (North America), 2001-2011
- Total Ignition Parts Aftermarket: Percent of Revenues by Product Type (North America), 2001-2011
- Total Ignition Parts Aftermarket: Unit Shipments by Product Type (North America), 2001-2011
- Total Ignition Parts Aftermarket: Percent of Revenues by Geographic Region (North America), 2001-2011
- Total Ignition Parts Aftermarket: Manufacturer-Level Pricing Analysis (North America), 2001-2011
- Total Ignition Parts Aftermarket: Manufacturer-Level Weighted Average Price by Product Type (North America), 2001-2011
- Total Ignition Parts Aftermarket: Competitive Structure (North America), 2004
- Total Ignition Parts Aftermarket: Revenue Shares of Major Market Participants (North America), 2004
- Total Ignition Parts Aftermarket: Products Offered by Major Market Participants (North America), 2004
Chapter 3
- Total Ignition Parts Aftermarket: Exchange Rate (Canada: U.S.), 2003-2005
- Total Ignition Parts Aftermarket: Exchange Rate (Europe: U.S.), 2003-2005
- Total Ignition Parts Aftermarket: Exchange Rate (Japan: U.S.), 2003-2005
- Total Ignition Parts Aftermarket: Exchange Rate (Mexico: U.S.), 2003-2005
- Total Ignition Parts Aftermarket: Exchange Rate (UK: U.S.), 2003-2005
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