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Frost & Sullivan: North American Class 6-8 Remanufactured Powertrain Components Aftermarket Sustained by Entry of Sophisticated Systems


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Frost & Sullivan

18 Feb, 2014, 12:49 GMT

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- Enhanced component remanufacturing will push market beyond $3.5 billion by 2019

MOUNTAIN VIEW, California, Feb. 18, 2014 /PRNewswire/ -- The entry of advanced class 6-8 powertrain systems that comply with new emission regulations will drive revenue for the North American remanufactured replacement components market over the next five to seven years. While intensifying competition from suppliers of new replacement parts will affect unit shipments for some products, the environmentally friendly image of remanufactured engines, transmissions, clutches and turbochargers will support ongoing demand among major truck fleet operators.

New analysis from Frost & Sullivan (http://www.automotive.frost.com), Strategic Analysis of the North American Class 6-8 Remanufactured Powertrain Components Aftermarket, finds that the market earned revenue of $3.19 billion in 2013 and estimates this to reach $3.52 billion in 2019.

For complimentary access to key slides from Frost & Sullivan's Strategic Analysis of the North American Class 6-8 Remanufactured Powertrain Components Aftermarket analysis, please visit:  http://bit.ly/MSfL9L. If you are interested any information on Frost & Sullivan's Automotive and Transportation research, please send an e-mail to Jeannette Garcia, Corporate Communications, at jeannette.garcia@frost.com.

"Increased sophistication in the functionality of heavy-duty engines and variable geometry turbochargers will raise the unit prices of remanufactured components," said Frost & Sullivan Automotive and Transportation Research Analyst Anuj Monga. "The enhanced reliability and availability of remanufactured components means that these products will continue to thrive in the face of stiff competition from new, non-original replacement parts."

However, the addition of newer and refined components to the powertrain system could still pose a challenge, as the lack of cores will lead to the use of newer parts in component assemblies, thereby escalating final costs. The scarcity of skilled labor is another restraint that will be prominent in the case of independent remanufacturers, who are otherwise not involved in the design and development process.

Unlike many independent remanufacturers that find it tough to gain momentum due to core availability issues, original equipment manufacturers (OEMs) can leverage their installed base and stand a better chance in the remanufacturing market. Partnerships with OEMs will be vital for remanufacturers of enhanced powertrain components to not only access key proprietary information, but also capitalize on the installed base of different OEMs.

"Truck manufacturers are also interested in widening their participation in the remanufacturing industry, hence providing added opportunities for remanufacturers to partner with OEMs, keep pace with technological change, and offer differentiated products," observed Monga. "The remanufactured powertrain components market will particularly see higher activity from truck manufacturers looking to vertically integrate into component remanufacturing."

Strategic Analysis of the North American Class 6-8 Remanufactured Powertrain Components Aftermarket is part of the Automotive & Transportation Growth Partnership Service program. Frost & Sullivan's related research services include: North American Brake Rotors, Drums, and Calipers Aftermarket, Strategic Analysis of the North American Collision Parts Aftermarket, Strategic Analysis of the North American Class 8 Used Truck Market, and North American Brake Pads and Shoes Aftermarket. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

Connect with us on social media, including Twitter, Facebook, SlideShare, and LinkedIn, for the latest news and updates.

About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Strategic Analysis of the North American Class 6-8 Remanufactured Powertrain Components Aftermarket
NCDE-18

Contact:
Jeannette Garcia
Corporate Communications – North America
P: +1-210-477-8427
E: jeannette.garcia@frost.com
Twitter: @Frost_Sullivan or @FS_Automotive
Facebook: FrostandSullivan
Join our Forum on LinkedIn: Future of Mobility

http://www.frost.com

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