The vehicle replacement parts market in North America will grow at a compound annual growth rate (CAGR) of 5.2% to to $22.8bn in 2017 from $16bn in 2010, according to a new report.
Frost & Sullivan's Strategic Analysis of North American Medium/Heavy-duty Commercial Vehicle Maintenance and Repair Market report reveals that the number of commercial vehicles (CV) operational in North America are expected to reach 7.6 million units in 2017 from the earlier registered 6.5 million units in 2010, according to a new report.
Frost & Sullivan research analyst Kumar Saha said components and services related to safety, fuel efficiency and emissions will keep the revenue streams flowing at a steady pace.
"The North American CV aftermarket will show strong growth in services related to braking, aftertreatment, filtration and replacement tire parts," Saha said.
During the last few years, North American CV repair and maintenance market has been very tough, which made many fleet owners to put off major repairs and maintenance, leading to sharp decline in demand for replacement parts.
The report also revealed that the US government's safety and emissions regulations including Compliance Safety and Accountability (CSA) 2010 and Environmental Protection Agency (EPA) 2010 are making the fleet operators to do their due diligence in maintaining their trucks.
Within the aftermarket areas, the original equipment service (OES) channel has increased its presence and is expected to gain major market shares in the future.
"With increasing verticalization of components and rising repair complexity, the OES channel has been successful in demonstrating their viability in the aftermarket," Saha added.
"Independent participants that desire to catch up with the dealers will have their work cut out."
