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SUMMARY
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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