The North American Commercial Truck Aftermarket's Component Manufacturers to Benefit from Increasing Demand for Charge Air Coolers

2008-01-09 14:32:44 -

www.frost.com - The long service life and continuous operation of commercial trucks ensures steady demand for A/C compressors, radiators, and charge air coolers in the aftermarket. Since these vehicles operate for millions of miles before their retirement, their A/C compressors, radiators and charge air coolers may require replacement many times over the life of the truck.

New analysis from Frost & Sullivan (www.automotive&transport.frost.com), Analysis of Key HVAC and Engine Cooling Components in the North American Commercial Vehicle Aftermarket, finds that the market earned revenues of $234.5 million in 2006 and estimates this to reach $244.7 million in 2013.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants an overview of the latest Analysis of Key HVAC and Engine Cooling Components in the North American Commercial Vehicle Aftermarket, then send an e-mail to Sara Villarruel - Corporate Communications at sara.villarruel@frost.com with the following information: your full name, company name, title, telephone number, e-mail address, city, state, and country. We will send you the information via e-mail upon receipt of the above information.

Growth in the charge air coolers segment will outpace radiators and A/C compressors, thereby offering an opportunity for suppliers of other truck parts to add a profitable product line to their mix. Notably, charge air cooler manufacturers expect to increase unit shipments at 3.5 percent annually.

The increasingly stringent tailpipe emissions regulations will drive demand for charge air coolers for medium- and heavy-duty trucks over the next five to seven years. As engines get hotter and dirtier, charge air coolers and radiators will require more frequent maintenance and replacement to ensure the trucks comply with the latest regulations. In particular, charge air coolers and larger-sized radiators that are compatible with new exhaust gas recirculation (EGR) diesel engines comprise part of the answer.

"In 2007, the U.S. Environmental Protection Agency (EPA) began requiring manufacturers of heavy-duty diesel engines to reduce nitrogen oxide and particulate matter emissions by 95 percent in their new engines," says Frost & Sullivan Industry Analyst Stephen Spivey. "In 2010, another regulation is set to take effect and will mandate further reductions of diesel engine exhaust."

In reaction to this development, many truck owners and operators bought new trucks in 2006 to delay the change to the more advanced and expensive engines. However, they will eventually have to purchase these engines, as well as the replacement parts to maintain them.

"Truck manufacturers and fleet owners are constantly looking for ways to increase the value of their vehicles and reduce the cost of ownership," notes Spivey. "As a result, truck parts are constantly being re-engineered to improve their performance."

The design and manufacture of commercial truck components has gradually evolved, resulting in longer-lasting parts. The increased lifetime for parts offsets some of the growth opportunity afforded by an increasing commercial truck population and its longer service lifespan.

The aftermarket must create additional value for truck owners by improving the original parts instead of simply replicating them. For instance, patented design innovations in the aftermarket have reduced the leakage in heat exchangers. By creating a better product, aftermarket manufacturers can convince truck owners and operators to upgrade their parts before they fail.

Analysis of Key HVAC and Engine Cooling Components in the North American Commercial Vehicle Aftermarket is part of the Automotive & Transportation Growth Partnership Service program, which also includes research in the following markets: United States remanufactured rack and pinion steering gear aftermarket, strategic analysis of the North American OE car audio system markets, and analysis of the North American automotive navigation systems market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Growth Consulting Company, partners with clients to accelerate their growth. The company's Growth Partnership Services, Growth Consulting, and Career Best Practices empower clients to create a growth focused culture that generates, evaluates, and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents. For more information about Frost & Sullivan's Growth Partnerships, visit www.frost.com.

Analysis of Key HVAC and Engine Cooling Components in the North American Commercial Vehicle Aftermarket

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