Source: The Sacramento Bee
March 11, 2014
Enhanced component remanufacturing will push market beyond $3.5 billion by 2019
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.
"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.