Table of Contents
Growing Demand for Diesel Engine Cushions Market Decline
Demand for remanufactured engines is in decline as technologically advanced engines last longer and complicate remanufacturing. This research service analyzes the remanufactured engines aftermarket in North America, which comprises the United States and Canada. The product scope is segmented into remanufactured gasoline and diesel engines for light-duty cars and trucks. Unit shipment and revenue forecasts have been provided for 2012 to 2018. Further topics include analyses of pricing, distribution channels, and market shares. An aftermarket roadmap also is included. Research covers market drivers, restraints, trends, key conclusions, and findings. The base year is 2011. Historical data is provided for 2008 to 2010.
Overall demand for remanufactured engines will decline, but growth opportunities exist for suppliers that can successfully meet the aftermarket’s changing needs.
1. Demand for remanufactured engines is in decline because improving product quality makes original engines last longer, and increasing technological complexity complicates remanufacturing.
2. • Companies specializing in remanufacturing diesel engines will likely thrive in the coming years.
• Diesel engine revenue will grow from X% to X% (2012 to 2019) as rising fuel prices and economic pressures drive demand for fuel-efficient remanufactured engines to support the growing share of imported light-vehicle nameplates across North America.
3. • The fractured aftermarket is consolidating; more than Xremanufacturers have exited the industry since 2008.
• The increased technological complexity of newer engines challenges small remanufacturers to find qualified technicians and to keep pace with changing product requirements.
• Remanufacturers must invest in the tools, equipment, and expertise needed to properly remanufacture modern engines.
4. • Auto dealerships in the original equipment service (OES) channel will quickly contribute greater revenue over other stakeholders as newer, more complex engines enter the aftermarket.
• Extended service warranties keep many fleet vehicles out of the aftermarket.
• Warehouse distributors (WDs) and retailers face potential market share loss as small remanufacturers exit the industry.
• Competition from vehicle salvage companies will increase.
Competitive Factor Definitions
Product Category Participation
• Single segment, low/medium-sized competitor
• Multiple market segments, medium-sized competitor or single-market segment, large-sized competitor
• Multiple market segments, medium/large-sized competitor
• Less than X%, all makes, all models
• More than X%, all makes, all models
• More than X%, all makes, all models
• Low price strategy within respective categories
• Directly competitive within respective categories
• Premium price strategy
• Low share, single channel
• Medium share, multiple channels
• High share, multiple channels
• Does not meet original equipment (OE) form, fit, and funtion
• Equivalent to OE form, fit, and function
• Exceeds OE form, fit, and function
Key Questions this Study will Answer
• What is the outlook for the remanufactured engines aftermarket in the near and medium terms?
• Which market segments are growing the fastest and why?
• Which distribution channels are growing the fastest and why?
• Which participants supply the large retail chains and warehouse distributors in the aftermarket?
• What are the major competitive threats to remanufacturers in this industry?
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