Report shows demand increasing in automotive aftermarket, power transmission equipment.
A study released by Cleveland-based market research firm the Freedonia Group has projected steady growth in the automotive aftermarket and in industrial power transmission equipment throughout the next three years.
The North American aftermarket for light vehicle components is projected to increase 3.2 percent annually, reaching $56 billion by 2008, according to the study.
The percent increase is down from 3.5 percent between 1998 and 2003.
The total growth rate may be slower than historical precedents, but Freedonia says some markets like copper electronic parts and steel components will experience much faster growth than the market as a whole.
According to the report, improved vehicle durability and other product improvements are behind the slowing rate of growth in the aftermarket.
U.S. demand for industrial power transmission equipment, like pulleys, sheaves, sprockets, clutches, brakes, couplings and universal joints, is expected to grow 6.1 percent annually, reaching $3.7 billion by 2008, says the study. Pulleys and sheaves, along with clutches and brakes, are expected to experience the fastest gains.
According to the study, every product type will bounce back from losses suffered between 1998 and 2003 in the next three years.
Sprockets, chains, couplings and U-joints suffered the worst losses between 1998 and 2003 with a negative 1.7 percent annual growth rate.
Both studies are available from the Freedonia Group.