NEW YORK, June 11, 2013 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:
LATAM Aftermarket to Grow by 28% between 2012 and 2017 to be Worth $32.5 B by 2017
This research service covers the automotive aftermarket in the main countries of South America. The study focuses on the light vehicles market, and covers Brazil, Mexico, Argentina, Chile, and Colombia, along with insights into other smaller Latin American countries. The objective is to provide a strategic insight for decision makers and potential new entrants. The automotive aftermarket is undergoing extensive structural changes, as well as a strong growth level, pulled by the strong sales of new vehicles. This study covers market drivers and restraints, market size and growth forecasts, segmented per top 10 parts, demand analysis, distribution structure, legislation, and regulation analysis.
Total Automotive Aftermarket: Key Takeaway, Latin America, 2012
• The total aftermarket in Latin America will grow from $X billion in 2012 to $X billion in 2017. Brazilian and Mexican markets accounted for over X percent and X percent, respectively, of total revenue, but Brazil's weight is forecast to increase.• Demand is set to increase across all product lines, with a strong vehicle in operation (VIO) increase of Xpercent between 2012 and 2017 as the main driver.• Tires and brake parts represent Xpercent and Xpercent, respectively, of the total market.• Retailers captured a large share, between X and Xpercent, of the parts revenue because of the lack of presence by full-service warehouse distributors (WD) and wholesale buying groups. Few WDs offer all-make-and-model coverage, sending installers to retail distributors and dealerships for many products.• The OES channel represents aboutX percent of revenue because of its low share of routine maintenance parts.• Pricing trends vary considerably from country to country, with Brazil and Mexico experiencing inflation of Xto Xpercent annually, compared toX toXpercent in Argentina.• Small independent installers still represent the main contact point for end customers. Largely composed of micro companies or family businesses, they account on average for overX percent of the automotive service provided to final consumers in Latin America.
Latin American VIO forecast to grow Xpercent within the next five years.
• Latin American VIO is projected to grow X percent and reachX million light vehicles in 2017.
• Strong sales will reduce average vehicle age and switch demand for newer parts with higher technological content, while emission controls and stricter security regulations will raise parts' durability and change consumers behavior.
Revenue growth will be pulled by VIO, with Brazil and Mexico leading the way
• The total aftermarket in Latin America will grow 28.5 percent, from $25.33 billion in 2012 to $32.47 billion in 2017.• The Brazilian and Mexican markets account for over 40 percent and 26 percent, respectively, of total revenue, while Brazil's weight is forecast to increase.• The strongest growth will be in Colombia and Peru, where the car equipment rate is still low.• The top 10 parts account for less than 50 percent of the total market, while non-essential parts should increase their share.
Maintenance parts still having the strongest market share, while prices should decrease slightly
• Tires account for the largest market share. Maintenance parts will remain the most replaced parts, especially in a context of a strong VIO increase.
• General aftermarket prices should follow a slight downtrend until 2017, except for Argentina where inflation is skyrocketing.
• Distributors and chain service providers have several growth opportunities due to stronger regulations and poor organization by independent installers.
Key Findings and Future Outlook
Growing VIO, increased competition, stricter legislation, and parts' technology changes are the main factors that will modify the market structure and attract established, foreign participants.
• The market is highly fragmented among OES, IAM, and distribution channels.• New OEMs are entering the market, especially from South Korea.• New legislation is reinforcing vehicle compliance with stricter emission and security standards.
• The potential size of the market is vast as VIO is forecast to increase at a strong pace in Brazil and Mexico, while economic recovery will raise spending per car.• Parts' disparity is expected to grow with VIO.
• IAM is stronger in maintenance and service parts where price competitiveness is a priority.
• Independent installers account for overX% of the service providers, limiting the negotiating power of distributors.
• Actual legislation is limiting competition for vehicles under warranty.
• Stronger competition is expected from OEM dealerships, along with increased warranty periods and customer loyalty.
• Buying groups should be created to increase negotiating power.
• Cheaper imported parts respecting national standards will gain market share, while increasing repairers' margins.
Current• Younger VIOs are introducing new vehicle technologies and electronics, as testing equipment becomes required for repairs.
• Responding to these new technologies is the main challenge for service providers in terms of investment and knowledge.
• OES will expand their networks of certified repairers.• Vehicle legislation will follow the trend of stricter standards as technology is renewed at a strong pace.
• Drivers' awareness of preventive maintenance and service quality, in terms of timing, parts' availability, and job quality must be increased.
• OES will provide additional support to installers through technical training and access to parts' information.
• Chain services and franchise will offer investments.
Entering the Latin American AftermarketCurrent
• The IAM segment is the leader in a fragmented market. Franchise movements and service chains are starting to enter. The market still has room for new, well-structured participants with a strong brand capacity.
• Customers' higher quality expectations and technological changes will trigger a concentration movement. Foreign participants will strengthen their presence.
Key Questions this Study Will Answer
• What are the drivers and restraints impacting this market?
• What is the size of this market and what are the "top 10" most demanded auto parts?
• How is the market structured in Latin America, particularly in Brazil, Mexico, and Argentina?
• What are the growth opportunities and perspective for a participant to enter?
• How is the distribution channel organized, and what are the development perspectives?
• What is the competition level and how are the prices evolving?
• What are the main actual and future challenges in the South American aftermarket?Table Of Contents
1. Executive Summary
2. Research Scope, Objectives, Background, and Methodology
3. Definitions and Segmentation
4. External Challenges: Drivers and Restraints
5. Total Latin American Automotive Aftermarket
6. Demand Analysis
7. Brazil Aftermarket Breakdown
8. Argentina Aftermarket Breakdown
9. Mexico Aftermarket Breakdown
10. Chile Aftermarket Breakdown
11. Colombia Aftermarket Breakdown
12. Other Latin American Countries Aftermarket Breakdown
13. Conclusions and Future Outlook
To order this report:Automotive Industry: 360 Degree Analysis of the Latin American Automotive Aftermarket
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