New Report Examines the North American Belts, Hoses, Gaskets, and Seals Aftermarket

Business Wire, June 2, 2008

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c93378) has announced the addition of Frost & Sullivan's new report: North American Belts, Hoses, Gaskets, and Seals Aftermarket to their offering.

This Frost & Sullivan research service titled North American Belts, Hoses, Gaskets, and Seals Aftermarket provides unit shipment and revenue forecasts, competitive analysis, distribution channel analysis, key market trends, and revenue market share analysis, among others for the belts, hoses, gaskets, and seals market.

Market Overview

Parts Proliferation Driving Unit Shipments

Vehicle manufacturers have been increasing the number of components under the hood while making engine compartments smaller. This factor is driving unit shipments in the North American belts, hoses, gaskets, and seals aftermarket as changes in engine design lead to changes in belt design, in turn forcing the distributor to stock a greater number of parts. Furthermore, the number of light vehicles in use across North America is expected to grow at a compound annual growth rate (CAGR) of 1.5 percent during the forecast period. This will aid the demand for gaskets and seals as they are used in sealing a number of underhood and body parts.

However, the increasing penetration of inexpensive parts imported from Asia is intensifying price competition in the aftermarket. The technological capabilities of offshore manufacturers are improving every year and the aftermarket for belts and hoses can expect more offshore competition. "Counterfeiting of parts is also a major challenge for participants in the North American belts, hoses, gaskets, and seals aftermarket," notes the analyst of this research service. "Amongst the different categories covered in this study, belts and hoses are the most at risk of being counterfeited."

Shift from V-Belts to Serpentine Belts Increases Weighted Average Price

The industry-wide average price of V-belts in 2007 was approximately 50 percent lower than the average price of a serpentine belt. As the industry continues to witness an increasing shift from V-belts to serpentine, the overall weighted average price of belts is expected to continue to increase due to the usage of higher priced belts. The major advantage of serpentine over V-belts is that the consumer needs to purchase and install one belt instead of requiring multiple belts to run the auxiliary items on an engine. In addition, serpentine belts allow the manufacturer to have a smaller package in the engine compartment as they are tighter and consume less space in the engine compartment.

"Overall, the North American belts, hoses, gaskets, and seals aftermarket is expected to witness a decline in unit shipments," says the analyst. "Revenues are expected to decline at a lower rate as compared to unit shipments because prices are expected to increase modestly due to anticipated price increases for raw materials and a continuous increase in demand for higher priced serpentine belts."

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

-Belts - Serpentine, timing, V-belts

-Hoses - Cooling system, HVAC, others

-Gaskets - Cylinder head, intake manifold, exhaust manifold, valve cover, oil pan

-Seals - Valve stem, rear main

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