Aug 30, 2018
Aftermarket Captures Two-Third Revenue Share as Preference for Automotive Customization Prevails, Says Fact.MR
by Team Fact.MR
A prominent rise in the rates of vehicle production, sales of cars, demand for automobile maintenance, and expansion of automotive aftermarket are factors responsible to transform the growth trajectory of the automotive antifreeze market in the coming years. As per Fact.MR’s study on the automotive antifreeze market, a steady CAGR surpassing 5% is projected during the forecast period of 2017 – 2022.
The study observes that macroeconomic factors such as ameliorating economic scenario, increasing disposable income, and expanding middle class have a significant influence on consumer behavior in terms of purchasing an automobile, frequency of repair and maintenance, and awareness about engine efficiency. In light of this, the research study projects a stable end-user sentiment which prominently impacts the developments in the automotive antifreeze market.
Assessment of the vehicle type segment reveals that the passenger car segment is expected to report the highest demand for automotive antifreeze and share a major market share by crossing US$ 100 million by 2022 end. On account of rising sales of passenger cars in developing regions such as APEJ, particularly, sales of passenger cars, typically in the category of first-time consumers, in China and India are highlighted.
Propylene glycol is anticipated to continue its leading position as the most preferred automotive antifreeze while reporting a healthy CAGR during the review period. Ethylene glycol is the next preferred automobile antifreeze product and is expected to follow the trail.
A keen observation between the relationship of the flourishing automotive industry and rapidly expanding automobile aftermarket and OEMs sales channel has been offered in the research analysis. The study envisages that the aftermarket sales channel is projected to continue its pre-eminence over OEM channel in the automotive antifreeze market with the revenue generation of over US$ 300 million by 2022 end. OEM’s have been observed to share lower contribution in the market, however, by accurately addressing specific consumer demands, OEM is expected to rise above the current market position during the forecast period.
The automotive antifreeze market is marked by the product developments and introduction of novel products. Such business strategies to gain consumer confidence are adopted by the automotive antifreeze manufacturers to maintain market sustainability during the estimation period. The research study has observed a novel trend of vehicle-specific customization of coolants for different regions, further propelling the revenues of aftermarket channel.
As the demand for high-performance cars and trucks grows, need for engine maintenance is likely to increases in parallel. As high-performance engines are run at a faster pace and at high temperatures, need for an effective cooling system to maintain the optimal engine efficiency has resulted in higher demand for organic acid technology, as per the research study. Among the technology types including organic acid, inorganic acid and hybrid acid technologies, the neck and neck competition between organic acid and inorganic acid technology, the study reveals the most lucrative segment to be the organic technology segment.
The comprehensive research study also tracks the automotive antifreeze market in the key regions and delivers an unbiased analysis of the future market performance. With the sales of cars on the rise, the Asia Pacific Excluding Japan (APEJ) region is estimated to remain at the helm of the automotive antifreeze demand during the forecast period. An analogous expansion of North America region is observed in terms of growth rate during 2017 – 2022.
The research study also entails a number of caveats confining the growth of the automotive antifreeze market during the review period. Fluctuations in the cost of raw materials are expected to affect the small-scale market players. Although APEJ is expected to dominate the automotive antifreeze market, rising labor costs in China are expected to impact the lucrativeness of the market.