Abstract
Intensive Price Competition and Brand Domination Restrains Entry of New Market Participants
The competition in the selected mounted accessories aftermarket, especially in the bike
accessories, luggage and cargo boxes, and roof rack categories, is on the rise. Increasing brand
domination is further intensifying competition. These factors are limiting new market entrants from
successfully penetrating the aftermarket. However, the cargo box aftermarket, the most rapidly
growing segment in this market, offers the maximum potential for new entrants. Established
participants, on the other hand, are consistently creating new strategies to survive the constant
threat posed by new entrants and the aggressive price competition.
This Frost & Sullivan strategic analysis offers insights into the latest developments in the
North American aftermarket for selected mounted accessories that include bike accessories, luggage
and cargo boxes, snow accessories, luggage and cargo trays, watercraft accessories, roof rack, and
soft-sided carriers. In addition to revenue forecasts and Market Engineering analyses, this study
also includes vital information on major participants in the market.
Product Differentiation and Innovation Key to Gaining Market Share
In an increasingly competitive bike accessories aftermarket where price competitiveness is the
deciding factor, product differentiation and innovation can help participants gain and maintain an
edge over rival companies. Offering novel products is vital to capitalizing on the strong market
potential effectively.
"Innovative products, few participants, and strong demand are boosting growth in the hitch
and roof mounted bike accessories sector," observes the analyst of this research.
"Participants must aim to design a universal product compatible to all vehicles and maintain
high volumes to leverage economies of scale and boost their market share."
Changing End-User Demands and Lifestyles Propelling Growth
An escalating population with an active lifestyle is propelling demand for additional storage
space due to the limited trunk or interior storage space available. Growing personal disposable
incomes and the related rising individual expenditure on recreational equipment is also fuelling
growth of mounted accessories. Certain equipment sectors such as snow bike and watercraft
accessories are driven by seasonal demand. "Changing lifestyles are fuelling demand for light
vehicles such as sports utility vehicles (SUVs)," says the analyst. "As a result, sales
are expanding, along with the opportunities for growth."
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