Abstract
Increased Replacement Cycles Restrains Overall Demand in Ignition Parts Aftermarket
The OE and Aftermarket manufacturers of Ignition Parts has focused more on better performance of these parts and because of this, the replacement rate of these parts is on the decline. The replacement rate of Spark Plug Wire Sets has also decreased due to which there has been a decline in unit shipments. The better performance of Aftermarket and OE Ignition Parts has improved the overall performance of the vehicle but this has lowered their replacement rate and because of which this market could continue to face a steady decline in the years to come. This is the biggest challenge in front of this industry now.
Increased Demand for Premium Wire Sets allows Price Stability
The decline in unit shipments of spark plug wire sets due to reduced replacement rate will not effect price stability because of increased demand of premium wire sets. The overall trend in the aftermarket is for premium replacement products that are of OE quality. Due to the increased demand of more expensive products there will be more price stability.
Growth Opportunities in Spark Plug Wire Set Aftermarket which is in the Declining Stage
Three major participants dominate this market. The key to their success is brand building because the spark plug wire set aftermarket is very brand oriented. More brands are available in the aftermarket than there are suppliers. This branding trend is expected to continue. With demand for premium products on the rise, significant revenues can be generated in this market. Established participants can retain their market share if they can keep their brand value intact. The smaller participants can devise strategies to establish a brand and focus more on high-end segment of wire sets aftermarket to gain market share.
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