North American Spark Plugs Aftermarket

Abstract

Demand for Premium Spark Plugs Drives the Aftermarket

The demand for premium spark plugs (especially platinum) in the North American aftermarket is fast growing as they offer longer tune-up cycles and higher durability than traditional copper plugs. Platinum spark plugs are expected to last between 60,000 and 75,000 miles, which is almost twice as long as traditional copper spark plugs. With increased premium usage of platinum, the market has witnessed the introduction of the double platinum line that provides platinum-to-platinum firing. This increases durability and virtually eliminates the possibility of gap erosion. In addition, some market participants have introduced the triple platinum spark plugs with an even higher usage of platinum, as the name suggests.

This Frost & Sullivan research service provides an overview of and an outlook for the North American spark plugs aftermarket, detailing unit shipment and revenue forecasts as well as providing market share analysis. It segments the aftermarket into traditional, premium, and ultra-premium spark plugs. The research service further provides analysis of Market Engineering, pricing and distribution channels along with trends by product type and geographic region, and studies the prevailing competitive structure, important market trends and products offered by key aftermarket participants.

Increasing Use of Precious Metals Allows for Price Stability of Spark Plugs in the Aftermarket

"Although the double platinum plugs offer greater durability, the use of larger amount of platinum greatly increases the overall cost of the spark plug," notes the analyst of this research. "In addition, the growing preference of automakers for fine wire platinum applications for their vehicles has supported their demand in the aftermarket as well." Therefore, the greater usage of platinum would lead to higher costs and further the machinery used on fine wire applications is slightly different from others, which adds up to the expenditure.

Presently, there is a steady demand for higher priced Iridium plugs that offer a superior product life compared to platinum spark plugs. The continued usage of precious metals is expected to help boost prices, even though the total units sold are expected to decline. Further, the changes in engine designs by vehicle manufacturers can lead to redesigning of spark plugs.

Developments in Underhood Technologies Provide Scope for Spark Plug Aftermarket Expansion

The changes in underhood technologies such as distributorless ignition systems (DIS) and coil -- on -- plug (COP) systems have fueled the need for premium spark plugs. "Vehicle manufacturers recommend platinum spark plugs over copper ones because they are more durable and therefore can sustain the high voltage required to be passed through DIS and COP equipped vehicles," says the analyst. "Today, almost 65 to 70 percent of vehicles on the road are equipped with DIS and COP technologies and this is expected to increase in future and since almost all such vehicles must have a platinum or iridium spark plugs to sustain the high voltage, they need to be replaced with the same type of spark plugs respectively." This results in the growth of the premium and ultra-premium market segments and reduces the market for copper spark plugs."

Overall, the expected increase in the weighted average number of cylinders, installed in light vehicles over the forecast horizon -- coupled with growing substitution of traditional spark plugs with premium and ultra-premium categories is driving the North American spark plugs aftermarket. Further, the need for replacement of spark plugs is likely to escalate with increase in the vehicle parc, average vehicle age and average miles driven per year.