Automotive Radiators: A Global Strategic Business Report
San Jose, California (PRWEB) March 05, 2012
Follow us on LinkedIn – As a vital element in a vehicle’s engine cooling system, radiators are indispensable auto components with a large OEM market. In the OEM segment, the market’s fortunes are directly linked to the level of automobile production worldwide. With world production of passenger cars and commercial vehicles poised to reach 92.9 million units and 23.3 million units respectively by the year 2017, a largely positive outlook remains for the automotive radiators market. Future growth in the world market will be led by developing countries in Asia-Pacific, especially China, which has been witnessing steady increases in automobile output. Increasing average life of vehicles together with increase in the number of vehicle miles traveled and the resulting need for replacement of worn-out radiators provides opportunities for growth in the aftermarket segment. In the upcoming years, focus of manufacturers will shift towards manufacturing next generation radiators with superior mechanical strength and durability, which can reduce drag and operate at higher pressures. The focus of R&D will be centered on green benefits, and in this regard recyclability will emerge into a major focal point.
The automobile industry worldwide witnessed a strong rebound in production and demand following the decline witnessed during the 2007-2009 recession. Resurgence in growth fundamentals, such as, recovery in GDP growth, rise in employment rates, incomes levels, discretionary incomes and consumer confidence, drove up sales in the OEM sector. In the aftermarket, on the other hand, the 2008 & 2009 decline in retail sales of new vehicle sales resulted in sharp reductions in the number of cars/vehicles covered within manufacturers' warranty periods, which thereby pushed up demand for aftermarket radiator replacements. While the industry in most regions across the world is continuing to recover, the industry in Europe is running into fresh set of challenges.
The European automobile industry currently continues to vacillate between optimism and fear, marring sentiments in an otherwise recovering auto industry in the region. Nervous over the play out of the sovereign debt crisis drama, the domestic industry is facing immediate hurdles, such as, credit restriction, consumer indecisiveness, fears of slowing vehicle sales, high labor costs, and possible collapse of consumer confidence in the event of escalation in the severity of the debt crisis. The heat raised by the Euro debt crisis in the auto industry in the EU is reflected by the growing concerns voiced by auto majors like Ford, General Motors, Fiat, over the volatile and fluctuating profits being recorded in the region. Bearish market sentiments indicate that continued multiple defaults by debt ridden economies could trigger a collapse of the Euro as a common currency. The return to local currency, although currently not seen as likely, can spell doom pushing the automobile industry into a complete meltdown like the one witnessed during the 2007-2009 recession.
However, immediate production cutbacks in the region are not seen as likely, given the yet patchy slowdown in auto sales. For instance, pockets of strength continue to exist in the region, such as in Germany and the UK alongside the quarterly weakness witnessed in France, Spain and Portugal. The odds are in favor of the automobile industry given the current guarded optimism over the government’s latest attempts to rein in the debt crisis, which in effect discounts the impact of a possible Eurozone crisis, which is still not confirmed as a technical recession. Also, the 2007-2009 recession inspired adoption of leaner inventory holding strategies and restructured cost bases, and shrewd expansion into developing countries to minimize risk exposure in domestic markets, now has the automotive industry in the region better equipped to weather a possible Eurozone slowdown. Nevertheless, auto makers in the region remain concerned and are continuing to lobby for a quicker intervention of the European leaders in resolving the debt crisis. Currently, however production continues to hold up even in the face of weaker than expected growth and optimism remains with no downgrade in the outlook for auto production.
Although short-termed, concerns of the automobile industry are currently alleviated with news about the governments in EU legislating additional bailouts which in effect kicks the EU debt can further down the road. Although these short-term solutions do not provide a permanent solution to the crisis and in reality indicates deferring of conclusive, corrective action, market sentiments are nevertheless encouraged.
The result of the 2007-2009 recession and the current economic uncertainties plaguing the developed US and European economies is the accelerated shift in emphasis on developing countries. The growing clout of developing countries like China and India in terms of production and consumption of automobiles now stands pronounced as market growth shifts distinctly towards developing countries. While US and Europe remain saddled with daunting financial issues, such as, mounting and unsustainable national debt levels, widening deficits, unprecedented changes in government regulatory/fiscal policies, volatile consumer spending, and ever-present fears of an escalation in the euro zone debt crisis, Asia-Pacific, Latin America and Middle East emerge into the spotlight with rapidly expanding number of car ownerships providing ample opportunities for growth. Also, with Japanese and American auto manufacturers mulling shifting of production bases from the debt-hit European continent to Asia, its opportunities galore in the region.
As stated by the new market research report on Automotive Radiators, Asia-Pacific represents the largest market worldwide. The region also remains the fastest growing with a projected 8.8% CAGR over the analysis period. Aluminum Automotive Radiators market is forecast to witness the highest growth of 8.3% over the analysis period. Aluminum radiators are superior conductors of heat and more defiant to corrosion, when compared to copper. Aftermarket manufacturers are using materials that resist corrosion, and adding anti-corrosive coolants such as antifreeze to these materials for increasing the life of the radiator.
Major players in the marketplace include Behr GmbH & Co. KG, Calsonic Kansei Corporation, CSF, Inc., Delphi Corporation, Denso Corporation, Modine Manufacturing Company, Radiadores Ordóñez S.A., Setrab AB, Spectra Premium Industries, Inc., T. RAD Co., Ltd., Valeo S.A., Visteon Corporation, Vista-Pro Automotive, among others.
The research report titled “Automotive Radiators: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections in volume sales for major geographic markets including the United States, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, & Rest of Europe), Asia-Pacific, Latin America and Rest of World. Product segments analyzed include Copper/Brass Radiators and Aluminum Radiators. Additionally the report also analyses the market by end-use application segments - OEM and Aftermarket.
For more details about this comprehensive market research report, please visit –
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.
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