The global market for. October SAMPLE

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1 The global market for vehicle wiper systems: forecasts to 2006 October SAMPLE

2 The global market for vehicle wiper systems: forecasts to SAMPLE Author: Matthew Beecham Published October 2002 No part of this publication may be copied, reproduced, stored in a retrieval system, or be transmitted in any form by any means electronic, mechanical, photocopying, recording or otherwise without the prior permission of the publishers. All material published within this report is copyright Aroq Limited. This report is provided for individual use only. For details of multi-user licences and intranet distribution options please contact Oliver Wilkinson: Tel: +44 (0) Fax: +44 (0) oliver@aroq.com Aroq Limited. Registered in England no: Vale Park Business Centre, Evesham, Worcs, WR11 1GN, UK. Tel: +44 (0) Fax: +44 (0) Web: All content copyright Aroq Limited. All rights reserved. The global market for vehicle wiper systems

3 Table of Contents Table of Contents Table of Contents... i List of Figures... iii List of Tables... iv Chapter 1 Introduction... 1 A safety critical component... 1 Report coverage... 1 Chapter 2: The market... 2 Market trends... 2 Replacement intervals vary widely from Japan to North America... 2 North American motorists replace wipers every four years... 2 While Europeans replace every two years... 2 The Japanese replace every year... 3 Educating the motorist might result in doubling replacement sales... 4 Market forecast... World market shares... Europe market shares... North America market shares... Japan market shares... South America market shares... Chapter 3 Technical review... Chapter 4 Bosch... Customers... New products... Buhlertal plant... Eisenach plant... Other facilities... Chapter 5 Champion... Divisions... Cooper Automotive acquisition... Reporting segments... Industry firsts... Chapter 6 Trico... Company description... Trico manufacturing capabilities... Aftermarket brands... Customers... The global market for vehicle wiper systems i

4 Table of Contents Chapter 7 Valeo... Emerging from Chapter Employees... Sales... Wiper production... Product developments... Production plants... Technical centres... R&D centres... Administration office... Sales offices... The global market for vehicle wiper systems ii

5 Table of Contents List of Figures Figure 1 Bosch s Quick-Clip... 5 Figure 2 European aftermarket shares for wiper blades, Figure 3 North American aftermarket shares by brand for wiper blades, Figure 4 North American OE wiper system market shares, Figure 5 Wiper components... Figure 6 Bosch s Aerotwin wiper... Figure 7 Bosch s electronic controller ensures a maximum visibility area at all times... Figure 8 A first in the Renault Vel Satis: Bosch s new wiper drive with reversible motor... The global market for vehicle wiper systems iii

6 Table of Contents List of Tables Table 1 Passenger car replacement market for wiper blades¹ in Western Europe, Japan, North America and worldwide Table 2 Passenger car replacement market shares for wiper blades¹ in Western Europe, Japan, North America and worldwide Table 3 Retail replacement market values for wiper blades¹ for passenger cars in Western Europe, Japan, North America and worldwide Table 3 Wiper manufacturers business activity... Table 4 Wiper manufacturers business activity (continued)... Table 5 Western European aftermarket wiper blade market by rank, Table 6 Trico s OE customers... The global market for vehicle wiper systems iv

7 Chapter 1 Introduction Chapter 1 Introduction A safety critical component In theory, the wiper blade is a service replacement item. However, the truth is that vehicle owners often wait until the product is disintegrating before replacing it. This is despite the fact that this component is, in reality, a safetycritical item with impaired performance leading to a hazardous reduction in visibility.according to a survey commissioned by a pan-european consortium of insurance companies, some xx% of all car accidents are due to poor visibility. The global wiper blade market certainly has the potential to grow. It has been suggested, for example, that the European wiper blade market could easily double if motorists realised just what a safety-critical component it is. The key to growth, however, lies in educating the motorist about the dangers of using worn-out parts. From the marketing point of view this sector is still undeveloped and manufacturers have some way to go to change consumer habits. Report coverage Continuing its series of component market studies, this just-auto.com report reviews the key market drivers for wiper blades and systems, and provides some forward-looking analysis. Chapter two sets out our forecast for product trends and fitment levels for wipers through 2006 as well as determining some market shares. Chapter three sets out some recent innovations and the forces driving those technical advances. Chapters four to seven provide brief profiles of the major wiper blade manufacturers. The global market for vehicle wiper systems 1

8 Chapter 2: The market Market trends Replacement intervals vary widely from Japan to North America While the average useful life of a wiper blade is six months, the average replacement interval is much longer. Research into the habits of motorists in Europe and North America and the replacement of their wiper blades has revealed a marked difference. In respect of the rear wiper blade replacement market, wiper manufacturers talk of a very small market; the replacement interval is typically double that of the front wiper blade market. This is despite the fact that xx% of all new cars in the US alone are mini vans or sports utility vehicles (SUVs) that come equipped with rear wipers. North American motorists replace wipers every four years According to the Motor and Equipment Manufacturers Association, motorists in North America are driving for longer periods before replacing their wiper blades. Research shows that in 19xx wiper blades were replaced at a rate of every xx years and by 19xx the rate had risen to xx years. Wiper manufacturers also observe that, despite the appalling weather conditions, Canadians replace their wiper blades every four - five years, making them even more lethargic than northern Europeans at replacing their wiper blades. While Europeans replace every two years In Europe, it is estimated that, on average, the majority of motorists tend to replace a pair of wiper blades every xx years. There are, however, national differences in Europe. Scandinavians tend to change their wiper blades more often, replacing both wiper blades every xx years. At the other extreme, the British, Italians and Spanish change their blades once every four years. Conversely, the French and Germans replace their blades every two years. Some wiper manufacturers note that as the speed limits in Germany are higher than in the UK and the US, Germans need good visibility while driving fast on wet roads. The global market for vehicle wiper systems 2

9 The French and British markets are the only two in Europe where motorists typically buy single replacement blades. To encourage British motorists to replace both wiper blades, Peugeot is offering a free 250ml bottle of screen wash with every twin pack of wiper blades. The Japanese replace every year In Japan, it is thought that motorists replace their wiper blades about every xx years. There is, therefore, a huge aftermarket but it is very difficult to access by overseas manufacturers. According to wiper blade manufacturers, these replacement rates across Europe, Japan and North America have not changed significantly over the last four to five years. Given these results, it is not surprising that the majority of motorists simply forget the price paid for their last set of wiper blades, leading to surprise at the cost today. In real terms, though, the cost of wiper blades is less than it was in the mid-19xxs. Then a large number of individual references had to be stocked in order to maintain a reasonable range. Since then the introduction of the universal blade with its collection of alternative fixings has made matters easier for the garage and retailer. The average wiper blade wipes the windscreen over one million times in a year, and travels xx miles in this time. It has also been predicted that the popularity of the universal blade is now likely to decline with the introduction of an increasing number of specific applications. Different lengths are now becoming the norm. Approximately xx% of vehicles introduced after 1994 are fitted with longer driver/shorter passenger side blades. An example of this is the Opel/Vauxhall Omega which is fitted with a xx-inch driver's side blade and a xx-inch blade on the passenger's side. As modern vehicle windscreens become more raked and aerodynamic, wiper blades become longer. As blades get bigger, their retail value increases. Bosch states that the most popular lengths of blade are now the xx-inch and xx-inch, mainly due to the fact that many Japanese cars use the former on the passenger's side and the latter on the driver's. The global market for vehicle wiper systems 3

10 Educating the motorist might result in doubling replacement sales While most sectors of the automotive replacement components market face unavoidable decline, thanks mainly to increasing longevity, the wiper blade market still has the potential to grow. It has been suggested, for example, that the European wiper blade market could easily double if motorists realised just what a safety-critical component it is. One reason why motorists frequently procrastinate when it comes to buying new blades is the nuisance when it comes to actually fitting them. To help them get round the problem of fixing their wiper blades, Bosch has come up with its Quick-Clip universal adapter. The Quick-Clip comes already mounted on the wiper blade, unlike other makes of blade where the motorist must first select the correct adapter. The wiper blade is then snapped into place on the wiper arm. Bosch began marketing its well-received Quick-Clip in January 20xx in Europe, covering xx - xx% of the car parc. Although the adapter is offered in North America, motorists seldom have to replace their own blades as most retail chains and DIY stores will offer to install the blades as part of the sale, unlike in Europe. Trico s Exact Fit wiper blades also come with the adapter pre-attached to the blade. Trico launched the Exact Fit range in the US in 19xx, subsequently introducing it in the UK two years later. Although most blades sold on the US aftermarket (over xx%) are fitted by the retail store, Trico sought to make the job of fitting those blades easier and quicker for the retailer. The global market for vehicle wiper systems 4

11 Figure 1 Bosch s Quick-Clip Source: Bosch The global market for vehicle wiper systems 5