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Remanufactured turbochargers to gain in popularity

LONDON, England — During the next five years, fleet managers will spend more on remanufactured components than they ever have before, even as they buy fewer parts.


LONDON, England — During the next five years, fleet managers will spend more on remanufactured components than they ever have before, even as they buy fewer parts.

A newly released study conducted by Mountain View, Calif.-based research firm Frost & Sullivan predicts North American suppliers will ship fewer remanufactured engines, transmissions, and clutches due to “improving original equipment quality and increasing competition from new replacement parts.” In contrast, the report’s authors say the number of shipments of remanufactured turbochargers will increase 2.1% annually.

Even as the overall number of shipments falls, Canadian and American parts buyers will see an increase in unit pricing, which the study predicts will range from 1.5% to 5.5% per year. That increase means producers of remanufactured components will see their revenues rise. In 2012, suppliers and manufacturers of remanufactured components earned revenues totalling US$3.13 billion. By 2019 that figure will be US$3.52 billion.

The study’s authors say that price increases will be driven by a number of factors, including “the increased amount of electro-mechanical content” in the systems “to make them compliant with fuel economy and emissions regulations.”

The study, which is entitled Strategic Analysis of the North American Class 6-8 Remanufactured Powertrain Components Aftermarket, also looks at the state of competition within the market, and predicts “independent remanufacturers will enhance their competitive position as they develop their technological expertise and enjoy greater access to cores,” while at the same time it warns that “market consolidation [will happen] with large remanufacturers and distributors acquiring smaller competitors unable to keep up with the pace of change.”


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