The complete value chain of the cold-end exhaust systems market is a constricted industry segment-related chain with an interconnection between several players coupled with a flow of value in the form of services and goods. The entire value chain for the exhaust system industry, when classified into industry segments, comprises two major streams, namely the core industry and supporting industry segments. The raw exhaust component points are separated into numerous groups. The cold-end exhaust systems market value chain comprises raw material suppliers and end users with the prime industry segments through these sectors exchanging values at several intermittent stages.
Jobbers and repair shops are the third and the last stakeholders in the value chain of the cold-end exhaust system aftermarket. Automobile OEMs integrate cold-end components in vehicles to control the emission of various frequencies of unpleasant engine noises. The industry is witnessing a trend of strategic alliances and collaborations between automobile manufacturers and exhaust component OEMs to gain a competitive edge and capture a significant share in the cold-end exhaust system market.
Vertical integration helps companies maintain control over certain key component technologies. It also enables manufacturers to create an internal supply network that allows optimized manufacturing throughput, enhanced product reliability, increased product design flexibility, and independence in designing key components according to the company specifications.
Cold-end exhaust system aftermarket players, such as repair shops, are the preceding investors in the performance-based cars’ value chain. Automobile OEMs integrate cold-end components in vehicles to control the emission of various frequencies of unpleasant engine noises. In case of performance-based cars, repair shops specifically demand custom mufflers and resonators for selective sports and performance-based car customers.
Regulatory authorities, such as Environmental Protection Agency (EPA) under the Environmental Protection Noise Regulations (2000), monitor the noise levels associated with the modern-day automotive mufflers and resonators in the automotive exhaust system. However, the high cost of modern-day resonated mufflers may restrain the cold-end exhaust system market growth as low-priced passenger car makers may refrain from adding onto the cost of vehicles.
The increasing demand for automobiles is projected to trigger the demand for automotive collision repair centers. Stringent standards across the globe for car safety are anticipated to drive the automotive collision repair market. The presence of key participants in the cold-end exhaust system aftermarket globally, such as Eberspächer Exhaust Aftermarket GmbH & Co. KG, Flowmaster, Inc., Calsonic Kansei Corporation, Bosal Group, Magneti Marelli S.p.A., and MagnaFlow, have resulted in the high brand awareness and increased demand.
Some of the notable developments to have taken place in the cold-end exhaust system market include:
In January 2019, MagnaFlow introduced the DPF-Back Exhaust for 2018-19 Ford F-150 diesel trucks. The system has two configurations, black-coated and polished dual-tip. The systems are fully compliant to the emission standards in every state of the U.S.
In May 2019, Eberspaecher announced that they were building an exhaust technology plant in Mexico, with the facility having 15000 sq. M of manufacturing space and will be producing exhaust systems for commercial vehicles and passenger cars. The first batch of products expected to be rolled out by the end of 2019.
In May 2019, Calsonic Kansei and Magneti Marelli announced that they would be moving to a single brand (Marelli), and in September, they announced that they would be changing their legal name in October 2019. While Calsonic Kansei will legally operate as ‘MARELLI Corporation’, Magneti Marelli will be called as ‘MARELLI Europe S.p.A.’. The move comes on the back of parent MARELLI planning to compete effectively on the global scale. Major affiliate companies will also be called by the MARELLI name from October 2019.
In-depth report on global cold-end exhaust system aftermarket by Grand View Research:
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