Analyzing the Market Attractiveness and Distributor Landscape for Brake Systems in Commercial Vehicles

March 6, 2017

With the rising expenditure on improving transportation infrastructure, the market for commercial vehicles is anticipated to grow exponentially in the coming years.

Despite challenges that resulted in a decline in the sales of commercial vehicles, especially in emerging economies such as India, the market for commercial vehicles is expected to witness a positive growth in the forthcoming years owing to the rising trend towards the replacement of the aging fleet and initiatives from governments that spur the demand for on-demand pick up from several sectors such as the construction industry. Additionally, stringent regulations in regard to the load carrying capacity of commercial vehicles will also benefit the sales of vehicles such as trucks and refrigerated trailers.

However, the changing preferences of the price-sensitive customers, the rising competition from the global and regional vendors, and the availability of effective distributor channels pose major challenges for the growth of commercial vehicle manufacturers. Moreover, the rising preference of fleet operators towards vehicles equipped with advanced technologies to ensure vehicle and driver safety is a crucial challenge since commercial vehicle manufacturers have the need to integrate their vehicles with advanced components while taking the cost factor into account.

With continuous technological innovations and the need to comply with the safety guidelines set by various regulatory bodies, there is a constant demand for automotive components such as braking systems fromcapture commercial vehicle (CV) manufacturers. Fleet operators are increasingly demanding CV manufacturers to integrate their products with advanced braking systems such as anti-lock braking system (ABS) and traction control system (TCS). Though the rising sales of CVs and the rising demand from the automotive aftermarket encourage brake systems manufacturers to expand their operations in new markets, intense competition and the need for strong distribution channel endangers their profit margins. By analyzing factors that will influence and challenge growth and identify key suppliers with well-established networks, we help clients in this market space develop effective market intelligence strategies to improve their businesses’ outlook.

The Business Challenge

To better understand the market dynamics for brake systems in terms of CV population, the type of customers and their buying behavior, and the distributor landscape, the client – an established manufacturer of braking systems forcapture2 rail and commercial vehicles – approached Infiniti to engage in a market intelligence study that would help evaluate the market attractiveness and distribution landscape for CVs across target regions. The scope of this market intelligence engagement was to offer strategic market insights that would help the client determine the future business strategies specific to distribution or partnership with distributors and original equipment manufacturers (OEMs) and operation expansion across the target countries.

The main objective of this market intelligence engagement was to understand the future market space for brake systems for trucks, buses, and trailers >6 tons.

Additionally, this study required our team of market intelligence experts to obtain an in-depth understanding of the market in areas including market dynamics, customer preferences and buying behavior, and the distribution landscape across countries such as Iran, Egypt, Angola, Iraq, and the Democratic Republic of Congo.

By realizing the need to have a clear understanding of the OEMs and aftermarket suppliers of the automotive industry to comprehend the market dynamics in each region, our market intelligence experts carry out structured telephone surveys and discussions with industry experts, business executives, and market stakeholders.

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Solution Offered and Business Impact

By deploying an experienced project management team with considerable expertise in market intelligence and advisory for the various segments of the automotive industry, we offered the client a comprehensive analysis of the market attractiveness for commercial vehicle brake systems in each target region. Additionally, to help the client gain a clear understanding of the distributor landscape in the countries under focus, our market intelligence experts also offered insights on the distributors of CVs including companies, which are already importing goods from Europe and OEMs. Furthermore, the client also gained insights on the price sensitivity and buying behavior of customers to expand their operations in the target regions.

In a mere span of just 12 weeks, the client – a global leader in braking systems for rail and commercial vehicles – was able to leverage our experience to develop a solid understanding of the market attractiveness of brake systems for CVs across the target regions. Moreover, the market intelligence study also helped the client identify the major distributors and OEMs in the countries, their regional and national presence, and the parts supplied by them.

To assess the challenges specific to the automotive industry, Infiniti’s experts have developed an extensive proprietary database that consists of information on more than two million industry specialists, key distributors, major competitors, and end-users.

Benefits of Our Integrated Approach?

In just 12 weeks, the client – a world-renowned manufacturer of braking systems and a supplier of additional sub-systems for commercial vehicles and the rail sector, saw numerous benefits in terms of evaluating the capacity of distributors and understanding the buying behavior of the different customer segments including the individual owners and fleet operators.

Here are some of the key points appreciated by our clients

  • Dedicated Market Intelligence Portal. A centralized platform for the collection, storing, processing, reporting, and dissemination of information with the specific purpose of assisting the decision-making process and developing actionable insights. This portal includes comprehensive information on quantitative and qualitative aspects on target markets, competitors and end-users.
  • Collaborative learning. We leveraged the experience of our healthcare team and our technical capabilities to enable report-sharing and other collaborative features appreciated by client teams.
  • Database Access. Access to a patient database containing information about 60+ medical diseases and conditions, such as patients undergoing treatment, untreated patients, and patients with chronic conditions.
  • Interactive Dashboard. Using our Portal based solution for healthcare professionals, we took a design-first approach to problem-solving and helped break through previously held assertions.
  • Value for Money. Infiniti’s dedicated client management team customizes reports to suit business requirements and offers the best insights for every dollar spent.

A must-read market intelligence case analysis for strategy experts and decision makers looking for insights on commercial brake systems.

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