The growing emphasis on engine efficiency, improvements in the global economic conditions, and rapid decline in commodity and gasoline prices are the major growth contributors for the global auto engine parts manufacturing market. The demand from developing economies is expected to rebound over the next five years, owing to the increase in disposable incomes and technological developments. Furthermore, as the global consumer’s preferences and demands continue to vary between fuel efficiency and passenger space, the governments have started implementing stringent regulations that apply to all the subsegments within the automobile industry. This has created several challenges as well as growth opportunities for leading players in the auto engine parts manufacturing market space.
The global automobile industry is influenced by a range of factors that play a significant role in increasing the complexity and also affect the economic options available to the automobile engine parts manufacturers. Most of these factors are interdependent, but a few are market-induced and cannot be influenced directly by the manufacturers in the automobile industry.
Let’s take a look at the factors influencing the growth of the automobile industry:
- Increasing demand for innovation and flexibility in manufacturing processes: The auto engine parts manufacturers are not just exploited by the complexity of digital advancements but are also affected by the shortening of product lifecycles. Another important factor is the rise in developments of niche product models for specific target groups.
- The rise in modification and diversification of product portfolios: It is essential to reduce the product development lifecycles to react to the changing demands of the end-users quickly. Today, companies in the automobile industry change or modify their products within two or three years; whereas, in the past, an average product lifecycle in the automotive sector was about eight years.
- Increasingly diversified customer preferences: Customers look for products that satisfy their requirement and preferences. However, owing to the increase in competition and growing focus on price rather than brand loyalty, consumers are generally not drawn towards companies for their individualized products.
The Business Challenge
- The client- A Leading auto engine parts manufacturer
Objective- To identify and analyze the market trends, growth opportunities, and offer an overview of the global auto engine parts market.
The client, a leading manufacturer of auto engine parts, wanted to gain a holistic view of the automobile industry. The client wanted to leverage Infiniti’s market intelligence solution to boost their upselling opportunities by targeting specific consumer groups. The client also wanted a detailed report on the market entry barriers, new opportunities, risks, and competition in the automobile industry.
Results- Devised effective strategies based on the analysis of the marketplace. Also, identified future growth opportunities and guided the client in working towards establishing their goals.
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The market intelligence experts at Infiniti carried out extensive research comprising of interviews and discussions with leading stakeholders in the automotive accessories market to help the client improve business efficiency. The experts at Infiniti further compiled information from a wide array of secondary sources such as paid industry databases, company presentations, and industry forums to help the client understand the competitive scenario.
The Solution and the Business Impact
Our market intelligence solution helped the automotive client refine their decision-making processes. It also helped them in reducing their warranty assistance costs by tens of millions of dollars, while continuing to target assistance to their most valuable customers. The solution offered also helped the auto engine parts manufacturer in improving their business strategies by grounding their decisions in real-world data and analysis.
This engagement also helped the client in enhancing their process efficiency by devising risk negating strategies and offering real-time updates. Moreover, this helped them in identifying a scalable approach to discover new growth opportunities.
The way businesses are conducted across various industrial segments is changing at an ever-increasing speed, and market intelligence experts are the center of these changes. Constant technological innovations bring about the need to analyze markets better and the opportunities it presents. Very often, organizations that put too much effort into devising strategies to catch up on the competition and end up falling behind, as they cannot anticipate the future market developments effectively.
Moreover, in today’s world, market intelligence solutions have become an essential tool in making smart, data-driven decisions. It is emerging as a fast-growing trend and is increasingly being adopted by various industries. Also, as the dependence on data increases, almost any use of data will require market intelligence to extract actionable insights from it.
A must-read case study for strategy specialists and decision makers looking to develop an understanding of the auto engine parts market space.