- Category: Widget
- Published: Thursday, 16 April 2015 17:28
- Written by Isaac
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Thriving Market For Auto Parts
Staten Island commercial bank marks demands of keeping cars on the road
STATEN ISLAND, N.Y. – Miles traveled, parts replacements, rising numbers of collisions, and the growing popularity of accessories are part of the large, stable growth of the automotive aftermarket.
Victory State Bank, Staten Island's only community-based commercial bank, takes note of research showing the business side of demands for maintenance and vehicle availability.
The global aftermarket is projected to reach $722.8 billion by 2020, driven by the growing consumer awareness of preventive care and the need for a vehicle's reliability.
Such findings emerge from a report by Global Industry Analysts Inc. (GIA) of San Jose, Calif., a publisher of off-the-shelf market research.
Defined as the secondary market of the automotive industry, the automotive aftermarket is witnessing stable growth supported by the expanding global vehicle fleet and the rapid rise in the average age of vehicles on road, GIA reports.
The increase in vehicle miles traveled drives the need for replacement of mechanical parts such as brakes, clutch systems, engine parts, and axles, among others, according to the findings reported in February.
The rise in the number of automobile accidents, especially collisions, is benefiting demand for replacement external structural components like bumpers, it said. The increase in electronic content per car and the resulting electronic failures in keyless vehicle entry systems and entertainment systems are also spurring opportunities for growth in the aftermarket, GIA found.
The legislation of strict fuel-efficiency and vehicle emission laws is forecast to benefit demand for performance components and specialty aftermarket equipment and accessories. The growing focus on environmental health will spur adoption of eco-friendly, recycled auto parts and components, the report predicts.
In North America, the automotive aftermarket is expected to witness increased sales of accessories for comfort and appearance such as custom seats, mats, hands-free phone kits, Bluetooth car kits, and auto-repair tools.
In the appearance-chemicals aftermarket, GIA forecasts that growth will be supported by the increasing popularity of pre-owned cars and leased automobiles.
The popularity of pre-owned vehicles is increasing in the United States, guided by the tough economic climate and the ensuing consumer preference for lower-cost options such as purchasing used cars.
The growing market for pre-owned cars is resulting in consumers investing both time and money in protecting the re-sale value of cars, the research notes, thus resulting in increased sales of vehicle detailing and appearance products in the aftermarket.
The research study is titled “Automotive Aftermarket: A Global Strategic Business Report.”
About Victory State Bank
VSB Bancorp, Inc. (OTCQX: VSBN) is the one-bank holding company for Victory State Bank. As Staten Island, N.Y.’s only community-based commercial bank, Victory State Bank operates five full-service locations on the Island: The main office is in the community of Great Kills, and branches are in the communities of West Brighton, St. George, Dongan Hills and Rosebank. For additional information, Victory State Bank may be reached at 718-979-1100 or visited online at www.VictoryStateBank.com.