Complexity of Automotive Heating, Ventilation and Air Conditioning Systems Undermines Repair...

Business Editors/Automotive Writers

PALO ALTO, Calif.--(BUSINESS WIRE)--Feb. 23, 2004

The closed loop system of heating, ventilation and air conditioning equipment creates a ripple effect when a single component fails, resulting in soaring

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New analysis from Frost & Sullivan (www.transportation.frost.com), "North American Heating, Ventilation and Air Conditioning Aftermarket," reveals this market generated revenue of $1.13 billion in 2002. Total market revenue is expected to reach $1.28 billion in 2009.

Technicians daunted by the complexity of the heating, ventilation and air conditioning (HVAC) system often opt to change the failed part instead of performing a complete diagnosis to uncover the root cause. Diagnosis is a longer process and the results are often hard to sell due to customers' skepticism in replacing a working component.

Apart from the interdependence of the components, service-related challenges also make diagnosis tricky. For instance, compressor oil selection, recognition and handling of refrigerant blends, and air conditioning sealers that glue up equipment when the system is opened for inspection can impair a technician's decision-making process.

To curtail these aftermarket handicaps, HVAC participants are pursuing technician support strategies where technicians receive electronic catalogs, a wide spectrum of training options, and diagnostic and equipment protection tools.

"Emphasis on customer education and proper diagnosis by the HVAC component suppliers and repair industry are improving installation skills and repair knowledge," states Frost & Sullivan industry analyst Mary-Beth Kellenberger.

Aftermarket participants have found that their original equipment affiliations are important but also limiting. The key to meeting the demands of the aftermarket is the ability to cover a broad vehicle spectrum. 2002 saw many participants sourcing products from competitors and manufacturing outside their core competencies to meet these demands.

However, this cross selling has homogenized product lines across the market, leaving little room for differentiation. Since there is little distinction in the product quality/designs of different brands, aftermarket suppliers are marketing their products at the service, pricing and training differential levels.