Market Analysis – 21101708 – Mower parts or accessories

Executive Summary

The global market for mower parts and accessories is valued at est. $14.2B and is projected to grow at a 3.8% CAGR over the next five years, driven by an expanding installed base of both residential and commercial mowers. Market growth is steady, but the landscape is undergoing a significant technological shift from internal combustion engines (ICE) to battery-electric power. The primary strategic challenge is managing the transition to a new set of electric-specific components while mitigating price volatility in traditional raw materials like steel, which threatens margin stability.

Market Size & Growth

The Total Addressable Market (TAM) for mower parts and accessories is a sub-segment of the broader $38B global lawn mower market. The parts and accessories segment is estimated at $14.2B for 2024, with a projected CAGR of 3.8% through 2029. This growth is fueled by the need for regular maintenance, repair, and upgrades across a large and growing installed base of equipment. The three largest geographic markets are North America (est. 45%), Europe (est. 30%), and Asia-Pacific (est. 15%).

^{Source: Internal analysis based on data from various market research reports [Grand View Research, 2023; MarketsandMarkets, 2023]}

Key Drivers & Constraints

1. Demand Driver (Housing & Landscaping): Growth in residential housing and the professional landscaping services sector directly increases the installed base of mowers, driving non-discretionary demand for replacement parts like blades, belts, and filters.
2. Technology Shift (Electrification): The rapid adoption of battery-electric mowers, particularly in the residential segment, is fundamentally altering the bill of materials. This shift reduces demand for ICE components (spark plugs, carburetors) while creating new demand for batteries, electric motors, and control modules.
3. Cost Input Volatility: Prices for core raw materials, especially steel (for blades and decks) and polymers (for housings and wheels), remain highly volatile, directly impacting supplier costs and creating margin pressure.
4. Regulatory Pressure: Stricter emissions standards (e.g., EPA and CARB in the U.S.) and noise regulations in Europe are accelerating the transition away from small gasoline engines, forcing OEMs and aftermarket suppliers to invest in compliant technologies.
5. Right-to-Repair Movement: Legislative trends supporting "right-to-repair" could increase competition by making it easier for independent shops and end-users to source non-OEM parts, potentially eroding the captive aftermarket of major brands.

Competitive Landscape

The market is a mix of major OEMs with captive aftermarkets and specialized independent manufacturers. Barriers to entry include extensive distribution networks, brand loyalty, and the manufacturing scale required to compete on price.

⮕ Tier 1 Leaders * Husqvarna Group: Global leader with a strong brand and vast dealer network; offers a full range of OEM parts for its extensive portfolio, including a growing focus on robotic and electric mower components. * John Deere: Dominant in the commercial and premium residential space; leverages its powerful brand and dealer channel to command a significant share of the high-margin OEM parts market. * Stanley Black & Decker (via MTD/Cub Cadet): A major force in the residential market through its acquisition of MTD; competes on volume and broad availability through big-box retail channels. * The Toro Company: Strong presence in both professional turf care (golf, sports fields) and high-end residential; known for durable equipment and a corresponding high-quality parts ecosystem.

⮕ Emerging/Niche Players * Oregon Tool: A leading independent manufacturer of aftermarket parts, particularly cutting components like blades and chains, known for quality and broad compatibility. * Stens / Arrowhead Engineered Products: A major aftermarket parts distributor offering a wide catalog of replacement parts for numerous brands, competing on price and availability. * EGO Power Plus (Chervon): A disruptive force in battery-electric outdoor power equipment; driving a new category of electric-specific replacement parts (batteries, chargers).

Pricing Mechanics

The price build-up for mower parts is primarily driven by raw material costs, manufacturing overhead, and multi-tiered distribution margins. A typical OEM blade's final price to a consumer might consist of 20-25% raw material & manufacturing, 15-20% OEM margin, 10-15% distributor margin, and 30-40% dealer/retailer margin. Aftermarket suppliers often compress these margins to compete on price.

The most volatile cost elements are raw materials and logistics. Recent fluctuations have been significant: 1. Hot-Rolled Steel: The primary input for blades and decks has seen price swings of >40% over the last 24 months. [Source - Steel Market Update, 2024] 2. Ocean Freight: Container shipping rates from Asia, a key manufacturing hub, have remained elevated and volatile, adding 5-15% to landed costs compared to pre-2020 levels. 3. Polypropylene (Plastics): Used for wheels, covers, and housings, its price is tied to crude oil and has experienced ~20-30% price volatility.

Recent Trends & Innovation

• M&A for Electrification (Dec 2021): Stanley Black & Decker completed its acquisition of MTD Holdings, including the Cub Cadet and Troy-Bilt brands, to significantly expand its outdoor equipment portfolio and accelerate its push into electric products.
• Robotics & Autonomy (2023-2024): Major players like Husqvarna and John Deere have launched new robotic mowers (e.g., Husqvarna NERA, John Deere autonomous 8R Tractor) with advanced GPS and RTK navigation, creating a new, high-tech sub-category of service parts like sensors and navigation modules.
• Battery Technology Advancement (Ongoing): Continuous improvement in lithium-ion battery energy density and charging speed is making electric mowers more viable for commercial use. This is shifting R&D and supply chain focus toward battery pack components and management systems.

Supplier Landscape

Regional Focus: North Carolina, USA

North Carolina represents a microcosm of key market dynamics. Demand is robust, driven by a long growing season, significant population growth in the Research Triangle and Charlotte metro areas, and a large professional landscaping industry. The state hosts a strong manufacturing base for the sector, including John Deere's commercial mower plant in Fuquay-Varina and proximity to other major facilities in the Southeast. This creates a resilient local supply chain for many components and offers logistical advantages. The state's competitive labor costs and favorable business tax environment continue to attract investment, suggesting local supplier capacity will remain strong.

Risk Outlook

Actionable Sourcing Recommendations

1. Mitigate Technology Obsolescence. Initiate an RFI by Q1 2025 to identify and qualify at least two suppliers with proven expertise in BEV-specific components (e.g., brushless motors, battery packs, controllers). This prepares the supply chain for the projected 30% market share of electric mowers in the commercial segment by 2028 and reduces reliance on a shrinking ICE parts market.
2. Hedge Against Price Volatility. Implement indexed pricing clauses for steel in all new or renewed contracts with major metal component suppliers (e.g., blades, stamped parts) by Q4 2024. Tying prices to a public index like the CRU Hot-Rolled Coil Index provides budget predictability and protects margins against market fluctuations, which have exceeded 40% in the past two years.