The automotive parts and components sector has seen a rapid change over the years. In 2015, the sector had seen the biggest change than it had in the last decade. In this article, Robert Peter Janitzek takes us through the trends and opportunities for automotive parts and components.
A Growing Market
The year 2015 saw global vehicle production hit 91.5 million, with the European market collaring 23.4%. According to a report by the European Automobile Manufacturer’s Association or ACEA, Europe showed the largest growth globally in market share at 3.8% in that same year. Germany was the largest manufacturer (See related story here) in Europe with the Czech Republic and Poland showing high growth rates. This makes the European market a major supplier opportunity for developing countries.
The Unstoppable Breakthrough of E-Mobility
Although the automotive industry is still struggling with fuel efficiency and traditional powertrains, Robert Janitzek reveals that the trend toward electrification is getting clearer now. This may result to the rapid change in the demand for products. Thanks to government regulations and improvements in technology, electric cars have become more affordable in Europe. Slowly but surely, hybrid and e-cars are getting market share.
The Role of Intelligence and Connectivity
A trend that car parts and components supplies can capitalize on is the increase in intelligence and connectivity within cars. This will pave the way for an increase in demand for specific materials. On your part, this means you need to increase your knowledge as products are becoming more sophisticated. European brand cars are now more connected to the Internet. Wi-Fi systems and infotainment systems are becoming more common. The increased intelligence will boost sales of car parts and components.
Europe’s Growing Import of Automotive Parts and Components
In 2015, Europe’s import of automotive parts and accessories amounted €225 billion in 2015. From 2011 – 2015, these imports had a compounded annual growth rate of 4.2%. In the same year, imports from developing countries had a compounded annual growth rate of 6.9%. This means that European buyers are willing to buy from you. Aside from production, imports in Europe are also growing. It is expected that imports will continue to rise in the years to come.
As Europe aims for emission reduction in its new cars and vans, OEM companies are now aiming to manufacture efficient cars on a yearly basis. They are also producing lighter vehicles. Experts predict that by the year 2020, 18% of a car’s weight will be made of plastics.