Automotive Electronics

Report Highlights

• The automotive electronics industry is not a precisely defined sector and has not yet been assigned in any of the major economic classification codes or activities. Basically, the scope of this report is limited to those automotive electronic technologies and systems in which the prime function is occupant safety. Thus, the scope of the report includes OEM sales of anti-lock braking systems (ABS), traction control systems (TCS), automatic stability control (ASC) systems, airbags and similar occupant-restraint systems, electronic fuel injectors, engine management systems and other powertrain systems, on-board navigation and driver information systems, entertainment systems, electronic security devices, and body electronics.
• The scope of this report is comprehensive, covering the present status of and future prospects for OEM automotive electronics in the United States and Canada. It covers the many issues concerning the merits and future prospects of the automotive electronics , including automobile company strategies and electronic technologies.

INTRODUCTION

STUDY GOALS AND OBJECTIVES

The goal of this report is to provide a detailed and comprehensive multi-client study of the U.S. market for OEM (original equipment manufacturer) automotive electronics and potential opportunities. The objectives include a thorough coverage of the underlying social, economic, and regulatory issues driving the automotive electronics , as well as assessments of new and potential products and technologies. Another important objective is to provide realistic market data and forecasts for these technologies.

REASONS FOR DOING THE STUDY

The main reason for doing this study is that automotive components supply in general and automotive electronics in particular in North America is undergoing significant change. Increased demands by consumers for improved automotive safety and convenience, new regulatory standards, competition from foreign suppliers, lean manufacturing, single sourcing, supplier consolidation, and prodigious advances in microelectronics and information technologies are all combining to alter the industry as we know it today. In addition, it is assumed that these trends will intensify in the years to come and further changes in the automotive safety electronics will occur. Advances in semiconductor, sensor, and related technologies are driving automotive electronics to new levels. Of particular interest -- a variety of information, communications, and navigation technologies are converging into a whole new field called telematics.

SCOPE AND FORMAT

The automotive electronics industry is not a precisely defined sector and has not yet been assigned in any of the major economic classification codes or activities. Basically, the scope of this report is limited to those automotive electronic technologies and systems in which the prime function is occupant safety. Thus, the scope of the report includes OEM sales of anti-lock braking systems (ABS), traction control systems (TCS), automatic stability control (ASC) systems, airbags and similar occupant-restraint systems, electronic fuel injectors, engine management systems and other powertrain systems, on-board navigation and driver information systems, entertainment systems, electronic security devices, and body electronics.

The scope of this report is comprehensive, covering the present status of and future prospects for OEM automotive electronics in the United States and Canada. It covers the many issues concerning the merits and future prospects of the automotive electronics , including automobile company strategies and electronic technologies.

It also covers in detail the sociopolitical, economic, regulatory, and technological issues regarded by many as critical to the industry's current state of change. The report provides a review of the light-vehicle industry, its structure and the many companies involved in supplying these goods. The competitive position of the main players in the market and the strategic options they face are also discussed, as well as such competitive factors as marketing, distribution, and operations. Although the scope is limited to North America, technology and product developments in Europe and Japan are also covered.

Revenues for automotive electronics reflect the value of the systems including mechanical and hydraulic parts and component. It represents the value of the product sold to the final user of the system or module. In this case, the final user is the automobile company, an original equipment manufacturer. As used in this report, the term revenue is equivalent to, and used interchangeably with, the terms OEM purchases, OEM demand, and value of factory-installations.

During the discussion of the individual market segments, revenues are related to indicators in the tables, which are used for comparative purposes. The primary indicator used is that of North American-produced automobiles and other light vehicles. The latter includes light-duty trucks, vans, minivans, station wagons, and sports-utility vehicles. "North American-produced" refers to those vehicles that are assembled in the United States or Canada and includes transplant operations as well as the Big Three (Chrysler, Ford Motor, and General Motors). Production in Mexico is treated separately. All growth rates mentioned in the tables and in the text are based on the average annual rate of growth from 1999 through the year 2004. The compounding method of calculating growth rates is used. Because current dollar measures are used, these growth rates thus reflect the growth in volume or real growth and the growth including the effects of price changes and changes in product mix. The effects of inflation are eliminated by including unit fee (or sales) data and actual demand (or factory-installation) data.

CONTRIBUTION OF THE STUDY

This study provides the most complete accounting of ongoing automotive electronics developments in North America (United States and Canada) currently available in a multi-client format. It provides the most thorough and up-to-date assessment that can be found anywhere on the subject. The study also provides extensive quantification of the many important facets of the market developments in the United States for automotive safety electronics technologies. This, in turn, contributes to the determination of what kind of strategic response suppliers may adopt in order to compete in this dynamic market.

INFORMATION SOURCES

Initially, a comprehensive and exhaustive search of the literature on automotive safety electronics was conducted. These secondary sources included technical journals, technical books, marketing literature, other product/promotional literature, annual reports, security analyst reports, and other publications. In addition, there were formal and informal interviews with automotive electronics suppliers, automotive parts and components manufacturers, other technology suppliers, technical experts, government officials, trade association officials, and personnel of the automobile companies themselves.

RELATED WORK -- BCC CREDENTIALS

Founded in 1971, Communications Co., Inc. (BCC) is known throughout the world for its technical-economic reports and services. The company has studied major market, economic, environmental, and technological developments that have characterized industry during the past two decades to produce reports, newsletters, and conferences. In the process, BCC has focused on advanced materials, high-technology systems and components, and novel processing methods since the development and marketing of these technologies assert a profound influence on manufacturers and users on a worldwide scale.

BCC clients include almost every major corporation in the United States, Canada, Western Europe, and Japan. Of related interest to the subject of OEM automotive safety electronics are such BCC reports as: Advanced Transportation Control Systems; Changing Display Industry: CRT and Flat Panel; The Display Industry Review; The Electronic Entertainment Industry; Fiber Optic Sensors; The Industrial Sensor ; OEM Automotive Safety Electronics Systems & Technologies; and Personal Navigation Systems report_highlightsing GPS. The company has also conducted reports on a wide variety of other transportation, telecommunications, electronics, and optics issues. Finally, BCC also publishes the related monthly newsletters Advanced Transportation Technology News and Display Development News.