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The automotive front-end module market share is expected to increase by USD 29.37 billion from 2020 to 2025, and the market’s growth momentum will accelerate at a CAGR of 8%.
This automotive front-end module market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers automotive front-end module market segmentation by application (passenger cars and commercial vehicles) and geography (APAC, Europe, North America, South America, and MEA). The automotive front-end module market report also offers information on several market vendors, including COMPAGNIE PLASTIC OMNIUM SE, DENSO Corp., FLEX-N-GATE Corp., Hyundai Mobis Co. Ltd., LINDE + WIEMANN SE & Co. KG, Magna International Inc., Marelli Holdings Co. Ltd., Montaplast GmbH, Motherson Sumi Systems Ltd., and SL Corp. among others.
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The increasing government support to promote EVs is notably driving the automotive front-end module market growth, although factors such as sharp decline in automobile production and sales may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the automotive front-end module industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Automotive Front-end Module Market Driver
One of the key factors driving the global automotive front-end module industry growth is the increasing government support to promote EVs. For instance, in February 2019, the Indian government announced the second phase of the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles in India (FAME India) scheme and doubled the budget allocated for this phase. The aim of this scheme is to reduce the purchase price of hybrid and EVs, with a focus on vehicles used for public or shared transportation (buses, rickshaws, and taxis) and private two-wheelers. Similarly, in the US, consumers get a tax credit for purchasing EVs under the federal Internal Revenue Service (IRS) tax credit. As per the guidelines mentioned by the government, BEVs and PHEVs purchased in or after 2010 may be eligible for the US federal income tax credit of up to USD 7,500. Such factors are expected to positively impact the global automotive FEM market during the forecast period.
Key Automotive Front-end Module Market Trend
Increasing cost pressure faced by OEMs is one of the key automotive front-end module market trends that is expected to impact the industry positively in the forecast period. The factors responsible for high-cost pressures faced by OEMs included stringent emission norms, massive investments in R&D, market competition, and evolving customer demands. OEMs must bear the increase in vehicle costs because of the competitive market and cannot pass such costs to the end consumers. As they need to limit the production cost to fulfill the demand side necessities and provide high-quality products simultaneously, they remain liable for any such product failures or recalls, which can impact the bottom line. The manufacturers catering to the automotive industry are exploring various ways to restrict the production costs and maintain the quality standards simultaneously, which will support the market growth.
Key Automotive Front-end Module Market Challenge
One of the key challenges to the global automotive front-end module industry growth is the sharp decline in automobile production and sales. For instance, the sales of light vehicles in the US dropped by about 3.1% from January to March 2019 compared with the same period in the previous year. Automotive production in Germany, UK, and China, among other countries, has been declining since 2017. China registered a decline of about 12.4% in automotive sales during the first half of 2019. Automotive production in other major automotive manufacturing countries, such as India, Japan, and the US, registered growth during 2017-2018. Moreover, the automotive industry witnessed a slow growth in 2020, owing to the global COVID-19 outbreak. Such factors may limit the market growth in the coming years.
This automotive front-end module market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.
Technavio categorizes the global automotive front-end module (FEM) market as a part of the global automotive components and accessories market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the automotive front-end module market during the forecast period.
The report analyzes the market’s competitive landscape and offers information on several market vendors, including:
This statistical study of the automotive front-end module market encompasses successful business strategies deployed by the key vendors. The automotive front-end module market is concentrated and the vendors are deploying growth strategies such as technological innovations to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The automotive front-end module market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the automotive front-end module market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The value chain of the global automotive components and accessories market includes the following core components:
The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
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59% of the market’s growth will originate from APAC during the forecast period. China, Japan, and South Korea (Republic of Korea) are the key markets for automotive front-end modules in APAC. Market growth in this region will be faster than the growth of the market in other regions.
The presence of leading automobile manufacturers such as GM, Ford Motor, Volkswagen, and Chrysler will facilitate the automotive front-end module market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
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The automotive front-end module market share growth by the passenger cars segment will be significant during the forecast period. Increasing demand for safety and comfort features in passenger cars and the strong focus of OEMs on product differentiation drive the global automotive front-end module market.
This report provides an accurate prediction of the contribution of all the segments to the growth of the automotive front-end module market size and actionable market insights on post COVID-19 impact on each segment.
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Automotive Front-end Module Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2020 |
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Forecast period |
2021-2025 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8% |
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Market growth 2021-2025 |
$ 29.37 billion |
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Market structure |
Concentrated |
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YoY growth (%) |
3.56 |
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Regional analysis |
APAC, Europe, North America, South America, and MEA |
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Performing market contribution |
APAC at 59% |
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Key consumer countries |
China, US, Germany, Japan, and South Korea (Republic of Korea) |
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Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
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Key companies profiled |
COMPAGNIE PLASTIC OMNIUM SE, DENSO Corp., FLEX-N-GATE Corp., Hyundai Mobis Co. Ltd., LINDE + WIEMANN SE & Co. KG, Magna International Inc., Marelli Holdings Co. Ltd., Montaplast GmbH, Motherson Sumi Systems Ltd., and SL Corp. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Application
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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