2020 Growth Prospects Outside of ADAS and HEV/EV Applications Will Be Grim
BOSTON–(BUSINESS WIRE)–The latest Strategy Analytics assessment of the market for automotive electronics systems finds that overall demand will plunge at least 8% in 2020, with falls of up to 15% over 2019 levels possible if recovery does not begin soon. The Strategy Analytics Powertrain, Body, Safety & Chassis Service (PBCS) service report, “Automotive System Demand 2018 to 2027: COVID-19 Dictates the Short-Term, But Market Fundamentals Remain Sound” predicts that growth will return, driven by demand for electrified vehicles with advanced safety (ADAS) and automation features, but that 2020 will be a very tough year for automotive suppliers.
In its baseline scenario, Strategy Analytics finds that a total of at least $78 billion of potential orders to Tier One suppliers for automotive electronics systems will been lost through to 2026. This is despite a predicted boost to electric vehicle demand. Any forthcoming incentives to re-start the car market across the globe are expected to focus on these cleaner models.
“How automotive suppliers fare in the coming months will heavily depend on their product line-ups,” noted Ian Riches, Vice President for the Global Automotive Practice (GAP). “Those who are strong in electrification and ADAS technologies will have a much less painful time than those who are not”.
“There will be regional differences too”, he added. “Recovery in South Korea and China is looking firmer than in many other major automotive centers at the moment. Automakers and suppliers which are well-entrenched in these regions could thus find themselves in a relatively strong position compared to their global competitors. This could potentially fuel an acquisition-hunt later this year.”
#SA_Automotive
About Strategy Analytics
Strategy Analytics, Inc. is a global leader in supporting companies across their planning lifecycle through a range of customized market research solutions. Our multi-discipline capabilities include: industry research advisory services, customer insights, user experience design and innovation expertise, mobile consumer on-device tracking and business-to-business consulting competencies. With domain expertise in: smart devices, connected cars, intelligent home, service providers, IoT, strategic components and media, Strategy Analytics can develop a solution to meet your specific planning need. For more information, visit us at www.strategyanalytics.com.
For more information about Strategy Analytics
Powertrain, Body, Chassis & Safety: Click here
Autonomous Vehicles: Click Here
Contacts
Report contacts:
European Contact: Ian Riches, +44 (0)1908 423 645, iriches@strategyanalytics.com
US Contact: Mark Fitzgerald, +1 617 614 0773, mfitzgerald@strategyanalytics.com
China Contact: Kevin Li, +86 186 0110 3697, kli@strategyanalytics.com
