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Automotive Front End Module Market | Plastic Ominum, HBPO GmbH, MAHLE GmbH, Faurecia SA, and DENSO Corporation

03-06-2019 06:30 AM CET | Business, Economy, Finances, Banking & Insurance

Press release from: Fact.MR

/ PR Agency: Fact.MR
Automotive Front End Module

Automotive Front End Module

Industry wide shift towards efficient, aesthetically pleasing and lightweight features continue to influence the growth of the automotive front end module market. With growing consumer inclination toward vehicle front end modules, heavy investments are being made in the automotive front end module space as manufacturers opt for miniaturization of their products. In addition, evolution of smart automotive front end module has embossed a positive impact its market’s growth on the coattails of increasing proliferation of Internet of Things (IoT). Fact.MR envisages that the demand for automotive front end module is projected to expand at a CAGR of 5.1% during the period of forecast, 2017-2022. Steady adoption of automotive front end module is likely to translate into sales nearly cross US$ 121,000 Mn by end of the assessment period, according to the report.

Sales of automotive front end module are likely to remain concentrated in the emerging economies in the Asia Pacific occluding Japan (APEJ). China, in particular, is expected to cement its dominance in the Asia Pacific excluding Japan (APEJ) automotive front end module market owing to rapidly evolving automotive sector in the country, says the report. Sales of automotive front end module in APEJ are estimated to surpass US$ 55,000 Mn by end of 2022, making it an attractive market for stakeholders. Tug of war between North America and Europe is being witnessed in the automotive front end module market, with the latter having a slight upper hand.

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Demand for composite material in automotive front end module manufacturing is expected to increase at a rapid pace. According to the report, sales of automotive front end module from composite material are likely to account for more than 55% in the overall automotive front end module market. Acceptance of composites in the automotive sector has witnessed a significant spike with growing demand for lightweight yet durable products. Moreover, high strength to weight ratio of composites coupled with enhanced corrosion resistance and operational feature have furthered their use in automotive front end module manufacturing. Moreover, sales of automotive front end module with composites are also influenced by increasing demand for fuel efficient vehicles.

OEMs are likely to remain an attractive sales channel for automotive front end module. ORM channel is expected to largely contribute to the growth of the automotive front end module market during the assessment period, says the report. Aftermarket for automotive front end module is projected to grow at a significant pace, albeit at a lower base than OEM. Stakeholders in the automotive front end module market can expect significant opportunities by tapping the OEM channel in a bid to achieve sustenance and increased profitability.

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Increasing production of vehicles coupled with growing popularity of electric vehicles is expected to drive the growth of the automotive front end module market. Electric vehicles, particularly in the Asia Pacific excluding Japan (APEJ) region, are paving potential avenues for automotive front end module manufacturers. Several EV (electric vehicles) manufacturing companies are opting for outsourcing automotive front end module in order to reduce operating costs and enhance profits. Manufacturers of automotive front end module can leverage this opportunity to enhance their market presence across the globe.

Automotive front end module sales are expected to remain high in passenger cars, closely followed by light commercial vehicles. In addition, increasing production of passenger cars is expected to offer potential pathways of growth for automotive front end module manufacturers. Moreover, increasing sales of passenger cars and SUVs in the developed regions of Europe and North America are expected to push the aftermarket for automotive front end module in the coming years.

The automotive front end module market continues to witness a steady growth and manufacturers can expect a cohort of opportunities across countries worldwide in the forthcoming years.

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About Fact.MR

Fact.MR is a fast-growing market research firm that offers the most comprehensive suite of syndicated and customized market research reports. We believe transformative intelligence can educate and inspire businesses to make smarter decisions. We know the limitations of the one-size-fits-all approach; that's why we publish multi-industry global, regional, and country-specific research reports.

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