Global demand to advance 12.3% yearly through 2014

In a rebound from depressed 2009 levels, global demand for light vehicle original equipment manufacturer (OEM) automotive electronics will advance 12.3 percent annually to $174 billion in 2014. Beyond the expected recovery from the 2009 recession, automotive electronics demand will find uplift from increasing regulatory pressure and the continued search among automakers for cost-effective ways to differentiate their products.

Emerging markets focus on standard electronics

The automotive OEM electronics industry in developed markets is largely mature, with even mass-market vehicles featuring up to nine airbags, advanced electronic stability program (ESP) technologies and the latest entertainment systems. Emerging markets typically have more basic electronics needs and focus on technologies long-standard in developed countries. Examples include safety technologies such as standard airbags and antilock brake systems (ABS), and powertrain and emissions applications like port fuel injection and closed-loop catalytic converter systems. Another growing dynamic in many emerging markets is the focus on comfort, convenience and entertainment offerings such as power windows, doorlocks and powerful audio heads, which car buyers value for their visible status. Features such as ABS and ESP provide real functional differentiation, yet remain largely invisible.

The 2009 recession caused developed and emerging automotive markets to take significantly different paths, with the former suffering from massive sales drop-offs while the latter moved forward strongly after a mild downturn. For example, light vehicle sales in the key developed markets of the US, Western Europe and Japan fell 9.2, 2.1 and 4.4 percent per year, respectively, from 2004 to 2009, while emerging markets Brazil, China, and India grew 14.1, 26.4 and 12.1 percent, respectively, during the same period. While the faster-growing emerging markets will likely set the global pace going forward, they do not produce the same per-vehicle electronics revenues because many of the electronics technologies they currently contain and will use in the future have already been commoditized in terms of price.

Safety, security electronics to register biggest increase

Safety and security electronics will register the biggest increase through 2014, as more advanced safety features percolate down into mass market vehicles. Powertrain electronics will also experience strong demand, driven by stringent new fuel economy and emissions standards in developed markets, particularly the US and Western Europe. Growing from a small base, communication and navigation electronics systems will see rapid increases as more OEMs integrate these handy technologies into their vehicles. Instrumentation and comfort, convenience and entertainment electronics will experience lower but still attractive growth rates as more emerging market players install these features in their vehicles to meet customer demand.

Study coverage

Details on these and other findings are contained in this new report. It presents historical demand data for the years 1999, 2004 and 2009, plus forecasts for 2014 and 2019 by automotive electronics type (e.g., engine and drivetrain; safety and security; comfort, convenience and entertainment; navigation and instrumentation), world regional market and for 23 national markets. The study also assesses market environment factors, evaluates company market shares and profiles 36 industry competitors including Bosch, DENSO, Valeo, Continental and Delphi.

TABLE OF CONTENTS

INTRODUCTION       

I. EXECUTIVE SUMMARY       

II. MARKET ENVIRONMENT       
General        4
World Economic Overview        5
   Recent Historical Trends        6
   World Economic Outlook        8
World Population Overview       11
World Households       13
World Light Vehicle Overview       15
   Light Vehicle Production       15
   Light Vehicle Sales       19
Environmental & Regulatory Factors       21
   Regulatory Convergence       26
   Drivers of Regulatory Change       28
Pricing Trends       30
Automotive Electronics       32
   Electronics Technology Evolution       33
   Software Standardization & In-Vehicle Networks       36
   Technology Penetration Profiles       38
      Market Pull       40
      Regulatory Push       40
      Rapid Penetration       41
      Niche       41
Electronics Integration       42

III. OVERVIEW      
General       47
OEM Automotive Electronics Demand & Vehicle Production       49
Demand by Product       52
   Powertrain & Emissions Electronics       56
      Electronic Transmissions       59
      Electronic Fuel Injection Systems       60
      Engine Management Systems       61
      Cruise Control Systems       62
      Exhaust/Emission & Other Controls       63
   Safety & Security Electronics       64
      Airbag Systems       66
      Other Safety Electronics       67
      ABS/ESP/TCS       68
      Security Electronics Systems       69
   Comfort, Convenience & Entertainment Electronics       70
      Entertainment Systems       72
      Other CCE Electronics       74
   Instrumentation Electronics       75
      Dashboard Instruments & Displays       76
      Backup Monitors & Head-Up Displays       77
      Other Related Systems       78
   Communication & Navigation Electronics       78
      Wireless Devices & Adapters       79
      Telematics & Navigation Systems       80
Foreign Trade in OEM Automotive Electronics       81

IV. NORTH AMERICA      
General       83
OEM Automotive Electronics Demand       86
United States       89
Canada       97
Mexico      102

V. WESTERN EUROPE     
General      108
OEM Automotive Electronics Demand      110
Germany      113
France      119
Spain      125
United Kingdom      129
Italy      135
Belgium      140
Sweden      143
Other Western Europe      149

VI. ASIA/PACIFIC     
General      153
OEM Automotive Electronics Demand      155
Japan      158
China      165
South Korea      171
India      177
Thailand      182
Australia      186
Other Asia/Pacific      190

VII. OTHER REGIONS     
Central & South America      195
   Macroeconomic & Light Vehicle Overview      195
   OEM Automotive Electronics Demand      198
   Brazil      199
   Argentina      205
   Other Central & South America      208
Eastern Europe      212
   Macroeconomic & Light Vehicle Overview      212
   OEM Automotive Electronics Demand      215
   Poland      216
   Czech Republic      220
   Russia      224
   Other Eastern Europe      230
Africa/Mideast      234
   Macroeconomic & Light Vehicle Overview      234
   OEM Automotive Electronics Demand      237
   Turkey      238
   Iran      242
   Other Africa/Mideast      246

VIII. INDUSTRY STRUCTURE     
General      250
Industry Composition & Market Share      252
   Bosch      254
   DENSO      255
   Aisin Seiki      255
   Hitachi      255
   Others      256
Research & Product Development      257
Manufacturing      259
Strategic Alliances & Cooperative Agreements      261
Marketing & Distribution      268
Financial Issues & Requirements      270
Mergers, Acquisitions & Industry Restructuring      271
Competitive Strategies      274
Company Profiles      277
   Advanced Driver Information Technology, see DENSO
   ADVICS, see Aisin Seiki, DENSO and Toyota Motor
   Aisin Seiki Company Limited      278
   Alpine Electronics, see Alps Electric
   Alps Electric Company Limited      282
   Arnecom, see Yazaki
   ArvinMeritor Incorporated      285
   Autoliv Incorporated      287
   Behr-Hella Thermocontrol, see Hella
   BorgWarner Incorporated      289
   Bosch (Robert) GmbH      293
   Calsonic Kansei Corporation      299
   Clarion, see Hitachi
   Continental AG      301
   Delphi Automotive LLP      306
   DENSO Corporation      310
   EnTire Solutions, see TRW Automotive Holdings
   Fiat SpA      316
   Ford Motor Company      320
   General Motors Company      322
   Hamlin, see Key Safety Systems
   Hella KGaA Hueck & Company      324
   Hitachi Limited      327
   Intedis, see Hella
   Inteva Products LLC      331
   Johnson Controls Incorporated      333
   Key Safety Systems Incorporated      335
   Lear Corporation      338
   Magna International Incorporated      341
   Magneti Marelli, see Fiat
   Meritor WABCO Vehicle Control Systems,
      see ArvinMeritor
   Microsoft Corporation      346
   Mitsubishi Electric Corporation      348
   NXP BV      351
   OMRON Corporation      353
   OnStar, see General Motors
   OSRAM Opto Semiconductors, see Siemens
   Panasonic Corporation      356
   Pioneer Corporation      358
   Renesas Electronics, see Hitachi and Mitsubishi Electric
   Shenzhen Hangsheng Electronics Company Limited      360
   Siemens AG      362
   SKF AB      364
   STMicroelectronics NV      366
   Takata Corporation      369
   TK Holdings, see Takata
   Toyota Motor Corporation      371
   TRW Automotive Holdings Corporation      374
   Valeo SA      378
   Valeo Sylvania, see Siemens and Valeo
   Visteon Corporation      383
   Yanfeng Key Shanghai Automotive Safety Systems,
      see Key Safety Systems and Visteon
   Yazaki Corporation      388
   ZF Lenksysteme, see Bosch


LIST OF TABLES

SECTION I -- EXECUTIVE SUMMARY
Summary Table        3

SECTION II -- MARKET ENVIRONMENT
1 World Gross Domestic Product by Region       11
2 World Population by Region       13
3 World Households by Region       14
4 World Light Vehicle Production by Region       19
5 World Light Vehicle Sales by Region       21

SECTION III -- OVERVIEW
1 World OEM Automotive Electronics Demand by Region       49
2 World OEM Automotive Electronics Demand
   by Product Class       56
3 World Powertrain & Emissions Electronics Demand       59
4 World Safety & Security Electronics Demand       66
5 World Comfort, Convenience & Entertainment Electronics
   Demand       72
6 World Instrumentation Electronics Demand       76
7 World Communication & Navigation Electronics Demand       79

SECTION IV -- NORTH AMERICA
1 North America: Macroeconomic Environment       86
2 North America: OEM Automotive Electronics Demand       89
3 United States: Macroeconomic Environment       92
4 United States: OEM Automotive Electronics Demand       97
5 Canada: Macroeconomic Environment       99
6 Canada: OEM Automotive Electronics Demand      101
7 Mexico: Macroeconomic Environment      104
8 Mexico: OEM Automotive Electronics Demand      107

SECTION V -- WESTERN EUROPE
1 Western Europe: Macroeconomic Environment      110
2 Western Europe: OEM Automotive Electronics Demand      113
3 Germany: Macroeconomic Environment      116
4 Germany: OEM Automotive Electronics Demand      119
5 France: Macroeconomic Environment      121
6 France: OEM Automotive Electronics Demand      124
7 Spain: Macroeconomic Environment      127
8 Spain: OEM Automotive Electronics Demand      129
9 United Kingdom: Macroeconomic Environment      132
10 United Kingdom: OEM Automotive Electronics Demand      135
11 Italy: Macroeconomic Environment      137
12 Italy: OEM Automotive Electronics Demand      139
13 Belgium: Macroeconomic Environment      141
14 Belgium: OEM Automotive Electronics Demand      143
15 Sweden: Macroeconomic Environment      145
16 Sweden: OEM Automotive Electronics Demand      148
17 Other Western Europe: Macroeconomic Environment      150
18 Other Western Europe: OEM Automotive Electronics
Demand      152

SECTION VI -- ASIA/PACIFIC
1 Asia/Pacific: Macroeconomic Environment      155
2 Asia/Pacific: OEM Automotive Electronics Demand      158
3 Japan: Macroeconomic Environment      161
4 Japan: OEM Automotive Electronics Demand      165
5 China: Macroeconomic Environment      168
6 China: OEM Automotive Electronics Demand      171
7 South Korea: Macroeconomic Environment      174
8 South Korea: OEM Automotive Electronics Demand      176
9 India: Macroeconomic Environment      179
10 India: OEM Automotive Electronics Demand      182
11 Thailand: Macroeconomic Environment      184
12 Thailand: OEM Automotive Electronics Demand      186
13 Australia: Macroeconomic Environment      188
14 Australia: OEM Automotive Electronics Demand      190
15 Other Asia/Pacific: Macroeconomic Environment      192
16 Other Asia/Pacific: OEM Automotive Electronics Demand      194

SECTION VII -- OTHER REGIONS
1 Central & South America: Macroeconomic Environment      197
2 Central & South America: OEM Automotive Electronics
   Demand      199
3 Brazil: Macroeconomic Environment      202
4 Brazil: OEM Automotive Electronics Demand      204
5 Argentina: Macroeconomic Environment      206
6 Argentina: OEM Automotive Electronics Demand      208
7 Other Central & South America: Macroeconomic
   Environment      210
8 Other Central & South America: OEM Automotive
   Electronics Demand      212
9 Eastern Europe: Macroeconomic Environment      214
10 Eastern Europe: OEM Automotive Electronics Demand      216
11 Poland: Macroeconomic Environment      218
12 Poland: OEM Automotive Electronics Demand      220
13 Czech Republic: Macroeconomic Environment      222
14 Czech Republic: OEM Automotive Electronics Demand      224
15 Russia: Macroeconomic Environment      227
16 Russia: OEM Automotive Electronics Demand      229
17 Other Eastern Europe: Macroeconomic Environment      232
18 Other Eastern Europe: OEM Automotive Electronics
   Demand      234
19 Africa/Mideast: Macroeconomic Environment      236
20 Africa/Mideast: OEM Automotive Electronics Demand      238
21 Turkey: Macroeconomic Environment      240
22 Turkey: OEM Automotive Electronics Demand      242
23 Iran: Macroeconomic Environment      244
24 Iran: OEM Automotive Electronics Demand      246
25 Other Africa/Mideast: Macroeconomic Environment      248
26 Other Africa/Mideast: OEM Automotive Electronics
   Demand      249

SECTION VIII -- INDUSTRY STRUCTURE
1 OEM Automotive Electronics Sales by Company, 2009      253
2 Selected Cooperative Agreements      262
3 Selected Acquisitions & Divestitures      273

      LIST OF CHARTS

    CHART NUMBER     PAGE

SECTION II -- MARKET ENVIRONMENT
1 Evolution of Automotive Electronics       34
2 Framework for Assessing Automotive Technology Penetration       39
3 Automotive Electronics Integration Issues       44

SECTION III -- OVERVIEW
1 OEM Automotive Electronics Demand & Vehicle Production,
   2009       52

SECTION VIII -- INDUSTRY STRUCTURE
1 World OEM Automotive Electronics Market Share, 2009      254