Overview:
A vehicle is made up of many complex parts that increase its efficiency and durability. Some components are very crucial and must-have for every car. However, these components need regular maintenance and timely replacement. Automobile parts are manufactured all over the globe with great precision and with advanced technological methods.
Automotive components are essential parts of vehicles that enable them to function efficiently and safely. These components can be broadly categorized into four main categories: powertrain, chassis, electronics, and body and interior.
- Powertrain Components: Powertrain components include the engine, transmission, drivetrain, and exhaust system. The engine is the heart of the vehicle, converting fuel into mechanical energy to power the vehicle. Transmission transfers the power from the engine to the wheels, and the drivetrain includes the axle, differential, and the wheels. The exhaust system removes and filters the emissions produced by the engine
- Chassis Components: Chassis components include the frame, suspension system, steering system, and brake system. The frame provides structural support to the vehicle, ensuring its stability and safety. The suspension system includes shocks, springs, and control arms to absorb shocks and maintain comfortable handling. The steering system enables control over the vehicle’s direction, and the brake system allows for stopping and controlling speed
- Electronics Components: Electronics components have become increasingly important in the automotive industry. They include various systems like the engine control unit (ECU), anti-lock braking system (ABS), airbag control unit, infotainment system, and advanced driver-assistance systems (ADAS). These components enhance vehicle safety, efficiency, and comfort
- Body and Interior Components: Body and interior components focus on the aesthetics and comfort of a vehicle. This category includes components such as the body panels, doors, windows, seats, dashboard, and various other interior features. These components provide protection, comfort, and convenience to the vehicle’s occupants
The global automotive components market is vast and highly competitive. Major players in the industry are located in regions such as North America, Europe, Asia-Pacific, South America, and Middle East & Africa. These companies manufacture and supply components to automakers worldwide.
Factors such as increasing vehicle production, technological advancement, and growing consumer demand for safer and more sustainable vehicles drive the automotive components market. Additionally, the shift towards electrical vehicles and the development of autonomous cars are creating new opportunities and challenges for component manufacturers. In conclusion, automotive components play a critical role in the functionality, safety, and comfort of vehicles worldwide. The industry is continuously evolving due to advancements in technology and changing consumer preferences, creating an exciting and dynamic landscape.
World Wide Automotive Component and Part Scenario:
Multiple trends along the following four themes could shape the future of the automotive and the auto component industry:
- Constantly shifting market dynamics
- Changing OEM needs
- Technological improvements and discontinuities
- Evolving regulatory and trade environment
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In the full version of report, Data Bridge will provide market size in terms of Value (USD Million) or customize as per client requirements. Global auto parts and accessories market is expected to gain market growth in the forecast period of 2022 to 2029. Data Bridge Market Research analyses the market is expected to grow at a CAGR of 11.20% in the above-mentioned forecast period. Major factors that are expected to boost the growth of the auto parts and accessories market in the forecast period are the incentives taken by the government and the rise in the regional demand. Furthermore, the easy availability of raw materials is further anticipated to propel the growth of the auto parts and accessories market. Moreover, the growing scrapping rates of motor vehicles and engines is further estimated to cushion the growth of the auto parts and accessories market.
Source: Company websites, Society of Indian Automobile Manufacturers, Automotive Component Manufacturers Association
Manufacturing locales, customer demands, and operating models are all evolving, creating a dynamic market for auto component manufacturers.
The production and demand of the auto component industry are directly proportional to that of the automobile industry. Although a sizeable portion of auto components production caters to OEMs, the aftermarket or the replacement markets have emerged as crucial sources of revenue for the auto components industry over the past few years. Historically, the automobile OEMs were concentrated in the developed nations and so did the ancillaries. However, in recent years, manufacturing of auto components is gradually gaining traction in Asian countries such as China, India, and others due to the presence of higher market potential and low-cost manufacturing. The automotive original equipment manufacturer (OEMS) market has witnessed substantial growth in recent years owing to increased demand for passenger and commercial vehicles. The need for original equipment manufacturing parts has become significant in passenger vehicles because there is a rise in the market for cars and the upsurge in the usage of these vehicles globally. According to the Data Bridge Market Research analysis, the automotive original equipment manufacturer (OEMS) market is projected to grow at a compound annual growth rate (CAGR) of 4.7% from 2023 to 2030.
https://www.databridgemarketresearch.com/reports/global-automotive-oems-market
Fig: 2 Classification of Major Auto-Components Produced in India
Source: EXIM Bank India, ACMA
Export Scenario:
To cater to the growing automobile industry across the globe, increasing number of global OEMs are sourcing their auto components from India. India manufactures several key auto components for customers in the U.S, Germany, Turkey, Thailand, Turkey, Thailand, U.K., Brazil, Mexico, Bangladesh, Italy, U.A.E., and Sri Lanka, among others. Furthermore, the gap between international and national regulations on safety and emissions has narrowed down considerably, bolstered recently by the compulsory implementation of BS-6 emission norms in April 2020. Also, as the need for reducing the cost of manufacturing is increasingly being felt among the automobile OEMs in developed countries, they seek to either set up their operations or source their component requirements from developing nations such as India.
Import Scenario:
The steady rise in production of automobiles in India over the past few years, has led to a healthy growth in demand for its components. Since India does not produce all varieties of components that automobile OEMs require for manufacturing, they need to be imported. India has a high dependence on China for its auto components imports with a 26% share in FY20. Key items imported were drive transmission and steering parts, cooling systems, suspension, and brake parts. Due to COVID-19 pandemic, most nations, including India, are now seeking to minimalize their reliance on China for imports. The ongoing India-China standoff is expected to hasten this process. However, this is easier said than done, as China offers the advantage of mass manufacturing, availability of subsidies, and deployment of power at an economical cost, among others. These factors give the nation a favorable spot in the global export market. Additionally, China presents a technological competence, which the Indian automotive industry currently lacks to a large extent. Hence, being self-sufficient and reducing imports from China shall take longer than expected, unless the industry receives the required government support.
Key strategies for automotive component companies to remain competitive in the market:
- Continuous Research and Development (R&D): Automotive component companies are heavily investing in R&D activities to develop innovative and technologically advanced products. This helps them to stay ahead of the competition and meet the evolving needs of the market
- Collaboration and Partnerships: Collaboration with other companies, including both automotive manufacturers and other component suppliers, helps in sharing resources, expertise, and reducing costs. Such partnership also enables companies to access new market and technologies
- Agile Manufacturing: To meet the fluctuating demands of the market, automotive components companies are adopting lean manufacturing principles and implementing flexible production systems. This allows them to quickly adapt to changes and optimize production efficiency
- Cost Optimization: Automotive component companies are continuously striving to reduce costs through various means such as streamlining supply chain management, adopting automation technologies, and sourcing material from low-cost regions
- Strong Supply Chain Management: Establishing robust and efficient supply chain networks is crucial for automotive component companies. They are focusing on building strong relationships with suppliers, ensuring timely delivery of raw materials, and implementing just-in-time inventory management systems.
- Sustainability and Environmental Consideration: With increasing consumer awareness and regulatory requirements, automotive components companies are incorporating sustainability practices in their operations. This includes the use of eco-friendly materials, energy-efficient manufacturing processes, and waste reduction initiatives
- Customer-Centric Approach: Automotive component companies are placing greater emphasis on understanding customer needs and preferences. BY adopting a customer-centric approach, they develop products that cater to specific market segments, offer customization options, and provide excellent customer support
- Digital Transformation: The integration of digital technologies and embracing industry 4.0 concepts are helping automotive component companies improve operational efficiency, optimize supply chain management, enhance product quality, and provide data-driven insights
- Global Expansion: To tap into new markets and diversify their customer base, automotive component companies are expanding their operations globally. This includes establishing manufacturing facilities and sales networks in emerging markets and acquiring or partnering with local companies.
- After-Sales Service and Support: Providing comprehensive after-sales service and support is another crucial strategy for automotive component companies. This includes offering maintenance, repair, and warranty services to ensure customer satisfaction and loyalty.
By implementing these key strategies, automotive component companies can enhance their competitiveness adapt to market dynamics, and maintain long-term success in the industry.
Key Industry Quality Standards:
- ISO 9001: This is an international standard that sets out the criteria for a quality management system. It applies to all industries, including automotive, and focuses on customer satisfaction, continual improvement, and process efficiency
- ISO/TS 16949: This is a technical specification specifically for the automotive industry, based on ISO 9001. It defines the requirement for a quality management system in the design, development, production, installation, and servicing of automotive-related products
- IATF 16949: This is the International Automotive Task Force (IATF) standard for a quality management system in the automotive industry. It is based on OSI/TS 16949 and is often required by automotive manufacturers
- ISO 26262: This is an international standard for the functional safety of electrical and electronic systems in road vehicles. It sets out the requirements for managing the safety of automotive systems throughout the development process
- AEC-Q 100: This is a standard developed by the Automotive Electronics Council (AEC) to ensure the reliability and quality of electronic components used in automotive applications. It includes requirements for specific product categories and test methods
- JIS D 0203: This is a Japanese Industrial Standard for automotive parts and components. It covers requirements for the performance, reliability, and safety of various automotive components
- FMVSS: The Federal Motor Vehicle Safety Standards (FMVSS) are regulations established by the National Highway Traffic Safety Administration (NHTSA) in the U.S. These standards sets requirements for various automotive components related to safety, performance, and durability
- ECE R90: This is a European regulation that sets requirements for the performance and quality of brake pads and linings used in automotive applications. It ensures that these components meet certain safety and performance standards
- CCC: The China Compulsory Certification (CCC) mark is a mandatory certification for various products sold in China, including automotive components. It ensures that these components meet certain safety, environmental, and quality requirements
- SAE Standards: The Society of Automotive Engineers (SAE) develops various standards related to automotive components and systems. These include materials, testing methods, electrical systems, and vehicle performance
It is important to note that these are just some example of automotive component regulatory and quality standards. There may be additional standards specific to certain countries or regions.
The Key Technology of automotive components and parts manufacturers:
Several key technologies play a crucial role in the development and production of automotive components and parts. Some of these technologies include:
- Additive Manufacturing: Also known as 3D printing, additive manufacturing allows for the creation of complex geometries and customized automotive parts. It offers design flexibility, reduced production time, and improved product performance
- Advanced Materials: The automotive industry is increasingly using advanced materials such as lightweight composites, high-strength steel, and aluminum alloy. This material offers improved fuel efficiency, reduced vehicle weight, and enhanced safety
- Robotics and Automation: Robotics and automation technology enable efficient and precise assembly of automotive components. It helps to minimize production errors, increase productivity, and improve worker safety
- Internet of Things (IoT): IoT technology allows for the integration of sensors and connectivity in automotive components. It enables real-time monitoring, data analysis, and predictive maintenance leading to increased reliability and performance
- Advanced Sensors and Electronics: Advanced sensors and electronics are vital for various automotive components such as smart lighting systems, advanced driver-assistance systems (ADAS), and autonomous driving technologies. These technologies enhance vehicle safety, performance, and connectivity
- Battery Technology: With the rise of electric vehicles (EVs) and hybrid vehicles, battery technology has become crucial for automotive components. Advancements in battery technology are essential for improving the range, charging efficiency, and overall performance of electric vehicles
- Advanced Manufacturing Techniques: Technologies such as computer numerical control (CNC) machining, laser cutting, and precision molding enable high-quality and efficient production of automotive components. These techniques ensure accuracy, consistency, and cost-effectiveness
- Software and Connectivity: The growing significance of software and connectivity in modern vehicles requires advanced technology for automotive components. This includes software for infotainment systems, navigation, vehicle-to-vehicle communication, and internet connectivity.
These technologies are continually evolving, driven by the automotive industry’s pursuit of innovation, performance, efficiency, and safety in automotive components and parts.
Global Advanced Driver-Assistance Systems (ADAS) market has witnessed a substantial growth in recent years due to increased production of vehicles equipped with higher safety standards around the world is expected to propel the advanced driver-assistance market. The increased use of artificial intelligence and the internet of things (IoT) in vehicles is also prompting automakers to develop advanced driver assistance systems. The implementation of stringent rules and regulations governing vehicle safety standards is expected to boost the global market for advanced driver assistance systems. According to the Data Bridge Market Research analysis, the smart manufacturing market is projected to grow at a compound annual growth rate (CAGR) of 21.7% from 2022 to 2029.
To know more about the study, visit https://www.databridgemarketresearch.com/reports/global-advanced-driver-assistance-systems-adas-market
Challenges Faced By Components/Parts Companies:
There are several challenges that automotive component/parts companies face in today’s industry. These challenges includes:
- Increasing Competition: The automotive industry is highly competitive, with numerous companies vying for a share of the market. This makes it challenging for components/parts companies to differentiate themselves and stand out among competitors
- R&D and Innovation: The automotive industry is continuously evolving, with new technologies and innovations being introduced regularly. Component companies need to invest in research & development (R&D) to stay up-to-date with the latest trends and offer cutting-edge solutions to automotive manufacturers
- Cost Pressure: Automotive manufacturers often exert cost pressures on their suppliers, including components/parts companies. They expect lower prices without compromising on quality. This puts pressure on companies to optimize their processes, reduce expenses, and find cost-effective sourcing solutions
- Quality Standards: Automotive manufacturers have stringent quality standards and expect the same level of quality from their components/parts suppliers. Companies need to consistently meet these standards and maintain consistent quality control processes throughout their operations
- Supply Chain Management: The automotive industry relies heavily on complex and extensive supply chains. Components/parts companies need to effectively manage their supply chain, including sourcing raw materials, coordinating with suppliers, managing inventory, and ensuring timely delivery of components/parts to meet production schedules
- Technological Advancements: Automotive technology is rapidly advancing, with a greater emphasis on electric and autonomous vehicles. Components/parts companies need to adapt to these changes and develop new products and solutions to meet the requirement of this evolving market
- Environment Regulations: The automotive industry is increasingly facing stricter environmental regulations, particularly related to emissions and fuel efficiency. Components/parts companies need to ensure their products are compliant with these regulations and contribute to sustainability goals
- Aftersales Services and Support: Components/parts companies also need to provide effective aftersales service and support to automotive manufacturers. This includes technical assistance, warranty management, and timely response to customer queries or issues
Overall, automotive components/parts companies need to navigate these challenges to stay competitive, meet customer demands, and remain profitable in a dynamic and evolving industry.
Conclusion:
The increasing demand for automotive components and parts across the globe is driven by factors such as growing automotive production, technological advancement, increasing vehicle sales, government regulations, the shift towards lightweight components, and the globalization of the automotive industry. Manufacturers are responding to this growing demand by expanding production capacities, diversifying products offerings, investing in technological innovations, collaborating with industry stakeholders, and driving growth in the automotive components market
