Technological advancements drive the market
Technological advancements in the automotive industry are often driven by original equipment manufacturers. Braking systems, gauges, and driving assistance have been pivotal in the development of vehicle safety. The market for advanced driver assistance systems (ADAS) is projected to reach 59 billion U.S. dollars by 2028. New developments in technology and in markets can be expected to offer new opportunities and competitions to auto suppliers. The most promising fields are in the fields of automation and electrification. The global market for new components vital for autonomous and electric vehicles is expected to grow from 14 billion U.S. dollars in 2021 to 54 billion U.S. dollars in 2035. Meanwhile, electric vehicle production is tipped to reach 55 million units worldwide by 2030.What do original equipment suppliers do?
Auto suppliers provide vehicle manufacturers with equipment and software necessary in the production of a new car. The goods may be parts of the new vehicle or only used in the manufacturing process. The industry consists of a large number of equipment and software manufactures that provide a wide variety of products. Key equipment segments include batteries, electronics, chassis, suspension systems, brake systems, infotainment systems, wheels, sensors and many more. Europe currently stands as the largest market for auto parts production. Europe is also home to many of the world’s most prominent auto supplier companies such as Robert Bosch GmbH, ZF Friedrichshafen AG, and Michelin.
