Technological advancements drive the market
Automotive manufacturers, however, are not always the ones adapting to a changing market; often, it is original equipment manufacturers that drive technological advancements in the automotive industry. Braking systems, gauges, and driving assistance have been pivotal in the development of vehicle safety. 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 number of autonomous vehicles worldwide is expected to increase from almost 17,000 units in 2022 to 126,000 units in 2030. Meanwhile, the global battery-electric vehicle market, estimated at 359.2 billion U.S. dollars in 2022, is forecasted to reach 681.2 billion U.S. dollars in 2028.What do original equipment suppliers do?
Auto suppliers provide vehicle manufacturers with the equipment and software necessary for 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 numerous equipment and software manufacturers 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.
