Value share of exhaust and aftertreatment systems to explode, IHS says
Estimates from a number of commentators have concluded that the overall costs for exhaust and aftertreatment systems will make up more than 5 percent of the total costs for light vehicles, compared to an estimated 0.5 percent for light vehicles in 2003.
The report says that a tightening regulatory environment has led to considerably increased revenues per vehicle, a result that is set to improve globally as emerging high growth markets catch up with Europe and Northern America in terms of the level of equipment needed to meet environmental regulations.
OEMs and suppliers have found that emerging markets have largely been able to pick their regulations 'off the shelf' from those developed to meet emissions requirements in the EU, Japan and the U.S.
Suppliers have undertaken structural changes resulting from the 2008 downturn in the vehicle market and the increased use of more robust materials, such as stainless steel. Raw materials prices, such as those for steel and platinum group metals, have affected the underlying cost base of the sector at the same time as the market has become more fragmented, with model proliferation, shorter product lifecycles and more demanding technology.
However, this market is moving from one facing significant headwinds towards a situation of structural advantage led by a global harmonization of emission regulations, a step that will bring huge long term benefits to those players in the exhaust and after-treatment sector, the report says.
Despite that, more stringent emissions regulations have required considerable innovation by suppliers facing pressure from OEMs who find it difficult to pass costs on to the consumer.
As with many automotive supply sectors, the report says the supply relationship with OEMs has also changed. Suppliers are expected to shoulder more of the research and development cost and risk, and develop the in-house competencies needed to provide a comprehensive end-to-end service.
Developments across the exhaust and after-treatment market have lead to the emergence of a group of highly capable sector specialists such as Tenneco, Eberspächer and Faurecia. Companies that have developed the ability to follow their customers into new markets develop increasingly sophisticated emissions control technology and operate within an often difficult competitive environment.
To order the Automotive Exhaust & Aftertreatment Systems Report, please visit: http://www.supplierbusiness.com/reportpublish/reports_endpoint.aspx?id=91
- The MEMS market - who are the winners, the losers
- Reports: Ford to dump Microsoft in SYNC in favour of QNX OS
- Multi-string LED drivers brighten in-vehicle infotainment displays
- Automotive ECU development flow from Symtavision and Lauterbach
- Testing eCall modules for automotive emergency call systems
- Dead reckoning for cars: IC computes vehicle movements without external reference
- DC/DC supplies 0.25A, shuts down to 12 µA
- Ten predictions for the EV market as seen by IHS
- Automotive, security products drive Infineon's expectations
- GENIVI 5.0 compliant embedded design platform targets Linux based in-vehicle infotainment systems
- Group prepares Android platform for cars
- Smart cars offer "once in a generation chance" to UK industry, experts say
- Automotive-qualified passives
- Sensorless automotive BLDC pump motor control IC
- "No car will be an island"
- Apple, Tesla, the perfect couple?
- Flow cell challenges litihium ion
- Volvo builds HMI around large centre-stack touch screen
- Bosch returns to traction battery business with new JV
- Daimler S-class comes with MOST150
- Green light for European C2X standard
- Why Japan leads in electromobility - and why this could change soon
- Tesla reveals USD5bn lithium-ion battery 'Gigafactory' manufacturing plans
- One hardware, multiple domains: virtualising is the answer
- What EV charging technologies to watch for in 2014
- Ford demos automated driving at Mobile World Congress
- Renault switches gears to 'hyperconnected'
- Valeo utilizes LeddarTech sensing technology for next-gen ADAS
- Wireless charging standards to be consolidated
- Strong growth ahead for automotive image sensors
- NSR Noise Suppressors: Wirewound Resistors
- Virtual Hardware “In-the-Loop”: Earlier Testing for Automotive Applications
- Open Standards and Product Differentiation
- Camera Solutions with Micrel Power Management and Networking
- Deterministic Real-Time Ethernet Platform
- Using Ethernet Applications to Optimize Automotive Electronics Platforms