Report: COVID-19 to ‘wipe billions’ from automotive electronics market through 2026
2020 growth prospects outside of ADAS & HEV/EV applications will be grim.
BOSTON–(BUSINESS WIRE)–The latest Strategy Analytics assessment of the market for automotive electronics systems finds that overall demand will plunge at least 8% in 2020, with falls of up to 15% over 2019 levels possible if recovery does not begin soon.
The Strategy Analytics Powertrain, Body, Safety & Chassis Service (PBCS) service report, “Automotive System Demand 2018 to 2027: COVID-19 Dictates the Short-Term, But Market Fundamentals Remain Sound” predicts that growth will return, driven by demand for electrified vehicles with advanced safety (ADAS) and automation features, but that 2020 will be a very tough year for automotive suppliers.
Strategy Analytics finds that COVID-19 will wipe at least $78 B from the automotive electronics Market to 2026. Suppliers strong in ADAS and electrification technologies likely to fare best.
“How automotive suppliers fare in the coming months will heavily depend on their product line-ups,” noted Ian Riches, Vice President for the Global Automotive Practice (GAP). “Those who are strong in electrification and ADAS technologies will have a much less painful time than those who are not.”
“There will be regional differences too”, he added. “Recovery in South Korea and China is looking firmer than in many other major automotive centers at the moment. Automakers and suppliers which are well-entrenched in these regions could thus find themselves in a relatively strong position compared to their global competitors. This could potentially fuel an acquisition-hunt later this year.”
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