COVID-19 to Wipe Billions from Automotive Electronics Market through 2026, says Strategy Analytics

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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.

In its baseline scenario, Strategy Analytics finds that a total of at least $78 billion of potential orders to Tier One suppliers for automotive electronics systems will be lost through to 2026. This is despite a predicted boost to electric vehicle demand. Any forthcoming incentives to re-start the car market across the globe are expected to focus on these cleaner models.

“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 centres 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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COVID-19 to Wipe Billions from Automotive Electronics Market through 2026, says Strategy Analytics - Brand SpurCOVID-19 to Wipe Billions from Automotive Electronics Market through 2026, says Strategy Analytics - Brand Spur
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COVID-19 to Wipe Billions from Automotive Electronics Market through 2026, says Strategy Analytics - Brand SpurCOVID-19 to Wipe Billions from Automotive Electronics Market through 2026, says Strategy Analytics - Brand Spur

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- Advertisement -COVID-19 to Wipe Billions from Automotive Electronics Market through 2026, says Strategy Analytics - Brand SpurCOVID-19 to Wipe Billions from Automotive Electronics Market through 2026, says Strategy Analytics - Brand Spur