Value share of exhaust and aftertreatment systems to explode, IHS says
August 02, 2012 // Christoph Hammerschmidt
The automotive exhaust and after-treatment market is set for considerable growth due to forecasted increases in long-term global vehicle production and revenue growth from sales of increasingly sophisticated emissions systems, according to an IHS Automotive SupplierBusiness report.
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=91All news
Harman continues shopping spree with two software takeovers
January 26, 2015
Infotainment giant Harman International has signed takeover agreements with Red Bend Software and Symphony Teleca. The investment ...
Pinpointing perovskite's ability to produce cheaper solar energy
Nanostructures key to organic solar cell efficiencies?
Essess completes Street View with IR heat maps
Technology available, application wanted
Open source to flood IT in 2015
January 23, 2015
Dr. Larry Ponemon, Chairman and Founder of the Ponemon Institute, predicts that the next two years will see the majority ...
Asia leads automotive innovation
Samsung, Apple dominated chip buying in 2014
French startup expands 3D to the room
- Sensing Elements for Current Measurements
- Investigating Die attach Failure in IGBTs using Power Cycling Tests
- Power Semiconductor Failure Diagnosis using Thermal Characterization and Power Cycling
- Top 5 Trends in Product Development and Test Engineering
InterviewCEO interview: Bosch's IoT startup is all about the system
Thorsten Mueller, CEO of Bosch Connected Devices and Solutions GmbH (Reutlingen, Germany), has been guiding the latest startup subsidiary of Robert Bosch GmbH since 2013 when he started the initiative ...
Filter WizardCheck out the Filter Wizard Series of articles by Filter Guru Kendall Castor-Perry which provide invaluable practical Analog Design guidelines.
Linear video channel
READER OFFERRead more
To ensure you have a good start in 2015, Freescale is giving away five of its QorIQ TWR-LS1021A Tower system modules, worth USD269 each, for EETimes Europe's readers to win.
The module is the most feature-rich and high-performance Tower system offered by Freescale, enabling compatibility and interoperability with the growing list of Tower expansion modules, offering an easily accessible...MORE INFO AND LAST MONTH' WINNERS...
December 15, 2011 | Texas instruments | 222901974
Unique Ser/Des technology supports encrypted video and audio content with full duplex bi-directional control channel over a single wire interface.