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Automotive Front End Module Market


Automotive & Transportation
Body/Exterior/Interior

The global automotive front-end module (FEM) market is estimated to be USD 89.75 Billion in 2015, and is projected to reach USD 119.08 Billion by 2020, growing at a CAGR of 5.82%. The FEM market is primarily driven by the increasing production of light passenger vehicles and heavy-duty vehicles, growing demand for FEM modularization, and rising demand for lightweight FEMs.

The trend of FEM modularization is gaining traction, as modularization helps OEMs save on cost, time, and manpower during the manufacturing process. Previously, each and every component of the FEM was assembled by OEMs on the assembly line; this was time-consuming and extended the production process of the vehicle. However, the advent of modularization has enabled OEMs to save on these costs and opt for outsourcing these functions. OEMs save around 20 to 30% of costs through modularization, in comparison with the traditional front-end methods. Model differentiation can be achieved through material, color, and finish. In addition to this, FEMs can be added late in the assembly sequence, which helps automakers to improve assembly-line ergonomics by reducing the time taken to assemble and shortening the assembly line.

Every product has a certain lifespan during which it is operational. The operational life of a particular component or product depends on its sustainability, usability, quality, and material. Similarly, components of the automotive FEM have a certain lifespan. They undergo wear-and-tear and require regular replacement for the proper functioning of the vehicle and its sub-systems. This wear-and-tear can be caused by corrosion, degradation due to various fluids and time, or material loss due to extended usage. A rise in the number of miles driven is also estimated to increase the wear-and-tear of the FEM components.

Asia-Pacific is projected to generate high demand for FEMs, owing to growing population, increasing vehicle production, and rising demand for comfort and luxury features in automobiles. The Asia-Pacific FEM market is projected to grow at a CAGR of 5.80% from 2015 to 2020. The FEM market in China is projected to grow at a CAGR of 7.39% during the same period.

One of the biggest challenges faced by players in the FEM aftermarket is counterfeit products. About 40% of the parts that are sold in the aftermarket are fake/counterfeit. Counterfeit products are mainly unauthorized spare parts that are available in the market. These unauthorized parts include those that are not genuine and are sold to dealers by suppliers.

The automotive FEM market is dominated by a few global players, such as Faurecia SA (France), Denso Corporation (Japan), MAHLE GmbH (Germany), Calsonic Kansei Corporation (Japan), HBPO Group (Germany), Magna International Inc. (Canada), Hyundai Mobis (South Korea), Plastic Omnium (France), and Samvardhana Motherson Group (The Netherlands). Industry players are making investments and expansions across the globe, including in high-growth markets, to gain traction in the automotive FEM market.

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