Automotive Front End Module Market

Automotive Front End Module Market Size (2023 - 2028):

The Global Automotive Front End Module Market was worth US$ 123.7 billion in 2022 and is anticipated to reach a valuation of US$ 164.8 billion by 2028 and is predicted to register a CAGR of 5.05% during 2023-2028.

Market Overview:

Automotive Front Modules (FEMs) are multi-piece assemblies that incorporate a host of components, including front lighting, cooling radiators, and fans, air conditioning (A / C) condensers, gusset panels, Grille Opening (GOR), crumple zones, decorative trim bumpers, hood latches, electronics and wiring.

Today, instead of heavy vehicles made of steel and iron, lightweight components are used to improve fuel efficiency and vehicle performance. Hybrid composite/metal designs are preferably used for heavy-duty vehicles. FEMs are installed later in the manufacturing process during the assembly sequence by manufacturers, saving time and costs. For example, recently launched Hyundai and Mercedes cars use a lightweight front module that enables the integration of additional features into components, saves assembly time, reduces costs, and reduces mass.

The production cost reduction strategies and the innovation of the front modules have allowed to minimize labor costs, and assembly costs and increase pedestrian safety. The factors mentioned above are said to drive the global automotive front module market. To support consumer demand for vehicles and maintain their market position, manufacturers must find an innovative solution that reduces the cost of producing vehicles, while reducing assembly time and delaying product delivery. This is only possible by modularizing vehicle parts and creating a platform-based product family.

Market Drivers:

The growth of the automotive industry and the increasing focus of OEMs on vehicle modularization and weight reduction are the key factors driving the growth of the Automotive Front Modules market. With the increase in disposable income in developing countries, mainly China, India, and Indonesia, the adoption of personal vehicles is increasing at a significant rate, thus contributing to the growth of the automotive industry. Likewise, the commercial vehicle market has also experienced enormous growth in recent years, due to the growth of the logistics industry and the increasing demand for public transport. Therefore, the growth of the automotive industry has directly influenced the growth of the automotive front module industry.

Market Restraints:

The growth of the automotive front module market is mainly limited by the increase in sales of counterfeit products in the market. Counterfeit products are of substandard quality and are readily available at much lower costs than those made by OEMs. Furthermore, strict adherence to safety regulations for the use of lightweight and advanced front module components in vehicles is hampering market growth to some extent.

AUTOMOTIVE FRONT END MODULE MARKET REPORT COVERAGE:

Market Segmentation:

Automotive Front End Module Market - By Type:

• Radiator
• Motor Fan
• Condenser
• Internal Air Cooler
• Radiator Core Support
• Oil Cooler
• Headlight
• Front Grill
• Front Active Grill
• Bumpers
• Horn Assembly
• Fenders
• Hose Assembly
• Bracket Assembly
• Automotive Air Quality Sensor
• Crash Management System

Automotive Front End Module Market - By Vehicle Type:

• PC
• LCV
• HCV

During the forecast period, the market is supposed to see the fastest growth in the passenger car category, due to increased use of such cars and rising living standards in developing economies such as China and India. In 2017, passenger car sales in China and India amounted to 24.96 million and 3.2 million units, an increase of 2.4% and 9.2%, respectively, over the 2016 figures. Figures will increase exponentially in the next few years, due to the aforementioned factors.

Automotive Front End Module Market - By Material:

• Steel
• Composites
• Plastic
• Hybrid

During the forecast period, the market is expected to register significant growth in the composites category, due to its high strength-to-weight ratio, low weight, and chemical and corrosion resistance. The increasing use of compounds in high-end luxury cars is also estimated to contribute to market growth in this category in the coming years.

Market Regional Analysis: 

The Global Automotive Front End Module Market Report includes the segmentation of regions:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

The European region is supposed to experience moderate demand due to the maturity of the market. Asia-Pacific is the main region of the automotive front module market. Asia-Pacific is likely to show significant growth in the automotive front-end module market. Emerging economies such as China and India are expected to drive the market due to growing demand for vehicles, increasing the disposable income of the middle class, and the purchasing power expected to drive the automotive front module business.

Impact of COVID-19 on the Automotive Front End Module Market:

COVID-19 is an unrivalled global public health emergency that has affected nearly every industry, hence the long-term effects that are expected to impact industry growth during the forecast period. Our ongoing research amplifies our research framework to ensure that the underlying issues of COVID-19 and possible future pathways are included. The report provides insights on COVID-19 considering changes in consumer behaviour and demand, purchasing patterns, supply chain diversion, the dynamics of current market forces, and major government interventions. Rapid digitization, coupled with increasing industrial automation, especially in developing economies, is one of the key factors creating positive prospects for the market. Besides, with the rise in usage of social media platforms and IoT devices, there is a tremendous surge in data generated by industries like banking, financial services, and insurance (BFSI). This has reinforced consumers' preference for smart devices equipped with innovative RF front-end modules, which in turn contributes to market growth. In addition, various technological advances, such as the development of silicon-on-insulator (SOI) substrates, act as other growth factors. RF-SOI substrates support 3G, 4G / LTE operation, and future network requirements to enable faster and more reliable data transmission.

Market Key Players:

1. Faurecia SA (France)
2. Denso Corporation (Japan)
3. MAHLE GmbH (Germany)
4. Calsonic Kansei Corporation (Japan)
5. HBPO Group (Germany)
6. Magna International Inc. (Canada)
7. Hyundai Mobis (South Korea)
8. Plastic Omnium (France)
9. Samvardhana Motherson Group (The Netherlands).

Market Recent Developments:

• Calsonic Kansei Corporation, one of Japan's leading auto parts suppliers, attended “Auto Shanghai 2019”, the 18th Shanghai International Automotive Industry Expo, held in Shanghai, China from April 18 to 25 of 2019.
• The MAHLE Group intends to sell its shares in the Hella Behr Plastic Omnium (HBPO) joint venture to its co-shareholder Plastic Omnium.
• The Japanese company DENSO Corporation and Daihatsu Motor Co., Ltd., based in Osaka, Japan, jointly developed a lightweight, high-performance front end that is 30% lighter than the conventional component structure.
• Faurecia signed a memorandum of understanding for the sale of its worldwide automotive exterior business to Compagnie Plastic Omnium.