The European Automotive Electric Motors Market - A New Study

The European Automotive Electric Motors Market ? A New Study by Frost & Sullivan

Enhanced Comfort and Performance Requirements Drive Demand

The accelerating use of electronic control in many automotive systems where mechanical control has traditionally been used is driving demand for low power rated electric motors across the European market. Modern cars now incorporate a significant number of mini-motors used in a range of applications from raising and lowering windows to controlling air conditioning systems, right through to ABS and engine cooling.

Increasing demand for these motors resulted in revenues of $1.67 billion for the European automotive electric motors market in 2000, with total shipments at 566.7 million units. Good market growth is expected to continue, with revenues reaching $2.24 billion and shipments growing to 929.1 million units in 2007, according to a new study by Frost & Sullivan, the international market consulting company.

The study divides the market into three main areas: comfort-related motors (for example, window lift motors and wiper motors), performance-related motors (used to enhance control) and volume-related motors (simple low value motors shipped in significant quantities). Increased demand for luxury and advanced features such as wider penetration of electric windows, electric door locking and ABS, and a high level of competition between car manufacturers are expected to continue to positively influence the market over the next seven years.

The comfort-related motors market is the largest of the three, holding 62.6 percent of revenues, equal to $1.05 billion in 2000. Growth is not expected to be as strong as in other sectors. Frost & Sullivan Research Analyst, Sean French, forecasts the smallest of the three ? volume motors - should have the highest growth in the future.

Despite being the leading market in terms of shipments (365.1 million units), the volume motors market, which includes door lock motors and air conditioning flap motors, only had a 13.3 percent ($222.6 million) share of total market revenues. "This is due to the low unit price for volume motors," Sean French explains. "This is a high growth market, with shipments increasing faster than revenues over the last few years due to falling average prices. It's the fastest growing market due to the expanding popularity for simple actuator-type motors in many general automotive applications."

The final market - performance-related motors - deals with high-end motors such as ABS motors and engine cooling motors. It was worth $402.5 million with shipments of 81.8 million units in 2000. This market has a number of emerging applications including throttle control, electric steering as well as many others. These should offer further scope for enhanced growth, making this an attractive sector, especially related to revenues.

In total terms the market is highly competitive. Although there is a limited total of motor manufacturers serving this sector, suppliers face strong pressures related to production levels, prices, service, quality and innovation. The study found that the market had been affected by price cuts, with trends impacted by strong discounting and industry pressures.

"Competition in the automotive industry has resulted in price cuts in a number of sectors that supply parts, including automotive motor manufacturers," explains Sean French. "There have also been some positive influences on average prices during this time. This has been mainly from areas where there has been higher than average growth for more expensive products, such as where brushless motors are being introduced. Pricing will nevertheless remain a key differentiator between suppliers."

Frost & Sullivan presents Marketing Engineering Awards to companies that have worked diligently to make a positive contribution to the European automotive electric motor industry. The 2000 Brand Awareness Development Award is presented to Robert Bosch. The Merger & Acquisition Strategy Award is presented to Johnson Electric.