Strategy Analytics: There's Growth Amid the Gloom; Excellent Opportunities Still Exist in Automotive Electronics

    LONDON--Oct. 23, 2001--Despite the generally difficult global trading conditions, Strategy Analytics still expects to see positive growth in the automotive electronics systems market. The value of this market is expected to grow from $89 billion in 2000, to $121 billion in 2005, a compound annual average growth rate (CAAGR) of 6.3%.
    These findings are presented in a study published recently by Strategy Analytics within its strategic advisory service, Automotive Electronics Service. This service provides leading players in the automotive industry with insights into key market, technology, and consumer behavior trends. The company's recent report "Automotive System Demand, 1999 to 2008" provides key insights into which product areas will see the greatest growth.
    It is in fuel-saving and safety-related technologies that Strategy Analytics expects to see the highest growth figures. Systems such as gasoline direct injection, electronically-controlled manual transmissions, night vision, tire pressure warning and head airbags are all predicted to see volume growth in excess of 50% per annum over the next few years.
    "High-technology, safety and efficiency-related products are where the growth is to be found," says Ian Riches, Senior Industry Analyst at Strategy Analytics. "Making money out of baseline systems such as 4-wheel ABS will become increasingly difficult, as demand shifts to more sophisticated, higher performance braking and stability control systems," he adds.
    The report also predicts wide regional variations, with emerging economies seeing the greatest growth. Eastern Europe is expected to see demand for automotive electronics increase at a CAAGR of 18.3% over the period 2000 to 2005, compared with 7.9% for Western Europe.

    Company Background:

    Strategy Analytics, Inc. provides information and insights to help develop business strategies in broadband, consumer electronics and media, wireless communications, ebusiness, automotive electronics, energy technologies and enabling technology business. Working on a global basis, Strategy Analytics delivers planning support in published and consulting formats to meet the decision support needs of clients in North America, Europe, Japan and the Far East.