Design Complexity, Electronics Integration, Increased Outsourcing to Represent Key Trends in European Cockpit Modules and Systems Market
LONDON – November 21, 2006 – Faster time to market, rapid vehicle assembly and improved resource management are significant factors driving the outsourcing of cockpit modules. Cost will remain the main driver for outsourcing cockpit assembly, while constraints on production or resource capacity will provide potential reasons for outsourcing cockpit engineering and design. Program management, manufacturing flexibility and logistics are the most evident benefits to vehicle manufacturers, although definite cost savings are still difficult to assess in the modular approach due to certain perceived hidden costs. “Production flexibility, programme management and cost savings are the most important determinants for outsourcing cockpit modules,” notes Frost & Sullivan Research Analyst Vigneshwaran Chandran in a recent study on European Market for Cockpit Modules and Systems. “Faster development and assembly combined with cost savings through outsourcing assembly and engineering responsibilities present an advantage for vehicle manufacturers (VMs), although the levels of responsibility outsourced will undoubtedly influence the extent of benefits that can be realised.” If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the European Market for Cockpit Modules and Systems then send an e-mail to Michael Banks, Corporate Communications at michael.banks@frost.com with the following information: your full name, company name, title, telephone number, e-mail address, city, state and country. We will send you the information by email upon receipt of the above information. The outsourcing of cockpit modules by automakers such as BMW Group, DaimlerChrysler and Volkswagen group, Ford Motors and Renault-Nissan has supported market expansion up to now. However, growth levels are expected to slow down, unless other European VMs join the bandwagon and boost the uptake of pre-assembled cockpits. Varying levels of success in cockpit implementation have caused VMs to disagree on the potential cost savings gained by outsourced modules. This has also prompted some VMs to in-source cockpit assembly and adopt outsourcing for projects where obvious savings or a convincing business case is apparent. “Most VMs evaluate modularisation of cockpits only from a cost-saving perspective,” explains Frost & Sullivan Programme Manager Anil Valsan. “However, some VMs are not completely convinced about the effectiveness of this approach, since it is very complex to measure the exact savings and identify hidden costs of the process.” Cockpit design is an area, which has and will continue to undergo considerable changes over time, especially with the advent of advanced chassis and HVAC technologies, electronics and modern material developments. Significant changes will also occur in the responsibility levels outsourced to suppliers as they gain more expertise in design, development and technical know-how. “In future, cockpit suppliers will possess extensive electronic skills to manage the complexity of design integration encouraging VMs to outsource more design and development responsibilities,” says Chandran. “The early involvement of suppliers in product development and collaborative efforts in advancing cost-saving and innovative solutions will be the future for suppliers and VMs in cockpit module development.” European Market for Cockpit Modules and Systems is part of the Automotive & Transportation Subscription which also includes research in the following markets: HMI For Vehicle Applications - Technology Roadmaps, OEM Strategies, Opportunities and Implications, European Market for Door Modules and Systems, European Market for Front-end Modules and Systems and Strategic Analysis of the Interior Modules and Systems Market in Europe. 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European Market for Cockpit Modules and Systems M05A -18 Contact: Europe: Michael Banks Corporate Communications - Europe P: +44 20 7915 7876 F: +44 20 7730 3343 E: michael.banks@frost.com Tori Foster – North America Corporate Communications P: 210.477.8448 E: tori.foster@frost.com Donna Jeremiah – Southeast Asia Corporate Communications P: +603 6304 5832 E: djeremiah@frost.com Surbhi Dedhia – South Asia & Middle East Corporate Communications P: +91 22 2832 4705 Ext: 131 E: sdedhia@frost.com http://www.frost.com