The global automotive components manufacturing industry experienced moderate growth over the past few years and is expected to reach $730.8 billion in 2018.
The global automotive components manufacturing industry is a highly diversified sector that involves engine and automotive component manufacturers, including aftermarket parts manufacturers, suppliers, dealers, and retailers. The manufacturing of automotive components is gradually moving toward Asian countries such as India, China, and others because of their higher market potential and the availability of low-cost manufacturing options. In India and China, OEMs are focused on helping the suppliers grow and improve their businesses. Additionally, the strong growth of the industry has attracted a pool of companies, including major foreign companies, to operate in this market. The rising importance of electronics and functional integration of sustainable products and green components is expected to drive the industry’s growth.
However, a few factors are expected to influence the growth of the automotive components manufacturing industry in the coming years. Some of the elements include:
- Technological advances: Recently, the global automotive components manufacturing industry has witnessed rapid transformations in terms of technology with a considerable number of competitors offering an innovative set of products. Therefore, to stay relevant and updated with the current market scenario, firms in this industry space must adapt to the technological changes while offering quality products.
- Changes in customer demand: Due to the implementation of stringent government regulations across the globe, customers in the automotive components industry are moving towards the use of greener, fuel efficient, and sustainable components.
To overcome such challenges, firms in the automotive components manufacturing space have started leveraging the use of market opportunity solutions. Market opportunity solutions provide firms a better understanding of the overall market scenario in terms of products, services, and other trends. Additionally, with companies toward a more consumer-driven economy, market opportunity solutions provide assistance to the companies in terms of the awareness, challenges, and the barriers to entry of the industry.
The Business Challenge
- The Client: Automotive components manufacturer
The client, a leading automotive components manufacturer with manufacturing units spread across the globe, wanted to identify the potential barriers to enter niche markets understand the market sizing and growth projections. The client also wanted to profile the main competitors and build an accurate go-to-market business plan and strategy for their manufacturing units. Furthermore, the client wanted to identify the market requirements and the barriers to entry.
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Infiniti’s market opportunity experts carried out extensive research comprising of interviews and discussions with leading stakeholders in the automotive components manufacturing industry space to help the client understand the current competitive scenario of the industry. The experts further compiled information from a wide array of secondary sources such as paid industry databases, company presentations, and industry forums to help the client enhance their product and service offerings across the market.
The Solution and the Business Impact
With the help of Infiniti’s market opportunity solution, the automotive components manufacturer was able to identify potential market opportunities, requirements, and preferences of the customers. The client also devised a go-to-market strategy by considering the information gathered from a robust SWOT analysis. This helped the client gain a competitive edge over peer companies in the automotive space.
Rapid developments in the field of robotics and automation are expected to help the automotive components manufacturers to improve quality, productivity, and delivery. However, the high cost of capital, non-availability of skilled labor, and rising operational cost are expected to hamper the growth of this industry in the coming years.