OEM automotive electronics to increase 7% per year

By Staff -- Control Engineering, 10/1/1998

Cleveland, O.—The original equipment manufacturer (OEM) market for automotive electronic products in North America is expected to increase more than 7% per year through 2002—reaching close to $30 billion, according to a recent report by the Freedonia Group Inc. This would be a significantly faster pace than most other OEM light vehicle component markets. Safety and security electronics hold particularly favorable prospects, with OEM demand increasing at better than 11% per year to approach $12 billion.

Factors contributing to this growth include ongoing development of the on-board segment of intelligent transportation systems (ITSs), which will stimulate demand for certain automotive electronic products. These include intelligent navigation/information systems, collision avoidance systems, and head-up displays. Initially, diffusion of ITS modules will be limited primarily to upper-end performance and luxury vehicles. Products that may be used more include systems for keyless entry, electronic anti-theft, autosound with compact disc players, side impact and intelligent airbags.