OEM automotive electronics to increase 7% per year

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.

Do you have experience and expertise with the topics mentioned in this content? You should consider contributing to our WTWH Media editorial team and getting the recognition you and your company deserve. Click here to start this process.