Global Automotive Front-End Module Market - 2022-2029

Market Overview

The global automotive front-end module market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).

An automotive front-end module (FEM) is a multi-piece assembly such as headlights, front grill, radiator, oil cooler, condenser, horn assembly and others attached to the front of the vehicle. Front-end modules (FEM) are generally used on compact and midsize passenger vehicles. However, in recent years, large sedans and SUVs are also utilizing front-end modules.

Market Dynamics

The growing adoption of vehicle platform integration by automotive manufacturers is the major driver for the global automotive front-end module market. The high cost of front-end modules is a key factor in limiting the growth of the global automotive front-end module market.

Growing adoption of vehicle platform integration by automotive manufacturers

Major automotive manufacturers have undertaken various strategies in recent years to reduce costs and boost profit margins. Manufacturers are integrating their vehicle platforms across their entire product portfolios. Vehicle platform integration refers to integrating various systems and components within a vehicle onto a common platform or chassis. This approach allows manufacturers to design and develop multiple vehicle models using a common set of components, which can significantly reduce development costs and time.

One of the main benefits of vehicle platform integration is that it allows manufacturers to reuse a large number of components across multiple vehicle models. It can significantly reduce the costs of developing new vehicles, as the manufacturer does not have to design and test new components for each model.

In addition, vehicle platform integration allows manufacturers to take advantage of economies of scale. Manufacturers can achieve lower costs through mass production by producing many components for multiple vehicle models. It can help to reduce the overall cost of vehicles for consumers. Therefore, vehicle platform integration increases demand for front-end modules due to the commonality of components. The growing adoption of vehicle platform integration is a key driver for the global automotive front-end module market.

High cost of automotive front-end modules

Automotive front-end modules are complex systems with various components, including headlights, bumpers, grilles, radiators, fog lights and air dams. The components are typically made of high-quality materials, such as high-performance plastics and metal, which are expensive to manufacture and assemble. Manufacturing front-end modules involves complex processes requiring specialized equipment and personnel, which further adds to the cost of these systems.

In addition, the development and testing of front-end modules is a costly and time-consuming process, as these systems must meet strict safety and performance standards. The testing process can be expensive due to the need for specialized testing equipment, as well as the cost of conducting multiple rounds of testing. The development of new front-end module technologies and designs requires significant investment in research and development, which further adds to the overall cost of these systems. The high costs are ultimately passed on to consumers in the form of higher vehicle prices, which can deter some potential buyers.

COVID-19 impact analysis

The COVID-19 pandemic has significantly impacted the automotive front-end module market. The global lockdowns and economic downturn caused by the pandemic led to a sharp decrease in demand for new vehicles, which in turn led to a decrease in demand for front-end modules.

The decrease in demand for new vehicles was primarily due to the restrictions on travel and the impact of the pandemic on the global economy. Many people could not afford to purchase new vehicles or were hesitant due to economic uncertainty. It has led to a decrease in the production of new vehicles, which had a ripple effect on the demand for front-end modules.

In addition to the decrease in demand, the pandemic disrupted the supply chain for front-end modules. Many front-end module manufacturers were forced to temporarily shut down their operations or reduce production due to lockdowns and supply chain disruptions. It has led to a further decrease in the availability of front-end modules and put pressure on the market.

Despite these challenges, the automotive front-end module market is expected to recover as the global economy recovers and the demand for new vehicles returns to pre-pandemic levels. In the long term, the market is expected to continue to grow as the demand for advanced front-end modules with improved safety and performance features increases.

Segment Analysis

The global automotive front-end module market is segmented into component, material, vehicle and region. The global automotive front-end module market by vehicle is further segmented into passenger cars and commercial vehicles. Global passenger car production far exceeds commercial vehicle production, thereby generating the largest demand for automotive front-end modules.

Front-end modules in passenger cars are systems that are located at the front of the vehicle and are responsible for a variety of functions. Radiators, bumpers, grills, fog lights, air dams and headlights are some of the common front-end module components used in passenger cars. The front-end module of a passenger car is designed to provide protection, improve visibility and improve the vehicle's performance and efficiency.

Geographical Analysis

North America is a developed region and a major automotive market. Major international automotive manufacturers have operations in the region. Manufacturers are constantly introducing new models and revamping existing models to cater to regional consumer demand. The North American automotive front-end module market will witness sustained growth in the upcoming years.

Europe is another developed and industrialized region with a well-developed automotive industry. Many reputed global automotive brands are based in the region. European automotive manufacturers are gradually moving towards electric and hybrid vehicles. The European automotive front-end module market is expected to grow steadily during the forecast period.

Asia-Pacific is a rapidly developing and industrializing region that generates the largest demand for passenger and commercial vehicles. Major growing economies such as India, China, Vietnam, Malaysia, Indonesia and Thailand generate the bulk of the regional demand. Despite the growing demand, vehicle ownership is low due to high economic inequality and a large percentage of the global poor population. Automotive manufacturers have adopted various strategies, such as releasing economical vehicle models and partnering with financial institutions to boost regional demand. The Asia-Pacific automotive front-end module market will witness major growth during the forecast period.

Competitive Landscape

Some major players contributing to the growth of the global automotive front-end module market are Denso Corporation, MAHLE GmBH, Kansei Corporation, Faurecia, Magna International Inc, Hyundai Mobis, Valeo, Montaplast GmBH, Plastic Omnium and Continental AG. Some of the key strategies pursued by the major market players include researching and developing new materials for front-end modules, partnering with automotive manufacturers to develop new modules and expanding to new markets.

Denso Corporation

Overview: Denso Corporation is a global manufacturer of automotive components headquartered in Kariya, Aichi Prefecture, Japan. The company was founded in 1949 as Nippon Denso Co., Ltd., a joint venture between Toyota and Denso Corporation to produce automotive parts for Toyota vehicles. Denso Corporation operates in 35 countries and produces various products, including engine management systems, climate control systems, electronic components and automotive sensors. In addition to its work in the automotive industry, Denso also has a strong presence in the commercial transportation, heavy equipment and electronics industries.

Product Portfolio

• Front-End Modules are manufactured by Denso corporation for various models of passenger cars.

Recent Developments

• On December 6th, 2022, Denso Corporation announced major changes to its organization, including the merging of its business units and the appointment of new senior management effective from January 1st 2023.

Why Purchase the Report?

• Visualize the composition of the global automotive front-end module market segmentation by component, material, vehicle and region, highlighting the critical commercial assets and players.
• Identify commercial opportunities in the global automotive front-end module market by analyzing trends and co-development deals.
• Excel data sheet with thousands of global automotive front-end module market-level 4/5 segmentation data points.
• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the critical product of all major market players

The global automotive front-end module market report would provide approximately 57 market data tables, 59 figures and 210 pages.

Target Audience 2022

• Automotive Component Manufacturers
• Vehicle Manufacturers
• Steel Companies
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Research Professionals