Front-end Module Market Driving Revenue Growth 2020-2030

Posted by Dinesh on March 31st, 2021

COVID-19 Crisis Causes Sharp Decline in Consumer Footfall in Car Showrooms

The suspension of operations and minimal workforce in plants are few of the many measures companies in the front-end module market are adopting during the COVID-19 (coronavirus) crisis. Despite setbacks in the global economy, manufacturers are anticipating growth in business activities in the last quarter of 2020. They are taking cues from previous product launches. For instance, in January 2020, the U.S. semiconductor company Qorvo introduced a full suite of automotive products that include integrated front-end modules (FEM) to support dedicated short-range communication (DSRC) systems.

The expansion of the front-end module market has slowed down due to reduced consumer footfall in showrooms. Automakers in Europe, the U.S., Russia, and India are scrambling to keep vehicle assemblies humming. Postponement and cancellation of industry events are likely to cause issues for car makers.

Aesthetic Surfaces and Precision Molding Being Preferred by Automakers in Front-end Modules

Companies in the front-end module market are increasing their production capacities to manufacture glass mat thermoplastic (GMT) components and mechanical assemblies for small as well as luxury cars. SUVs among passenger vehicles are projected to hold the highest revenue share in the market.

The front-end module market is expected to cross a value of US$ 100 Bn by 2030. OEMs are increasing efforts to offer full system solutions to automakers. With the help of manufacturing expertise in elastomer and polymer processing and highly specialized technology, companies are gaining competitive edge over other component suppliers. Aesthetic surfaces and precision molding are highly preferred by automobile manufacturers.

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High-speed Automotive Ethernet Improves Throughput in V2X Communication

The trend of vehicle-to-everything (V2X) communication is bringing a significant change in the front-end module market. As such, the automotive Ethernet is being used to connect the telematics control unit (TCU) in cars. However, the drawback of automotive Ethernet is that it lags behind standard Ethernet maximum throughput. Hence, companies in the front-end module market are introducing high-speed Ethernet of more than 10 Gbit/s to improve the throughput.

Robust Front-end Modules Built with Air Flap Controls Improve Vehicle’s Aerodynamics

Module specialists are supplying individual module solutions to car makers. For instance, HBPO GmbH— a specialist in highly integrated front-end modules, helps automakers to lower their manufacturing and other processing costs. Companies are going beyond assembly of modules, and are helping car manufacturers in the construction and development of vehicles by delivering modules just-in-sequence for series production. In order to gain credibility in the global front-end module market, manufacturers are integrating systems with active air control systems on request, since European countries have strict regulations pertaining to carbon emissions.

Robust front-end modules are being built with air flap controls to improve the vehicle’s aerodynamics. Manufacturers are increasing the availability of front-end modules built with active grille shutters for vehicles with combustion engine or an electric motor. The trend of modularized vehicle front is serving as a key driver of the front-end module market.

Customized Solutions Create Several Thousand Variants in Colors and Materials for Modules

Comprehensive services are helping OEMs in the front-end module market gain recognition. Manufacturers are offering project-level services as well as in-house developments in vehicles         to boost their credibility credentials in the market landscape. 

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Front-end Module Market: Overview

• The front-end module market is a mature market and estimated to expand at a CAGR of ~4% during the forecast period
• Vehicle production in Middle East & Africa and Latin America is likely to increase significantly during the forecast period, owing to increase in vehicle production in Mexico, Brazil, Iran, South Africa, and Morocco, which, in turn, is estimated to drive the front-end module market in these regions

Drivers of Front-end Module Market

• Increase in consumer affordability and demand for personal transport are boosting the demand for vehicles, which is driving the front-end module market. Availability of low cost EMIs and zero processing charges have boosted vehicle sales, which, in turn, is driving the front-end module market.