Global market review of automotive wiper systems forecasts to 2014 2008 edition
Page i Global market review of automotive wiper systems forecasts to 2014 2008 edition By Matthew Beecham February 2008 Published by Aroq Limited Seneca House Buntsford Park Road Bromsgrove Worcestershire B60 3DX United Kingdom Tel: +44 (0)1527 573 600 Fax: +44 (0)1527 577 423 Web: www.just-auto.com Registered in England no: 4307068
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Page iv Table of contents Table of contents Single-user licence edition... ii Copyright statement... ii Incredible ROI for your budget single and multi-user licences... ii just-auto.com membership...iii Table of contents... iv List of figures... vi List of tables... vii Preface... 1 Research methodology... 1 Report coverage... 1 Chapter 1 Introduction... 3 Chapter 2 The market... 4 Market trends... 4 Original equipment wiper blade market... 4 Replacement wiper blade market... 8 Market players... 11 Bosch... 11 Denso Corp... 11 Federal-Mogul... 11 Trico...11 Valeo... 12 Emerging markets... 13 Market shares... 13 World market... 13 European market... 14 North American market... 15 South American market... 17 Japanese market... 17 Market forecasts... 17 Chapter 3 Technical review... 23 Defining the elements... 23 Wiper systems... 26 Washer systems... 30 Q&A with Microheat... 31 Wiper motors... 35 Chapter 4 Manufacturers... 38
Page v Table of contents Bosch... 38 Denso Corp... 38 The US... 40 South Korea... 40 Malaysia... 40 India...40 China... 40 Federal-Mogul... 41 Belgium... 42 Italy... 42 Mexico... 43 South Africa... 43 The US... 43 Trico... 44 Valeo... 46
Page vi List of figures List of figures Figure 1: Worldwide OE wiper system market shares for passenger cars and light trucks, 2006 (percentage of sales volume)... 14 Figure 2: European OE wiper blade market shares for passenger cars and light trucks, 2006 (percentage of sales volume)... 14 Figure 3: European market share of wiper blade aftermarket for passenger cars and light trucks, 2006 (percentage of sales volume)... 15 Figure 4: North America OE wiper blade market shares for passenger cars and light trucks, 2006 (percentage of sales volume)... 16 Figure 5: North America market share of wiper blade aftermarket for passenger cars and light trucks, 2006 (percentage of sales volume)... 16 Figure 6: Bosch Aerotwin system for the aftermarket... 28 Figure 7: HotShot: Car windscreen covered in ice... 34 Figure 8: HotShot: Initial blast of steam unblocks nozzles and clears windscreen... 34 Figure 9: Bosch twin-wiper motor equipment... 36
Page vii List of tables List of tables Table 1: OE wiper blade installation to front and rear windshields on passenger cars and light trucks in Europe, North America, Japan and China, 2004-2014 ( 000s of units based on sales volume)... 19 Table 2: Market value of OE wiper blades for front and rear windscreens on passenger cars and light trucks in Europe, North America, Japan and China, 2004-2014 (EUR 000s).. 20 Table 3: Market value of OE front wiper systems applied to passenger cars and light trucks in Europe, North America, Japan and China, 2004-2014 (EUR 000s based on sales volume)... 22 Table 4: Valeo s wiper systems facilities worldwide... 47
Page 1 Preface Preface Research methodology This report is intended to provide an overview of wiper systems, providing toplevel market fitment, volume and value forecasts through 2014. Our forecasts are not extrapolative but dependent on the underlying drivers of supply and demand. Our forecasts are largely based on interviews with the author s extensive international network of industry contacts. This allows us to consider and explain the meaning and implications of industry events, rather than offer simple description based on incomplete data. Our approach is divided into two distinct methodologies: qualitative interviews these are generally opinion-based, which aim to build knowledge about future wiper system market trends and company strategies; and quantitative interviews typically fact-based, focused on establishing market values, shares, and volumes. Report coverage In this, the fourth edition of this report, just-auto reviews the key market drivers for wiper systems, and updates the market analysis. Following our market overview in Chapter 1, just-auto s product fitment forecasts in Chapter 2 predict the market worldwide (and by major car-producing region, including China) for wiper blade volume and wiper system value from 2004 through to 2014. Chapter 3 sets out a review of recent innovations in this arena while Chapter 4 provides brief profiles of the major manufacturers, namely Bosch, Denso, Federal-Mogul, Trico and Valeo. The author Since 2000, Matthew Beecham has served as an associate editor for just-auto. He authors a range of global auto components market research reviews, including batteries, braking systems, coatings, clutches, cockpits, driver assistance systems, door modules, electric motors, engine cooling systems, exhaust systems, front-end modules, fuel injection, fuel tanks, glass, ignitions, interiors, lighting, mirrors, roof systems, shock absorbers, spark plugs, rotating electrics, tyre pressure monitoring systems, tyres, wheels and wipers.
Page 2 Preface Matthew s freelance assignments have included working for AT Kearney, McKinsey, the Kuwait Institute for Scientific Research, Motorsport Industry Association, Motor Industry Research Association and the Economist Intelligence Unit. He has also written for magazines including Car Graphic (Japan), JAMA (Japan) and Automotive Engineer (UK). He earned his PhD in automotive technology transfer at Cranfield University.
Page 3 Chapter 1 Introduction Chapter 1 Introduction In theory, the wiper blade is a service replacement item. However, the truth is that vehicle owners often wait until the product is disintegrating before replacing it. This is despite the fact that this is, in reality, a safety-critical item with impaired performance leading to a hazardous reduction in visibility. Like shock absorbers, the global wiper blade market has the potential to grow. It has been suggested, for example, that the European wiper blade market could easily double if motorists realised just what a safety-critical component it is. The key to growth, however, lies in educating the motorist about the dangers of using worn-out parts. From the marketing point of view, both businesses are, however, still undeveloped and manufacturers have some way to go to change consumer habits.
Page 4 Chapter 2 The market Chapter 2 The market Market trends Original equipment wiper blade market Federal-Mogul points out that as new technology-driven vehicles are developed, so new patterns and trends in wiper design and application emerge. The company states: As always noise reduction and wipe quality are of paramount importance and these prerequisites have to be satisfied within the scope of prevailing trends, which it lists as: larger windshields need longer wiper blades; an increasing use of electronics and sensors; the use of curved blades; the rapid expansion of flat blade technologies; a greater demand for compact rear wiper arms; and a growing demand for additional features and benefits such as prefitted adapters and replacement indicators. Over the past decade, manufacturers have continued to develop so-called flat wiper blades. The market drivers are product quality, comfort and aesthetics, say manufacturers. An auto executive told us: For the OEMs, it mainly boils down to improving product performance and driver comfort. That is because flat blades ensure that you have less noise entering the cabin. The other thing pushing wiper blade design is aesthetics. That is why you see practically all of the OEMs moving over to flat blades, certainly all of the European OEMs. I would say that xxxxx% of new cars built today come equipped with flat blades in Europe. While demand for flat blades has grown at a phenomenal rate over the past decade, manufacturers see no reason why demand shouldn t continue to grow. An auto executive told us: Most European cars will come equipped with flat blades. There will be a few exceptions such as small cars and niche vehicles. But most of them will move to flat wiper blades. Flat blades are not so popular in North America, at least, not yet. I think the main reason for that is there were a few models launched with flat blades but there were some quality problems associated with them. So that caused delays by some North American OEMs in adopting flat blades.
Page 23 Chapter 3 Technical review Chapter 3 Technical review Defining the elements Automatic windshield wipers first appeared on cars in the US in 1916 and then on luxury cars in Europe in 1924. Since then, as with all other major components of the car, the leading manufacturers have progressively sought to develop windshield wiping equipment. Systems for cleaning the vehicle s windshield, headlamps and rear windows are needed in order to comply with legal stipulations for all-round visibility at all times. Vehicle wiper systems basically divide into five functions: windshield wiper systems; rear window wiper systems; headlamp wiper systems; headlamp washer systems; combination wipe/wash systems. Based on legally prescribed areas of vision, windshield wiper systems must meet the following requirements: remove water and snow; remove dirt; operate at high temperature (+80º C) and low temperature (-30º C); be corrosion-resistant against acids, alkalis, salts, and ozone; pass a stall test. The wiper arm is the connecting link between the wiper drive mechanism and the wiper blade. It holds the wiper blade and directs its movement across the windshield. According to Bosch, it is skewed to the tapered wiper arm pivot shaft by its mounting end, which is usually made of die-cast aluminium or zinc. The other end, says Bosch, is generally steel strip bent into a hook shape (hook-type fastening) and bears the wiper blade. In addition to the standard wiper arm design, there are a number of design variations. In terms of notable trends impacting the wiper arm, an auto executive told us: There are two major trends. The first is that gasoline consumption is the main
Page 38 Chapter 4 Manufacturers Chapter 4 Manufacturers Bosch Bosch was the first manufacturer to offer an electrically powered windshield wiper system in September 1926. Until then, windshields had to be cleaned manually using a cleaning ruler, and later by means of a pneumaticallyoperated wiper, which wiped more slowly as the vehicle drove faster. Bosch manufactures complete wiping systems from motors to blades. This puts it in an extremely strong position when pitching for OE contracts. The company produces some xxm wiper blades and xxm wiper motors per year. Its OE customers include Audi, Alfa Romeo, BMW, Cadillac, Citroën, Daewoo, Ferrari Fiat, Hyundai, Jaguar, Kia, Lancia, Mazda, DaimlerChrysler, Mitsubishi, Nissan, Opel, Peugeot, Porsche, Renault, Rover, Seat, Škoda, Ssangyong, Toyota, Vauxhall, Volvo and VW. Bosch manufactures wiper systems at its facilities in Buhlertal and Eisenach, Germany and Toluca, Mexico. The company also manufactures windshield washer systems at its factories in Tienen, Belgium; Brits, South Africa; Castellet, Spain; and Bursa, Turkey. Bosch recently extended its range of rear wiper blades, giving it coverage of 95% of the European car parc. The company has introduced a new range of wiper blades made of synthetic material for vehicle models such as the Opel Signum and Astra, Renault Mégane, Mazda 3, Toyota Yaris, Peugeot 206 and 406, and Jaguar X-Type. Denso Corp Denso Corp is one of the world s largest automotive parts manufacturers, employing xxxxxxx people in xx countries. Its automotive product range includes climate control, engine management, body electronics, driving control and safety. Toyota is still Denso s largest customer, accounting for xx% of the company s turnover in the financial year ended 31 March 2007. Its other OEM customers include (ranked in order of sales in the year ended 31 March 2007) Honda,