Global light vehicle front end modules market- forecasts to 2029
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Table of contents 1: Introduction... 7 About this service... 0 2: Companies... 8 Calsonic Kansei Corporation... 8 Denso Corporation... 8 Faurecia SA... 0 Products... 0 Customers and contracts... 0 Merger and acquisition activity... 0 Plastal... 0 HBPO GmbH... 0 HBPO s facilities worldwide, 2014... 0 Hyundai Mobis Co., Ltd.... 0 Magna International Inc... 0 Samvardhana Motherson Peguform... 0 Plastic Omnium (Compagnie Plastic Omnium SA)... 0 Valeo SA... 0 Others... 0 Accuride Corporation... 0 Benteler AG... 0 Flex-N-Gate Corporation... 0 Halla Visteon Climate Control... 0 Background... 0 Front-end module business... 0 SL Corporation... 0 Tower International... 0 3: Markets... 9 Market shares... 9 Global... 9 Worldwide manufacturer shares of front-end modules for passenger cars and light vehicles, 2010-2013, % of volume... 9 Europe... 0 European manufacturer market shares of front-end modules for passenger cars and light vehicles, 2010-2013, % of volume... 0 North America... 0 North American manufacturer market shares of front-end modules for passenger cars and light vehicles, 2010-2013, % of volume... 0 Asia... 0 Asian manufacturer market shares of front-end modules for passenger cars and light vehicles, 2010-2013, % of volume... 0 Emerging markets... 10 China... 10 Page 4
India... 0 Russia... 0 4: Technologies... 11 Defining the elements... 11 Technical trends... 11 Material matters... 0 Protecting the pedestrian... 0 Overview... 0 Continental's intelligent pedestrian protection system... 0 Continental's air hose... 0 TRW's pedestrian protection system... 0 Valeo's Safe4U... 0 Innovations... 0 High strength bumper beams... 0 Lighter bumpers... 0 Mazda's bumper recycling system... 0 Milliken develops reinforcing agent for polyolefins that cuts weight... 0 Recycled plastic bumper... 0 Renault uses ExxonMobil Chemical s Exxtral TPO... 0 SABIC's resin solution... 0 5: Forecasts... 12 Front-end modules... 12 Market fitment/penetration rates of front end modules fitted to newly-assembled passenger cars and light vehicles, 2009-2029, (%)... 0 Market volumes of front end modules fitted to newly-assembled passenger cars and light vehicles, 2009-2029, ('000s units)... 0 6: Appendix 1 Standard requirements for pedestrian protection... 13 7: Archive... 14 Denso's plant-derived resin radiator... 14 Plastic front-end module... 14 Page 5
Tables HBPO s facilities worldwide, 2014... 0 Worldwide manufacturer shares of front-end modules for passenger cars and light vehicles, 2010-2013, % of volume...9 European manufacturer market shares of front-end modules for passenger cars and light vehicles, 2010-2013, % of volume...0 North American manufacturer market shares of front-end modules for passenger cars and light vehicles, 2010-2013, % of volume...0 Asian manufacturer market shares of front-end modules for passenger cars and light vehicles, 2010-2013, % of volume...0 Market fitment/penetration rates of front end modules fitted to newly-assembled passenger cars and light vehicles, 2009-2029, (%)...0 Market volumes of front end modules fitted to newly-assembled passenger cars and light vehicles, 2009-2029, ('000s units)...15 Page 6
Introduction A front-end module is a pre-assembled combination of components such as lamps, fans and bumper systems which is fastened on the front of the chassis of the vehicle. The major functions of the front-end components are to act as a body frame, taking in and cooling air, protecting the vehicle and its occupants in the event of a collision, properly illuminating the front of the vehicle as well as improved appearance and exterior styling. The most important potential benefit of modular construction is standardisation, allowing suppliers to offer standard solutions to different manufacturers and hence bring costs down. More specifically, by shifting programme management responsibilities to the supply base allows the automaker to decrease their interfaces with different suppliers. Front-end modules have been sourced by European automakers for some time. Although this market is showing some signs of maturing, the North America, Chinese, Korean and even Japanese automakers are now taking a keen interest in outsourcing these modules. By outsourcing front-end modules, automakers are able to reduce the number of operations on their assembly lines, simplify their supply chains, reduce modular weight and improve the ergonomic aspects of the assembly process. It can also help cut tooling costs and improve working capital. The most important potential benefit of modular construction is standardisation, allowing suppliers to offer standard solutions to different manufacturers and hence bring costs down. For the supplier, the added responsibility for design and development brings new opportunities. While front-end module suppliers take on a larger responsibility than just supplying individual parts, that responsibility brings with it a greater chance to increase sales. There are three main markets for front-end modules: Europe, North America and South Korea. Page 7
Companies Calsonic Kansei Corporation Calsonic Kansei s front-end module includes the radiator and core support, condenser, engine fan shroud, windscreen wiper washer tank, headlamp, bumper stay and reinforcement. The company s radiators are made using its proprietary brazing process and feature a corrosion-resistant design. Calsonic Kansei also designs and manufactures its own condensers. Calsonic Kansei was the first Japanese parts supplier to begin deliveries of cockpit and front-end modules. The company s aim in development of front-end modules is to lighten the overall weight and to increase the fuel efficiency of vehicles by further reducing the number of individual parts in each module. For example, its European front-end module cuts weight by XX percent and reduces the number of part numbers by XX percent. Denso Corporation Denso s front-end modules come under the umbrella of its Thermal Systems business. This division itself is organised into two product groups: Air-conditioning; and Cooling Systems and Components. Denso s front-end module integrates a front-frame carrier and several components, including the radiator, air conditioning condenser, fan and intercooler, into one unit. The company can also assemble the bumper and headlamps with the front-end module. More specifically, the main features of Denso s front-end module include: The front-frame carrier is formed from a novel injection moulding process from a Denso proprietary polypropylene material reinforced with long fibre glass. This allows the fibre glass in the fibre glass in the carrier to be about twice as long as that formed by the conventional process. Denso forms the front-frame carrier into a desired shape in order to achieve optimal heat exchange efficiencies of heat exchangers such as the radiator and condenser. Page 8
Markets What is a front-end module? It depends who makes it and for whom. According to Faurecia, several components and sub-assemblies are built into the front-end module, including headlights, radiator, engine cooling fan systems and the bumper fascia and beam. It also contains wiring harnesses and related electrical functions. The major functions of the front-end components are to act as a body frame, taking in and cooling air, protecting the vehicle and its occupants in the event of a collision, properly illuminating the front of the vehicle as well as offering improved appearance and exterior styling. By outsourcing front-end modules, vehicle makers are able to reduce the number of operations on their assembly lines, simplify their supply chains, reduce modular weight and improve the ergonomic aspects of the assembly process. It can also help cut tooling costs and improve working capital. The most important potential benefit of modular construction is standardisation, allowing suppliers to offer standard solutions to different manufacturers and hence bring costs down. There are three main markets for front-end modules: Europe, North America and South Korea. In addition, there is some manufacturing in Japan and China. Until recently, the European market was seen as the mainstream for front-end modules with a number of manufacturers. Yet lately this market has shown some signs of stabilisation to the point where it is reaching maturity. While the European market stabilises, the North American market for front-end modules continues to grow. Market shares Global The worldwide market for front-end modules in 2014 was led by HBPO, followed by Faurecia, Calsonic Kansei, Mobis and Magna International. Worldwide manufacturer shares of front-end modules for passenger cars and light vehicles, 2XXX-2XXX, % of volume Source: just-auto Page 9
Emerging markets China Faureciaoperates joint ventures with Xuyang Group and Geely/Limin. Page 10
Technologies Defining the elements Not only is the front-end important aesthetically and functionally, it also plays a fundamental role in safety, says Faurecia. During low-speed collisions, it must protect the expensive components in the front of the vehicle, thereby reducing repair costs. During collisions at higher speeds, its absorption capacities become secondary, says Faurecia, but it plays an important role in terms of establishing compatibility between different vehicle brands and models to compensate for differences in height and direct energies towards zones of structure deformation of the car. Above all, it has taken on a whole new dimension following recently adopted standards of pedestrian protection. The front-end module brings a number of benefits to vehicle makers. Vehicle makers are able to reduce the number of operations on their assembly lines, simplify their supply chains, reduce modular weight and improve the ergonomic aspects of the assembly process. It can also help cut tooling costs and improve working capital. The most important potential benefit of modular construction is standardisation, allowing suppliers to offer standard solutions to different manufacturers and hence bring costs down. Bumpers and front-end carriers form part of front-end modules. Bumpers, which are made of plastic materials, are designed to allow the car to sustain an impact without damage to the vehicle s frame or safety systems and usually include, as components, bumper energy absorbers, radiator grilles, fog lamps and parking assistance sensors. Front-end carriers are the underlying structure for the whole front-end module and are made of thermoplastic material, composites or metal/plastic hybrids. Calsonic Kansei says there are a number for benefits to the OEM customer from sourcing front-end modules, including: material cost reduction reduction in vehicle assembly time assembly line length reduction tooling investment reduction facility investment reduction Technical trends The major functions of the front-end components are to act as a body frame, taking in and cooling air, protecting the vehicle and its occupants in the event of a collision, properly illuminating the front of the vehicle as well as improved appearance and exterior styling. Page 11
Forecasts This section sets out our estimates and forecasts of outsourced OE front-end modules fitted to newly-assembled passenger cars and light vehicles across XX of the world s largest light vehicle markets - which collectively account for more than XX percent of world light vehicle production. Our forecasts range is from 2009 through to 2019 with spot forecasts for 2024 and 2029. Each forecast group sets out first the market fitment/penetration percentage rates followed by market volumes ( XXXs). Our forecasts are not extrapolative but dependent on the underlying drivers of supply and demand. Each forecast is based on vehicle data prepared by our partner, LMC Automotive. The vehicle data (passenger cars and light commercial vehicles) includes: North America - US, Canada and Mexico; Mercosur - Brazil and Argentina; Western Europe - Germany, Italy, France, UK, Spain, Portugal, Netherlands, Belgium, Sweden, Austria, Finland and Morocco; Central Europe - Turkey, Bulgaria, Czech Republic, Poland, Slovakia, Hungary, Romania, Serbia and Slovenia; Russia; Japan; China; India; Korea; Thailand; Other Asia Indonesia, Malaysia, Taiwan and Philippines; Iran; South Africa; Australia. These forecasts are updated quarterly or as and when major changes require assumptions to be amended. Full revision history for all of our forecast pages within this section allow you to see what has changed and when. Front-end modules For the purposes of this forecast, we define a front-end module as a pre-assembled combination of components such as lamps, fans and bumper systems which is fastened on the front of the chassis of the vehicle. By outsourcing front-end modules, automakers are able to reduce the number of operations on their assembly lines, simplify their supply chains, reduce modular weight and improve the ergonomic aspects of the assembly process. Page 12
Appendix X Standard requirements for pedestrian protection European standard 2003/1XX/EC requires several types of certification tests. In contrast to usual crash test, it is not anthropomorphic test dummies that are impacted by the car, but rather impactors equipped with measurement instruments and representing parts of the body that are projected onto the vehicle. Since X October 2005, the following tests are mandatory: Collision of the imitation leg with bumpers: the imitation leg, which is projected horizontally at XXkm/h onto the bumper, is equipped with an articulation representing the knee that measures dynamic flexion and lateral displacement or tearing. The maximum acceleration of the upper extremity of the fibula is also measured. This test can be replaced by the projection of an imitation upper leg at the same speed. Since this impactor is not articulated, the sum of impact forces and the movement of flexion of the impacted part are measured. Collision of the imitation head of a child or small adult: the imitation head weighing X.Xkg is projected sideways onto the upper side of the bonnet at a speed of XXkm/h. The head performance criterion, or HPC, is measured. This quantifies the maximum resulting acceleration during the impact. Two other tests are conducted only for evaluation purposes (they cannot be used to refuse certification): collision of the upper part of an imitation leg at XXkm/h against the front edge of the bonnet, and the collision of an imitation adult head weighing X.Xkg at XXkm/h against the windscreen. As of X September 2010, the latter two tests became mandatory for certification. The collision of the imitation child head with the upper face of the head will be done at XXkm/h and the acceptable criteria for imitation leg collision with the bumper will be even stricter. Page 13
Archive This section of the intelligence service contains archived pages of significant interest, but which no longer require updating. Denso's plant-derived resin radiator In January 2009, Denso developed a plant-derived resin radiator tank using an organic compound derived from castor-oil trees. In addition to increasing installations of the new radiator tank to more vehicles, Denso aims to incorporate the new resin into a wide range of products in an effort to reduce the use of limited oil resources, reduce COX emissions during a product s life cycle and help prevent global warming, said Akio Shikamura, the managing officer responsible for Denso s Thermal Systems Business Group. The plant-derived resin, which Denso jointly developed with DuPont Kabushiki Kaisha, is produced by a chemical reaction between two organic compounds that are derived from castor-oil tree and petroleum. An additive, such as glass fibre, is then added to the substance to produce the resin. Plant-derived ingredient comprises about XX% of the resin. Since engine compartment components, such as the radiator tank, need to be extremely heat resistant and durable, it was previously difficult to develop a resin with a high percentage of plant-derived ingredients. Denso claims that, compared to conventional products, the new radiator tank releases less CO2 emissions into the atmosphere during its life cycle because it is partially made from material extracted from plants, which absorb CO2 through the photosynthesis process. The new product also helps conserve oil, a fossil fuel which is being depleted. Plastic front-end module Chang an Automobile used the 2011 Shanghai motor show to display a stripped down version of its CXXX model incorporating an all-plastic front-end module. Page 14
Market volumes of front end modules fitted to newly-assembled passenger cars and light vehicles, 2XXX-2XXX, ('XXXs units) Market 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2024 2029 North America XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX Mercosur XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX Western Europe X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX Central X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX Europe Russia XX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX Japan XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX China XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX India XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX X,XXX.XX X,XXX.XX Korea X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX X,XXX.XX Thailand XX.XX XX.XX XX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX Other XX.XX XX.XX XX.XX XX.XX XX.XX XX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX Asia Iran XXX.XX XXX.XX XXX.XX XX.XX XX.XX XX.XX XX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX XXX.XX South Africa XX.XX XX.XX XX.XX XX.XX XX.XX XX.XX XX.XX XX.XX XX.XX XX.XX XX.XX XX.XX XX.XX Australia XX.XX XX.XX XX.XX XX.XX XX.XX XX.XX XX.XX XX.XX XX.XX X.XX X.XX X.XX X.XX Total XX markets XX,XXX.XX XX,XXX.XX XX,XXX.XX XX,XXX.XX XX,XXX.XX XX,XXX.XX XX,XXX.XX XX,XXX.XX XX,XXX.XX XX,XXX.XX XX,XXX.XX XX,XXX.XX XX,XXX.XX Source: just-auto, LMC Automotive and industry sources Page 15
2015 All content copyright Aroq Limited. All rights reserved. If you would like to find out about our online multi-user services for your team or organisation, please contact: Mike Chiswell Senior QUBE Business Manager Tel: +44 (0)1527 573 608 Toll free from US: 1-866-545-5878 Email: mike.chiswell@just-auto.com http://www.just-auto.com/qube Page 16