While electric vehicle components are forecasted to see exponential growth rates up to 245% by 2027, ICE legacy component clusters will likely still be needed for the foreseeable future, creating a twin-path market for automotive suppliers. PHOTO courtesy Honda.
In its latest Automotive Supplier Study, Deloitte analyzed financial data from nearly 300 global automotive suppliers to study how the trend toward electrification will have an impact on different supplier components.
In the 2022–2027 time frame, segments projected to see exponential growth include electric drivetrains (up 245%); batteries and fuel cells (up 245%); and advanced driver assistance systems (ADAS) & sensors (up 75%). On the other hand, segments such as ICE drivetrains, fuel systems, and exhaust systems are likely to see double-digit declines over that time frame.
However, it should be noted that ICE vehicles aren’t going away anytime soon and, as a result, legacy component clusters will likely still be needed for the foreseeable future. Though the market size for fossil-fueled engines is expected to decline, new ICE vehicles will be sold, and existing vehicles will still travel the roads. This will create a substantial market for new and replacement ICE components that some suppliers can focus on to positively impact their bottom line.
