While competition from imports is expected to remain strong, continued growth in the Canadian and US automobile manufacturing sectors is expected to support demand for industry products.
New York, NY (PRWEB) April 03, 2015
The Automobile Electronics Manufacturing industry struggled until 2013, but has performed well in recent years. The industry was negatively affected by the Canadian and US automotive crisis, during which downstream demand for industry products declined sharply due to the financial troubles of North America's major auto manufacturing companies. However, subsequent growth in downstream markets has led to a revival in demand for Canadian automobile electronics. As a result, while industry revenue mostly stagnated or declined in over the past five years, the industry grew strongly in 2013 and is expected to continue expanding in 2015.
The Automobile Electronics Manufacturing industry's performance over the past five years has been mostly linked to the fortunes of the US and Canadian automobile manufacturing sectors, which represent the industry's most important downstream markets. These sectors struggled due to the collapse of the US and Canadian automotive industries, but performed well in subsequent years as growth in consumer spending and government bailouts helped North America's Big Three (GM, Chrysler and Ford) remain in healthy financial shape. According to IBISWorld Industry Analyst David Witter, “As North American motor vehicle sales have expanded, automakers have increased their demand for automobile electronics for use as inputs in their own production. While this has led to revenue growth, the industry has also been confronted with greater import competition, primarily from low-cost East Asian manufacturers.” Exports to the United States have increased as well, although they have been limited by an appreciation of the Canadian dollar relative to the US dollar.
The Automobile Electronics Manufacturing industry is expected to continue its trend over the five years to 2020. “While competition from imports is expected to remain strong,” says Witter, “continued growth in the Canadian and US automobile manufacturing sectors is expected to support demand for industry products.” In addition, industry exports are expected to increase as the Canadian dollar depreciates and the CETA treaty with the European Union is implemented.
For more information, visit IBISWorld’s Automobile Electronics Manufacturing in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry is primarily engaged in manufacturing and rebuilding electrical and electronic equipment for motor vehicles and internal combustion engines. Industry operators include manufacturers of lighting systems, electrical wiring, electrical control units, sensors, electronic ignition systems, driver displays and other electrical and electronic equipment. Manufacturers of electric motors are excluded from this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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