Abstract
Modules Market
Interior systems are emerging as the focal point of differentiation for automakers in a highly
competitive marketplace. Customers are demanding increasing customization of interior systems and in
turn are compelling automakers to constantly upgrade and add sophisticated features with emphasis on
sharp styling, ergonomic design, convenience, and recyclable materials. Given the increasing cost
pressures and facility investments, a favorable strategy would be to outsource the manufacture of
interior systems and modules to Tier 1 suppliers for ensuring faster development and assembly time.
The outsourcing trend has caught up in seating systems, followed by overhead and cockpit modules
segments. In the future, it is expected to become vital to meet automakers cost, quality and
delivery requirements and for managing the efforts of their upstream suppliers.
This Frost & Sullivan research service analyzes the North American interior systems and
modules market segmenting it into cockpit modules, carpet, acoustic and cargo management systems,
overhead modules, and seating systems. It also discusses the various market trends and opportunities
while providing in-depth analysis of market share, forecasts, drivers, restraints, and revenues.
Strategic recommendations offered in this study enable companies to align their positioning
strategies to benefit from the changing markets and obtain maximum return on investment.
Collaborative Efforts between Suppliers and Automakers Critical for Market Growth
Modules and systems with the best system level integration and more integrated functionalities
are expected to witness the highest growth rates. "The North American automotive industry is
seeing increasing collaboration between automakers and suppliers in areas such as design,
development, and manufacturing," say the analyst of this research service. "Automakers are
finding it profitable to partner with suppliers for designing their entire range of interior systems
and modules right from the vehicle development stage."
In such partnerships, the tier 1 suppliers assume the responsibility for the coordination of
sourcing individual components and most importantly tight functional integration of interior systems
and modules. Collaborative efforts between automakers and suppliers in the early stages of product
development are also expected to ensure shorter time to market along with excellent product quality.
Tier 1 and 2 Suppliers to Drive the Overall Success of the Vehicle Platform
Market needs are growing especially for user interface-type systems such as navigation, real-time
traffic, and telematics systems. Automakers need to look out for suppliers with the relevant
electronics expertise to handle the growing complexity of vehicle platforms and also to meet the
demand for value driven interior modules and systems.
While styling and surface contour, which are considered intrinsic to the vehicle, are normally
retained by the automakers, joint ventures with suppliers in areas such as interiors, lighting, and
climate control showing a promising future. "By pooling their resources in creative ventures or
acquiring companies that help them to broaden their interior product portfolio, suppliers have
become systems integrators and have leveraged their expertise to deliver highly engineered
systems," concludes the analyst.
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