Reduced speed: Revenue will fall from recent highs due to increased international pressures

The Automobile Electronics Manufacturing industry experienced strong growth over the five years to 2018 as downstream markets grew. New car sales in Canada and the United States, a key trading partner, exhibited rapid growth, which led to greater demand for Canadian automobile electronics. Growth in the industry is forecast to recede from previous highs over the five years to 2023. Competition from imports is expected to remain strong, and Canadian and US automobile manufacturing sectors are expected to slow down support over the next five years. Moreover, the Canadian dollar is anticipated to appreciate during the period, which will place downward pressure on more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • The Canadian dollar is anticipated to appreciate, which will place downward pressure on exports
  • Export growth has been aided by the depreciation of the Canadian dollar
  • Per capita disposable income levels and consumer confidence are expected to increase
  • Industry Report - Industry Products Chapter

    Modern cars contain an ever-growing amount of electric and electronic equipment. Over the past decade, luxury automakers have pioneered the use of sensors to detect approaching vehicles, low tire pressure, vehicle tampering and impact force; these features actively enhance vehicle safety and can be used as an attractive selling point. Within this context, this industry's products can be broadly classified as ignition systems, lighting systems and informational and entertainment devices.Over the five years to 2023, IBISWorld expects demand for several types of automotive electronics to increase. For example, hybrid-electric vehicle sales are expected to rise, driven principally by falling prices associated with mass production. Fur...purchase to read more.

    Additional Insights for the Automobile Electronics Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Automobile Electronics Manufacturing Industry are

  • Access to the latest available and most efficient technology and techniques
  • Effective cost controls
  • Undertaking technical research and development
  • IBISWorld analysts also discuss how external factors such as Canadian-dollar effective exchange rate index and Demand from car and automobile manufacturing in the Automobile Electronics Manufacturing industry impact industry performance..

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    What's in this report

    What is the Automobile Electronics Manufacturing Industry?

    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.

    Industry Products
  • Vehicular lighting equipment (including parts and accessories)
  • Information and entertainment systems
  • Cranking motors (starters) and spark plugs
  • Parts for engine electrical and electronic equipment
  • Windshield wiper electronics and dashboard assemblies
  • Other electrical engine components
  • Industry Activities
  • Alternator
  • Spark plug
  • Ignition coil
  • Electrical wire
  • Electronic control unit
  • Electronic sensor
  • Instrument control panel
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Canadian-dollar effective exchange rate index
  • Demand from car and automobile manufacturing
  • New vehicle sales
  • Per capita disposable income
  • Total vehicle-kilometres

  • Current Performance
  • Growth in the North American automotive sector
  • Foreign trade
  • Growing profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Stagnating downstream demand
  • Expanding trade deficit
  • Operating conditions
  • Table: Automobile Electronics Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Automobile Electronics Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Car & Automobile Manufacturing in Canada
  • SUV & Light Truck Manufacturing in Canada
  • Truck & Bus Manufacturing in Canada
  • Auto Parts Stores in Canada

  • Key Selling Industries
  • Battery Manufacturing in Canada
  • Lighting & Bulb Manufacturing in Canada
  • Wire & Cable Manufacturing in Canada
  • Wiring Device Manufacturing in Canada

  • Products & Services
  • Vehicular lighting equipment (including parts and accessories)
  • Information and entertainment systems
  • Windshield wiper electronics and dashboard assemblies
  • Cranking motors (starters) and spark plugs
  • Parts for engine electrical and electronic equipment
  • Other electrical engine components
  • Chart: Automobile Electronics Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Heavy truck and bus purchases
  • Passenger vehicle purchases
  • Age of the motor vehicle fleet
  • More electronics per vehicle

  • Major Markets
  • Automotive OEMs
  • Exports
  • Parts manufacturers
  • Agricultural and construction industries
  • Other
  • Chart: Major Market Segmentation for the Automobile Electronics Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation, rent, utilities, marketing and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Automobile Electronics Manufacturing

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Automobile Electronics Manufacturing Industry

  • Industry Globalization
    Magna International Inc.,
  • Table: Magna International Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Automobile Electronics Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Automobile Electronics Manufacturing Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • New vehicle sales (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A device that converts a vehicle engine's mechanical energy into electrical energy that powers the vehicle's electrical system and charges its battery.
  • Comprehensive Economic And Trade Agreement (Ceta)
  • A proposed trade agreement between Canada and the EU that would increase industry regulations, lower protective tariffs and liberalize European markets to industry operators if implemented.
  • Cranking Motor (Starter)
  • A device, usually a motor, that is used to start a vehicle's engine.
  • Electric Vehicle
  • A plug-in electric vehicle that runs solely on an electric battery and does not require gasoline.
  • Electronic Control Unit (Ecu)
  • An embedded system that controls one or more of the electrical systems or subsystems in a motor vehicle.
  • Hybrid-Electric Vehicle
  • A vehicle that runs using two different power sources, in most cases an electric battery in conjunction with a gasoline engine.
  • Spark Plug
  • A device that converts electric current from a vehicle's ignition system into a spark that starts the vehicle's engine.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Automobile Electronics Manufacturing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Automobile Electronics Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Automobile Electronics Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Automobile Electronics Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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