ANALYSIS-MARKET-TRENDS
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Trend for automotive electronics prices changes
The analysis of price developments for automotive electronic components
shows: the times of price reductions over the whole range of electronic
devices have come to an end. Rising energy and raw material cost
finally also have their impact in electronics.
This development could already be observed for some time on a USD basis. However, the continuous rise of the EUR has been masking the trend for European OEMs and first tiers.
In the market for automotive electronics devices, prices will rather stagnate or even rise, with increasing ranges of variation. Raises will be mainly caused by the cost increases of the past 18 months and the resulting economic situation of electronic device manufacturers, but also by consolidations in the emiconductor industry. Moreover, relocations to low cost sites and outsourcing activities have mostly been concluded arriving at a strategic hurdle now, as the ongoing discussions about fabless business models indicate.
Figure 1: ecs Index Automotive Components 2004 - 2008
Source: ecs Beratung & Service GmbH
For automotive ECUs, this development will lead in tendency to rising prices, particularly when taking into account the increasing cost base in low cost countries. More than ever, OEMs and 1st tiers will have respond with increased Design-to-cost activities and optimized architectures, as existing negotiation and cost reduction potential has been exploited consistently by all OEMs in past years.
Analyzing key components for automotive electronics in the last 5 years, ecs Beratung & Service GmbH has developed two price indices for automotive electronics.
Figure 2: ecs Index Automotive ECU 2004 - 2008
Source: ecs Beratung & Service GmbH
The ecs Index Automotive Components consists of an automotive-specific basket of 200 components from powertrain, chassis, entertainment, body and safety applications. Components included are weighted by value and comprise microcontrollers, drivers, interface ICs, ASSPs (without ASICs) as well as relevant passive components from semiconductor manufacturers’ automotive lines.
The ecs Index Automotive ECU extends the approach to PCBs, electromechanical components and manufacturing cost with a weighting according to typical automotive shares.
The forecasted development 2009 for the Components Index is –2,8% and –1% for the ECU index.
About ecs Beratung & Service
ecs Beratung & Service GmbH is a consultancy based in Munich, Germany which is specialized on material cost analysis and optimization for automotive and industrial electronics. ecs is characterized by a strong industry specialisation as well as the development of innovative methods and tools for consulting, especially in data mining and benchmarking. Market analysis is performed based on real market data and are thus independent of electronic device manufacturers’ forecasts. www.ecs-network.com
This development could already be observed for some time on a USD basis. However, the continuous rise of the EUR has been masking the trend for European OEMs and first tiers.
In the market for automotive electronics devices, prices will rather stagnate or even rise, with increasing ranges of variation. Raises will be mainly caused by the cost increases of the past 18 months and the resulting economic situation of electronic device manufacturers, but also by consolidations in the emiconductor industry. Moreover, relocations to low cost sites and outsourcing activities have mostly been concluded arriving at a strategic hurdle now, as the ongoing discussions about fabless business models indicate.
 |
Source: ecs Beratung & Service GmbH
For automotive ECUs, this development will lead in tendency to rising prices, particularly when taking into account the increasing cost base in low cost countries. More than ever, OEMs and 1st tiers will have respond with increased Design-to-cost activities and optimized architectures, as existing negotiation and cost reduction potential has been exploited consistently by all OEMs in past years.
Analyzing key components for automotive electronics in the last 5 years, ecs Beratung & Service GmbH has developed two price indices for automotive electronics.
 |
Source: ecs Beratung & Service GmbH
The ecs Index Automotive Components consists of an automotive-specific basket of 200 components from powertrain, chassis, entertainment, body and safety applications. Components included are weighted by value and comprise microcontrollers, drivers, interface ICs, ASSPs (without ASICs) as well as relevant passive components from semiconductor manufacturers’ automotive lines.
The ecs Index Automotive ECU extends the approach to PCBs, electromechanical components and manufacturing cost with a weighting according to typical automotive shares.
The forecasted development 2009 for the Components Index is –2,8% and –1% for the ECU index.
About ecs Beratung & Service
ecs Beratung & Service GmbH is a consultancy based in Munich, Germany which is specialized on material cost analysis and optimization for automotive and industrial electronics. ecs is characterized by a strong industry specialisation as well as the development of innovative methods and tools for consulting, especially in data mining and benchmarking. Market analysis is performed based on real market data and are thus independent of electronic device manufacturers’ forecasts. www.ecs-network.com
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