Front-end Module Market Benefits, Forthcoming Developments, Business Opportunities & Future Investments to 2026

COVID-19 Crisis Causes Sharp Decline in Consumer Footfall in Car Showrooms

The suspension of operations and minimal workforce in plants are few of the many measures companies in the front-end module market are adopting during the COVID-19 (coronavirus) crisis. Despite setbacks in the global economy, manufacturers are anticipating growth in business activities in the last quarter of 2024. They are taking cues from previous product launches. For instance, in January 2024, the U.S. semiconductor company Qorvo introduced a full suite of automotive products that include integrated front-end modules (FEM) to support dedicated short-range communication (DSRC) systems.

The expansion of the front-end module market has slowed down due to reduced consumer footfall in showrooms. Automakers in Europe, the U.S., Russia, and India are scrambling to keep vehicle assemblies humming. Postponement and cancellation of industry events are likely to cause issues for car makers.

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Aesthetic Surfaces and Precision Molding Being Preferred by Automakers in Front-end Modules

Companies in the front-end module market are increasing their production capacities to manufacture glass mat thermoplastic (GMT) components and mechanical assemblies for small as well as luxury cars. SUVs among passenger vehicles are projected to hold the highest revenue share in the market. OEMs in India are strengthening their distribution chains with countries such as France, Germany, and Spain. Apart from Asia and Europe, manufacturers are tapping into business opportunities in other automotive regions such as South and North America.

The front-end module market is expected to cross a value of US$ 100 Bn by 2030. OEMs are increasing efforts to offer full system solutions to automakers. With the help of manufacturing expertise in elastomer and polymer processing and highly specialized technology, companies are gaining competitive edge over other component suppliers. Aesthetic surfaces and precision molding are highly preferred by automobile manufacturers.

High-speed Automotive Ethernet Improves Throughput in V2X Communication

The trend of vehicle-to-everything (V2X) communication is bringing a significant change in the front-end module market. As such, the automotive Ethernet is being used to connect the telematics control unit (TCU) in cars. However, the drawback of automotive Ethernet is that it lags behind standard Ethernet maximum throughput. Hence, companies in the front-end module market are introducing high-speed Ethernet of more than 10 Gbit/s to improve the throughput.

Manufacturers are increasing their portfolio in simple plastic as well as mechanical assemblies. For instance, Motherson Sumi Systems— a joint venture between Samvardhana Motherson International Ltd. of India and Sumitomo Wiring Systems Ltd. of Japan, is increasing production for highly integrated modules. As such, plastic is predicted to dictate the lion’s share among all materials in the market, while pelletized long fiber pp material is anticipated for rapid growth during the forecast period.

Robust Front-end Modules Built with Air Flap Controls Improve Vehicle’s Aerodynamics

Module specialists are supplying individual module solutions to car makers. For instance, HBPO GmbH— a specialist in highly integrated front-end modules, helps automakers to lower their manufacturing and other processing costs. Companies are going beyond assembly of modules, and are helping car manufacturers in the construction and development of vehicles by delivering modules just-in-sequence for series production. In order to gain credibility in the global front-end module market, manufacturers are integrating systems with active air control systems on request, since European countries have strict regulations pertaining to carbon emissions.

Robust front-end modules are being built with air flap controls to improve the vehicle’s aerodynamics. Manufacturers are increasing the availability of front-end modules built with active grille shutters for vehicles with combustion engine or an electric motor. The trend of modularized vehicle front is serving as a key driver of the front-end module market.

Customized Solutions Create Several Thousand Variants in Colors and Materials for Modules

Comprehensive services are helping OEMs in the front-end module market gain recognition. Manufacturers are offering project-level services as well as in-house developments in vehicles to boost their credibility credentials in the market landscape. They are catering to tailored requirements of customers in order to adapt to new production practices. As such, specialists in front-end modules are increasing their portfolio in more than several thousand variants in systems. They are experimenting with different materials and colors to attract more customers.

The trend of customized solutions is generating incremental opportunities for manufacturers in the front-end module market. In order to develop light construction materials, manufacturers are using magnesium to develop modules by implementing metal hybrid engineering. Apart from cooling fans and grill panels, manufacturers are building modules with stylish headlamps and bumper covers to improve the aesthetics of the car.

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Thermoplastics Deploy Greater Flexibility during Processing Of Hybrid Front-end Modules

Thermoplastic materials are comparably expensive than standard materials. Lanxess AG— a Germany-based specialty chemicals company is helping automakers to smartly produce highly integrated hybrid front-end modules with the help of easy-flowing polyamide. Companies in the front-end module market are utilizing thermoplastic materials to deploy greater flexibility during processing. They are increasing the availability of systems with adjustable airflow.

Along with steel panels, manufacturers in the front-end module market are increasing their production capabilities to develop highly integrated bolster houses. Active grille shutters in modules ensure demand-oriented supply of air to the engine cooling system. Region-specific versions of front-end modules are being highly publicized in the market landscape. Automated high-volume production processes are being adopted to develop modules in a cost-efficient manner. Cutting-edge front-end modules are guaranteed with vehicle front rigidity.

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