The “Automotive Electronics OEM/ODM/EMS Industry Report, 2024” is now available on ResearchAndMarkets.com, offering a comprehensive analysis of the sector’s dynamics.
Research highlights significant revenue milestones within the automotive electronics OEM/ODM/EMS sector, with key players surpassing RMB10 billion and new entrants continually entering the market.
Currently, China’s automotive electronics OEM landscape can be categorized into three primary types: first, companies transitioning from consumer electronics, including established EMS providers such as Luxshare Precision, Flextronics, Wistron, and Quanta; second, assembly specialists focusing exclusively on automotive electronics, such as Wieson Automotive and Maruhi Electronic; and third, OEM and assembly entities affiliated with Tier 1 suppliers like Joyson Electronic and Hangsheng Electronics.
The report outlines three main pathways for OEMs seeking to penetrate the automotive electronics segment. Many manufacturers have opted for strategic acquisitions, partnerships, and technology transfers to accelerate their entry into the automotive market, expand their market share, and enhance industry concentration. Notable examples include Huaqin Technology, Wingtech Technology, and Luxshare Precision, which have established dedicated automotive divisions or joint ventures to explore new growth opportunities in this sector.
The transition from consumer electronics to automotive electronics typically involves a gradual buildup of resources, often starting with products of lower technical complexity and value. Luxshare Precision, for instance, entered the automotive market in 2008 by supplying USB cables to Delphi. Over the years, it strategically expanded into automotive connectors, wiring harnesses, and other critical components through acquisitions and partnerships, ultimately becoming a Tier 1 supplier to major automakers.
Luxshare Precision’s success in automotive wiring harnesses and connectors has facilitated its expansion into advanced automotive technologies such as intelligent cockpits and autonomous driving systems. Recent initiatives include collaborations with RoboSense in the LiDAR market and partnerships with Chery in vehicle ODM services, signaling a strategic shift towards new energy vehicles.
In terms of business models, Luxshare Precision predominantly utilizes OEM and JDM models in its domain controller business, mirroring strategies commonly employed in consumer electronics. Furthermore, the company has leveraged its expertise in consumer electronics to explore adjacent markets like wireless charging, reinforcing its competitive position in the automotive sector.
For OEMs entering the automotive electronics OEM space from different industries, their inherent strengths and capabilities play a crucial role in determining their competitive advantage. Established consumer electronics OEM giants bring to the table rapid iteration capabilities, robust supply chain management, cost control expertise, and a deep understanding of ecosystem dynamics—attributes highly valued by automotive OEMs seeking innovative solutions.
In conclusion, the ability to deliver at scale and integrate vertically are pivotal factors driving success in securing automotive electronics OEM contracts. Key areas of focus for manufacturers include supply chain management excellence, stringent quality and cost controls, localized responsiveness, and ongoing technological advancements—parameters closely scrutinized by automotive industry stakeholders when selecting their partners.
