Global Automotive Supplier Study 2023

Reports and studies — Frankfurt, Financial Advisory

December 14, 2023

The automotive supplier industry remains a growing sector – however, it faces substantial structural shifts during this decade, on a component, regional and original equipment manufacturer (OEM) customer level. This is one of the key findings of the 2023 Global Automotive Supplier Study undertaken by Lazard and Roland Berger.

The study reveals an automotive supplier industry that can be broken into two general groups. The first is comprised of new, very profitable companies that primarily occupy the strongly growing battery, semiconductor and software space. They are expanding their traditional portfolios from the industrial and consumer goods sector to the automotive sector.

The second group is made up of the traditional automotive suppliers, who still enjoyed healthy results in 2017 and 2018, but have structurally lost three percentage points of EBIT margin in the years since, with a margin level of just 4.6% in 2022.

Other significant findings from the 2023 Global Automotive Study include:

  • The automotive supplier industry is projected to grow by 4% per annum until 2030, with cumulative growth of 30%, and reaching a total value of nearly USD $1.3 trillion – with growth coming primarily from Asia.

  • Asian suppliers are growing quickly, driven by increasing local production, benefiting greatly from the electrification of the drivetrain, and the success of local car manufacturers gaining market share.

  • To remain competitive, suppliers have to focus on efficiency improvement programs and adopt more stringent strategic portfolio management realignment.

Click the carousel below to see some of the visual highlights from the Global Automotive Supplier Study 2023.

Click here to access a summary version of the Study.

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