Initial forecasts back in 2013 of the projected growth of the industry by 2020 have already been met, while the market is set to expand significantly by 2025. The market for aluminium-based car body products alone is expected to rise from just €1.2bn in 2012 to €16.8bn by 2025. All geographic regions will show double digit annual growth rates for lightweight applications until 2025.
Although lightweight components have been used for some time in areas such as cylinder heads, engine blocks and chassis, they will become increasingly used in bonnets, boots, doors, bumpers, and complete vehicle structures too. Moreover, the trend towards using lightweight components will transfer from the premium vehicle markets segment to the sub-premium and economy segments, and this will be a key driver of market growth.
OEMs are increasingly demanding full coverage of product and service ranges. This is particularly affecting medium-sized companies in the supply chain who are currently facing tremendous challenges, including the need to: expand geographically and ‘follow the customer’; establish an integrated process chain; and reduce logistics costs. These trends are driving significant consolidation across the automotive market.
Clearwater International’s Automotive team is the lead M&A adviser to the automotive sector by deal count with over 235 successfully executed mandates providing unrivalled relationships with global OEMs, Tier 1 and 2 suppliers, and financial sponsors. The team is supported by a number of high-profile senior advisers who are all former top tier executives with relevant product knowledge and a far-reaching network of contacts.