2.1 Customers
OEMs
There are many OEMs in ADAS market, and they are creating pull demand for ADAS technology suppliers. The most significant automakers are Mercedes Benz, Fiat, BMW, Audi, VW, Renault, Citroen, Ford and Peugeot. Mercedes Benz has highest market share of 28%, while Fiat stays at second place for 22%. BMW stays at the third place with approximately 10% in 2013. (Refer to Appendix C) Tier 1 Suppliers
Tier 1 suppliers are also customers in ADAS. They are working as middleman between the OEMs and the tier 2 suppliers who offer the ADAS units. After tier 1 supplier receives the units, they will work to integrate it with their own modules to create a complete component on the assembly line. The top three passive safety system providers …show more content…
Google plan to make these cars available to the public in 2020.
2.5 Potential Entrants
Other tier 1 suppliers and start-up companies who want to join the ADAS industry to cope with the business opportunities brought by Euro NCAP’s new safety rating requirement.
2. INFLUENCE OF PARTICIPANTS
Rivalry Among Competitors (Moderately High)
We compare the number of competitors in ADAS industry as well as product differentiation in order to measure the intensity of intra-industry competitions among competitors.
The threat from existing competitors is considered as medium. Although there are numbers of ADAS suppliers such as Continental and Bosch in the market, they share a low concentration ratio of 20%. The operation objectives and strategies are similar among existing competitors which is to provide the ADAS component to tier 1 supplier who will integrate the component to their ready-to-install units and sell them to OEMs. However, their size is relatively small with limited budget for R&D activities, thus, they are adopting relatively lower level of technology (e.g. generation 1 or 2 processor chips) and incurred higher production cost as they are unable to achieve economies of …show more content…
They started their own in-house production for ADAS chips and became competitors for ADAS suppliers in the market. The most significant companies are Denso and Autoliv. They portray higher threats as they have more resources for technological R&D and they are able to produce ready-to-install component themselves and provide it to the OEMs directly. Research shows that Autoliv starts its own ADAS units shipping in 2015 while Denso will offer its ADAS line to all auto manufacturers in 2016. If they have successfully penetrated into OEMs market, it would be serious threats to the current ADAS supplier
OEMs
There are many OEMs in ADAS market, and they are creating pull demand for ADAS technology suppliers. The most significant automakers are Mercedes Benz, Fiat, BMW, Audi, VW, Renault, Citroen, Ford and Peugeot. Mercedes Benz has highest market share of 28%, while Fiat stays at second place for 22%. BMW stays at the third place with approximately 10% in 2013. (Refer to Appendix C) Tier 1 Suppliers
Tier 1 suppliers are also customers in ADAS. They are working as middleman between the OEMs and the tier 2 suppliers who offer the ADAS units. After tier 1 supplier receives the units, they will work to integrate it with their own modules to create a complete component on the assembly line. The top three passive safety system providers …show more content…
Google plan to make these cars available to the public in 2020.
2.5 Potential Entrants
Other tier 1 suppliers and start-up companies who want to join the ADAS industry to cope with the business opportunities brought by Euro NCAP’s new safety rating requirement.
2. INFLUENCE OF PARTICIPANTS
Rivalry Among Competitors (Moderately High)
We compare the number of competitors in ADAS industry as well as product differentiation in order to measure the intensity of intra-industry competitions among competitors.
The threat from existing competitors is considered as medium. Although there are numbers of ADAS suppliers such as Continental and Bosch in the market, they share a low concentration ratio of 20%. The operation objectives and strategies are similar among existing competitors which is to provide the ADAS component to tier 1 supplier who will integrate the component to their ready-to-install units and sell them to OEMs. However, their size is relatively small with limited budget for R&D activities, thus, they are adopting relatively lower level of technology (e.g. generation 1 or 2 processor chips) and incurred higher production cost as they are unable to achieve economies of …show more content…
They started their own in-house production for ADAS chips and became competitors for ADAS suppliers in the market. The most significant companies are Denso and Autoliv. They portray higher threats as they have more resources for technological R&D and they are able to produce ready-to-install component themselves and provide it to the OEMs directly. Research shows that Autoliv starts its own ADAS units shipping in 2015 while Denso will offer its ADAS line to all auto manufacturers in 2016. If they have successfully penetrated into OEMs market, it would be serious threats to the current ADAS supplier