Automotive players are facing disruptive  times. Many insights, opinions, and recommendations have been voiced on this. 

Earlier in 2017, we published our views on  the drivers that will likely shape the automotive industry over the next decade. We  ranked and fused these into four scenario  narratives, giving an outline of what the  automotive value chain might look like in  2025. Our previous issue primarily highlighted implications for car manufacturers  (OEMs). In this next piece we move further  down the value chain, in an attempt to shed  light on supplier market implications. 

We defined a set of four hypotheses as a  starting point to our investigation: 

• Commonly discussed automotive mega-trends, like connected and autonomous drive or electrification, will lead to significant change in demand for specific vehicle component clusters 

• As a result (some) suppliers will face drastically shrinking market volumes, whereas others must be able to manage massive demand increases 

• This will result in significant, strategic, operational, financial, transformation demand for many suppliers 

• Portfolio and localization strategy definition processes should be supported by a solid market volume projection model taking all these drivers and megatrends into account