China automotive industry market sizeThe automotive market is a growing market comprised of many subgroups which consist of: engineering, design and style, subsequent generation manufacturing, distribution, and aftermarket. Research and development – the Commission has more than doubled the funds available for cooperative research and innovation in the automotive sector for the period 2014-2020. The funding focuses on green automobiles, decarbonisation of conventional engines, safety, and details technologies infrastructure. The aim is to preserve the EU’s technological leadership in the automotive sector.
Innovative application developments may possibly make tomorrow’s cars exceptionally expensive: OEMs and suppliers should earmark resources for acquiring new technologies and recruiting experienced technical talent. A lot of of the new functions going into cars need the knowledge of computer software engineers, who by and big favor the ostensibly much more dynamic operate environments of Silicon Valley startups to these of the automotive industry. As a result, some of the recent mergers and acquisitions in the automobile sector have been undertaken to augment in-residence technical understanding and capabilities. For instance, German supplier ZF Group, which paid US$12.4 billion in 2015 to acquire TRW in order to expand into the electronic safety and connectivity market, took a 40 % stake in vehicle radar supplier Ibeo Automotive Systems in 2016.
The automotive business is vital for Europe’s prosperity. The sector provides jobs for 12 million men and women and accounts for four% of the EU’s GDP. The EU is amongst the world’s largest producers of motor vehicles and the sector represents the biggest private investor in investigation and development (R&D). To strengthen the competitiveness of the EU automotive sector and preserve its global technological leadership, the European Commission supports global technological harmonisation and gives funding for R&D.