OREANDA-NEWS. The global supplier market is booming, with the average EBIT margin in the industry set to reach an all-time high of about 7.5 percent 2014. The business of powertrain and tire suppliers is more profitable than most, with margins of 8 percent and more. But in the wake of the very good development, the pace of market growth in the supplier industry is expected to slacken in the coming two years, and the level of uncertainty in international markets is expected to rise even further. This is the result of the "Global Automotive Supplier Study 2014" jointly published by Roland Berger Strategy Consultants and Lazard.

Still, the global market for vehicle components is anticipated to grow to around EUR 800 billion in the period through 2020 – which equates to a EUR 125 billion increase in the market volume. Market shares in the supplier industry are expected to change given the structural shifts the sector is currently experiencing – there is a sea change under way as regional end markets shift, R&D and production sites are relocated and new technologies emerge. Companies need to prepare for this in good time if they would like to benefit from arising opportunities and to mitigate risks, according to the advice given by the experts.