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Technavio Announces Top Three Emerging Trends Impacting Automotive Industry Bulgaria until 2020

Friday, Jul 29, 2016
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Technavio’s latest report on the automotive industry in Bulgaria provides an analysis on the most important trends expected to impact the market outlook from 2016-2020. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.

 Siddharth Jaiswal, a lead analyst from Technavio, specializing in research on auto accessories sector, says, “Bulgaria, with limited automobile production, has emerged as one of the major automobile importing countries in the EU, importing both used and new automobiles. Though the sales of new automobiles in Bulgaria have been growing, they constitute only about 20% of the total automobile registrations, including new and used imported automobiles. Taxi fleets account for about 35% of new car sales in Bulgaria. Used imported cars, being duty free, are cheaper than new cars, which makes them an attractive proposition.”

The Bulgarian government has been encouraging manufacturers of automotive parts and accessories to set up and expand their manufacturing facilities in the country. This has led to the expansion of the manufacturing capacity of automotive parts and accessories in the country by about 85%, post the economic crisis in 2008. This is likely to expand further, supported by government policies that favor investors and the availability of cheap skilled labor in the country. Bulgaria is likely to emerge as a key supplier of automotive parts and accessories in the EU and the Middle East as a result of this expansion, thereby, presenting potential growth opportunities for manufacturers.

The top three emerging trends driving the automotive industry in Bulgaria according to Technavio automotive research analysts are:

•    Adoption of electronic devices in automobiles
•    Focus on niche segments
•    Strong demand for batteries from automotive sector

Adoption of electronic devices in automobiles

“Vehicle manufacturers have started to incorporate electronic gadgets and components in the automobiles to differentiate their products. A shift in customer preference toward automobiles incorporated with advanced electronics is propelling the demand for devices such as infotainment systems, and active and passive safety systems,” according to Siddharth.

Focus on niche segments

The market for energy-efficient lighting systems in automobiles, especially LED-based lighting systems, is in a nascent stage in Bulgaria. The potential for growth is significant, which has attracted new players into the market. While, most of these manufacturers offer conventional LED-based products for interior and exterior lighting in automobiles, an increasing number of manufacturers are focusing on niche applications, such as LED modules for speedometers. Fincom-2 is one such manufacturer that offers LED products for niche applications. The company also provides solar-powered LED lighting systems for traffic signals.

Strong demand for batteries from automotive sector

The automotive sector is expected to generate a steady demand for batteries during the forecast period. Lead-acid batteries are in particular demand from the automotive aftermarket. Manufacturers of lead-acid batteries have also witnessed a slight increase in profitability owing to a decline in the price of lead in Bulgaria during 2014-2015.

Browse Related Reports:

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•    Global Automotive Upholstery Market 2015-2019

Do you need a report on a market in a specific geographical cluster or country but can’t find what you’re looking for? Don’t worry, Technavio also takes client requests. Please contact enquiry@technavio.com with your requirements and our analysts will be happy to create a customized report just for you.

About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

If you are interested in more information, please contact our media team at media@technavio.com.

Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com

 

Source : businesswire.com

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