Global Powertrain Control Module (PCM) Market Analysis and Forecast (2013 – 2018) 05/18/2013 | Page 9

GLOBAL PCM MARKET - TRENDS The heightened awareness regarding environment and fuel costs and its depletion has already given the PCM market an ample amount of growth over the previous years. In the coming future, with companies bringing out better products for powertrain control, the market will keep rising. 1. Turbo charging and super charging are needed to as engines are downsized to meet emission regulations and stricter fuel consumption standards. However supercharging is less fuel efficient hence its growth will be relatively low. 2. Euro VI in western Europe, Euro IV/V in Asia, CAFÉ 2016/25 in the US are the standards which will impacting the different geographic regions in the short to long term. 3. Financial constraints will limit EV production and sales in favor of cheaper solutions to the fuel economy and emissions puzzles. Hence the OEMs need to balance government regulation, consumer preferences, pricing and cost to find the right fleet mix. 4. Borg Warner Inc. recently acquired Gustav Wahler GmbH u. Co. KG for $350 million while Valeo SA acquired Eltek Electric Vehicles in Norway. 5. General Motors invested $200 million to expand its powertrain facility in Michigan by building a new 138000sq-ft. test wing. 6. Magna International Inc. opened a new powertrain facility in China. IndustryARC | 9