Which Companies Are Poised to Dominate the Automotive Market?
Sean Kennett | November 3, 2017
Cemtrex, Inc. (NASDAQ: CETX), one of the world’s leading industrial and manufacturing companies, is prepared to rapidly capitalize on the growth of the automotive market in a way that no other company in the stock market is. Cemtrex (Nasdaq: CETX) has positioned themselves to take full advantage of the automotive market’s need for advanced electronic technologies.
The automotive industry is changing rapidly, and the only way to keep up with those changes is to get ahead of them. The “Internet of Things” (IoT) has begun to heavily influence the automotive market. The most notable being driverless cars, like Tesla. In more recent CETX News, Cemtrex (Nasdaq: CETX) has been making investment after investment, creating a foothold in these technologies through its German manufacturing operations. Considering the latest Cemtrex updates, combining Cemtrex’s presence with Key Tronic’s collective scale will not only increase its share price, it will fully capitalize on the the automotive market opportunities and become the leading market provider for the world’s most advanced electronic technologies.
To understand why Cemtrex (Nasdaq: CETX) is poised to be such a strong stock in the share market, and why the CETX price is bound to start increasing rapidly, it’s important to understand the factors that drive the automotive market. One of the most valuable insights here is what Germany Trade and Invest (GTAI) had to say about the state of automotive electronics. Taking into account the current value of these automotive electronics, here’s what investors and shareholders can expect in the future. According to GTAI, “automotive electronics generate 80% of value added in cars and set to triple by 2019” (GTAI, 2016).
As for other indicators of market opportunity, one of the most telling market drivers is the process of smart car connectivity and IoT becoming the new standard for automotive electronics. Taking a look at the predicted revenue breakdown of the connected car market in 2020, Driver Assistance alone will make up $57 billion. The GTAI goes on to predict that, at its current rate of growth, the overall value of the connected car market will be $132 billion by 2020.
Download Cemtrex's Investor Presentation
The Chinese automotive market is growing rapidly, with estimates from the Chinese Central Government predicting that they will produce nearly 30 million units per year by as early as 2020. When considering recent developments in the automotive electronics market, it’s no wonder that the Chinese automotive market is preparing for massive growth in this sector.
It’s worth noting that this growth is happening in several groundbreaking technologies at once, which is what makes investing in this market right now so appealing. The advanced driver-assistance systems (ADAS) market has seen rapid development after sensor technology and signal processing algorithms established a baseline for future technologies. Today, developers are starting to increase both sensor awareness and the overall intelligence of these technologies. Considering the increase in safety standards and the rise in consumer demand for elevated safety performance, it’s no surprise that the ADAS market is becoming one of the world’s fastest growing segments.
As we’ve already started to see, the technology barrier to entry when it comes to self driving is noticeably high. That’s why technologies forward companies like Google, Tesla, and Mercedes-Benz have all seen major strides forward in the ADAS market. The continued development of self driving vehicles is likely to drive both efficient automotive sharing and an improvement in vehicle utilization. This, in turn, will likely lead to a significant reduction in traffic accidents, and will likely end up having a disruptive effect on OEMs, parts manufacturers, and insurance companies.
All of this relies on one constant, which is, of course, the rising popularity of smart cars. Upon closer examination, smart cars are experiencing innovation at an impressive speed, and have left a strong impression on the automotive industry. The reality of smart vehicles is that they operate through a variety of multi-functional resources and components. Speaking of vehicles that left a strong impression on the automotive industry, the electric car has a robust industry chain. More importantly, it has the potential to weaken the position of traditional parts manufacturers, which leaves an opening for the right company to capitalize on.
All of this is clearly great news for anyone heavily involved in the world of automotive electronics. The real question is whether or not Cemtrex (Nasdaq: CETX) is actually in a position to take advantage of these market opportunities. To learn more about Cemtrex (Nasdaq: CETX), please visit www.cemtrex.com/about-us/
Keeping in mind the latest Cemtrex News, it’s worth considering Cemtrex’s trade record, their performance so far, and whether or not Cemtrex stock should be considered a valued stock. On the surface, CETX stock already appears to be in a strong position on the Nasdaq when it comes to automotive electronics. As shown in Cemtrex’s Investor Presentation (found here), Cemtrex (Nasdaq: CETX) is already a certified manufacturer of some of the world’s most high-end and complex electronic systems. Upon closer inspection, it becomes evident that 25% of EMS sales come from the automotive industry.
Taking a deeper look at Cemtrex stock, it becomes clear that as one of the suppliers to Germany’s Big Three through Tier 1 distributors, CETX Nasdaq is in a unique position to take advantage of the changes in the automotive market. Analyzing the data available so far, it’s safe to say that Cemtrex (Nasdaq: CETX) will experience an increase of roughly $20 million in purchase volume customer potential by 2019, which will inevitably influence Cemtrex shares.
Any company that is heavily involved in the automotive electronics market is bound to experience growth, when you consider that, by 2019, roughly 80% of the value added to cars will be in that sector. The real question is: what makes Cemtrex (Nasdaq: CETX) such a powerful force in the automotive electronics market? The simple answer is that by choosing to heavily invest in the growth of this sector, Cemtrex (Nasdaq: CETX) has linked themselves to the growth in the smart cars and IoT markets. For more information about Cemtrex (Nasdaq: CETX), please visit www.cemtrex.com