By business area, he said powertrain would grow at 15 percent annually because of electrification; thermal systems, by 11 percent, also benefiting from electrification; ADAS will see 19 percent growth; interiors by 14 percent; and visibility (lighting and wipers) by 10 percent.
Despite a recent trend toward insourcing of electric components, Perillat said that 40 percent of the high-voltage powertrain business would remain outsourced to supplies, including 30 percent of e-motors, 40 percent of inverters and 90 percent of onboard chargers.
“There’s still room for suppliers like Valeo,” he said.
Valeo’s business for 48-volt mild hybrids, which he called a “transitional technology,” still has lots of life in it, he said, starting with a need for European automakers to comply with the coming Euro 7 pollution standards. And mild hybrid technology could be used as a primary drive system for micro-mobility vehicles such as electric bikes, scooters and three-wheelers, Perillat said, with a potential 500 million euros in sales by 2030.
Other growth areas for Valeo include:
- Thermal management: Because of the need to maintain battery temperatures for safe charging and optimal range, an electric car will have two and a half times the content of an internal combustion car by 2025, Perillat said. Valeo expects sales to automakers to reach 5 billion euros in 2025 from 3.3 billion euros last year.
- ADAS: Perillat said the market was “safety driven,” with increasing regulations meaning higher content per vehicle. Up to 30 percent of premium cars will be equipped with SAE Level 3 automation by 2030, he said, and they will need lidar, an area where Valeo is a clear market leader, with 160,000 units on the road and three generations of its Scala system, which has appeared in cars from Audi, Honda and Mercedes-Benz. ADAS sales will reach 4 billion euros in 2025, up from 1.9 billion in 2021 -- with a 21 percent margin by that time.
- Interiors: The introduction of ADAS and autonomous driving, along with 5G connectivity will lead to a “reinvention” of the interior. “Passengers are expecting more and more from their cars,” Perillat said. “They want to feel in a kind of personal cocoon where they are both at home and safe.” That means products such as head-up displays with augmented reality and “smart” surfaces, increasing content value by 14 percent. Sales will reach 2 billion euros in 2025, up from 1.2 billion in 2021.
- Lighting and wipers: Far from a commodity, Perillat said, there are increasingly high barriers to entry as lighting becomes more sophisticated. Electrification has freed up the fascia from the need for ventilation, so designers can use it as a space to create a brand signature through new uses of lighting, he said, and wipers will be used to keep ADAS sensors clean. Visibility sales will reach 6 billion euro in 2025, up from 3.9 billion euros in 2021.
In many of these areas, Perillat said, Valeo will find added value because of the technological demands from electrification and ADAS. As an example, he cited thermal management: “Radiators and condensors have been the same for 30 years. We have made them better. We have made them thinner, but basically it’s the same technology, so prices have been going down through competition,” he said.
But electric vehicles have much more sophisticated thermal needs, including heat pumps and battery cooling systems. For these new components, he said Valeo can “reset the price at higher levels, or match the price with higher margins, than what it was before.”