The global automotive ignition system market is expected to grow at a CAGR of 8.5% during the forecast period, where the market value is projected to reach USD 10.8 billion by 2023.
Automotive Ignition Systems generate heat or sparks in automotive vehicles other than the diesel engine. Such systems are widely used in vehicles using petrol engines such as passenger cars, motorcycles, light commercial vehicles, and heavy commercial vehicles. Due to the surge in demand for vehicles at the global level, the demand in the global automotive ignition system market has expanded in recent times. The United States Environmental Protection Agency (EPA) has states that in 2019, the transportation sector was responsible for 29% of greenhouse gas emissions. Major developments are taking place in the market to minimize the environmental footprint to create systems that cause low fuel emissions.
The automotive ignition system global market is expected to register a CAGR of 8.5 % during the forecasted period. Various factors could contribute to the solid performance of the global automotive ignition system industry, such as the introduction of new technologies to minimize fuel emissions and the introduction of strict environmental regulations by various governments.
An in-depth analysis of the automotive ignition system global market has been carried out to capture its growth potential during the forecasted period. Several market trends that could impact the profitability and growth of the market have been identified and explored in the report. The competitive intensity prevalent in the market setting has been explored in detail as it could impact the market growth during the forecasted period.
The competitive landscape in the market
The competition in the global automotive ignition system market is extremely intense due to the surge in vehicles all across the globe. To gain a competitive edge and capture a considerable portion of the market share, companies have invested in their technological approaches to produce efficient and sustainable offerings. Some of the chief market players that could influence the market growth during the forecasted period are listed below:
Latest market developments
Covid 19 Analysis
The Covid 19 pandemic has negatively impacted the global automotive ignition system industry by restricting its sales turnover. As lockdown strict regulations had been introduced to curb the transmission of the virus, the mobility of people got diminished. It ultimately decreased the overall demand in the global automotive ignition system market setting. However, the market is expected to recover during the forecasted period due to eased restrictions and high awareness of sustainable mobility approaches.
Chief variables existing in the market
Several market drivers have contributed to the good performance of the automotive ignition system market, such as the increase in demand for vehicles using petrol engines, high-income level of people, and solid performance of the automobile market. These market trends could play a major role in influencing market performance during the forecasted period.
One of the major challenges in the global market revolves around the rising demand for electric and autonomous vehicles. These vehicles could diminish the demand for automotive ignition systems during the forecasted period. Another challenge in the market setting relates to the high level of competitive intensity. During the forecasted period, the market players need to deal with their rivals strategically so that they could capture a large portion of the automotive ignition system market share.
Several opportunities arise in the global market, such as the rising demand for vehicles at the global level and the introduction of new and strict environmental standards by various national governments. Business entities operating in the global automotive ignition system market setting could exploit these opportunities to create improved, sustainable, and environmentally friendly solutions for the intended market audience. Emerging markets such as India and China also create an opportunity for businesses to expand globally and offer their automotive ignition system solutions. Companies need to devise suitable strategies to address these challenges to capture a decent portion of the global market share.
In the global automotive ignition system market, several restraining factors exist that could limit the market's growth potential. A major restraint relates to the high cost associated with the development of innovative automotive ignition systems. Poor fuel efficiency is a major obstacle for organizations in the vast and dynamic market during the production stage. The lack of technically skilled personnel also poses a major shortcoming for businesses that effectively restricts their ability to function in the global automotive ignition system industry.
Cumulative evaluation of the market
The automotive ignition system market is highly dynamic. A diverse range of micro and macro variables exist in the market that influences the growth of the market and the performance of the key players. A critical assessment of the global market has been conducted, which has helped to identify the market drivers, restraints, challenges, and opportunities. The attractiveness of the market increases due to several critical market drivers, such as the surge in demand for petrol engine vehicles and the introduction of strict environmental guidelines in varying nations. To optimally function in the promising global market, companies have been integrating digital technologies to make better and innovative offerings in the market.
Overview of the main market segments
The global automotive ignition system industry can be divided into conventional, electronic, and distributor-less types. The demand for the electronic segment has increased greatly as it can enhance the spark plug life by offering cleaner combustion. However, the conventional and electronic segments are likely to dominate the market and influence the future market of the automotive ignition system.
Based on the component, the global automotive ignition system market can be segmented into ignition coil, ignition switch, condenser, spark plug, ignition resistor, and others. These components play a distinctive role in influencing how ignition systems are used in diverse transportation applications. For instance, the ignition switch is responsible for starting the entire electric circuit by using a key. The spark plug also plays an integral role in improving the effectiveness of an engine's ignition system. The functionality of each of these components influences their demand in the global market domain.
Geographical regional analysis
The global automotive ignition system market can be segmented into Europe, North America, the Asia Pacific, and the rest of the world. In each regional segment, varying drivers exist that influence the performance of the automotive ignition system industry in the respective regions. In the past, the Asia Pacific segment has been acting as one of the major revenue generators of the market. Asian nations like India, Japan, and China are expected to influence the global market due to the rising demand for vehicles. North America and Europe are also expected to demonstrate good performance during the forecasted period.
The detailed global automotive ignition system market report gives an insight into micro and macro variables in the industry. Numerous analytical and strategic tools have been used to evaluate the market environment, such as SWOT analytical framework, PESTLE framework, and Porter's Five Force model. These tools have aided in the market evaluation process and helped capture the major market trends. Based on the though market study, it is expected that the global market growth would be favorable during the forecasted period. A thorough regional analysis of the market has been carried out to identify the region that could dominate the global market setting in the future.
Key Industrial segments
|Market Size||2023: USD 10.8 billion|
|CAGR||8.5% CAGR (2022 to 2030)|
|Forecast Period||2022 to 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Component, Region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW|
|Key Vendors||Delphi Automotive, Robert Bosch, DENSO, Borgwarner, Federal-Mogul Corporation, Mitsubishi Electric Corporation, Continental AG, Hitachi Automotive Systems, Diamond Electric|
|Key Market Opportunities||
|Key Market Drivers||
The automotive ignition system market can thrive at 8.5% CAGR by 2030.
The automotive ignition system market can value at USD 10.8 Bn by 2023.
Mitsubishi Electric Corporation, Federal-Mogul Corporation, Hitachi Automotive Systems, Continental AG, and Diamond Electric are some reputed companies in the automotive ignition system market.
Conventional, distributor-less, and electronic are types of automotive ignition system.
Ignition Coil, ignition switch, ignition resistor, spark plug, and condenser are components of automotive ignition system.