Automotive Ignition System Market Research, 2032
The global automotive ignition system market size was valued at $12.8 billion in 2022, and is projected to reach $22.9 billion by 2032, growing at a CAGR of 6.3% from 2023 to 2032.
Report Key Highlighters
- The automotive ignition system market size is analyzed across more than 16 countries. The analysis includes a country-by-country breakdown analysis in terms of value ($million) available from 2022 to 2032.
- The research combined high-quality data, professional opinion, and research, with significant independent opinion. The research methodology aims to provide a balanced view of the global market, and help stakeholders make educated decisions to achieve ambitious growth objectives.
- The research reviewed more than 3,700 product catalogs, annual reports, industry descriptions, and other comparable resources from leading industry players to gain a better understanding of the market.
- The automotive ignition system market share is marginally fragmented, with players such as Magneti Marelli Parts & Services, BorgWarner, Robert Bosch GmbH, Denso Corporation, Diamond Electric, Hella Inc., Hitachi Ltd, Mitsubishi Electric, Ford Motors, and Valeo Service. Major strategies such as contracts, partnerships, expansion, and other strategies of players operating in the market are tracked and monitored.
The automotive ignition system is a circuit that generates sparks or heat. The ignition switch, coil, high tension cable, distributor, and spark plug are all components of the system. These components provide high voltage current to the spark plugs, causing sparks to form in the gaps between them. The heat generated by these sparks ignites the compressed air-fuel mixture in the combustion chamber, causing the vehicle to energize. As a result, automotive ignition systems are commonly employed in gasoline-powered automobiles.
In terms of low fuel emissions and consumption per car, the automotive industry has made tremendous technological advances. Government limitations on fuel usage and pollution have increased demand for ignition systems around the world. In addition, the increased emphasis on R&D and powertrain systems has created numerous prospects for ignition system manufacturers.
In addition, as people become more environmentally conscious, there is an increasing need for ignition systems that improve operating efficiency and fuel economy. This, together with the growing use of ignition systems, is helping to drive the market ahead. Other growth-promoting factors include increased electrification of the automotive industry and the development of electronic ignition systems using sensors, switches, and transistors.
Key Developments/Strategies in Automotive Ignition System
- In April 2022, Hitachi Astemo Americas, Inc. announced that it is expanding on its global success and expertise in auto parts by expanding its ignition coils line-up. The company now has 276 stock keeping units (SKUs) covering 260 million vehicles in operation (VIO). These original equipment (OE)-quality ignition coils will reduce time-consuming part searches and avoid returns by focusing on the needs of the customer.
- In March 2021, Diamond Electric Mfg. Co. Ltd announced that it would build a new plant in West Virginia, USA, to manufacture ignition coils for automobiles. The production capacity of ignition coils in the United States will be increased by 20%. The new US plant has a building area of 12,263 square meters. In addition to Ford's existing North American production bases, the main supply destinations are the North American production bases of Japanese automobile manufacturers.
Segmental Analysis
The automotive ignition system market is segmented into type, vehicle type, distribution channel, and region. By type, the market is divided into ignition coils, spark plugs, glow plugs and others. By vehicle type, the market is fragmented into passenger cars, light commercial vehicles, and heavy commercial vehicles. By distribution channel, it is categorized into OEM and aftermarket.
Region wise, the automotive ignition system market trends are analyzed across North America (U.S., Canada, and Mexico), Europe (UK, Germany, France, Russia, and rest of Europe), Asia-Pacific (China, India, Japan, South Korea, and rest of Asia-Pacific), Latin America (Brazil, Argentina and Rest of Latin America) and Middle East and Africa(Saudi Arabia, UAE, Israel, Africa and Rest of Middle East and Africa).
By Distribution Channel
By distribution channel, it is categorized into OEM and aftermarket. This aftermarket channel includes a variety of components such as spark plugs, ignition coils, ignition modules, and ignition wires, allowing customers to customise their vehicles for better performance, fuel efficiency, and dependability.
Another key component of the aftermarket ignition system market is its capacity to meet a wide range of consumer wants and preferences. Enthusiasts and performance-oriented drivers frequently look for high-performance ignition components from aftermarket vendors to improve engine power output, throttle response, and overall driving experience.
By Type
By type, the automotive ignition system market analysis is divided into ignition coils, spark plugs, glow plugs and others.Vehicle sales and manufacturing have an impact on demand for ignition coils. As new car sales increases which in turn drive the need for ignition coils among OEMs. With global pollution requirements expanding, manufacturers are creating cleaner-burning engines. Improved ignition coil technology can result in better combustion and lower emissions, increasing the demand for improved ignition coils.
By Region
Asia-Pacific is expected to be the largest market shareholder with a CAGR of 5.49% from 2022 to 2032 owing to the consistent demand for automotive ignition system market forecast.Asia-Pacific consists of emerging and developing economies such as India, China, Japan, and South Korea, and is undergoing rapid population expansion. China, Japan, India, and South Korea are among the main countries. This region is expected to be the largest market for automotive ignition systems. Major suppliers, including as Denso and Robert Bosch GmbH, have a strong presence in this region.
Market Dynamics
Rise in Demand for Stringent Regulations
Stringent environmental pollution rules play a major role in driving up global sales of Automotive ignition system industry through 2032. Reducing car emissions has become more important on a global level to solve environmental problems.
For example, in April 2023, the Environmental Protection Agency proposed more stringent regulations with the goal of reducing hazardous air pollutant emissions from light- and medium-duty cars even more starting with the 2027 model year. The EPA's previously set federal greenhouse gas emissions criteria for cars and light trucks for the model years 2023 through 2026 are strengthened by this proposal. environment, and force multipliers-related software.
Furthermore, through leveraging advances in clean automobile technology, the new rules aim to help the American people in several ways, such as lowering greenhouse gas emissions, improving public health, and saving drivers money on fuel and maintenance. Such factors are fuelling the automotive ignition system market growth.
Downsizing Engine Measures and Electrification of Vehicles are Restricting the Market Growth
Consumers prefer electric vehicles over internal combustion engines (ICE) because they require less upkeep, accelerate quickly, and consume less energy. The governments of the corresponding countries are also enforcing laws pertaining to fuel-efficient cars and providing consumers with several benefits. The automotive ignition system growth will be hampered by the anticipated increase in electric vehicles over the next several years, as these coils are not utilised in EV operations.
Furthermore, the maintenance and repair costs associated with ignition coils tend to be slightly higher. In addition, their placement in the hottest and most vibration-prone parts of vehicles increases the chances of failure. Despite these challenges, the automotive industry's ongoing evolution toward sustainability presents opportunities for innovation and adaptation. Companies within the automotive ignition system market develop alternative technologies or enhance the durability & efficiency of existing ignition systems to remain competitive in this changing landscape. Therefore, it is anticipated that these factors will have a major effect on the growth of the automotive ignition system industry.
Rapid Integration of Advanced Ignition Technologies
The automotive ignition system market will be improved by the quick incorporation of cutting-edge ignition technologies. Advanced ignition technologies such as coil-on-plug, direct, and smart ignition systems are expected to see a sharp increase in industry use. The technologies are designed to increase engine performance overall, decrease emissions, and improve fuel efficiency. In June 2022, California-based Transient Plasma Systems (TPS) created a cutting-edge plasma-based ignition system that can increase fuel combustion efficiency by up to 20%.
The ignition system of TPS does this by producing many plasma pulses within the ignition module, which significantly increases fuel combustion efficiency. It is anticipated that new ignition methods will become more popular if automakers maintain their emphasis on sustainability and efficiency.
Impact of Russia-Ukraine War
The Russia-Ukraine conflict has the potential to significantly impact on the automotive ignition system market, both in the short and long term. As a significant player in the global supply chain for automotive components, including ignition systems, any disruptions to Russia production and export capabilities could reverberate throughout the industry. This may manifest as supply chain disruptions, leading to shortages of key components essential for ignition systems.
The geopolitical instability could affect market perspective and investment decisions, potentially influencing the long-term trajectory of the automotive ignition system market. As the situation continues to unfold, stakeholders in the automotive industry are expected to closely monitor developments and assess their implications for the supply, pricing, and overall stability of automotive ignition systems.
Furthermore, there is a rise in emphasis on enhancing automotive ignition systems and readiness among organizations and contractors to mitigate the evolving cyber risks. The ongoing conflict serves as a catalyst for the expansion and evolution of the automotive ignition systems market as stakeholders prioritize safeguarding their digital assets amidst the uncertainty and instability of the geopolitical landscape.
In addition, the economic impact of the Russia-Ukraine conflict can affect throughout the automotive ignition systems market. Fluctuations in currency values, trade restrictions, and geopolitical instability can disrupt financial markets and impact the overall economic outlook. Such economic uncertainties can affect demand for automotive ignition systems.
Competitive Analysis
Competitive analysis and profiles of the major global automotive ignition system market players that have been provided in the report include Magneti Marelli Parts & Services, BorgWarner, Robert Bosch GmbH, Denso Corporation, Diamond Electric, Hella Inc., Hitachi Ltd, Mitsubishi Electric, Ford Motors, and Valeo Service. The key strategies adopted by the major players of the global market are product launch and mergers & acquisitions.
Top Impacting Factors
The global automotive ignition system market is expected to witness notable growth registering a CAGR of 5.49%, owing to a rise in demand for stringent regulations. Rapid integration of advanced ignition technologies creates lucrative growth opportunities. On the other hand, downsizing engine measures and electrification of vehicles are projected to hinder the market growth.
Key Benefits for Stakeholders
- This study comprises analytical depiction of the global automotive ignition systems market size along with the current trends and future estimations to depict the imminent investment pockets.
- The overall global automotive ignition systems market analysis is determined to understand the profitable trends to gain a stronger foothold.
- The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.
- The current global automotive ignition systems market forecast is quantitatively analyzed from 2022 to 2032 to benchmark the financial competency.
- Porters five forces analysis illustrates the potency of the buyers and suppliers in automotive ignition systems.
- The report includes the market share of key vendors and the global automotive ignition systems market.
Automotive Ignition System Market Report Highlights
| Aspects | Details |
 Market Size By 2032 | USD 22.9 billion |
 Growth Rate | CAGR of 6.3% |
 Forecast period | 2022 - 2032 |
 Report Pages | 322 |
 By Distribution Channel |
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 By Type |
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 By Vehicle |
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 By Region |
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 Key Market Players | HELLA GmbH & Co. KGaA, VALEO SERVICE, Robert Bosch GmbH, Magneti Marelli Parts & Services, DENSO CORPORATION, Diamond Electric, Niterra India Pvt. Ltd. , Mitsubishi Electric, BorgWarner, Hitachi Ltd. |
Magneti Marelli Parts & Services, BorgWarner, Robert Bosch GmbH, Denso Corporation, and Diamond Electric are the top companies to hold the market share in automotive ignition system market.
The passenger cars is the leading vehicle type of automotive ignition system market.
The upcoming trends of automotive ignition system market includes rise in demand for stringent regulations and rapid integration of advanced ignition technologies creates lucrative growth opportunities.
North America is the largest regional market for automotive ignition systems.
The global automotive ignition system market was valued at $12.8 Billion in 2022.
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