CAGR: 3.6%Current Market Size: USD 6.0 BillionFastest Growing Region: North America
Largest Market: APACProjection Time: 2021-2028Base Year: 2020
The global Automotive Switch market is expected to grow from USD 6.0 Billion in 2020 to USD 7.9 Billion by 2028, at a CAGR of 3.6% during the Projection period 2021-2028. This growth of the automotive switch market is significantly driven by the growing demand for luxury vehicle models and heavy-duty vehicles.
Automotive switches are essential components in an automotive to control all of the electrical equipment. It controls automotive lighting along with the overall functioning of the vehicle including engine start and stops function. The number of switches used in automotive includes toggle switches, keyed switches, push & pull switches, and marine-grade switches among others. The automotive switches can be both automatic and manual. Automatic switches are rapidly being used in premium passenger cars while manual switches are being used in different kinds of automotive such as passenger cars, heavy commercial vehicles (HCV), and light commercial vehicles (LCV).
In the past few years, the automotive industry has witnessed tremendous transformation with growing demand for passenger comfort and safety. This has led to the need for vehicle manufacturers to focus on the formation of new design experiences, fueling the use of electronic parts in the vehicle. This has boosted growth in demand for automotive switches.
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Market Dynamics
Drivers:
The implementation of electronic systems for a number of applications such as engine management, ignition, in-car entertainment systems, radio, and telematics among others fueling the need for automotive switches. There is a significant transformation from the usage of mechanical parts to electronic parts in automotive systems, fueling the need for electronic switches. For instance, switches are being used for engine start & stop applications coupled with several other automobile functions. This has boosted the growth of the automotive switch market.
Rising industrialization and urbanization, particularly in developing countries have led to the demand for commercial vehicles. For instance, as per the Organisation Internationale des Constructeurs d'Automobiles (OICA), 2019 the commercial vehicles sale stood at 26,693,300. The electronic switching components are essential for the electrical systems used in commercial vehicles. Hence, commercial vehicle manufacturers are installing a number of automotive switches to offer convenient, comfortable, and safe settings inside a truck, bus, van, and others.
Restraints:
Raw materials constitute about 70% of the aggregate cost of electronic switches. However, in recent years there is significant fluctuations in the prices of raw materials used for electronic switches. For instance, because of the shortage of integrated circuits, Volkswagen, Toyota, Honda, and other manufacturers have reduced production lines, with approximately one million vehicles lost because of delayed production in the first half of 2021. Hence, fluctuations in raw materials hampered the growth of the automotive switches market.
Opportunities:
Over the past decade, electric vehicles witnessed a significant rise in sales. However, the U.S. Energy Information Administration (EIA) in October 2021, predicted that the Electric vehicles which stood in 2020 for 0.7% of the total global light-duty vehicle (LDV) fleet are projected to account for 31% in 2050 with about 672 million EVs. Electronics switches are the most essential component of electric vehicles; hence, the proliferation of electric vehicles creates lucrative growth opportunities for the automotive switch market growth.
Challenges:
Owing to the unprecedented crisis of COVID-19, a number of countries have employed nationwide lockdowns. However, as they are reopening, safety measures such as social distancing are still being applied. This has caused a significant economic downturn across the globe along with the sudden discontinuation of automotive and associated components production. Hence, the emergence of the COVID-19 pandemic has posed challenges to the global automotive switch market.
Segmentation Analysis
The global automotive switch market has been segmented based on type, design, vehicle type, sales channel, and regions.
By Type
By Design
By Vehicle Type
By Sales Channel
By Regional Analysis
The regions analyzed for the Automotive Switch market include North America, Europe, South America, Asia Pacific, and the Middle East and Africa. The Asia Pacific region dominated the Automotive Switch market and held the 38.2% share of the market revenue in 2020.
Key Industry Players Analysis
Leading players are focusing on alliances to meet the demand of the market
The key players are now concentrating on implementing strategies such as adopting new technology, product innovations, mergers & acquisitions, joint venture, alliances, and partnerships to improve their market position in the global automotive switch industry.
For instance, in November 2020, one of the leaders in automotive electrification technology named Valeo introduced a fully integrated compact electric powertrain system in India. This launch will help electrification at an affordable cost for small mobility vehicles.
In July 2020, Delphi Technologies built and launched a new manufacturing site in Suzhou, China. This site gives Delphi Technologies a competitive Asian footprint.
In May 2020, one of the leading market players named ZF Friedrichshafen AG acquired WABCO which is a commercial vehicle technology supplier. This acquisition is projected to bring a new dimension of innovation as well as the capability for commercial vehicle systems technology.
Latest Development
Report Metrics
Report Attribute |
Details |
Forecast period |
2021-2028 |
Base year considered |
2020 |
CAGR (%) |
3.6% |
Market Size |
6.0 Billion in 2020 |
Forecast unit |
Value (USD) |
Segments covered |
Type, Design, Vehicle Type, Sales Channel, and Regions |
Report Scope |
Revenue forecast, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Robert Bosch GmbH, Continental AG, ZF Friedrichshafen AG, Alps Alpine Co., Ltd., Panasonic Corporation, Delphi Technologies, Leopold Kostal GmbH & Co. KG, Valeo, Marquardt GmbH, and Preh GmbH among others. |
By Type |
|
By Design |
|
By Vehicle Type
|
|
By Sales Channel |
|
Regional scope |
|
Scope of the Report
Global Automotive Switch Market by Type:
Global Automotive Switch Market by Design:
Global Automotive Switch Market by Vehicle Type:
Global Automotive Switch Market by Sales Channel:
Global Automotive Switch Market by Region:
The market value of the automotive switch Market in 2020 is $ 6.0 Billion.
Asia-Pacific held the major share in the market over the Projection period 2021- 2028.
The ignition switches segment is the most influencing segment in the automotive switch market.
The leading market players active in the global automotive switch market are Robert Bosch GmbH, Continental AG, ZF Friedrichshafen AG, Alps Alpine Co., Ltd., Panasonic Corporation, Delphi Technologies, Leopold Kostal GmbH & Co. KG, Valeo, Marquardt GmbH, and Preh GmbH among others.
Type, design, vehicle type, sales channel, and regions are the five segments of the report
Yes, the market includes qualitative and quantitative insights for COVID-19 impact on the automotive switch market.
The automotive switch market is studied from 2020 - 2028.
Political- Rising industrialization and urbanization, particularly in developing countries have led to the demand for commercial vehicles. For instance, as per the Organisation Internationale des Constructeurs d'Automobiles (OICA), 2019 the commercial vehicles sale stood at 26,693,300. The electronic switching components are essential for the electrical systems used in commercial vehicles. Hence, commercial vehicle manufacturers are installing a number of automotive switches to offer convenient, comfortable, and safe settings inside a truck, bus, van, and others.
Economic- Raw materials constitute about 70% of the aggregate cost of electronic switches. However, in recent years there is significant fluctuations in the prices of raw materials used for electronic switches. For instance, because of the shortage of integrated circuits, Volkswagen, Toyota, Honda, and other manufacturers have reduced production lines, with approximately one million vehicles lost because of delayed production in the first half of 2021. Hence, fluctuations in raw materials hampered the growth of the automotive switches market.
Social- The growth of the Asia Pacific automotive switch market is mainly driven by a number of factors such as a large population base, increasing disposable income of populations, and rapid growth in the automotive industry in China. In addition to this, the growing popularity of luxury vehicles is projected to boost the market growth in the region. The North American region is likely to register significant growth during the Projection period due to the significant presence of key market players along with the high per capita income of people in the region.
Technological- Over the past decade, electric vehicles witnessed a significant rise in sales. However, the U.S. Energy Information Administration (EIA) in October 2021, predicted that the Electric vehicles which stood in 2020 for 0.7% of the total global light-duty vehicle (LDV) fleet are projected to account for 31% in 2050 with about 672 million EVs. Electronics switches are the most essential component of electric vehicles; hence, the proliferation of electric vehicles creates lucrative growth opportunities for the automotive switch market growth.
Environmental- In the past few years, the automotive industry has witnessed tremendous transformation with growing demand for passenger comfort and safety. This has led to the need for vehicle manufacturers to focus on the formation of new design experiences, fueling the use of electronic parts in the vehicle. However, this also increased the pollution and caused damage to the surroundings.
Legal- In May 2020, one of the leading market players named ZF Friedrichshafen AG acquired WABCO which is a commercial vehicle technology supplier. This acquisition is projected to bring a new dimension of innovation as well as the capability for commercial vehicle systems technology. Investment in Kopernikus Automotive which is a Leipzig-based startup was announced by Continental AG. Kopernikus develops solutions for infrastructure-based maneuvering of vehicles.
List of Table
List of Figures