Automotive Switches Market

Automotive Switches Market Outlook

The global market for automotive switches is slated to reach US$ 36 Bn at the end of the 2021-2031 assessment period. By 2021-end, the market is expected to reach US$ 15.5 Bn. Automotive switches for passenger cars are likely to register maximum sales, expanding 1.4x across the forecast period. Overall, the market is poised to more than double until 2031.

Key Points Covered in Automotive Switches Industry Survey

• Market Estimates and Forecasts (2016-2031)
• Key Drivers and Restraints Shaping Market Growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Brand Share and Market Share Analysis
• Key Product Innovations and Regulatory Climate
• Assessment by Product Grade / Purity / Formulation Standards
• Assessment of Import Price, Bulk Price, Contractual Price, Producer / Distributor Price
• Certifications and Compliance Requirements
• COVID-19 Impact on Automotive Switches and How to Navigate
• Recommendation on Key Winning Strategies

Consumption Analysis of Automotive Switches from 2016-2020 Vs Market Outlook for 2021 to 2031

As per Fact.MR – market research and competitive intelligence provider, during the historic period of 2016 to 2020, the market expanded at an impressive CAGR of 7%. Demand for automotive switches is increasing owing to the rising electronic content in the automobiles, stringent regulations issued by the authorities regarding environmental emissions, and fuel economy ethics. 

During the height of the coronavirus pandemic, prospects declined significantly, given the abrupt discontinuation of automotive and associated components production through most of 2020. For instance, in India, auto component industry revenues declined by 3% in FY21, largely as a fallout of dipping sales in the previous year.

However, such downswings are not expected to last long, as stimulus packages are underway to buoy out the automotive industry across major manufacturing hubs. Furthermore, preference for EVs helped retain most demand prospects, and will likely continue doing so in the future. Considering these factors, the global market is slated to expand at around 8.7% CAGR from 2021-2031.

How is the Increasing Usage of Electronics in Vehicles Propelling Growth?

With the advent of technology, the automotive industry is witnessing transitions from hardware to software-defined vehicles. There has been an increasing demand for greater automatic control of systems from both government and consumers. This is leading to the increased use of electronics in vehicles. 

Moreover, commercial vehicles play a major role in supporting urbanization and industrialization to support the emerging economies. The electronic switching components are widely used for the electrical systems of passenger vehicles. But recently, commercial vehicle manufacturers have started fixing automotive switches in the vehicles to ensure comfort, convenience, and safe settings inside. 

Manufacturers are focusing on making cars smarter by making vehicle-to-vehicle (V2V), and vehicle-to-infrastructure (V2I) communications possible. This is another reason why the demand for electronic systems in new cars has been increasing rapidly. The launch of a broad suite of switches and sensors for electric vehicles is expected to help drive the growth of the automotive switch market.

Will Steady Rise in Two Wheeler Demand Bolster Automotive Switches Growth?

In the past decade, two-wheelers witnessed a significant rise in demand. According to population estimates from the U.S. Census Bureau, demographic changes led by baby boomers and millennial are one of the prime factors strengthening the overall motorcycle demand in the U.S.

Furthermore, the growing demand for motorcycles in developing economies such as India, Brazil, and ASEAN is further foreseen to bolster the automotive switches market for two-wheelers. Significantly higher demand for original equipment and parts for two-wheelers are foreseen to offer lucrative growth avenues for the automotive switches market players.

TVS-backed Ultraviolette Automotive has officially announced that they are all set to launch India’s fastest motorcycle, F77, with the advent of 2022. The pre-production concept was first showcased in November 2019, and the company will begin manufacturing the motorcycles and push them into the markets by March 2022. 

How will Foray into Digital Technologies Hinder Automotive Switches Demand?

With rising capitalization in connected and electric cars, the automotive switches market is expected to face challenges in terms of decreasing demand for automotive switches. Technologies based on driver assistance are thriving in the automotive sector such as automatic emergency braking and voice command which are highly in demand. Furthermore, the digital touchpad infotainment system is experiencing an upward demand trend among tech-savvy consumers.

Growing preference for digitalization and touch-based displays have encouraged automotive technology manufacturers to enter into digital-driven business models. For instance, HARMAN and Samsung have lately revealed the first automotive electronics collaboration by opening the digital cockpit platform with IOT and 5G integration. As automakers enter digitalization, upcoming digital cockpit displays could dampen the lucrativeness of the automotive switches in the global market over the course of the forecast period.

Region-Wise Analysis

How are Accelerating Automotive Sales in Europe Generating Automotive Switches Demand?

According to Fact.MR, Europe is likely to register the highest growth during the forecast period, majorly attributed to the massively expanding automotive industry. As per the European Automobile Manufacturers Association (ACEA), the automotive sector has cemented its top position in R&D, investing an impressive €62 billion per year, or 33% of total investment. 

As of 2020, Europe accounted for 21.9% of the global automotive production, while new vehicle registrations surpassed 21%, according to the publication. Consequently, the market for various automotive components, including automotive switches experienced a considerable incline. Further traction has been experienced due to the rising popularity of electric vehicles.

The continent is foreseen to cross the US$ 7 Bn mark by the end of 2031. In addition, the region is foreseen to account for 1/4th of the market share during the assessment period. 

How will Growth of Automotive Components Manufacturing Spur Sales in Asia?

According to Fact.MR’s projections, Asia is projected to be a significant contributor to the global market for automotive switches through 2031, surging at a CAGR of 4.6% until 2031. Growth is expected to be impelled by the Indian and Chinese markets.

As per a report published by the International Energy Agency (IEA) in June 2020, China dominated the sales of electric cars in 2019. Along with the stronghold on auto parts manufacturing, continuing electrification of the automotive industry in developing economies presents lucrative opportunities for automotive switches.

Likewise, the Indian automotive industry is expected to reach between US$ 251.4 to 282.8 billion by 2026, as per the India Brand Equity Foundation. This includes automotive components manufacturing. Furthermore, a study by the CEEW Centre for Energy Finance projects a US$ 206 billion opportunity until 2030. All these developments are boosting prospects for automotive switches across the country.

Category-wise Insights

Why are Passenger Cars Key Beneficiaries of Automotive Switches?

The automotive industry has witnessed significant transformation in the past years. Growing demand for passenger safety and comfort is compelling auto manufacturers to continuously focus on creating new design experiences by effective integration of the latest technology, and workflow.

The paradigm shift from the mechanical components to the electronic components is foreseen to strengthen the demand for automotive switches up to a great extent. Automotive switches for passenger cars are foreseen to grow 1.4x to cross the US$ 19 Bn mark by the end of 2031.

Which Automotive Switch Types will be most demanded?

According to Fact.MR, interior control switches are foreseen to cross the US$ 21 Bn mark by the end of the forecast period, registering a value CAGR of 4.2%. These switches are important for controlling the air conditioning, heating, seat adjustments and lighting systems.

Simultaneously, access management switches and powertrain switches will collectively account for 1/3rd of the value share in the global automotive switches market by 2031.

Competitive Landscape  

Key players involved in the market are rigorously investing in the development and launches of new products to gain a competitive advantage and expand their consumer base. Mergers & acquisitions along with diversification of product portfolios are key business strategies implemented by participants in the automotive switches industry.

• In August 2021, TOKAI RIKA Co., Ltd. announced the development of a fingerprint-authentication start switch to help boost vehicle anti-theft performance. A first for Japanese cars, this switch will be used by the new Toyota Land Cruiser that was launched in August 2021.
• In April 2021, Autoliv, Inc. and Mersen announced a joint collaboration to develop devices that will help make electric vehicles safer. The collaboration will produce disconnect devices that utilize Autoliv’s proven pyrotechnical safety switch (“Pyroswitch”) technology and Mersen’s fuse hybridization concepts, to create affordable devices that can disconnect up to 1000-volt power source in milliseconds, before dangerous arcing can occur.

Report Scope 

Report Attribute	Details
Market Size Value in 2021	USD 15.5 Billion
Market Size Value in 2031	USD 36 Billion
Growth Rate	CAGR of 8.7% from 2021 to 2031
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Market Analysis	Value (US$ Mn) & Volume (Mn Units)
Key Regions Covered	North America Latin America Europe East Asia South Asia Oceania Middle East & Africa
Key Countries Covered	U.S. Canada Germany U.K. France Spain Italy Russia China Japan India ASEAN Australia Brazil Mexico Turkey Iran South Africa
Key Market Segments Covered	Switch Vehicle Sales Channel Region
Key Companies Profiled	Tokai Rika Co. Ltd, LS Automotive Technologies Hella KGaA Hueck & Co. Panasonic Corporation Robert Bosch GmbH TE Connectivity Honeywell International Inc. ZF Friedrichshafen AG Omron Corporation Leopold Kostal GmbH & Co. KG Toyodenso Co. Ltd. Industrial Engineering Syndicate (INENSY) Aptiv Plc
Pricing	Available upon Request

Key Segments Covered

• Vehicle

  • Automotive Switches for Passenger Cars
    • Compact
    • Mid-size
    • Luxury
    • SUV
  • Automotive Switches for Light Commercial vehicles
  • Automotive Switches for Heavy Commercial Vehicles
  • Automotive Switches for Electric Vehicles
  • Automotive Switches for Tractors
  • Automotive Switches for Forklifts
  • Automotive Switches for Two Wheelers
    • Conventional
    • Electric

• Switch

  • Automotive Interior Control Switches
    • AC Switch Assembly
    • Light Module/Switches
    • Multifunctional Switches
    • Overhead Console Switch
    • Multimedia Switch assembly
    • Steering Switch Assembly
    • Seat Control Switches
    • Seat Heater Switches
  • Automotive Access Management Switches
    • Power Window Switch Assembly
    • Side Window Switches
    • Door Light Switches
    • Ignition Switches
    • Powerlift Gate Switches
    • Sun Roof Switches
    • Back Carrier Switches
  • Automotive Powertrains & Other Switches
    • Reverse Light Switches
    • Brake Light Switches
    • Automatic Gear Control Switches
    • Automatic Reverse Parking Brake Switches
    • Hand Brake Switches
    • Fork Lifting Switch Module

• Sales Channel

  • Automotive Switches Sales via OEMs
  • Automotive Switches Sales via Aftermarket