Analysis of Automotive Switches market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
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.
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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.
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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.
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.
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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.
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.
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.
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.
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.
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.
|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|
|Historical Data Available for||2016-2020|
|Market Analysis||Value (US$ Mn) & Volume (Mn Units)|
|Key Regions Covered||
|Key Countries Covered||
|Key Market Segments Covered||
|Key Companies Profiled||
|Pricing||Available upon Request|
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As of 2021, the automotive switches market is likely to be valued at US$ 15.5.
The global market for automotive switches is envisaged to reach US$ 36 Bn by 2031.
From 2016 to 2020, automotive switches sales surged at a CAGR of 7% according to Fact.MR.
Until 2031, the automotive switches industry is likely to register a CAGR of 8.7%.
Some prominent manufacturers of automotive switches include Tokai Rika Co. Ltd, LS Automotive Technologies, Hella KGaA Hueck & Co., Panasonic Corporation and Robert Bosch GmbH.
Asia is expected to register a CAGR of 4.6% in the automotive switches industry until 2031.
According to Fact.MR, Europe is expected to cross US$ 7 Bn in value by 2031.
Passenger cars will likely exhibit maximum demand, foreseen to grow 1.4x to reach US$ 19 Bn by 2031.
Interior control switches are anticipated to grow at a CAGR of 4.2% across the forecast period.
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