Automotive Micro Switch Market

Automotive Micro Switch Market Outlook (2023 to 2033)

The global automotive micro switch market stands at US$ 3.4 billion in 2023. Global demand for automotive micro switches is anticipated to increase at a CAGR of 3.9% and end up at a market valuation of US$ 5 billion by the end of 2033.

• Worldwide demand for standard micro switches is forecasted to increase faster at a CAGR of 5% over the decade.

Several components are used for the manufacturing of an automobile. Many components are designed specifically to function as sensors in different vehicles. Automotive manufacturers can produce more efficient products with multiple configurations of actuators, wired connections, and terminations with the use of appropriate micro switches.

The automotive micro switch market is geared up for a profitable future with noticeable growth in the automotive market across developing countries around the world. Micro switches come under the category of electric switches, which are actuated through the utilization of a tipping-point mechanism with very little force.

Reliability is one of the main advantages of a micro switch. Switching generally occurs at some specific positions reliably. This feature of automotive micro switches is generally not present in other switches, which helps them to get a competitive edge around the world. The ability of micro switches to produce larger movements at the electrical contacts with small actuator movements is also serving as one of the noteworthy factors that will drive their sales over the decade.

Micro switches are very popular due to their low cost and reliability. Among other industries, the automotive industry is a substantial adopter of micro switches. They are mainly used in operation systems, engine area interiors, door interlocks, seal detection, electronic steering column lock, and electric parking brakes. Additionally, a steady fall in the cost of micro switches will also boost their demand across the globe.

Micro switches are well-known for their longer life, which is anticipated to keep their demand high in the forecasted period. Various established players are putting efforts to innovate novel micro switch technology, which will further create noteworthy opportunities in the target market.

Fact.MR, a provider of market research and competitive intelligence, in its newly published research report on the global automotive micro switch market provided a thorough analysis of different aspects of the industry.

Report Attributes	Details
Market Size in 2023	US$ 3.4 Billion
Forecasted Market Value (2033)	US$ 5 Billion
Global Market Growth Rate (2023 to 2033)	3.9% CAGR
Canada Market Growth Rate (2023 to 2033)	3% CAGR
Germany Market Growth Rate (2023 to 2033)	2.1% CAGR
Demand Growth of Standard Micro Switches (2023 to 2033)	5% CAGR
Key Companies Profiled	ALPS Electric Co., Ltd. Camsco Electric Co., Ltd. Honeywell Sensing and Internet of Things Knitter-Switch Omron Corporation Microprecision Electronics SA TE Connectivity Ltd. Panasonic Corporation

Why are Automotive Micro Switches Being Preferred Around the World?

“Growing Use of Electronics in Automobiles Manufactured Globally”

In recent years, the automotive industry is undergoing a transition from hardware to software-defined automobiles. The average electronics and software content per vehicle is rising rapidly. Not only government involvement but also consumer requirements for greater automotive control of systems can result in the growing adoption of electronics in vehicles.

Growing concentration toward autonomous vehicles along with increasing efforts by automobile manufacturers to make smarter cars can also generate opportunities in the target market. Certain technologies are adopted to establish vehicle-to-infrastructure (V2I) and vehicle-to-vehicle (V2V) communications. These efforts will ensure convenience to consumers while propelling demand for electronic systems in newly manufactured cars.

Consumers, in recent years, are giving preference to technology-based aftermarket products. Moreover, the availability of automotive electronics in entry-level and mid-range cars will also contribute to growth opportunities in the coming 10 years.

In fully electric vehicles (EVs), drivetrain electrification provides various advantages, including zero tailpipe emissions and high energy efficiency. Thus, the advent of microcontrollers, switches, sensors, and power semiconductors for the EV segment is predicted to contribute to target market growth opportunities.

“Rapidly Rising Production and Sales of Vehicles in Emerging Countries”

The production and sales of vehicles are increasing at a noteworthy speed in developing countries due to urbanization and industrialization. The growing per capita income of consumers is also estimated to increase the spending capacity of individuals on luxury products, which can stimulate demand for vehicles. The higher standard of living of people across developing countries will also put a direct impact on the demand for vehicles.

The growth in the target industry is directly proportional to the sales and production of vehicles. Their increased sales have resulted in the growing demand for automotive switches.

How Can Demand for Automotive Micro Switches be Adversely Impacted?

“Growing Awareness about Virtual Assistants Limiting Adoption of Micro Switch Technology”

In recent years, people are gaining awareness about virtual assistants. In addition, the adoption of voice recognition technology in a wide variety of vehicles is estimated to create hurdles against growth opportunities in the coming 10 years.

“Fluctuations in Prices of Raw Materials Used to Manufacture Switches”

Raw materials, which are utilized for the production of electrical switches consist of metal sheets, plastics, and plating material. These raw materials are usually noble metals and there are constant fluctuations in their prices. These changes can cause variations in the final price of the newly manufactured switches, which can further adversely impact growth opportunities.

Which Region is a Key Market for Automotive Micro Switch Manufacturers?

“Asia Pacific to Account for Substantial Market Share”

Asia Pacific is anticipated to hold a significant share of the global market revenue. The rising popularity of luxury vehicles, especially in China is predicted to drive lucrative opportunities in the region. The increasing penetration of various advanced systems, including front & rear air conditioning, infotainment displays, and automatic transmission in newly manufactured vehicles is estimated to stimulate demand for automotive micro switches.

South Korea and Japan have a higher penetration of electronics, which is putting a noticeable impact on regional market revenue. The rising vehicle production in the region is also boosting growth opportunities there.

Country-wise Insights

Why are Sales of Automotive Micro Switches Gaining Momentum in Japan?

“High Penetration of Electronics Driving Demand for Automotive Micro Switches”

Demand for automotive micro switches is estimated to advance at a slow CAGR of 1.3% from 2023 to 2033 in Japan. Increasing penetration of electronics along with rising vehicle production in Japan is estimated to have a noteworthy impact on growth opportunities there.

What Makes the United States a Leading Market in This Space?

“Growing Production of Automotive in the Country”

The revenue of the United States market reached US$ 873 million in the year 2022. Increasing production of automotive in the United States and the rising use of automotive micro switches in vehicles will contribute to growth opportunities as well.

Why are Suppliers of Automotive Micro Switches Eyeing Germany?

“Increasing Installation of Safety Systems Propelling Demand for Automotive Micro Switches”

Demand for automotive micro switches is anticipated to expand at a sluggish CAGR of 2.1% from 2023 to 2033 in Germany. Installation of safety systems have put a direct impact on the demand for electromechanical braking automotive switches there.

Category-wise Insights

Which Type of Automotive Micro Switch Has Acquired High Importance?

“Standard Micro Switches to Account for Leading Market Share”

Based on type, the market is bifurcated into general purpose micro switches, double pole double throw micro switches, standard micro switches, single pole standard precision micro switches, subminiature micro switches, and others. The demand for Standard micro switches is predicted to expand at a CAGR of 5% and will reach a valuation of US$ 923 million by the end of 2033.

Will the Automotive Sector Continue to Bring in High Revenue for Players?

“Rising Demand for Micro Switches to Improve Safety Features in Automotive Sector”

Based on end use, the global market is classified into consumer electronics, industrial, retail, automotive, and others. The automotive segment is anticipated to hold a substantial share of revenue which is around 54% of the total by the end of 2033. This segment is further subdivided into passenger cars and commercial vehicles.

Rising penetration of smartphones can enable drivers to misuse their automotive keys and thus necessitate a replacement. The application of stringent government regulations related to the reduction in the size of the airbags along with increasing demand for safety features will further stimulate demand for automotive micro switches around the world in the coming decade.

The commercial vehicle segment is expected to grow at a noticeable speed due to the rising requirements for safety features, including door interlock switches and panic buttons which are raised by transport authorities across the globe. This demand is owing to the risks of road accidents, which are caused because of distractions by vehicle drivers.

Key Market Players

Prominent providers of automotive micro switches are increasing their expenditures to strengthen supply chain management systems to deliver end products at global and local platforms. These channels ensure safe and quick delivery of products to end users. Further, certain guidelines are implemented by regulatory bodies to reduce environmental impacts.

Key suppliers of automotive micro switches are ALPS Electric Co., Ltd., Camsco Electric Co., Ltd., Honeywell Sensing and Internet of Things, Knitter-Switch, Omron Corporation, Microprecision Electronics SA, TE Connectivity Ltd., and Panasonic Corporation.

Segmentation of Automotive Industry Research

• By Type :

  • Standard Micro Switches
  • General Purpose Micro Switches
  • Single Pole Standard Precision 
  • Double Pole Double Throw 
  • Subminiature Micro Switches
  • Others

• By End Use :

  • Consumer Electronics
  • Industrial
  • Automotive
    • Passenger Cars
    • Commercial Vehicles
  • Retail
  • Others

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa