Rising integration of dual spark ignition coil in mid-size and compact passenger cars and increasing production and sales of passenger cars and commercial vehicles across India, Germany, China, and Japan fuel the growth for the global automotive ignition coil market to grow at 4.4% CAGR in the next ten years.
As per the latest survey by FMI, the global automotive ignition coil market is poised to total $ 2.6 billion in 2021.
Based on the India Brand Equity Foundation (IBEF), the report said that about 3.49 million units of passenger cars and commercial vehicles were sold across India in 2020. Hence, growing sales of automotive vehicles are expected to create a high revenue generation opportunity in the market.
The automotive ignition coil market experienced a significant impact amid the unprecedented outbreak of COVID-19, registering sales at 0.1% CAGR between 2016 and 2020. However, the rising expansion of automotive aftermarket and growing adoption of the ignition coil to reduce pollution and improve engine efficiency is estimated to drive the market in the coming years, Future Market Insights said.
Some of the key players operating in the market includeDenso, Federal-Mogul, NGK Spark Plug, BorgWarner Ludwigsburg, Valeo, Robert Bosch, Delphi Automotive, Hitachi Automotive, Mitsubishi Electric, Standard Motor Products, Marshall Electric and AcDelco.
Based on product type, pencil ignition coils are projected to emerge as highly sought-after coils in the market, accounting for more than 33% of the sales through 2031. Attributes such as increasing the performance of the vehicles by improving magnetic fields in the engine are driving the segment's growth.
According to an analyst from Future Market Insights, the implementation of stringent government regulations to curb carbon footprints and rising emphasis to enhance the performance of automotive vehicles by original equipment manufacturers (OEMs) is expected to accelerate the growth in the market in the forthcoming years.
According to Future Market Insights, the North American automotive ignition coil market is estimated to expand at a CAGR of 3.1% through 2031, with the US spearheading the growth in the market.
Sales of automotive ignition coils in Europe are expected to increase at a CAGR of 3% through 2031, with Germany accounting for the lion's share in the market.
South Korea and Japan are anticipated to emerge as highly remunerative markets, accounting for around 14% of revenue share in 2021.
The OEMs segment is projected to dominate the market in terms of end-user, accounting for over 90% of the demand over the next decade.
Based on vehicle type, the passenger car segment is projected to account for more than 3/4th of the market share, expanding at 4.8% CAGR through 2031.
Key Drivers
Rising demand for compact and mid-size passenger cars across China, India, Japan, the US, and others are spurring the automotive ignition coils sales in the passenger car segment.
Increasing the adoption of double spark coils by automotive manufacturers to improve fuel efficiency and downsize the engine propels the demand for automotive ignition coils across the OEM segment.
However, increasing demand for plug-in hybrid and electric automotive vehicles across prominent regions such as North America, Europe, and the Asia Pacific, is hampering the market's growth.
Less adoption of heavy commercial vehicles (HCV) due to their extravagant cost poses a challenge for the sales of automotive ignition coils in the HCV segment, the provider of market intelligence and consulting services said.
Courtesy: Future Market Insights. NB: Photo is representational; courtesy: Bosch.