Increasing demand for automation and electronics in passenger cars and the growing demand for access management and interior control switches push the adoption of automotive switches, leading the global market for the products to grow at 8.7% CAGR between 2021 and 2031.
As per the latest report from Fact.MR, the sales of automotive switches are expected to total $ 15.5 billion through 2021.
The research firm said that historically, the market grew at 7% CAGR during 2016 and 2020. Sales of automotive switches are set to expand by 1.4x within the passenger cars segment in the next ten years.
The increasing focus of automotive manufacturers to provide premium parts at low maintenance and repair costs has bolstered automotive switches' sales. In addition, to meet the growing automation requirement within electric vehicles, the adoption of advanced multifunctional switches and seat control switches has increased.
Some of the leading market players operating in the automotive switches market include Tokai Rika, LS Automotive Technologies, Hella, Panasonic, Robert Bosch, TE Connectivity, Honeywell, ZF, Omron, Leopold Kostal, Toyodenso, Industrial Engineering Syndicate and Aptiv.
As China is one of the leading producers of electric and heavy-duty vehicles, the report identifies it as a highly lucrative market for automotive switches. Besides this, some of the leading original equipment manufacturers (OEMs) are expected to push sales in the country.
According to an analyst from Fact.MR, the integration of Artificial Intelligence and other advanced technologies to improve vehicle efficiency and offer better comfort will improve the sales of advanced automotive switches.
Key Takeaways
According to the report, automotive switches' sales within passenger cars are expected to surpass $ 19 Bn by 2031. The demand for interior control switches to surge at 4.2% CAGR between 2021 and 2031. Nearly 1/3rd of global market sales are to be contributed by access management switches.
China is expected to be the fastest-growing market across East Asia owing to the growing electric vehicle sales in the country, and Germany is anticipated to be one of the most lucrative markets in Europe.
Fact.MR said that the growing sales of light passenger and heavy-duty vehicles have increased the demand for interior control and access management switches. In addition, the integration of automation and advanced electronics in electric and passenger vehicles have surged the sales. Partnerships between original equipment manufacturers and automakers will provide lucrative growth opportunities for the market.
The key players in the market are focusing on developing and expanding their product portfolio through new launches. Participation in expansion strategies such as mergers and acquisitions has increased among leading companies.
The report said that the players are also increasing their investments in research activities to develop advanced products and gain a competitive edge in the market, the market research and consulting agency added.
Courtesy: Fact.MR. NB: Photo is representational; courtesy: TE Connectivity.