The increasing demand for fuel efficiency and strict emission regulations drive the demand for belt-driven starter generators to grow at a CAGR of over 10.58% from 2020−2026.
According to the recent report by Arizton Advisory, the global belt-driven starter generator market is expected to witness the highest demand from Europe & APAC region. In addition, the growing inclination towards electrification is encouraging the population to adopt mild hybrid electric vehicles (MHEVs), which provides significant growth opportunities for vendors in the market.
MHEVs hold the highest share in the market and can be integrated with both 12V and 48V BSG. The research solutions provider said that the 48V BSG is leading the global belt-driven starter generator market and is expected to grow at a CAGR of 11.21% from 2020-2026.
Most of the belt-driven starter generator production happens in China or European countries due to the higher concentration of vendors or the easy availability of raw materials.
The pandemic adversely affected the automotive industry, and therefore, the demand for automotive parts declined to a minimum level. Hence, the need for a belt-driven starter generator witnessed a significant slowdown during the COVID-19 outbreak. The rising metal prices & increasing shift towards full electric vehicles pose significant challenges in the growth of the product in the market.
Market Segmentation
According to Arizton Advisory, the 48V belt-driven starter generator segment in 2020 accounted for the highest share of 67.86% in the global belt-driven starter generator market. The segment is expected to grow at a significant rate during the forecast period. This is because a 48V BSG offers a high power advantage over the 12V BSG variant.
Several prominent automotive manufacturers, including Mercedes-Benz, BMW, and Audi, specialise in large-scale MHEV production in the market. The MHEVs are equipped with an electric 48V motor and a 48V battery. Also, MHEVs are powered by an electric generator and an Internal Combustion Engine (ICE).
In 2020, the air-cooled belt-driven starter generator segment held 39.41% in the global market. The segment is expected to witness significant growth during the forecast period. The growth of the air-cooled segment is attributable to the low cost of products.
Market Dynamics
The research firm said that the rising demand for fuel efficiency is one of the significant growth drivers for the belt-driven starter generator market. The demand for fuel efficiency is high in countries that have high fuel costs. The rising fuel cost in various countries across Europe and APAC is accelerating the demand for vehicles that offer fuel efficiency, leading to a higher demand for belt-driven starter generators. Consumer willingness to pay a high price for fuel economy highly depends on fuel prices. For instance, consumers are willing to pay a slightly higher amount to save driving costs during the long run if fuel prices are relatively higher or even rising continuously. However, if the fuel prices are somewhat lower, the willingness to pay more for fuel-efficient cars will be lower than usual. Hence, the high petrol/gasoline prices in the UK, France, Japan, and other countries are driving the demand for MHEVs and contributing to the global belt-driven starter generator market growth.
Geography
The report identified that in 2020, Europe emerged as the most dominant geographical segment in the global belt-integrated starter generator market and accounted for a revenue share of 30.24%. Factors such as strong awareness about environmental protection by reducing vehicular emissions accelerated the demand for MHEV in the region, thereby pushing the demand for belt-driven starter generators in the market.
Germany and the UK are driving the demand for belt-driven starter generators in Europe and are expected to grow at a CAGR of 6.14% and 9.70%, respectively, during the forecast period.
Various European brands, including BMW, Mercedes-Benz, and others, are getting into large-scale MHEV production to tap the market. Hence, the demand for belt-driven starter generators is projected to witness considerable year-over-year growth in the European market.
Courtesy: Arizton Advisory. NB: Photo is representational; courtesy: SEG.