Driven by the need for increased fuel efficiency, the demand for the spark plug is rising, leading the manufacturers to invest in producing better versions of spark plugs. This phenomenon drives the global spark plug market, which is expected to register a $ 3.20 bn in 2021, states the leading provider of market intelligence and consulting services, Future Market Insights (FMI).
According to FMI, the spark plug market grow at a CAGR of 4.5% during the forecast period of 2021 to 2031.
FMI states that the market will witness a slew of launches with longer life and improved electrical conductivity in response to the increasing production of next-generation automotive engines.
Besides this, stringent regulations aimed at curbing the carbon footprint of vehicles will continue creating prospects for growth.
The market also is expected to witness the launch of iridium spark plugs that offer higher life and superior combustions. These developments will guarantee increasing sales opportunities in the coming years, the report said.
According to FMI, cold spark plugs will remain top-selling among products available, while iridium will remain the preferred material type. Regionally, the demand in the US, China, the UK, and India will increase at an accelerated pace, thanks to consistently rising automotive production.
Coupled with increasing passenger vehicle manufacturing, the surging production of electric vehicles will pave the way for growth in the coming years. Additionally, the implementation of vehicular emission control norms will remain the chief growth driver.
FMI analyst says the key players in the global market are replacing ignition spark with plasma to cater to luxury automotive segments and keep up with the shift in trend. Therefore, focus on product launches will remain a chief factor enabling growth in the coming years.
NewGen spark plug
The demand for the new generation Iridium spark plug is expected to increase in the marine sector to offer optimum combustion and power in engine performance.
Original equipment manufacturers will remain preferred sales channels as consumers shift towards the vehicle with the improved ignition system.
Cold spark plugs demand will grow substantially during the forecast period as they deliver faster heat transfer. In addition, the rising demand for 4-stroke gasoline engines is bolstering sales of cold spark plugs in the global market.
Emission regulations
Spark plug demand is expected to grow considerably in the automotive sector due to stringent government regulations to curb carbon emissions from vehicles and the rising demand for fuel-efficient vehicles.
The US is expected to exhibit high demand for spark plugs since it is the world's second-largest vehicle sales and production market.
In addition, the rising popularity and production of commercial vehicles are expected to create lucrative opportunities for the spark plug market during the forecast period, the research firm said.
Key restraints
According to FMI, a lack of raw material accessibility in developing economies will hamper the sales of spark plugs in the global market. In addition, the COVID-19 pandemic has disrupted production and supply chain, hindering the spark plugs market growth.
The key players operating in the global spark plugs market are investing in research and development activities to expand their product portfolio along with the adoption of inorganic marketing strategies such as collaboration, joint ventures, mergers, and acquisitions to stay ahead in the competition.
For instance, Valeo SA collaborated with Capgemini to design and develop modern connected mobility solutions. Valeo SA is focused on expanding its product range to dominate the spark plug market.
Denso Corporation invests in research and development programmes to launch novel products in the market and diversify its product portfolio.
Courtesy: Future Market Insights. NB: Photo is representational; courtesy: Denso.