automotive electrical products market Report Overview
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The global automotive electrical products market size was USD 78070 million in 2021 and is expected to reach USD 107200 million in 2028, at CAGR of 4.6% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with the automotive electrical products market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.
Automotive electrical products are components that are used in hybrid and electric vehicles for several purposes. The wide range of automotive products incorporates batteries, lighting systems, alternators and generators, ignition systems, and other input & output devices. Additionally, these components play a significant role in the operation, safety, and comfort of vehicles and drivers. The continuously evolving technology makes these components more essential and popular in the automotive industry. Also, the rising trend of electric vehicles is expected to fuel the demand for these products in the future which will likely boost the market potential.
COVID-19 Impact: Curtailed Consumer Demand for Automobiles Affected the Automotive Products Market
Several aspects of the COVID-19 pandemic impacted the automotive industry and the downturn in this industry directly affected the market for automotive electric products. The lockdown limitations on entire businesses including manufacturing, travel, and service sectors resulted in the global economic slowdown. Furthermore, these restrictions curtailed vehicle manufacturing and reduced consumer demand for automobiles which impacted the production and demand for advanced electrical systems. As well as this outbreak also disrupted the supply chains worldwide. However, after the end of the pandemic, the market witnessed steady growth and is projected to grow in the coming years with the expansion of the e-vehicles market.
Latest Trends
"Advancements in Automotive Industry Boost Market Potential "
The market for automotive electrical products is projected to reach its full potential growth rate in this forecast due to the enlargement of the automotive sector with the rising popularity of electric vehicles around the world. Along with this, the emerging trends and innovation in technology are attributed to escalating the market dynamics. In terms of market trends, increasing integration of advanced driver-assistance systems (ADAS) and connectivity features, the development of autonomous vehicles, and a focus on energy efficiency and lightweight materials have encouraged manufacturers and key players to develop advanced and innovative products. Furthermore, the rise of sustainable and eco-friendly electrical solutions and the heightened importance of cybersecurity in connected vehicles are anticipated to generate opportunities for market growth.
In 2019, Panasonic Corporation unveiled a significant development by commencing full-scale mass production of the CF1 Board for the FPC Connector series. This innovative product eliminated the necessity for wire harnesses that were previously essential for linking LED headlamps to the primary engine. Additionally, Panasonic introduced the CW1 connector, designed to resist high-temperature applications of up to 125 degrees Celsius.
automotive electrical products market Segmentation
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- By Type Analysis
According to type, the market can be bifurcated into Light Equipment, Automotive Batteries, Automotive Connectors, Alternators & Starters, Ignition Systems & Parts, and Others.
- By Application Analysis
Based on application, the market can be divided into Commercial Vehicle and Passenger Car
Driving Factors
"Mounting Sales for Automobiles Surge in the Demand for Vehicle Products"
The surging automobile sales and adoption of e-vehicles is predicted to be a key driving factor to raise the demand for automotive electrical products. As the sales of passenger and commercial vehicles increase, the demand for these products will likely grow correspondingly. Also, the inclination towards electrification, advanced features, safety, efficiency, maintenance, and sustainability in the automobile sector is likely to accelerate the automotive electrical products market growth over this forecast period.
"Government Regulations Stimulate Market Advancement"
Additionally, the stringent environmental regulations and emissions standards imposed by governing bodies push automakers to develop cleaner and more fuel-efficient vehicles. This drives the need for electric and electronic systems that can help reduce emissions and improve fuel efficiency. As a result, the factor can contribute to propelling the market potential throughout this projection timeframe
Restraining Factors
"High Costs of Products Can Halt Market Expansion"
However, along with driving factors, the market has some obstacles that can restrain the market growth such as the high cost of these products. Illustratively, the development and manufacturing of advanced automotive electrical products often require substantial upfront investments in research, development, and production facilities. Thus, this can be a hindrance for new entrants and smaller companies to adopt these products.
automotive electrical products market Regional Insights
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"Asia Pacific is Expected to Continue to Lead the Market with Rising Demand for Automobiles"
According to previous year’s statistics, in 2020, the Asia Pacific was the prominent region in the market, accounting for more than one-third of the automotive electrical products market shares in the global marketplace. This can be ascribed to the growing demand for automobiles with the rising population and expanding manufacturing industry in the region. Furthermore, in Asia Pacific, China is the world's largest automobile market and has a significant demand for electrical components, especially in the context of electric vehicles. Whereas Japan has a long history of innovation in automotive electronics and electrical systems. Consequently, these factors are predicted to contribute to the market’s dominance in the coming years as well.
"Key Companies Emphasis on Investment in Research and Development to Stay Ahead of Market Trends"
Major companies strive to beat market competition and influence growth through relentless innovation, and production of high-quality & reliable products. They offer customization for diverse needs, optimizing cost efficiency, and embracing environmental responsibility. Key players also focus on forming strategic partnerships, industry trends, and making strategic acquisitions. Moreover, their ability to deliver cutting-edge solutions, adapt to changing market dynamics, and meet customer and regulatory demands can position them as leaders in the competitive automotive electrical products sector.
List of Market Players Profiled
- BBB Industries Ltd (U.S.)
- Continental AG (Germany)
- Denso (Japan)
- Hella (Germany)
- Hitachi Astemo (Japan)
- Panasonic Corporation (Japan)
- Robert Bosch GmbH (Germany)
- Valeo (France)
- Visteon (U.S.)
- ZF Friedrichshafen (Germany)
- Toyo Denki Seizo K.K. (Japan)
Report Coverage
This report defines the automotive electrical products market. It emphasizes the market value, expected CAGR, and USD value over the forecast period, before and after the impact of the COVID-19 pandemic restrictions on the international market, and how the industry is going to turn the corner is also stated in the report. The report provides significant market data with its product type and product applications, end-use details, and an idea of the market growth in the future. This report also provides an understanding of the growing market trends and developments and their effects on the market growth, driving factors along with restraining factors that impact the market dynamics. Along with this, the leading region, key players of the market, and their tactics to beat the market competition, sustainable policies, their collaboration, mergers, companies’ profile, previous years’ revenue, profit & loss, and market position based on their share value in the market, are also explained in the report.
| REPORT COVERAGE | DETAILS |
|---|---|
Market Size Value In |
US$ 78070 Million in 2021 |
Market Size Value By |
US$ 107200 Million by 2028 |
Growth Rate |
CAGR of 4.6% from 2021 to 2028 |
Forecast Period |
2022-2028 |
Base Year |
2023 |
Historical Data Available |
Yes |
Regional Scope |
Global |
Segments Covered |
Type and Application |
Frequently Asked Questions
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What value is the global automotive electrical products market expected to touch by 2028?
The global automotive electrical products market is expected to touch USD 107200 million by 2028.
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What CAGR is the automotive electrical products market expected to exhibit during 2022-2028?
The automotive electrical products market is expected to exhibit a CAGR of 4.6% over 2022-2028.
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What are the key driving factors of the automotive electrical products market?
Growing sales for automobiles and stringent government regulations are the key driving factors of the automotive electrical products market.
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What are the key players in the automotive electrical products market?
The key players in the automotive electrical products market include BBB Industries Ltd, Continental AG, Denso, Hella, Hitachi Astemo, Panasonic Corporation, Robert Bosch GmbH, Valeo, Visteon, ZF Friedrichshafen, and Toyo Denki Seizo K.K. are top players in the market.
