The Global Automotive Switch Market Anticipated to Generate a Revenue of $13,602.4 million, Growing at a CAGR of 7.8% from 2021 to 2028Download Sample Reports Overview
The global Automotive Switch Market size is anticipated to be valued at $13,602.4 million by 2028, surging from $7,560.0 million in 2020, at a noteworthy CAGR of 7.8%.
Analysis of Covid-19 Impact on Automotive Switch Market
The Covid-19 impact on Automotive Switch Market growth has been moderate. The imposed lockdown measures across the world affected the automobile industry for the sales of new vehicles as well as reduced in mobility at the global level. The reduced demand for vehicles led to reduction in automobile production affecting the Automotive Switch Market
For mitigating the impact, the Covid-19 impact on Automotive Switch Market has enforced the companies in the automotive switches industry to adopt new methods of operation such as implementation of predictive analytics to forecast losses accurately and use of business to business (B2B) E-commerce channels for sales of the automotive electronics components, aiding the Automotive Switch Market growth.
Global Automotive Switch Market Analysis
The increasing utilization of automotive electronics systems in the commercial vehicles for better vehicle control and infotainment systems in the commercial vehicles is expected to aid the growth of Automotive Switch Market. According to the International Organization of Motor Vehicle Manufacturers, an international trade association headquartered in Paris, France, global sales of commercial vehicles were 26,693,300 in 2019 and 24,372,388 in 2020. Sales of commercial vehicles fell only 8.69% in 2020, while passenger vehicles fell drastically from 15.89% in the passenger car segment, indicating strong global demand for commercial vehicles. While electronic switching components are widespread in automotive on-board electrical systems, commercial vehicle manufacturers are increasingly installing automotive switches to enable convenient, convenient, and safe settings on buses, trucks, vans, and others. These factors are expected to aid the growth of this market in the forecast period.
The lack of market standardization in terms of registration of automotive switches by the independent product automotive electronics suppliers and regulatory measures related to operating life of the product for quality assurance in undeveloped countries such as Africa, can restrict the market growth in the forecast period.
The utilization of multi-function automotive switches is anticipated to open new scope of opportunities and increase the Automotive Switch Market opportunity in the forecast period. The implementation of multi-function switches that can perform various functions such as wiper system, lighting system, cruise control, and other functions with increased applicability in the luxury vehicles sector is expected to positively impact the market growth. Companies such as BMW, Audi, Porsche, and others are adopting multifunction switches in their luxury vehicles like electric vehicles, such as BMW 3ER, Audi A3, Porsche Macan, and others. The introduction of multi-function automotive switches also helps in regulating the environmental pollution due to their faster operation and makes it a clean technology. These factors are expected to positively impact the Automotive Switch Market and open new scope of opportunities in the forecast period.
Global Automotive Switch Market, Segmentation
The global Automotive Switch Market is segmented based on switch type, vehicle type, distribution channel, and region.
The switch type segment is further classified into toggle switches, push switches, rotary switches, rocker switches, and others. Among these, the push switches sub-segment is anticipated to generate the maximum revenue as well as the fastest growth and surpass $ 5,579.5 million by 2028, with an increase from $2,997.1 million in 2020.
The implementation of push switches in automobiles has advantages such as the cost of push on switch manufacturing is low as compared to the multifunction switches that makes its utilization effective in different categories of vehicles such as passenger cars, light commercial vehicles, and heavy commercial vehicles. In addition to this, the simple structure of push switches in automotive electrical switches results in long operating life during operations. These factors are expected to aid the growth of push switches in the forecast period.
The vehicle type segment is further classified into passenger cars, light commercial vehicles, and heavy commercial vehicles. Among these, passenger cars sub-segment is anticipated to have the dominating market share in the forecast period and surpass $8,629.7 million by 2028, with an increase from $4,865.1 million in 2020.
The augmenting demand of environmentally friendly fuels that can aid in reducing the environmental pollution through cars is expected to increase the sales of electric vehicles in the passenger cars sub-segment. The electric vehicles accommodate large number of automotive switches for functioning of the electric vehicle controls. Electric vehicles have supplemented passenger cars since they provide an alternative power source instead of fuel, aiding the growth of the passenger vehicles sub-segment.
The distribution channel segment is further divided into original equipment manufacturers and aftermarket. The original equipment manufacturers sub-segment is projected to be most dominating in the global market and register a revenue of $7,851.9 million during the forecast timeframe of 2021-2028.
The increasing emphasis on improving the vehicle interior and functionality in passenger and commercial vehicles is contributing to the growth of this sub-segment. The focus on research and development in the developed vehicle markets such as North America and Europe by the original equipment manufacturers in different categories in passenger cars such as hatchback, ic engine vehicles, SUV, and others, in the conventional and luxury segment is expected to aid the growth of original equipment manufacturer sub-segment in the forecast period.
The Automotive Switch Market size for the Asia-Pacific region was $2,571.2 million in 2020 and is further projected to reach up to $4,750.0 million by 2028. The Asia-Pacific region is expected to be the most lucrative region for the Automotive Switch Market in the forecast period. The increase in the per capita income in the developing countries such as Vietnam, China, India, and others, with increased expenditure for better automobile features like infotainment systems is expected to grow the market in the region. As per the income in International Organization of Motor Vehicle Manufacturers, an international trade association headquartered in Paris, France, in the year 2020, around 30 million passenger cars were sold in the Asia-Pacific region. This shows the high utilization of vehicles in the region supplementing the consumption of automotive electronics and aiding the growth of Automotive Switch Market share the Asia-Pacific region.
Key Players in the Global Automotive Switch Market
Some of the leading global Automotive Switch Market players are
1.Alps Electric Co. Ltd
2.Robert Bosch GmbH
3.Tokai Rika Co. Ltd
6.HELLA GmbH & Co
8.ZF Friedrichshafen AG.
9.Eaton Corporation PLC
10.Leopold Kostal GmbH & Co. Kg
11.Johnson Electric Holdings Limited.
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Automotive Switch Market:
- Bargaining Power of Suppliers: There are high number of suppliers in the Automotive Switch Market. Across the world there are different organizations working in the field of Automotive Switch Market opportunity to get a competitive edge in the market.
Thus, the bargaining power suppliers is moderate.
- Bargaining Power of Buyers: The buyers in market have high bargaining power, therefore the suppliers in the Automotive Switch Market focus on providing superior quality services in a cost-effective manner.
Thus, the bargaining power of the buyers is high.
- Threat of New Entrants: The companies that entering in the Automotive Switch Market emphasize on innovation for such as sales through business-to-business E-commerce. The capital requirement in Automotive Switch Market is moderate.
Thus, the threat of the new entrants is moderate.
- Threat of Substitutes: The automotive switches have replacements with the development of touchscreen automotive boards and voice recognition technology that are being used in high end vehicles and other zero emission vehicles.
Thus, the threat of substitutes is moderate.
- Competitive Rivalry in the Market: There is a highly competitive rivalry between companies in the Automotive Switch Market. including Robert Bosch GmbH, Tokai Rika Co. Ltd, and Continental AG.
Therefore, competitive rivalry in the market is high.