New York, United States, March 05, 2024 (GLOBE NEWSWIRE) -- The ignition coil is one of the pieces of a vehicle's ignition system. These coils create the high voltage needed to ignite the fuel or air combination in the gasoline engine/vehicle. The car ignition system is tough & reliable, and it is constructed in such a way that it converts 12-voltage onboard battery power into a higher voltage to create a spark at the spark plug.
Moreover, new passenger and commercial cars have one ignition coil per cylinder mounted over the spark plug. However, in rare situations, large cars have a combined set of coil packs for all cylinders. Furthermore, older vehicles with distributors employ a single-coil/pencil coil for all cylinders. Furthermore, firms in this area are taking proactive initiatives to expand their business in a new market by offering new goods, creating new technology, and applying new strategies.
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Growing Market for Used Vehicles to Drive the Global Automotive Ignition Coil Market
The global market for pre-owned automobiles is expanding rapidly. The introduction of organized players has primarily driven this expansion into the markets of developing nations. These players have overcome the obstacle of a lack of confidence, which was negatively impacting the used-car market in these nations.
The aftermarket has always been primarily driven by older automobiles, whose parts and components require frequent maintenance and replacement. In the United States, 39.3 million used vehicles were sold in 2020. Rising vehicle prices and loan rates are discouraging consumers from purchasing new vehicles. In addition, a record number of lease returns is expanding the selection of used vehicles available to consumers.
In addition, as smartphone and internet use in emerging economies, particularly Asia-Pacific, rises, the used-car industry becomes more structured. This is because used-car merchants are utilizing digitization to create attractive market offerings. More clients are purchasing used cars due to internet features such as great photographs and videos on online platforms and the accessibility of rapid financing options. All of the following elements contribute to the expansion of the segment.
Increasing Demand for Remanufactured Parts and Components in the Automotive Industry to Provide Opportunities for the Global Automotive Ignition Coil Market
There is a prevalent belief among consumers in underdeveloped nations that remanufactured goods may be of inferior quality compared to their newly created counterparts. The reduced price of used/remanufactured products has long been connected with compensating for their perceived inferior quality, increasing the market demand for remanufactured goods. Consequently, substantial research was conducted to determine the appropriate pricing for such products.
In the APAC area, remanufacturing will play a crucial role in developing more sustainable economies and greener industrial supply chains by recovering and reclaiming discarded parts and returning them to like-new condition. In countries like China and Japan, the demand for remanufactured automotive aftermarket parts and components has expanded gradually due to technology improvements and shifting consumer preferences.
Even though remanufacturing has the potential to increase resource efficiency in the manufacturing sector, particularly within the circular economy concept, there is still evident customer resistance to purchasing remanufactured products. Remanufacturing is anticipated to provide prospects for well-established component manufacturing enterprises as the number of cars in use throughout the region continues to rise.
Regional Analysis
By region, the global automotive ignition coil market is segmented into North America, Europe, Asia Pacific, and the Rest of the World.
North America accounted for the largest market share and is estimated to grow at a CAGR of 4.4% during the forecast period. The US is among the world's largest automotive aftermarkets. The number of vehicles in operation (VIO) in the nation increases annually. In 2019, there were around 276.4 million VIOs, increasing to 281.4 million in 2020. The tendency is anticipated to continue during the projected period. Additionally, the vehicle miles traveled (VMT) have increased during the past four years. In 2015, it was 3.09 million miles; in 2019, it increased to 3.26 million miles. Hence, with the emergence of COVID-19, the pattern was broken in 2020, when cars recorded 2.82 million miles of travel. With the anticipated rebound of economic activity in the following years, the VMT is anticipated to increase. The used automobile market in the United States is projected at 41 million units per year. As a result of the pandemic may continue to expand in the near future as people prefer private vehicles to public transportation to maintain social distancing and prevent contracting the virus. All the above factors drive regional market growth.
Europe is the second largest region. It is anticipated to reach an expected value of USD 4 billion by 2030, registering a CAGR of 4.5%. France is one of the leading European nations that aggressively pursue the electrification of its national fleet of vehicles. This aspect is anticipated to drive market growth for components such as motors in France. The overall number of motor vehicles in use has also increased, from nearly 43,996,880 million in 2015 to almost 44,939,481 million in 2019. Hence, more vehicles will require aftermarket parts and components in the coming years. Compared to countries like the United Kingdom, Austria, etc., the average age of automobiles in France is high. In 2019, the nation's passenger car fleet's average age was 10.2 years. Whereas the average age of light commercial vehicles was 10.4 years, the average age of medium and heavy commercial vehicles was 9.3 years, and the average age of buses was 7.2 years. Several automobile and automotive component manufacturers, including Groupe PSA, Valeo, etc., are investing in research and development in France. Valeo is currently engaged in the electrification and thermal management of the transportation industry, as well as developing improved components such as alternators, HVAC systems, Lithium-Ion battery coolers, etc.
The Asia Pacific is the third largest region. Several prominent players are spending extensively on the establishment of facilities in the country to meet the demand for domestic original equipment manufacturers. For example, BorgWarner announced in March 2018 that its wholly-owned subsidiary BorgWarner Emissions Systems (Ningbo) inaugurated its new state-of-the-art design and manufacturing plant in Jiangshan, China. The new facility will manufacture gasoline and diesel exhaust gas recirculation (EGR) systems, ignition coils, exhaust heat recovery systems (EHRS), high/low-voltage air heaters, and high-voltage liquid heaters to meet the rising demand for emissions and thermal management technologies on the Chinese automotive market. In addition to the aging of passenger vehicles, government support, changing customer behavior, and the emergence of e-commerce channels are driving the expansion of China's automotive aftermarket. In addition, as warranties expire and vehicles are resold, owners will seek light service channels with favorable cost-to-performance ratios, pulling consumers away from original equipment manufacturers and toward independent aftermarket suppliers.
Key Highlights
- By type, the global automotive ignition coil market is segmented into block ignition coils, coil on plug, and ignition coil rail. The coil-on-plug segment accounted for the largest market share and is estimated to grow at a CAGR of 4.8% during the forecast period.
- By operating principle, the global automotive ignition coil market is segmented into single and dual-spark technology. The single spark technology segment accounted for the largest market share and is estimated to grow at a CAGR of 4.5% during the projected period. L
- By distribution channel, the global automotive ignition coil market is segmented into OEM and aftermarket. The aftermarket segment dominated the global automotive ignition coil market and is estimated to register a CAGR of 4.8% during the forecast period.
- By vehicle type, the global automotive ignition coil market is segmented into passenger cars and commercial vehicles. The passenger cars segment dominated the global automotive ignition coil market and is estimated to grow at a CAGR of 4.5% during the projected period.
Competitive Landscape
The Top 10 players in the global automotive ignition coil market are NGK SPARK PLUG Co. Ltd, Denso Corporation, Robert Bosch GmbH, Hitachi Ltd, HELLA GmbH & Co. KGaA, Diamond Electric Holdings Co. Ltd, Taiwan Ignition System Co. Ltd, BorgWarner Inc., Eldor Corporation, Furuhashi Auto Electric Parts Co. Ltd.
Market News
- September 2022 -DENSO Corporation said today that it had increased the detecting angle of its vision sensor, enhancing the sensor's ability to distinguish pedestrians and bicycles around a vehicle to improve road safety. The vision sensor is used on select trims of the 2022 SUBARU Legacy Outback for the North American market and the 2022 SUBARU Crosstrek*1 for the Japanese market, both of which were introduced on April 13, 2022, and September 15, 2022, respectively.
- July 2022 - Isuzu Motors Limited (Isuzu), DENSO Corporation (DENSO), Toyota Motor Corporation (Toyota), Hino Motors, Ltd. (Hino), and Commercial Japan Partnership Technologies Corporation (CJPT) announced today that they have started planning. Foundational research on hydrogen engines for heavy-duty commercial vehicles to utilize internal combustion engines as one option further to achieve carbon neutrality.
Global Automotive Ignition Coil Market: Segmentation
By Type
- Block Ignition Coils
- Coil on Plug
- Ignition Coil Rail
By Operating Principle
- Single Spark Technology
- Dual Spark Technology
By Distribution Channel
- OEM
- Aftermarket
By Vehicle Type
- Passenger Cars
- Commercial Vehicles
By Region
- North America
- Europe
- Asia Pacific
- Rest of the World
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