The Automotive Ignition Coil Market was valued around USD 9 billion in 2020

New York, June 16, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Automotive Ignition Coil Market - Growth, Trends, COVID-19 Impact, and Forecast (2021 - 2026)" - https://www.reportlinker.com/p06095502/?utm_source=GNW
Globally, the repercussions of the COVID-19 crisis are immense and unprecedented. The impact is clearly evident on the auto industry as many companies faced disturbances with their production activities and supply chain. As they navigate this crisis, the OEM’s are positive about the post-pandemic period as they expect the economies to revive and help the growth of the market.

Ignition coil or spark coil is defined as an induction coil in a vehicle’s ignition system, which transforms the battery’s low voltage to thousands of volts, in order to create an electric spark in the spark plugs to ignite the fuel.

The rise in the sales of automobiles globally and an increase in vehicle production positively affect the sales of automotive ignition coils. Even though the recent economic conditions the world over have remained unstable; on an average, the global automotive industry has witnessed satisfactory growth. This is especially true of the emerging economies, where the automotive production is expected to be significant as compared to developed economies. Rising urbanization, per capita income growth and a rise in the living standards in these emerging economies also playing crucial role in the market growth.

The growing automotive demand across the world is expected to increase the demand for ignition system. However, at present, the vehicle demand is increasing at a slow growth rate due to various reasons, out of which prime factor which is hitting the vehicle sales and production in every country is the US-China trade war, owing to which the ignition system is likely to witness slow growth rate in the near future.

The increase in the average life of vehicles has accelerated maintenance and repair activities, which include the replacement of their ignition coils. As the number of miles travelled increases, the replacement of ignition coils increases, which further boosts the demand for the automotive ignition coil market in the aftermarket segment.

Another factor is the per capita income, which varies from country to country, and may have an influence on the average age of vehicles. Despite the United States, China, and India, and some European countries, like France, and Germany, observing high per capita incomes, the average age of vehicles has been increasing and was approximated to 10 years for passenger cars and 11-14 years for commercial vehicles.

Key Market Trends
Growing Demand for Electric Vehicles is Hindering the Growth of the Automotive Gear Market

The electric vehicle market is rapidly growing across the world. The electric vehicle sales in Europe significantly increased by 47% in the first quarter of 2018, in comparison to the first quarter of 2017. By 2040, nearly 54% of the new car sales and 33% of the global car fleet will be electric. To meet the electric vehicle sales target, the European government has already started various projects for building charging infrastructure across the region.

The global and regional manufacturers of electric vehicles are innovating with new technologies, and they are expanding their services across the world. For instance:
- China’s BYD has a large production network in Europe that has largely gone unnoticed in the passenger car world. Some of the primary reasons for this are the firm’s new plant in Hungary, its planned plant in France, and its joint venture operations in the United Kingdom, all of which are manufacturing electric busses.
- Daimler teamed up with the Chinese government for promoting e-mobility in China. Electric mobility is one of the major pillars of Daimler’s future mobility strategy. The company is bringing this strategy forward globally, and especially in China, the world’s largest NEV market.

As ignition coils are not used in electric cars, the aforementioned factors are expected to put a significant challenge to the growth of the global automotive ignition coil market over the forecast period.

Asia-Pacific is Leading the Ignition Coil Market

Asia-Pacific is expected to dominate the automotive ignition coil market, owing to the growing vehicle demand in countries, such as India, China, ASEAN countries, and increasing demand for commercial vehicles, due to rise in construction, e-commerce, and mining activities (resulting in rise in the logistics industry). The Asia-Pacific region is followed by Europe and North America, respectively.

The sales of vehicles are declining in developing countries, such as China, Japan, and India, which is further impacting the growth of the automotive ignition coil market. The governments of growing economies are taking various steps to increase vehicle sales in their respective countries.

The majority of luxurious vehicles are equipped with multiple vehicle ignition coils owing to their high power and excellent performance. A significant increase has been witnessed in the sales of luxury vehicles in developing regions. For example, China has grown to become a major destination for the sales of luxury vehicles. On average, almost one-third of luxury vehicles are sold in China, in terms of value. Furthermore, India is one of the world’s largest vehicle ignition coil market in terms volume, with luxury cars, which generates high demand for vehicle ignition coils. However, vehicle manufacturers, both luxury and non-luxury segments, foresee a high potential for sales growth in the country and are seeking to invest further in this fast-growing market.

Competitive Landscape
The automotive ignition coil market is dominated by few players, such as, Hitachi Automotive Systems, Continental AG, Diamond Electric Mfg. Co. Ltd, Denso Corp., Mitsubishi Electric Corp., and BorgWarner. The companies are launching more technologically advanced ignition coils and expanding their geographical presence for being ahead in the competition. For instance:
In January 2021 DENSO introduced its newest ignition coils to the market. DENSO Products and Services Americas has expanded its line of aftermarket ignition coils. DENSO now offers four new coil-on-plug (COP) part numbers built with top-grade materials the coils offer maximum available voltage under all operating conditions, ease of installation, and reliability that ensures high temperature suppresses noise and eliminates phantom misfires.

In December 2020, NGK Spark Plugs (U.S.A.) recently announced an agreement with Advance Auto Parts to carry NGK ignition coils and NTK technical sensors at all Advance and Carquest locations, including online.

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- The market estimate (ME) sheet in Excel format
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Read the full report: https://www.reportlinker.com/p06095502/?utm_source=GNW

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