Market Trends of Automotive Alternator Industry
Passenger Car Segment to Dominate the Market
- The growing demand for automobiles, including passenger cars, commercial vehicles, and electric vehicles (EVs), has been a significant driver for the alternator market. As vehicle production increases worldwide, the demand for alternators also rises.
- The financial crisis during 2019 and the outbreak of the coronavirus in the first quarter of 2020 have created a huge slump in sales. Sales in the world's largest automotive markets like China, the United States, India, and Japan have also plunged, due to which manufacturers are forced to cut down production. This decline in sales has hindered the growth of the automotive alternator market.
- However, 2021 was the year of transition, and the sales are pacing up gradually, which is expected to fuel the automotive alternator market over the coming years. In 2022, around 24 million commercial vehicles were sold in the United States. Furthermore, the total number of cars sold in the country in 2021 was around 3.5 billion, indicating that the country's developing automotive sector will drive the market in the coming years.
- However, with governments across the world taking several steps to boost passenger car sales, the market for alternators in passenger cars is expected to grow at a faster pace during the assessment period.
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Asia-Pacific and Europe to Lead the Market
- The automotive alternator market is driven by the increasing global demand for passenger cars and commercial vehicles. Emerging markets, particularly in Asia Pacific, such as China and India, have witnessed significant growth in vehicle production and sales. These regions offer substantial growth opportunities for the automotive alternator market.
- Asia is estimated to have the largest market share in the alternator market in 2022, and it is expected to continue at the same pace till the end of 2023 and much beyond. Countries such as India, China, and South Korea, have emerged as the major automotive manufacturing hubs, sourcing components from Western automakers.
- Asia is an opportunistic region for commercial vehicle manufacturers. The automobile industry in India is developing, and it is expected to be the fastest-growing market in the production of automobiles. With the South Asian market providing low-cost labor, it is set to become the major automobile hub in the near future.
- The European automobile industry has invested about EUR 59 billion in R&D activities. With the modernization of car-related appliances, there has been a rise in deploying electronic devices in vehicles and an increase in the requirement for power in cars. Thus, this has led to an increase in the demand for alternators.
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