Automotive Ignition Coil Market Size
|Study Period:||2018 - 2028|
|Fastest Growing Market:||Asia-Pacific|
|Largest Market:||North America|
*Disclaimer: Major Players sorted in no particular order
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Automotive Ignition Coil Market Analysis
The Automotive Ignition Coil Market was valued at USD 9.5 billion in 2021. It is expected to reach USD 12.25 billion by 2027, registering a CAGR of over 4.32% during the forecast period (2022-2027).
The outbreak of COVID-19 caused several vehicle and component manufacturing facilities to shut down temporarily. However, with the gradual removal of lockdowns in several countries, the demand for vehicles has slightly increased. The impact was evident in the auto industry as many companies faced disturbances with their production activities and supply chain. As they navigate this crisis, the OEMs are positive about the post-pandemic period as they expect the economies to revive and help the market's growth.
Also, with the growing number of e-commerce activities, the demand for commercial vehicles has increased. Many countries are reopening their international borders, and there has been an increase in freight and logistics activities. All these factors are expected to drive the demand for automotive ignition coils.
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 have remained unstable, the global automotive industry has witnessed satisfactory growth. This is especially true in emerging economies, where automotive production is expected to be significant compared to developed economies. Rising urbanization, per capita income growth, and a rise in the living standards in these emerging economies also play a crucial role in market growth.
The growing automotive demand worldwide is expected to increase the demand for ignition systems. However, at present, the vehicle demand is increasing at a slow growth rate due to various reasons. The prime factor affecting vehicle sales and production in every country is the US-China trade war, owing to which the ignition system is likely to witness a slow growth rate in the near future.
The increase in the average life of vehicles has accelerated maintenance and repair activities, including replacing their ignition coils. As the number of miles traveled 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 influence the average age of vehicles. Despite the United States, China, 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.
Automotive Ignition Coil Industry Segmentation
The Automotive Ignition Coil Market is segmented by Type Vehicle Type, Sales Channel Type, and Geography.
The market is segmented by type as Coil-On-Plug, Coil-Rail, and Block Ignition Coil,
By Vehicle Type, the market is segmented as Passenger Cars and Commercial Vehicles.
By Sales Channel Type, the market is segmented as OEM And Aftermarket.
By Geography, the market is observed as North America, Europe, Asia-Pacific, and the Rest of the World.
|Block Ignition Coils|
|Coil on Plug|
|Ignition Coil Rail|
|By Operating Principle|
|Single Spark Technology|
|Dual Spark Technology|
|By Distribution Channel|
|By Vehicle Type|
Automotive Ignition Coil Market Trends
This section covers the major market trends shaping the Automotive Ignition Coil Market according to our research experts:
Growing Demand for Electric Vehicles Hindering the Automotive Gear Market Growth
The need to attain sustainable transportation plays a significant role in driving the demand for electric vehicles. The EV market is becoming an integral part of the automotive industry and represents a pathway toward achieving energy efficiency and reduced emission of pollutants and other greenhouse gasses.
The rising number of environmental concerns and favorable government initiatives are some of the major factors driving the growth of the electric vehicle market. The increasing energy costs and competition among emerging energy-efficient technologies are also expected to fuel market growth.
The rise in electric vehicles is still majorly driven by the policy environment. The 10 leading countries in electric vehicle adoption (China, the United States, Norway, Germany, Japan, the United Kingdom, France, Sweden, Canada, and the Netherlands) all have a range of policies to promote the uptake of electric vehicles.
In 2020, the demand for electric vehicles surged, and around 3.2 million battery electric vehicles (BEVs) and plug-in electric vehicles were sold globally, compared to 2.26 million units in 2019. Nearly 1.4 million BEVs and plug-in hybrid electric vehicles (PHEVs) were registered in Europe in 2020, about 137% more than the number in 2019. This increase was noted in a vehicle market that was down by 20% compared to 2019. The upsurge in demand was due to the combination of new and attractive models, incentive boosts by governments' green recovery funds, the 95g CO2 mandate, improved availability, and the extensive promotion of EVs.
The global and regional manufacturers of electric vehicles are innovating with new technologies, 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, manufacturing electric buses.
- Daimler teamed up with the Chinese government to promote 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, especially in China, the world's largest NEV market.
As ignition coils are not used in electric cars, the factors mentioned above are expected to put a significant challenge to the growth of the global automotive ignition coil market over the forecast period.
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Asia-Pacific 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 the rise in construction, e-commerce, and mining activities (resulting in a rise in the logistics industry). Europe and North America, respectively, follow the Asia-Pacific region.
The sales of vehicles are declining in developing countries, such as China, Japan, and India, 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.
Most luxurious vehicles are equipped with multiple vehicle ignition coils due 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. Almost one-third of luxury vehicles are sold in China in terms of value. India is one of the world’s largest vehicle ignition coil markets in terms of volume, with luxury cars generating 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 seek to invest further in this fast-growing market.
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Automotive Ignition Coil Industry Overview
The automotive ignition coil market is dominated by a 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 to be ahead of the competition. For instance:
- In March 2021, Diamond Electric Mfg. Co. Ltd announced that it would build a new plant in West Virginia, USA, to manufacture ignition coils for automobiles. The production capacity of ignition coils in the United States will be increased by 20%. The new US plant has a building area of 12,263 square meters. In addition to Ford's existing North American production bases, the main supply destinations are the North American production bases of Japanese automobile manufacturers.
- In January 2021, DENSO introduced its newest ignition coils to the market. DENSO Products and Services Americas 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.
Automotive Ignition Coil Market Leaders
Hitachi Automotive Systems Ltd
Hella GmbH & Co. KGaA
Diamond Electric Holdings Co. Ltd
*Disclaimer: Major Players sorted in no particular order
Automotive Ignition Coil Market News
- In October 2021, Diamond Electric Holdings Co. Ltd (Diamond Electric HD) announced that it would dissolve and liquidate its Thai subsidiary Diamond Electric (Thailand) Co. Ltd. This is because the production of automotive ignition coils at Diamond Electric (Thailand) has been consolidated into Diamond Electric Asia Pacific Co. Ltd, which handles the same products in the eastern part of Thailand.
- In September 2021, Hitachi Astemo announced that it would invest USD 56 million over two years to improve industrial safety at its three plants in Lerma, thus contributing to the creation of 480 new jobs. The plants employ more than 2,700 people who manufacture water pumps, balancers, ignition coils, oil control valves, airflow sensors, pistons, shock absorbers, and brake castings for Nissan, Ford, Honda, GM, Mazda, and Stellantis.
- In April 2021, Diamond Electric Mfg. Corp. USA (a member of the Diamond Electric Holdings Group) announced an investment of USD 15.5 million to develop next-generation ignition coils specifically for Ford Motor Company.
Automotive Ignition Coil Market Report - Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1.1 Block Ignition Coils
5.1.2 Coil on Plug
5.1.3 Ignition Coil Rail
5.2 By Operating Principle
5.2.1 Single Spark Technology
5.2.2 Dual Spark Technology
5.3 By Distribution Channel
5.4 By Vehicle Type
5.4.1 Passenger Cars
5.4.2 Commercial Vehicles
5.5.1 North America
220.127.116.11 United States
18.104.22.168 Rest of North America
22.214.171.124 United Kingdom
126.96.36.199 Rest of Europe
188.8.131.52 South Korea
184.108.40.206 Rest of Asia-Pacific
5.5.4 Rest of the World
220.127.116.11 South Africa
18.104.22.168 Other Countries
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 NGK SPARK PLUG Co. Ltd
6.2.2 Denso Corporation
6.2.3 Robert Bosch GmbH
6.2.4 Hitachi Ltd
6.2.5 HELLA GmbH & Co. KGaA
6.2.6 Diamond Electric Holdings Co. Ltd
6.2.7 Taiwan Ignition System Co. Ltd
6.2.8 BorgWarner Inc.
6.2.9 Eldor Corporation
6.2.10 Furuhashi Auto Electric Parts Co. Ltd
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Automotive Ignition Coil Market Research FAQs
What is the study period of this market?
The Automotive Ignition Coil Market is studied from 2018 - 2028.
What is the growth rate of Automotive Ignition Coil Market?
The Automotive Ignition Coil Market is growing at a CAGR of 4.32% over the next 5 years.
What is Automotive Ignition Coil Market size in 2018?
The Automotive Ignition Coil Market is valued at 9 Billion USD in 2018.
What is Automotive Ignition Coil Market size in 2028?
The Automotive Ignition Coil Market is valued at 12 Billion USD in 2028.
Which region has highest growth rate in Automotive Ignition Coil Market?
Asia-Pacific is growing at the highest CAGR over 2018 - 2028.
Which region has largest share in Automotive Ignition Coil Market?
North America holds highest share in 2021.
Who are the key players in Automotive Ignition Coil Market?
Denso Corporation, Bosch Limited, Hitachi Automotive Systems Ltd, Hella GmbH & Co. KGaA, Diamond Electric Holdings Co. Ltd are the major companies operating in Automotive Ignition Coil Market.
Automotive Ignition Coil Industry Report
Statistics for the 2023 Automotive Ignition Coil market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Automotive Ignition Coil analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.