Market Trends of China Automotive Actuators Industry
Electric Actuators is Driving the Growth of The Market
- Many technological advancements have been done in the automotive market field, which has directly impacted automotive actuators, which are witnessing newer challenges and developments. Problems such as improving effectiveness with various functional components in the vehicle ranging from throttle actuators, brake actuators, closure actuators (window, door, and sunroof), and other application types are driving the research and development of the market.
- The electrical actuators are equipped with most of the newer vehicles. They emit lesser heat, lower noise emission, design, and offer flexible installation options. Additionally, since they run on battery, they can deliver higher torque while they are also compact and lightweight, making them an optimum choice over regular actuators. Advanced electrical circuiting and also well-designed software make actuators easier to operate. Electric actuators are widely used in window lifts, power tailgate drives, seat adjustments, and sunroof drives.
- Rising demand for electric vehicles across the country is likely to increase the demand for electric actuators in the coming years. Major vehicle manufacturers are launching new electric vehicle models in the country, which in turn is anticipated to enhance the market's growth. For instance, in February 2023, Geely launched the L7, its first model in the new Galaxy electric vehicle lineup. The L7 is equipped with advanced safety and comfort features.
- There is also a growing demand for features offering better comfort to the passengers, which has become a necessary factor for top manufacturers to differentiate from each in the growing actuators industry. As a result, original equipment manufacturers (OEMs) invest heavily in efforts to enhance the driving and passenger experience by proving the best actuators to their customers.
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Demand for Passenger Cars Drive the Growth for Automotive Actuators Market
- China is one of the prominent countries in terms of vehicle manufacturing in the Asia-Pacific. China has a major presence of automotive manufacturers, which will likely create lucrative opportunities for the market during the forecast period.
- The China government has introduced many incentive plans to bolster auto sales and has also offered subsidies on the purchase of electric vehicles to encourage the expansion of the automotive industry in the county. For instance,
- According to the China Association of Automobile Manufacturers (CAAM), China's passenger car sales from January to May 2023 stood at 10.61 million units, an increase of 11.1%, compared to the same period of the previous year, and sales of new energy vehicles, which include pure electric vehicles, plug-in hybrids, and hydrogen fuel-cell vehicles, increased by 46.8%.
- Moreover, China's economic expansion will raise demand for passenger automobiles in the future, prompting global automakers to spend extensively on technology and contemporary mass production processes, fueling demand for automotive actuators.
- The growing trend of vehicle electrification is a significant factor driving the automotive actuators market. Major vehicle and automotive component manufacturers are collaborating to develop intelligent driving systems, including intelligent cockpits, electronic fuel injection systems, and others that are likely to witness major growth in the market during the forecast period.
- For instance, on February 7, 2023, the BAIC Group signed a strategic cooperation agreement with Bosch China to conduct comprehensive and in-depth strategic cooperation in the fields of intelligent cockpits, intelligent driving, and intelligent connectivity to expand vehicle usage scenarios.
- Additionally, lower system prices have also aided in the rapid adoption of actuator products in China, which will positively impact the target market's growth.
