Automotive Ignition System Market Size - By Components (Ignition Switch, Spark Plug, Glow Plug, Ignition Coil), Ignition Type (Coil on Plug, Simultaneous, Compression Ignition), Engine Type (Gasoline, Diesel), Vehicle Type & Global Forecast, 2023 - 2032

Automotive Ignition System Market Size

Automotive Ignition System Market size was valued at USD 9.3 billion in 2022 and is estimated to register a CAGR of 7.5% between 2023 and 2032, strongly influenced by the overall production of vehicles worldwide. In 2022, global motor vehicle production reached 85.4 million units, marking a 5.7% increase compared to the production figures of 2021, as reported by the European Automobile Manufacturers' Association. As the global demand for automobiles continues to rise, particularly in emerging markets, the need for ignition systems also increases. Higher vehicle production rates directly contribute to the growth of the ignition system industry.
 

Stringent emission regulations will significantly contribute to the increasing automotive ignition system sales worldwide through 2032. Globally, there is a growing emphasis on reducing vehicle emissions to address environmental concerns. For instance, in April 2023, the Environmental Protection Agency unveiled more ambitious proposed standards aimed at further decreasing harmful air pollutant emissions from light-duty and medium-duty vehicles commencing with the model year 2027. This proposal expands upon the EPA's previously established standards for federal greenhouse gas emissions in passenger cars and light trucks spanning model years 2023 through 2026.
 

By capitalizing on advancements in clean car technology, the proposed standards aim to deliver a range of benefits to the American populace, including the reduction of climate pollution, enhancements in public health, and cost savings for drivers through decreased fuel and maintenance expenses. The implementation of these proposed standards is set to occur gradually over the model years 2027 through 2032.
 

The increasing focus on sustainability and the transition to electric vehicles pose a challenge to conventional automotive ignition systems. EVs don't rely on traditional combustion engines and, therefore, do not require conventional ignition systems. The growth of the electric vehicle market may lead to a decrease in demand for traditional ignition systems, impacting the market negatively.
 

COVID-19 Impact

The COVID-19 pandemic significantly impacted the automotive ignition system market. The industry faced disruptions in the supply chain, manufacturing shutdowns, and decreased consumer demand due to economic uncertainties. Strict lockdown measures, in covalence with reduced vehicle production, led to a decline in sales and revenue for ignition system manufacturers. However, as the global economy gradually recovers, the market is poised for resurgence, with increased emphasis on innovative technologies and sustainability driving future growth in the automotive sector.
 

Automotive Ignition System Market Trends

Rapid integration of advanced ignition technologies will play a key role in strengthening the automotive ignition system industry outlook. The industry is likely to witness a surge in the adoption of advanced ignition technologies, such as coil-on-plug systems, direct ignition systems, and smart ignition systems. These technologies aim to enhance fuel efficiency, reduce emissions, and improve overall engine performance. To that end, in June 2022, Transient Plasma Systems (TPS), headquartered in California, developed an innovative plasma-based ignition system capable of enhancing fuel combustion efficiency by up to 20 percent.

TPS's ignition system achieves this by generating multiple plasma pulses within the ignition module, leading to a notable improvement in the efficiency of fuel combustion. As automakers continue to prioritize efficiency and sustainability, innovative ignition technologies are expected to gain prominence.
 

Automotive Ignition System Market Analysis

Based on engine type, the gasoline segment held over 52% of the market share in 2022. Gasoline-based automotive ignition systems are experiencing high demand due to their reliability and widespread use in internal combustion engines. These systems, including traditional spark ignition systems, provide efficient and consistent ignition for gasoline-powered vehicles. Despite the rise of electric vehicles, gasoline engines remain prevalent, especially in regions with established infrastructure. The simplicity, cost-effectiveness, and well-established technology of gasoline ignition systems continue to drive demand, particularly in markets where the transition to alternative power sources is gradual.
 

Based on vehicle type, the passenger cars segment recorded more than 47% of the automotive ignition system market share in 2022, led by the continuous growth in the global automotive industry and the increasing production of passenger vehicles. Ignition systems play a crucial role in initiating combustion within internal combustion engines, ensuring smooth engine operation. As consumers seek improved fuel efficiency, lower emissions, and advanced engine performance, the need for reliable and technologically advanced ignition systems persists, contributing to sustained demand in the passenger car segment.
 

Asia Pacific automotive ignition system market accounted for 35% of the revenue share in 2022, due to the robust growth of the automotive sector in key economies such as China, India, and Japan. For example, as per SIAM estimates, automobile production in India reached 2,59,31,867 units during 2022-23. The increasing demand for passenger vehicles, in line with rising disposable incomes, propels the need for advanced ignition systems. Moreover, stringent emission regulations drive manufacturers to adopt innovative ignition technologies. With a focus on fuel efficiency and environmental sustainability, the APAC market is thriving, supported by a growing automotive manufacturing ecosystem and a rising consumer base.
 

Automotive Ignition System Market Share

The major companies operating in the automotive ignition system industry are:

• BorgWarner
• Bosch Limited.
• Delphi Automotive LLP
• Denso Corporation.
• Diamond Electric Holdings Co. Ltd.
• Hella GmbH & Co. KGaA .
• Hitachi Automotive Systems Ltd.
• Mitsubishi Electric
• Valeo Service

Companies in this industry employ various strategies to fortify their presence. This includes investing in research and development for innovative technologies, forming strategic partnerships, expanding global distribution networks, and adhering to stringent quality standards to enhance competitiveness and meet evolving market demands.
 

Automotive Ignition System Industry News

• In April 2022, Hitachi Astemo Americas, Inc. announced that it is expanding on its global success and expertise in auto parts by expanding its ignition coils line-up. The company now has 276 stock keeping units (SKUs) covering 260 million vehicles in operation (VIO). These original equipment (OE)-quality ignition coils will reduce time-consuming part searches and avoid returns by focusing on the needs of the customer.
   

The automotive ignition system market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032 for the following segments:

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Market, By Components

• Ignition Switch
• Spark Plug
• Glow Plug
• Ignition Coil
• Others

Market, By Ignition Type

• Coil on Plug
• Simultaneous
• Compression Ignition

Market, By Engine Type

• Gasoline
• Diesel

Market, By Vehicle Type

• Passenger Cars
• Commercial Vehicle
• Two Wheelers

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa
  • UAE
  • Saudi Arabia