Automotive Solenoid Market size is set to register lucrative gains from 2020 to 2026 driven by rising demand for automation in automotive systems, to enhance fuel efficiency and downsize engines. Solenoids are important components in efforts towards electricity conservation to facilitate optimization of fuel consumption, making them an integral part of the automotive industry.
Automotive solenoids are components that help augment various automobile processes, in turn enhancing the overall performance of the vehicle. These solenoids consist of electromagnets, which enable a controlled magnetic field, and allow users to switch on and off diverse functions of the vehicle. Increasing deployment of automotive solenoids are useful for numerous automotive functions, including starting, transmission shifting, deactivating/activating four-wheel drive facility, locking/unlocking car doors, etc., will drive the industry growth. One of the key functions of automotive solenoids is its starting ability. These solenoids, known as starter solenoids, can be placed on the fender, engine starter or firewall of the vehicle.
A major trend driving the expansion of the automotive solenoid industry is the rising popularity of the autonomous vehicle concept. Autonomous vehicles can sense the external environment and navigate without any human intervention. These systems consist of myriad techniques and technologies requiring robust electrical and electronic components, which is likely to add impetus to the market penetration.
Solenoids are an integral part of autonomous steering and automatic transmission. These components facilitate the direct passage of transmission fluid when under the vehicle computer’s control. The computer transmits electrical charges to the solenoid, which is placed within the transmission, thereby instructing the solenoid on how to facilitate gear shifts. Significant potential of the components in key autonomous vehicle applications is anticipated to stimulate automotive solenoid market demand over the years ahead.
Passenger and commercial vehicles are increasingly leveraging body control and interior applications, which will boost the market share from the segment. Product demand is also driven by the fact that solenoids demonstrate strong potential in reducing space consumed by automotive parts that lead to increased cabin space, and also help enhance interiors of the vehicles.
Engine control systems are a prominent application segment in the automotive solenoid industry, as they are essential for almost all vehicles, especially considering the escalating prevalence of automation.
Being highly fragmented, the market is bolstered with the presence of numerous regional participants, including Mitsubishi Electric, Robert Bosch, Johnson Electric Holding, BorgWarner, Denso Corporation, Lockcraft, Nidec Corporation, Delphi, Husco International, Kendrion, Hitachi, and TLX Technologies.
Strategic maneuvers, such as mergers, and other contributions by these key industry players has created several lucrative growth prospects for the automotive solenoid market. For instance, Nidec Corporation acquired OMRON Automotive Electronics Co. Ltd in October 2019, bringing together Nidec Elesys’ expertise in camera-related & laser radar products, and OMRON’s strengths in laser radar and driver monitoring technologies. This move has allowed the companies ensure the collaborative development of a full range of sensors and technologies to facilitate the emergence of autonomous driving in the future.
The novel coronavirus pandemic has brought most of the world to a standstill, with various industrial sectors witnessing significant production and development setbacks. However, the global crisis may promote the enhancement of digitalization, automation and AI integration in the automotive sector, as businesses work towards recovering their positions in the post-COVID world. Autonomous driving technologies have already proved to be strong contenders in the fight against the pandemic.
For instance China has started to leverage autonomous vehicles to ensure safe and non-contact transport of critical medical and food supplies to healthcare professionals and the public, even in highly infected areas, given the restrictions on various aspects of daily life such as dining and retail. This has resulted in a surge of lucrative opportunities for the development of intelligent and autonomous mobility solutions in the region, which could help stabilize the market outlook once the threat subsides.