Automotive Switches Market Size worth $16bn by 2026
Published Date: February 7, 2020 Authors: Preeti Wadhwani, Shubhangi Yadav
Automotive Switches Market size is set to surpass USD 16 billion by 2026, according to a new research report by Global Market Insights, Inc.
Automotive switches market growth is supported by proliferation of advanced electronic systems in automobiles. The advent of technologies such as ADAS systems, lane-keeping & control navigation, smart infotainment, and connected cars has surged the demand for automotive switches. Several OEMs are outfitting modern vehicles with a multitude of advanced control functions, augmenting the market growth. In addition, the expansion of the global automotive electronics market is creating a positive outlook for the market revenue.
Increasing uptake of touch-sensitive automotive switches positively impacting the PCV market
The Passenger Carrying Vehicle (PCV) segment held an automotive switches market share of around 58% in 2019 and is set to witness a growth rate of nearly 3% over the forecast period. This is attributed to the increasing adoption of multi-function automotive switches by passenger vehicle manufacturers. Leading automotive enterprises including Volvo, Mercedes-Benz, and BMW are implementing touch-controlled switches in their next-generation vehicles to enhance driver experience and adding new functionalities, such as gesture control and one-touch operations.
In January 2018, Mercedes introduced a touch-sensitive control button in the steering wheel for its Mercedes S class model. The automotive switch responds to vertical & horizontal swiping gestures of drivers, enabling them to control the infotainment system of vehicles without taking hands off the wheel. Such innovative solutions spurred by the increasing R&D capabilities of automotive switch manufacturers, creating new avenues for market growth.
Browse key industry insights spread across 546 pages with 945 market data tables and 26 figures & charts from the report, “Automotive Switches Market Size By Vehicle Type (PCV, LCV, HCV, Two Wheelers), By Product (Push Button, Rocker Switches, Rotary Switches, Toggle Switches, Multi-Function Switches), By Application (Indicator System Switches, HVAC, EMS Switches, Electronic System Switches), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Rotary switches gaining market traction due to growth in vehicle infotainment systems segment
The rotary switches segment held over 19% of the market in 2019 and is set to witness a growth rate of 2% over the forecast timeline. The increasing market share is attributed to the increasing adoption of rotary switches to handle various operations in vehicle infotainment systems such as audio control and cruise control. The increasing deployment of rotary switches by commercial vehicle manufacturers for increased functionality and enhanced aesthetic features will propel the global automotive switches market growth.
Rotary switches can be deployed on all vehicle types due to their uses in vehicle ignition systems. The different rotary positions offered by the rotary switches can be leveraged to start or halt the functioning of internal combustion engines. For instance, the new 2019 model of Royal Enfield 350 was equipped with a rotary toggle ignition switch for better aesthetics and visual appeal.
Rising concerns over vehicle indoor air quality complementing the automotive switches market share of HVAC
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The HVAC segment accounted for over 15% market in 2019 and will witness a growth rate of nearly 1% CAGR from 2020 to 2026. HVAC systems in commercial and mid-range vehicles are increasingly deploying advanced control systems for managing the air conditioning and humidity levels inside vehicles. The market is expected to benefit significantly with the increasing demand for HVAC regulating switches in heavy vehicles to regulate driver cockpit air parameters such as humidity, temperature, and air circulation.
Increasing adoption of luxury vehicles is laying a significant impact on North America the market growth
The North America automotive switches market accounted for over 10% share in 2019 and is set to witness a growth of over 1% CAGR between 2020 and 2026 due to the rising demand for luxury vehicles with enhanced driving comfort. The proliferation of sophisticated technologies in luxury automobiles including smart infotainment, advanced cruise control, and autonomous mobility has augmented the demand for complex electronic layouts inside vehicles. This electronic circuitry is being powered by innovative automotive switches. In addition, the rising number of automotive component manufacturers in the region will drive industry growth.
The key players operating in the market are focusing on capitalizing cheap labor and easy availability of raw materials offered by developing economies such as India and China. With the rising demand for passenger automotive vehicles and consumer spending on luxury vehicles, enterprises are prioritizing geographical expansion as a predominant strategy for gaining a competitive edge. For instance, in October 2018, Honda Motors Company announced the establishment of its third manufacturing factory in India to produce electric and hybrid vehicles, with an investment of USD 1.31 billion. The expansion was a part of Honda’s strategy to strengthen its market presence and increase profitability avenues.
Some of the major industry players operating in the automotive switches market include Alps Electric, C&K Components, Inc., COBO S.p.A., Continental AG, Delphi Technologies, GSK InTek Co., Ltd., Hella KGaA Hueck & Co., Leopold Kostal, Marquardt GmbH, Omron Corporation, Panasonic Corporation, Preh GmbH, Robert Bosch GmbH, Standard Motor Products, Tokai Rika Co., Ltd., Toyodenso, Valeo, Vimercati SpA, and ZF Friedrichshafen AG.
The growing complexity of electrification in automobiles has surged the demand for reliable and efficient operations of on-board electronic devices. Automotive switches are assisting automotive manufacturers in addressing these challenges by offering simplified wiring, better circuit control, and enhanced driving comfort.
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