Automotive Switch Market size worth around $9.5bn by 2025

Automotive Switch Market size is set to surpass USD 9.5 billion by 2025; according to a new research report by Global Market Insights, Inc. The unit shipments are projected to grow at a CAGR of 3.5% from 2019 to 2025.
 

Rapid development of the automobile industry and growing requirements for control system, simplified wiring & vehicle electrification are some of the factors accelerating the automotive switch market demand. These automotive switches are used in several vehicle applications such as electronic component system, HVAC system, and infotainment system. However, these switches are largely used as direction indicators, headlights & for windows, facilitating the driver while driving and avoiding distractions. There are several configurations of automotive switches that can be used in commercial vehicles, passenger cars, and other vehicle segments. The growing adoption of commercial vehicles and passenger cars is projected to drive the automotive switch market growth along with the expansion in implementation of steering wheel and panel switches.

 

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Companies for automotive switches are implementing partnership programs and investing on R&D to offer products with latest technology and utmost efficiency. These strategic initiatives by the companies are projected to boost the market growth. For instance, in February 2014, Semtech Corporation designed load switches “FemtoSwitch” for the automotive industry. These switches are ideally used for preserving battery life for products such as automotive smart keys.
 

Increasing demand for electronic components in vehicles worldwide

The increasing demand from consumers and active involvement by governments for enhanced automatic control systems are enhancing the use of electronic equipment such as ICs, switches, microcontrollers, etc. For instance, in June 2019, European countries signed an agreement to raise awareness for ADAS system and safe driving. In September 2018, the Union Minister for Road and Highway Transport in India declared that road safety in India will be increased by assigning ADAS for all cars through 2022. Additionally, automotive manufacturers are focusing on autonomous vehicles through the implementation of vehicle-to-infrastructure, Vehicle-to-Vehicle (V2V) communication, and various automated driving technologies that enhance the demand for electronic systems in vehicles. In January 2018, Continental AG revealed the acquisition of 5% share of HERE Technologies, which led to its growth of automated driving technology and mobility services.
 

Browse key industry insights spread across 220 pages with 367 market data tables and 26 figures & charts from the report, “Automotive Switch Market Size by Vehicle Type (PCV, LCV, HCV), 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, 2019 – 2025” in detail along with the table of contents:
https://www.gminsights.com/industry-analysis/automotive-switch-market
 

Increasing penetration of multi-function switches drives the automotive switch market demand

Multi-function switches manage various functions in vehicles such as turn signals, wiper system, lights, and cruise control. These switches are used in steering wheel control system as they are compact and can be easily integrated. Vehicles implementing these switches are Chevrolet, Oldsmobile, Buick, Pontiac, etc. Moreover, the ease for various operations in vehicles while driving proposed by multi-function switches is one of the factors that will propel the demand. Additionally, growth in safety concern and innovation of compact multi-function switches will propel the automotive switch market.
 

Rising demand for electronic system driving automotive switches market

Increasing requirement for in-vehicle infotainment systems in new luxury and passenger vehicles will boost the demand for electronic system switches. The growth is attributed to technical innovations & advancements in conventional entertainment systems that include connected technology and integration of internet services. Moreover, several automobile manufacturers are implementing innovative electronic systems according to customer preferences, which propel the demand for electronic system switches. For instance, in January 2017, Ford GT announced the implementation of a new instrument display that includes various information, text, and race-inspired graphics in GT’s supercars.
 

However, most of the luxury vehicle manufacturers are including touch screen panel for electronic operations, which may hinder the growth of the automotive switch market. The continuous usage of these switches results in failing service and process delays, which may restrain the industry growth. The failure of these switches is one of the major threats to the automobile industry as it compromises the safety and activating & deactivating vehicle functions. For instance, in 2014, GM recalled its 800,000 vehicles due to faulty ignition switches.
 

High growth of the automotive sector in Europe drives the industry demand

Europe automotive switch market is projected to witness excessive growth due to rising consumption and production of luxury & high-end vehicles. Moreover, automotive switches are used in various solutions such as ADAS system, vehicle automation that propose enhanced safety, driving comfort, and convenience, which led to increasing demand from European consumers. Additionally, the existence of major OEMs, such as Audi, Mercedes-Benz, Volkswagen, and BMW, and their automotive switches execution strategies are adding up to the industry growth. These OEMs in partnership with component manufacturers are constantly engaged in the development of advanced electronic systems in vehicles including automotive switches.
 

Tokai Rika Co., Ltd, Continental AG, Leopold Kostal GmbH & Co., Panasonic Corporation, and Autoliv Inc are some of the major companies operating in the automotive switch market share. Major companies are focused on developing push-button systems to gain a competitive edge and demand for OEMs. These players are also making heavy investments in R&D activities to develop automotive switches with enhanced functionality and address growing consumer requirements. Due to high competition among vehicle OEMs, manufacturers are developing new products in collaboration with component providers, OEMs, and other industry verticals.  
 

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