Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
An ignition coil is an induction coil in an automobile’s ignition system, used to transform the battery’s low voltage to thousands of volts required to create an electric spark. Automotive ignition coils also called spark coils and play a vital role in the efficient and smooth operation of the engine. There are different types of ignition coils namely can-type ignition coil, electronic distributor coil, double spark coil, pencil ignition coil, ignition coil rail, etc. Automotive ignition coil finds applications in passenger cars, HCV, LCV, etc.
The global Automotive Ignition Coil Market was accounted for US$ 2,757.4 Mn in terms of value and 113,758 thousand units in terms of volume in 2019 and is expected to grow at CAGR of 4.5% for the period 2020-2027.
Market Dynamics- Drivers
- Rising automotive production and vehicle parc are expected to drive growth of the global automotive ignition coil market during the forecast period
Sales of automotive ignition coil are directly proportional to automotive production and vehicle parc. Although economic conditions have been unstable in the recent past, the global automotive industry has witnessed significant growth. As a matter of fact, automotive production is expected to be significant in emerging economies as compared to developed countries. This is owing to growing urbanization rising per capita income and changing living standards. Therefore, these factors are expected to drive growth of the global automotive ignition coil market during the forecast period.
- Strict regulatory norms for emission and fuel efficiency are expected to propel the global automotive ignition coil market growth over the forecast period
Currently, automotive market players are required to develop vehicles that possess robust fuel efficiency and comply with stringent emission norms. Since there is a global trend of sustainability to support low fuel consumption, the demand for higher ignition voltage, restricted space in the engine compartment, other design-related demand for modern ignition coils is constantly increasing. Furthermore, the mixture of fuel and air must be ignited at the right time with the optimum ignition energy, in order to commence complete consumption of the fuel. Hence, these factors are expected to propel the market growth in the near future.
Asia Pacific held dominant position in the global Automotive Ignition Coil market in 2019, accounting for 52.7% share in terms of value, followed by Europe and North America respectively
Figure 1: Global Automotive Ignition Coil Market Share (%) in terms of Value, By Region, 2019
Global Automotive Ignition Coil Market - Impact of Coronavirus (Covid-19) Pandemic
COVID-19 Pandemic have affected the economies of various countries adversely around the globe. According to the International Monetary fund data published in 2020, the global economy is expected to reduce by 3% percent in the year 2020 compared to 2019. These economic slowdown expected to affect various sectors such as Automotive, which can hamper the Ignition coil market. Moreover, due to the reduction in the size of global economy the spending or purchasing power of people also decreases. People around the globe are spending more on the sanitization products and food than the luxury products such as cars. Owing to the mentioned factors, the COVID-19 pandemic is expected to restrain the market growth during the year 2020-2021.
Market Dynamics- Restraints
- High demand for electric and hybrid vehicles is expected to restrain growth of the global automotive ignition coil market during the forecast period
Consumers across the globe have started adopting batter electric vehicle and plug0-in hybrid vehicle, in order to tackle rising environmental pollution. In fact, governments of many countries across the globe are encouraging adoption of electric vehicles. In developed regions including, Europe, North America, etc. the adoption of electric cars such as battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV) has increased in the recent past. The developments in the direction to harness solar energy to power automobiles further intensify the market growth of such vehicles. Since these vehicles do not use automotive ignition coil, its demand has been hampered significantly. Thus, these factors are expected to restrain growth of the market in the near future.
- Increasing demand compact ignition coil due to engine downsizing and technological advancements in solar energy are expected to hinder the global automotive ignition coil market growth over the forecast period
Automobile manufacturers are demand compact ignition coils since they are focused on engine downsizing. This helps to reduce the overall weight of the vehicle and thereby enhance the fuel efficiency of the car. Furthermore, technological advancements in solar energy have hindered the demand for automotive ignition coil. Hence, these factors are expected to hamper the global automotive ignition coil market growth over the forecast period.
Automotive Ignition Coil Market Report Coverage
||Market Size in 2019:
||USD 2,757.4 Mn
|Historical Data for:
||2017 to 2019
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||USD 3,988.1 Mn
- North America: U.S., Canada
- Latin America: Brazil, Argentina, Mexico, Rest of Latin America
- Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe
- Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, Rest of Asia Pacific
- Middle East and Africa: South Africa, North Africa, Central Africa
- By Product Type -(Can-type Ignition Coil, Electronic Distributor Coil, Double Spark Coil, Pencil Ignition Coil, Ignition Coil Rail and Others)
- By Sales Channel -(OEM and Aftermarket)
- By Vehicle Type -(Passenger Cars, LCV and HCV)
Denso Corporation, AcDelco, Federal-Mogul Corporation, Marshall Electric Corp, NGK Spark Plug Co., Ltd, Standard Motor Products, BorgWarner Ludwigsburg GmbH, Mitsubishi Electric Corporation, Valeo SA, Hitachi Automotive Systems Americas, Inc., Robert Bosch GmbH, and Delphi Automotive plc.
- Rising automotive production and vehicle parc
- Strict regulatory norms for emission and fuel efficiency
|Restraints & Challenges:
- High demand for electric and hybrid vehicles
- Strategic joint venture with other market players can present lucrative growth opportunities
Key players in the market are focused on a strategic joint venture, in order to enhance the market presence. For instance, in April 2016, Denso Corporation entered into a joint venture with Toyota Tsusho Corporation in Bangkok, Thailand. Furthermore, in March 2016, Denso formed a joint venture with Kingtec Technologies (Heyuan) Co. Ltd., a China-based company that designs, sells and manufactures truck refrigeration in China as well as other countries of the world.
- Increasing e-tailing can provide major business opportunities
E-tailing is a fast growing retail sector in the automotive aftermarket and is becoming a significant revenue stream for auto parts sales. Component manufacturers such as Bosch and Denso have their own portal to sell products online. Other prominent e-tailing companies include Auto Car Parts, Rock Auto, and Amazon.
Figure 2: Global Automotive Ignition Coil Market Value (US$ Mn), 2017 - 2027
The global Automotive Ignition Coil market was valued at US$ 2,757.4 Mn in 2019 and is forecast to reach a value of US$ 3,988.1 Mn by 2027 at a CAGR of 4.5% between 2020 and 2027.
- Trends by product type
Energy downsizing to support the demand for pencil ignition coils
Engine downsizing is important when it comes to augmenting fuel efficiency of the vehicle by cutting down its overall weight. Since modern engines are more compact than conventional ones, they require more efficient components to occupy small space inside the cabin. For instance, pencil ignition coil is very compact in size and takes a little space in the engine bay.
- Trends by vehicle type
Rising demand for compact cars, HCV, and electric hybrid cars
According to Coherent Market Insights’ analysis, sales of compact is between 55% and 63% of global car sales. Moreover, in emerging economies such as Brazil, Mexico, South Africa, and India, there is an increasing demand for HCV mainly due to growing commercial activities in these regions. In developed countries such as Japan, the U.S., France, and the U.K., adoption of electric hybrid vehicles is increasing moderately due to stringent emission norms and rising demand for fuel-efficient vehicles.
European standards for exhaust emissions
Various Euro standards were introduced regarding the emission of tailpipe pollutants and also evaporative emissions form the vehicles fuelling system. In 1991, first ‘Euro’ standards were introduced for passenger cars with ‘Euro 0’. Nowadays vehicles are manufactured so as to meet Euro 6 standards
Key players operating the global automotive ignition coil market are Denso Corporation, AcDelco, Federal-Mogul Corporation, Marshall Electric Corp, NGK Spark Plug Co., Ltd, Standard Motor Products, BorgWarner Ludwigsburg GmbH, Mitsubishi Electric Corporation, Valeo SA, Hitachi Automotive Systems Americas, Inc., Robert Bosch GmbH, and Delphi Automotive plc.
- Key companies in the market are focused on product launches, in order to enhance the product portfolio. For instance, in February 2020, Denso Products and Services Americas, Inc., a subsidiary of Denso Corporation, introduced new coil-on-plug (COP) part numbers for Honda and Acura models.
- In November 2018, Standard Motor Products introduced an expanded Blue Streak program that features 38 new heavier-duty, longer-lasting ignition coils.