The Global Automotive Ignition Coil Market, 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) and by Region (North America, Latin America, Europe, Asia Pacific, Middle East and Africa) - Global Forecast to 2027”, is expected to be valued at US$ 3,988.1 Million by 2027, exhibiting a CAGR of 4.5% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.
An ignition coil also called spark coil transforms the battery’s low voltage that is needed to produce an electric spark to ignite the fuel. Automotive ignition coils are also called as spark coils. Ignition coil plays an important role in efficient and smooth operation of the engine. Pencil ignition coil segment is among the top product types of automotive ignition coil. The older versions of ignition coils are losing popularity among end-users, owing to their large size and inefficient working as compared to the newer and compact coils.
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.
Increasing number of vehicles worldwide is expected to drive growth the global automotive ignition coil market during the forecast period
Over the years, both vehicle production and vehicle stats have witnessed a massive surge despite the economic recession. According to the International Organization of Motor Vehicle Manufacturers (OICA), total vehicle production across the world was around 24,637,665 in 2019, increasing from
23,846,003 in 2017. Furthermore, growing urbanization and rising disposable income, especially in developed economies have increased the demand for new vehicles significantly. As a result of this, the demand for automotive ignition coils is witness massive surge. Hence, these factors are expected to drive growth of the global automotive ignition coil market over the forecast period.
Global Automotive Ignition Coil Market - Impact of Coronavirus (Covid-19) Pandemic
Many countries such as India and Spain have imposed nationwide lockdown owing to the COVID-19 pandemic. Due to the Lockdown, there is a shortage of the workers at the automotive ignition coil manufacturing facilities. Due to the less manpower, the manufacturing facilities are struggling to move the products. In addition to this, due to the shortage of transportation facilities such as Trains and Heavy-duty Vehicles, manufactures are unable to ship their cargoes. Owing to the above mentioned factors, the COVID-19 pandemic is expected to restrain the Automotive Ignition Coil market growth in upcoming years.
New product development and strategic partnership with OEMs can present lucrative growth opportunities
Key companies in the market are focused on providing diverse product portfolio to original equipment manufacturers, in order to capitalize on opportunities. This is done through strategic partnerships and alliances with technology leaders. From the supply side, control of optimal efficiency and stringent emission standards, to ensure the long run of the automotive ignition coil will help the manufacturers to maintain their brand image among OEMs. The rate of consumption of automotive ignition coil is highly influenced by the automotive production. Consumption patterns differ across different OEMs. Different OEMs utilize different types of ignition coils depending on their requirement. This way, making long term contracts with OEM automotive manufacturers will provide the ignition coil suppliers uninterrupted revenue flow and opportunities for profit generation.
Maintaining a balance between low cost and high-performance ignition systems is expected to hamper the global automotive ignition coil market growth over the forecast period
Automotive ignition coil manufacturers are required to produce high-performance ignition systems at a low cost. Maintaining a balance between the two is challenging since high-quality products necessitate significant investment. Hence, these factors are expected to hinder the global automotive ignition coil market growth over the forecast period.
Among regions, North America is expected to witness significant growth in the global automotive ignition coil market during the forecast period. This is owing to rising demand for light commercial vehicles (LCV) in the U.S. Furthermore, increasing trade activities in Canada is expected to boost the regional market growth over the forecast period.
Europe is expected to register a lucrative growth rate in the global automotive ignition coil market over the forecast period. This is owing to rapid recovery from economic recession, driving growth of automotive sector in the region. Moreover, stringent implementation of EURO 6 and EURO 7 emission norms are expected to boost the regional market growth over the forecast period.
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.