Automotive Spark and Glow Plugs Market is Estimated to be Valued at US$ 7508.22 Mn in 2028 - Coherent Market Insights

A glow plug is a heating device used to aid starting a diesel engine. It is challenging to start diesel engines due to the mass of the cylinder block preventing ignition. Furthermore, automotive spark plugs are used for delivering electric current from an ignition system to the combustion chamber. Automotive spark plugs are used for gasoline engines, while glow plugs are used for diesel engines. On the basis of the sales channel, the market has been segmented into the original equipment manufacturer (OEM) and aftermarket. 

Market Statistics:

The global Automotive Spark and Glow Plugs market is estimated to be valued at US$ 6,481.20 million in 2021 and is expected to exhibit a CAGR of 2.1% over the forecast period (2021-2028).

Market Driver

Long-term contracts with OEMs are expected to boost the global automotive spark & glow plugs market growth over the forecast period. Component manufacturers in the market are entering into long-term contracts with OEMs, in order to facilitate constant business. This helps them in reducing production costs and increase profit margins. Long-term contracts also shield component manufacturers from price fluctuations in raw materials. For instance, in prominent spark plug manufacturer NGK has entered into long-term contracts with OEMs such as Audi, BMW, Fiat, Ford, Jaguar, Maserati, Mercedes-Benz, and Volkswagen in Europe.

Market Opportunity

Rising demand for performance cars and commercial vehicles can present lucrative growth opportunities. Growing demand for performance cars and commercial vehicles has subsequently increased demand for spark and glow plugs. Performance cars require rapid ignition and enhanced performance. As a result of this, automotive manufacturers are increasingly focused on adopting augmented spark plugs. Market players can capitalize on opportunities and gain significant advantages in the market.

Recent Developments:

In October 2015, Minda Group is planning to start the production of the spark plug in Maharashtra factory India.

In February, NGK launched BS-6 Compliant spark plugs for passenger and commercial vehicles. In 2020, Government of India prohibited the selling of the BS-4 engines owing to the increased air pollution.

Market Restraint

Growing focus towards electric vehicles is expected to hamper the global automotive spark & glow plugs market growth over the forecast period. Rising environmental awareness and constant changes in fuel prices have led to the consumer to develop electric vehicles in developed regions. Furthermore, rising urban population, strengthening transportation infrastructure, inter-governmental initiatives for electric vehicles, decreasing battery prices, and incentives for electric vehicles have led adoption of electric vehicles.

Global Automotive Spark and Glow Plugs Market - Impact of Coronavirus (Covid-19) Pandemic

The global automotive spark and glow plugs market has been negatively impacted due to the COVID-19 pandemic outbreak. Following the outbreak in December 2019, many countries decided to suspend international travel, close borders, and halt international trade. These nationwide lockdown policy was adopted, which led to disruption in manufacturing activates. With public safety being the topmost priority, stringent regulations were implemented on physical distancing, which led to manufacturing organizations to shut down their operations. These regulations has severely impacted the automobile industry. With economic slowdown across the globe, the automobile sales witnessed a sharp decline, thereby impacted OEM manufacturers. However, the market is witnessing gradual rise with many countries relaxing their regulation.

Key Takeaways:

• The hot spark plug held dominant position in the market and accounted for 44% share in the global Automotive Spark and Glow Plugs market in 2020. The segment is expected to reach US$ 3282.98 million in 2028. This is owing to increased demand of automotive in the global market.
• The hot spark plug segment is expected to show highest CAGR of 3.5% in the global Automotive Spark and Glow Plugs market during the forecast period.

Market Trends

Increasing demand for mid & compact segment cars is a major trend in the market. High gasoline engine penetration in passenger cars and High diesel engine penetration in commercial vehicles has increased the demand spark and glow plugs. However, low replacement rate of spark plug and glow plus is expected to restrain regional market growth.

Increasing demand for LCV in the U.S. is the major trend in the region. Furthermore, increasing trade activates in Canada, aiding rise in sales of commercial vehicles. Apart from these, growing adoption of electric vehicles is expected to boost the regional market growth.

Competitive Section

Key players involved in the global automotive spark & glow plugs market are NGK Spark Plug Co. Ltd, Magneti Marelli Aftermarket N.A., Federal-Mogul Corporation, ACDelco Corporation, Denso Corporation, Valeo SA, Robert Bosch GmbH, Weichai Power Co., Ltd., and Borgwarner Inc.