PUBLISHER: Fairfield Market Research | PRODUCT CODE: 1513788
PUBLISHER: Fairfield Market Research | PRODUCT CODE: 1513788
The global automotive electrical products market is poised for steady growth despite the challenges posed by the ongoing COVID-19 pandemic. The market is expected to experience a modest yet consistent growth rate, driven by burgeoning regulations on emission safety standards and technological disruptions such as e-mobility. Additionally, enhanced vehicular safety features are contributing to the increased adoption of automotive electrical products.
Market Dynamics: Trends and Drivers
The automotive industry is witnessing a surge in the adoption of advanced safety features such as lane assist systems and adaptive cruise control, which are becoming increasingly prevalent to prevent accidents. These features now account for a significant portion of overall vehicular costs. Furthermore, the growing demand for infotainment systems for recreational purposes is boosting the prospects of the automotive electrical products market.
The global electric vehicle (EV) market has been experiencing substantial growth, with notable automobile companies like General Motors, Volvo, and Volkswagen introducing hybrid vehicles. This trend is expected to enhance the scope of the automotive electrical products market in the coming years. The increasing environmental sustainability concerns are driving the demand for EVs, with projections indicating a significant rise in EV sales in major markets such as the U.S., China, and India.
Numerous technological advancements have disrupted the global automotive industry, aiding market growth. Governments worldwide are pushing for complete automotive electrification as part of their sustainable development initiatives. Vehicle manufacturers are overcoming obstacles such as high costs, limited battery life, and inadequate charging infrastructure to encourage the uptake of EVs. These factors are expected to drive the growth of the automotive electrical products market in the future.
Several companies are making significant strides in the EV market. Lordstown Motor Corps, for instance, has developed an all-electric pickup truck, the EnduranceTM, which features four hub electric motors suitable for four-wheel drives and can travel over 250 miles on a single charge. Additionally, ChargeX, a German startup, offers the Aqueduct charging solution, comprising four charging modules with a capacity of up to 22 kilowatts. This flexible solution recognizes the charging requirements of each car, regulating charge input and speed accordingly.
Amongst all automotive electrical products, connectors are expected to register notable growth in the coming years, with a multi-billion dollar valuation predicted for this segment. The increasing production of automobiles to cater to rising consumer demand is accelerating the uptake of connectors. Numerous manufacturers have successfully penetrated the automotive electrical products market with their connector portfolios. For instance, ODU Connectors offers a wide range of automotive connectors and cable assemblies, including solutions for air conditioner compressors and cable assemblies for EVs. Panasonic Corporation has also launched the CF1 Board to the FPC Connector series, eliminating the need for wire harnesses for connecting LED headlamps to the main engine. The company also markets the CW1 connector for high-temperature applications.
North America is expected to dominate the global automotive electrical products market, attributed to the rapid growth of the EV industry. Over the years, numerous startups offering EV automotive electrical products and solutions have emerged. The U.S. Department of Energy reports a significant rise in sales of plug-in electric vehicles (PEVs). While the COVID-19 crisis has led to a moderate decline, sales are anticipated to remain on an upward trajectory, driven by reduced dependence on conventional fossil-fuel cars.
Companies such as Intvo, Udelv, and Lordstown Motors have significantly enhanced their presence in the North American market. Government regulations are also encouraging EV adoption, further boosting electrical product sales in this domain.
As the world braces for the second wave of COVID-19, industries are taking steps to mitigate potential supply chain disruptions. The automotive electrical products market is likely to weather the recessionary impacts of the pandemic, driven primarily by sustained sales of EVs. The number of electric cars is expected to continue growing, providing traction to the progress of the automotive electrical products market during the pandemic.
Conventional automotive manufacturers are enforcing strict social distancing protocols on-site, allowing the resumption of manufacturing operations. Despite the expected slump in the automotive market, a rebound is anticipated in the near future.
China, the initial epicenter of the pandemic, is experiencing significant recovery. Automotive sales have risen significantly since the pandemic's onset, demonstrating the industry's resilience. These trends indicate a positive outlook for the automotive electrical products market.
The global automotive electrical products market features numerous prominent players, including Altera (Intel Corporation), BBB Industries Ltd., Broadcom Ltd., Continental AG, DENSO Corporation, Hella GmbH & Co. Kgaa, Hitachi Automotive Systems Ltd., and Infineon Technologies AG. These players rely on technological innovations, new product launches, collaborations, acquisitions, and expansion of existing production capacities to maintain their market positions. Emerging economies are a primary focus for these companies due to the rapidly growing automotive and associated industries in these regions.
Manufacturers in the automotive electrical products market are likely to find lucrative growth opportunities in the EV segment. Increasing environmental concerns are prompting governments to switch to cleaner alternatives, driving market expansion.