PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1378062
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1378062
The global alternator market is expected to grow at a CAGR of 5.81% during the forecast period.
An alternator is an electromechanical device that converts mechanical energy into electrical energy and it works on the principle of electromagnetic induction. Different types of alternators include salient pole types and cylindrical pole types which find their applicability in the automotive, marine, oil & gas, and mining sectors as they provide a reliable source of electrical power for various equipment and systems. The increased automotive and oil & gas production along with the rise in marine vessel manufacturing is driving the global alternator industry growth.
Alternators are essential for vehicles as they provide electrical power to various systems and accessories. There is a higher need for alternators to support the electrical requirements of the vehicles with more cars being manufactured. Additionally, advancements in automotive technology, such as the integration of more electrical components and the growing popularity of electric and hybrid vehicles, further contribute to. the global alternator market growth. According to the International Organization of Motor Vehicle Manufacturers (OICA) in 2022, global car production increased around 6% in 2022 compared to the previous year.
There is an increased need for electrical power in vessels as marine activities expand, such as commercial shipping, offshore exploration, fishing, and leisure boating. Alternators play a critical role in supplying electricity for various marine systems, including propulsion, navigation, communication, lighting, refrigeration, and entertainment. The rise in vessel manufacturing propels the expansion of the global alternator market. According to the Food and Agriculture Organization, Africa's fleet and fishing vessels had increased compared to other countries and it comprised 23.5% of the world's fishing vessels.
Alternators provide reliable and continuous electrical power for essential equipment, machinery, and systems involved in exploration, drilling, pumping, and processing activities. The increased oil & gas production is expected to drive the global alternator market growth. According to the U.S. Energy Information Administration report in 2023, the OPEC crude oil production reached 37.66 million barrels per day in September 2023.
The Asia-Pacific will account for a significant share of the global alternator market due to the growing marine activities, oil & gas, and EV production. In 2021, for instance, under the 14th Five-Year Plan (2021-2025) the Chinese government implemented strategies like summarizing and analyzing the regulations to improve marine equipment production. Similarly, in December 2022, Mahindra & Mahindra planned to invest Rs 10,000 crore (US$ 1.2 billion) in an EV manufacturing plant in Pune, India. These developments drive the demand for alternators in Asia Pacific.