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The global automotive ignition coil market was worth USD 10.55 billion in 2020. In 2021-2028, the market is expected to grow at a CAGR of 3.06%, from USD 10.67 billion in 2021 to USD 13.18 billion in 2028. COVID-19 has had an unexpected and astounding worldwide impact, with these coils experiencing a negative demand wave across all regions as a result of the outbreak. According to our estimations, the global market will drop by -4.3 percent in 2020, compared to the average year-on-year growth of 2017-2019. The rapid increase in CAGR is due to the demand and expansion of this market, which will return to pre-pandemic levels once the pandemic is gone.
The ignition coil is one of the parts of a vehicle’s ignition system. These coils generate the high voltage needed to ignite the fuel or air mixture in the gasoline engine/vehicles. The vehicle ignition system is rugged & reliable, and it is designed in such a way that it converts 12 voltage on board battery power into a higher voltage to create a spark at the spark plug.
Moreover, modern passenger and commercial vehicles have one ignition coil per cylinder installed over the spark plug. However, in some cases, major cars use a combined set of coil packs for all cylinders. Furthermore, older vehicles with distributors use a single-coil/pencil coil for all cylinders. Furthermore, organizations in this industry are taking proactive measures to expand their business in an untapped market by introducing new goods, developing new technologies, and implementing new strategies.
Disturbed Supply Chain and Decline In Vehicle Sale Amid COVID-19 Has Affected The Vehicle Ignition Coil Market Growth
The COVID-19 pandemic-induced lockdown and economic disaster have severely impacted many automotive component manufacturing companies. The global coronavirus (COVID-19) outbreak has significantly influenced ignition coil production, which the global economic ecosystem collapse has badly impacted.Covid-19 pandemic has generated a lot of uncertainty in the industry, and a panic situation for everybody involved in the industrial value chain. Many suppliers suffered substantial resource constraints in global supply and logistics chains throughout the year, which had a noticeable negative impact on their businesses.
Moreover, electronic supply in the industry was already facing severe challenges due to the China & U.S. trade and tariff war. As most of the global players are dependent on the Chinese key players for raw material of the engine system/components, more than 70% of the companies delayed their shipments.
The market is projectd to recover in the second half of 2021 owing to some regional governments’ favorable actions in North America and Europe. Furthermore, recent announcements that COVID-19 vaccines will be available in early 2021 is expected to benefit the automotive component business. Moreover, companies are now resuming production in parts of the world where people are vaccinated by implementing various safety procedures to safeguard workers. Similarly, faster recovery rates in some regions are also expected to boost the demand for the market in the near period.
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Rising Adoption Of Luxury Vehicles And Use Of Lightweight Material & Advanced Technology to Bolster Growth
Automotive manufacturers identified the customer's need in vehicles and started adopting the changes in the new upcoming vehicle models. In developing countries, consumers are more inclined to use luxury comfort features in vehicles. In recent times, the growth rate of luxury vehicles has seen a prominent rise across the globe. Moreover, to reduce the overall weight of vehicles, automotive component manufacturers are actively innovating or using lightweight materials for their future cars.
In addition, companies operating in the ignition coil market are involved in strategies to grow their business with the latest technology. For instance, since the last 5 years, BorgWarner has added plug top technology of ignition coils with integrated electronics, which facilitates engine performance and improved fuel economy with reduced emissions. Thus, these parameters are propelling to the growth of the market.
Increasing Sales & Production Of Gasoline Powered Vehicles to Boost Market Growth
Before COVID-19, the sales & production of internal combustion engine (ICE) vehicles were on the lead, and it has seen a predicted sale in some countries after COVID-19 vaccinations. This is due to rising awareness or preference for personal mobility and increasing demand for luxury/advanced features in vehicles. The rise in vehicle production directly leads to growing market penetration. Moreover, the companies are also involved in innovations by using the new integrated ignition coil for advanced cylinders of the vehicles. These coils improve fuel economy & overall efficiency of vehicles in the market, which is projected to be the driving factors for the global automotive ignition coil market growth. In addition, many ignition/spark coil manufacturers are adopting a new changing environment and investing heavily to match frequency with the system equipped with advanced sensors.
Furthermore, rising disposable income, rapid growth in industrialization, the purchasing power per capita, and improved everyday living will create a demand for new vehicle sales & production, making a significant market share for this market globally.
Electrification Of Vehicles And Downsizing Engine Measures May Restrain Market Growth
Consumers worldwide prefer electric vehicles over ICE vehicles due to less maintenance, rapid acceleration, and low energy costs. The governments of respective countries are also offering customers a chunk of benefits & implementing regulations related to fuel-efficient vehicles. The predicted growth of electric vehicles in the coming years will hinder the growth of these coils as these types of coils are not used in EV for operations. In addition, the ignition coil maintenance & repairing cost is slightly comparatively higher. Also, their failure chances are higher as it is mounted on the hottest part & prone to vibration. Thus, these factors are expected to significantly impact the automotive spark coil market's growth.
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Less Voltage Loss And Efficient Distribution Of Spark Input to Boost Dominance of Coil On Plugs Segment
On the basis of type, market is bifurcated into coil-on-plug, distributor-based, distributor less, and others.
Coil-on-plug systems are designed to efficiently distribute the ignition spark to the fuel in the combustion chamber. It delivers from 30 to 60 thousand of volts directly to the spark plug numerous times per minute. The coil-on-plug boot makes the connection between the coil and spark plugs. This segment is anticipated to hold the largest market share and continue to hold as it permits less voltage loss from the coil to the pin. Also, with fewer connections and eliminating the distributor rotor to cap air gap, it can be used in sync with injector control to have the ECU perform a misfire diagnosis.
A distributor is used in spark-ignition (SI) IC engines that have mechanically timed ignition. The distributor routes the secondary voltage current from the ignition coil to the spark plugs for the correct time and firing order. However, its growth is stagnant as it still relies on a conventional distributor, which eventually wears and requires replacement. Also, the ignition timing cannot be precisely controlled.
A discrete coil supplies voltage to each spark plug in a distributor-less ignition system. The computer in your car can then calculate the exact time to ignite each cylinder. This approach gives you more control and eliminates any moving mechanical parts. However, this segment will not grow as it is more difficult and expensive to examine and repair than a traditional system and still requires high voltage wires from the coils to the spark plugs.
The other segment consists of a cylinder, block, electronic, conventional, rail coil, and canister automotive ignition coils. This segment is likely to grow steadily at a constant CAGR during the forecast period.
Growing Passenger Car Sales and Production Around the World is Expected To Witness The Highest Market Share For The Passenger Car Segment
Based on vehicle type, the market is divided into commercial vehicles and passenger car.
The passenger car segment currently holds the biggest share of the global market, which is expected to continue. The advantage can be attributed to several factors, including the growing urban population and the requirement for commuting. The demand is expanding as people become more concerned about rising pollution levels and their low running costs.
The commercial vehicle sector is expanding in terms of product offerings and sales.On the other hand, commercial EVs are now a part of the transportation business in China and the United States. During the projected period, they are anticipated to replace conventional trucks. Several medium and heavy commercial vehicles manufacturers are working on electrification and have begun producing automotive batteries with increased power capacity.
Hence, the commercial vehicle segment is projected to decline significantly within the projected period
Rising Repairing Trends of the Ignition Coil and Prone to Replace due to Limited Lifespan To Dominate the Aftermarket Segment
By sales channel, the market is divided into OEM and aftermarket.
The aftermarket currently holds the largest market share. It is anticipated to grow at a rapid pace due to increasing consumer demand and rising air pollution. Hence, the aftermarket segment will exhibit a higher CAGR during the forecast period. This can be attributed to several consumers and the coil manufacturers integrating the technologically advanced automotive ignition coil in the vehicles. This will propel the market growth.
Asia Pacific Automotive Ignition Coil Market Size, 2020 (USD Billion)
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High Adoption Rate Of New Technologies In Vehicle, Rise In Vehicle Sales, And Presence Of Leading Automotive Players Dominate The Asia Pacific Region
Based on geography, the market is divided into North America, Europe, Asia Pacific, and the rest of the world.
In 2020, Asia Pacific had a Revenue of USD 4.4 billion and is likely to be the fastest-growing region in the coming years. It is anticipated to dominate with the greatest CAGR during the forecast period. A factor attributed to the growth of this region is countries with large population in countries like China, India contributing for more than 38% of the global population. Furthermore, many beneficial government efforts aimed at reviving the vehicle industry are expected to boost market growth in these regions.. Furthermore, rapid urbanization and smart cities are estimated to accelerate the automotive ignition coil market development.
Europe accounted to the second-highest position in the market, of which Germany ranks first in this regional market as major auto manufacturers are located. Furthermore, increased production of vehicles and adoption of advanced technologies in IC engines will enhance market growth in this region.
North America is predicted to be the third-highest position in the global market owing to enhanced sales of vehicles and rising consumer demand for a comfortable driving experience and pollution-free commute. The market's expansion can also be ascribed to technologically advanced infrastructure and technology behemoths.
The rest of the world includes the Middle East, Latin America and Africa. The Middle East is poised to substantially impact the market for vehicle ignition circuits. This is due to the UAE government's early adoption of innovative technologies and policies such as free trade zones, which have recognized prospects in the automotive industry.
Improvements in Existing Product Line, Expansion from Leading Players, and Strong Focus on R&D Activities to Expand Market Share
Major ignition coil market players dominate the market as the demand for each type of coils is higher in respective regions. Rising vehicle sales, urbanization, and easy availability of the system are propelling the market growth. Moreover, operating companies in the region have invested heavily in researching and developing new products, delivering advanced products worldwide. Many companies are also actively involved in strengthening their position by focusing on various growth strategies such as M&A, investment, collaborations. For instance, in August 2021, BorgWarner invested in Enexor BioEnergy, LLC. BorgWarner has secured a stake in the company through a 10 million dollar investment.
An Infographic Representation of Automotive Ignition Coil Market
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The automotive ignition coil market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, types, and leading product applications. Aside from that, the research provides information on key market trends and important industry developments. In addition to the aforementioned variables, the study includes several others contributing to the market's recent expansion.
Value (USD Billion)
By Vehicle Type
By Sales Channel
Fortune Business Insights says that the global automotive ignition coil market size was USD 10.55 billion in 2020 and is projected to reach USD 13.18 billion by 2028.
In 2020, Asia Pacific automotive ignition coil market stood at USD 4.4 billion.
The automotive ignition coil market is projected to grow at a CAGR of 3.06% and will exhibit steady growth during the forecast period (2021-2028).
The aftermarket segment is the leading segment in this market.
Increase in automotive sales, growing urbanization, and standard of living have propelled the demand for new vehicles, which drives the market growth.
BorgWarner is the leading player in the global market.
Asia Pacific dominated the market share in 2020.
The increasing advancement in the engines ignition system and rising production of ICE-based vehicles are expected to drive the market growth.
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