Global Automotive Switch Market to Grow at a Staggering CAGR of 8%

Introduction

Globally, the automotive industry has undergone a profound transformation. The ever-increasing demand for passenger safety and comfort compels vehicle manufacturers to create new design experiences by effectively incorporating new technologies and processes. The dramatic shift from mechanical to electronic components is anticipated to increase demand for automotive switches during the forecast period. Switches are one of the most fundamental vehicle components. They regulate all installed electrical components in a vehicle. Switches are essential for controlling the vehicle's lighting and nearly all other functions. They are also used for engine start/stop applications and automotive parts. Increasing technological advancements and rising demand for car accessories installation is projected to drive the global automotive switches market.

Market Dynamics

Increased Demand for Automatic Automotive Switches Drives the Global Market

Automotive switches are one of the vehicle's most essential components. They are in charge of the vehicle's entire electrical system. They are necessary to control various vehicle functions, including the lights, engine start/stop, mirror controls, etc. Although manual automotive switches can perform these functions, automatic switches are gaining immense popularity worldwide due to the added convenience they provide by functioning automatically. These switches reduce driver distraction and offer an additional safety feature. Automatic switches operate based on the responses from numerous sensors. Typically, they are installed in luxury vehicles and other high-end vehicles. When the light switch is set to auto, the headlamps automatically turn on in response to low ambient light conditions, such as entering a tunnel at dusk or driving in rain/snow.

Similarly, automatic switches increase the convenience of driving by enabling the auto-dimming mirror action. In auto-dimming or self-dimming mirror technology, a front-facing sensor detects low ambient light from the car's headlights and instructs the rear-view sensor to check for glare. The mirrors dim based on the intensity of the glare, and they clear themselves if the sensors do not detect the glow. This technology is beneficial at night and prevents automobile accidents. Luxury automobile manufacturers, such as Audi, BMW, Mercedes, Ford, Jaguar Land Rover, and others, equip their vehicles with an assortment of automatic automotive switches to enhance the driving experience and passenger safety. As a result, the increasing demand for automatic automotive switches is expected to drive the global market over the forecast period.

Increasing Vehicle Adoption of Electronic Systems Creates Tremendous Opportunities

Mechanical switches previously controlled most of the vehicle's functions and applications. Nowadays, manufacturers have started to replace mechanical switches with electrical ones. Many automakers are installing more electronic components in response to the rising demand for more convenient and intelligent control of a vehicle's various functions. Mechanical switches are more responsive, operate more quickly, and are less expensive than electronic switches. Using electronics in passenger and light and heavy commercial vehicles enhances comfort, connectivity, efficiency, and safety. Over time, it is expected that electronics will significantly contribute to the overall price of automobiles. Electronic or electromechanical switches used in modern automobiles, such as rockers, toggles, pushbuttons, and others, are commonly found in every 12-volt electrical system in an automobile and serve various purposes, such as turning on the lights and controlling vital systems. As automotive applications become more prevalent, the required performance of switching devices is evolving at an accelerated rate. The widespread use of cutting-edge power devices with intelligence features such as safety and automatic diagnostics in automobiles accelerates the adoption of technologically advanced automotive switches. As a result, the increasing incorporation of electronics into automobiles is expected to propel the market for automotive switches over the forecast period.

Regional Analysis

Asia-Pacific contributed the most to the global automotive switches market and is expected to grow at a CAGR of 8% during the forecast period. Demand for automotive switches throughout the region results from the global increase in automobile sales. The expansion of the market for automotive switches is attributable to the rise in vehicle sales in developed North American nations. The European region's technological progress aids the development of new products in the automotive switches industry. The expanding economies of Asia-Pacific, the Middle East and Africa, and the increase in vehicle production, are propelling the expansion of automotive switches in the region. It is anticipated that these factors will spur the development of the automotive switches market over the forecast period.

Key Highlights

• The global automotive switches market was valued at USD 28,658.1 million in 2021. It is expected to reach USD 66,815.6 million by 2030, growing at a CAGR of 8% during the forecast period (2022–2030).
• Based on type, the global automotive switches market is segmented into Ignition Switches, HVAC Switches, Steering Wheel Switches, Window Switches, Overhead Console Switches, Seat Control Switches, Door Switches, and Hazard Switches. The HVAC switches dominate the global automotive switches market and are expected to grow at a CAGR of 9.8% during the forecast period.
• Based on the design, the global automotive switches market is segmented into Rocker Switches, Rotary Switches, Toggle Switches, and Push Switches. The push switches segment is expected to grow at a CAGR of 8.6% during the forecast period.
• Based on vehicle type, the global automotive switches market is divided into Passenger Cars, Light Commercial Vehicles, and Heavy Commercial Vehicles. The heavy commercial vehicles segment is dominating the global automotive switches market and is expected to grow at a CAGR of 9.7% during the forecast period.
• Based on the sales channel, the global automotive switches market is segmented by OEM and Aftermarket. The aftermarket segment owns the highest market share and is expected to grow at a CAGR of 9.2% during the forecast period.
• The global automotive switches market is divided into four regions, namely North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific contributed the most to the global automotive switches market and is expected to grow at a CAGR of 8% during the forecast period.

Competitive Players

1. Tokai Rika Co. Ltd
2. LS Automotive Technologies
3. Hella KGaA Hueck & Co. Panasonic Corporation
4. Robert Bosch GmbH
5. TE Connectivity
6. Honeywell International Inc.
7. ZF Friedrichshafen AG
8. Omron Corporation
9. Leopold Kostal GmbH & Co. KG
10. Toyodenso Co. Ltd.
11. Industrial Engineering Syndicate (INENSY)
12. Aptiv Plc

Recent Developments

• In September 2022, TOKAI RIKA will start a new company in Akita, Japan, to expand operations at its initial base in the Tohoku region.
• In January 2023, The independent automobile aftermarket's top full-range supplier Hella Pagid is working to strengthen its position.
• In January 2023, For the first time, HELLA introduced FlatLight technology into series production as a daytime running light.
• In February 2023, Technologies for a Sustainable Future are Unveiled by Panasonic at CES 2023.
• In February 2023, Advanced motor condition monitoring devices from OMRON will be released in the K7DD-PQ Series.

Segmentation

1. By Type
   1. Ignition Switches
   2. HVAC Switches
   3. Steering Wheel Switches
   4. Window Switches
   5. Overhead Console Switches
   6. Seat Control Switches
   7. Door Switches
   8. Hazard Switches
   9. Multi-purpose Switches
   10. Others
2. By Design
   1. Rocker Switches
   2. Rotary Switches
   3. Toggle Switches
   4. Push Switches
   5. Other Switches
3. By Vehicle Type
   1. Passenger Cars
   2. Light Commercial Vehicles
   3. Heavy Commercial Vehicles
4. By Sales Channel
   1. Original Equipment Manufacturers
   2. Aftermarket