The global spark plug market size was valued at USD 3.52 billion in 2022. It is projected to reach USD 5.41 billion by 2031, growing at a CAGR of 4.9% during the forecast period (2023-2031).
Spark plugs are essential components of an automobile's ignition system. It is intended specifically to ignite the combustion mixture within the engine cylinder. A spark plug ignites the air-fuel mixture at ideal pressure within a closed chamber. Market participants are investing in the development of spark plugs with a longer lifespan and enhanced electrical energy conductivity. With the introduction of next-generation engines, demand for high-performance spark plugs will grow in the future years. According to studies undertaken by the American Physical Society, putting plasma in the area of the region where the flame ignites will result in the production of a catalyst that improves and completes fuel combustion. The replacement of the ignition spark with plasma is a recent trend among spark plug makers, particularly for premium automobile sectors. Companies such as Pulstar Spark Plugs are investigating ways to leverage the potential of plasma-assisted combustion in order to meet the need for the best engine performance. These developments will stimulate market demand.
|Market Size||USD 5.41 billion by 2031|
|Fastest Growing Market||Europe|
|Largest Market||North America|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
Due to oil price volatility, the difference between diesel prices and gasoline prices has reduced considerably over the years. It has made consumers shift to gasoline cars. Stringent government norms and regulations regarding emissions have made it difficult for automobile manufacturers to maintain fuel efficiency. Over the past few years, the automotive industry witnessed tremendous growth in emerging economies owing to rapid development and increased investments in the regions. The emerging economies, including Asia-Pacific, Latin America, and Southeast Asia, experienced a high influx of OEM investments to reduce production costs. The geographic diversification of the automakers has created a new manufacturing hub in emerging markets. The expanding automobile industry, notably in China, Brazil, and India, opens potential avenues for the turbocharger market. The Thailand Automotive aftersales Industry underlined that there would be over 18 million passenger cars in Thailand by 2020, thus presenting an attractive opportunity for the spark plug market in the automotive aftermarket arena.
The rise in the urban population and increased consumer incomes are driving the passenger vehicles' demand. Additionally, the easy credit facilities and the increased mobility needs have led to a rise in passenger vehicle sales in these emerging markets. Around 25 million cars were sold in 2018 in India, and the number rose to 26.3 million K Units in 2019, as per the statistics published by the IBEF. The growing middle-class population and changing demographics of millennials are resulting in the strong growth of the passenger cars market, which is anticipated to fuel turbochargers' demand. The China Association of Automobile Manufacturers (CAAM) estimates a rise of 11.1% Y-O-Y growth in passenger cars' retail sales in 2021, with the sales volume reaching 2.14 million K Units. According to recent data published by the International Organization of Motor Vehicle Manufacturers (OICA), production figures are expected to be back on track in the first half of 2021.
It is expected that the EV market is going to make a faster rebound as compared to fuel-powered vehicles post-COVID-19. This is likely to impact the spark plug market as Electric Vehicles do not require spark plugs to function. It is not yet certain how quickly consumers adapt to this transition. The growing sales of electric vehicles can slow down the growth of the global spark plug market.
The development of modern gasoline engines with high mileage and low emissions without sacrificing performance was spurred by the implementation of severe environmental regulations and emission standards to reduce the carbon footprint and combat global warming. These next engines are tiny, necessitating the development of a new type of ignition system and spark plug technology. Market participants are experimenting with different materials and modifying their designs to fit the requirements. The need for spark plugs will be driven by the development of long, slender spark plugs that can be installed in a tiny engine headspace. The introduction of iridium spark plugs that have a longer lifespan, enable superior combustion, and can operate in harsh marine environments will increase market demand. Modern engines operate at increased gas pressure when conventional spark plugs are ineffective. Utilizing spark plugs with plasma assistance in such extreme conditions will increase efficiency. As demand for modern spark plugs continues to rise, fast innovation will drive market expansion.
The global spark plug market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
North America Dominates the Global Market
North America region is the highest contributor to the market and is expected to grow during the forecast period. The United States is the second-largest market for automobile sales and production in the world. The growth of the market for spark plugs will be fueled over the next decade by rising vehicle production and constant sales of automobiles. Numerous top automakers have established engine and gearbox factories in the United States. In addition, they stimulate the research and development of spark plugs by investing heavily in R&D facilities. According to a survey by Auto Alliance, around US$ 18 Billion is spent on research and development in the United States. This is anticipated to have a favorable impact on the U.S. market, fostering market growth for spark plugs.
Europe is expected to witness dynamic growth in the Spark Plug video market during the forecast period. According to research published by the Society of Motor Manufacturers and Traders, the United Kingdom exported over 1.05 million automobiles to more than 150 countries in 2020. Increasing the export of luxury automobiles and expanding automobile production will increase the production of spark plugs. The expansion of the spark plug industry will be accelerated by the implementation of new emission regulations and the increased demand for British-made engines for big commercial vehicles. The presence of global automotive industry leaders, the increase in the manufacturing of EURO-VI buses and trucks, and the rise in consumer expenditure on hybrid vehicles will create a favorable climate for the expansion of spark plug sales.
Asia-Pacific is expected to witness significant growth in the spark plug market during the forecast period. According to a statistic provided by the China Association of Automobile Manufacturers (CAAM), approximately 1.64 million passenger vehicles and 482,000 light and heavy commercial vehicles were sold in the month of May 2021. A thriving segment of passenger automobiles will enhance demand for spark plugs used in gasoline engines. The rapid growth and modernization of the automotive industry in China will generate new prospects for market expansion. India is expected to become the world's third-largest passenger vehicle market by the end of 2021, according to the National Investment Promotion and Facilitation Agency. The rapid production of passenger automobiles and the rising per capita income of the Indian population are positive indicators for the growth of the spark plug market in India. Increasing research and development to develop new gasoline engines in India to reduce fuel consumption and produce vehicles in conformity with pollution regulations will generate new growth prospects in the Indian market over the forecast period.
The LAMEA region is expected to witness moderate growth in the global spark plug market during the forecast period. Spending on automobiles in Saudi Arabia reached approximately $10.66 billion in 2020, while the volume of the Saudi market hit more than 500,000 vehicles per year, representing fifty percent of the Gulf market. By 2030, Saudi Arabia intends to produce 300,000 automobiles annually. Numerous business opportunities exist as a result of incentives and programs designed and implemented by the Brazilian government to increase investments and attract additional investors in the industry. With increased domestic production and the significant presence of OEMs and Tier 1 suppliers, it is anticipated that the automobile sector will continue to expand, driving the spark plug market in the region.
The global spark plug market is segmented into electrode material, application, and sales channels.
Based on the electrode material, the global spark plug market is bifurcated into copper, iridium, and platinum.
The iridium segment is the highest contributor to the market and is expected to grow at a highest CAGR during the forecast period. A growth in demand for iridium spark plugs is projected, particularly from the maritime sector, due to the fact that iridium spark plugs permit optimal power and combustion, hence enhancing engine performance. Also comparable to platinum spark plugs in terms of durability, it is utilized in newly introduced automobiles. Increasing automotive production will fuel market expansion for iridium spark plugs.
The platinum segment is expected to witness a higher CAGR. A platinum spark plug is identical to a copper spark plug, with the exception of the platinum center electrode that is welded to the tip of the electrode. The platinum increases the plug's resilience, allowing it to endure up to 100,000 miles. Platinum spark plugs have the important benefit of durability. A further benefit of platinum spark plugs is that they operate at a slightly higher temperature, which aids in the removal of deposits and prevents fouling.
Based on application, the global spark plug market is bifurcated into the automobile, marine, and industrial.
The automobile segment is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period as a result of stringent government pollution regulations and rising demand for fuel-efficient automobiles. Increasing private investments in the industrial sector and a growing economy in developing nations will increase automobile sales, which will have a direct impact on the growth of the automotive spark plug market.
The marine segment is expected to witness a higher CAGR. Concerning marine applications, the spark plug market outlook looks promising. The International Maritime Organization (IMO) regulations to cut down sulfur emissions have made shipbuilders focus more on gasoline-powered engines and move away from diesel-powered engines. Moreover, small boats, including fishing boats, ferries, patrolling, and speed boats, are mostly fitted with gasoline-powered engines paving the way for an increase in the demand for spark plugs. Australia and New Zealand focus on the development of the spark plug market in marine applications.
Based on sales channels, the global spark plug market is bifurcated into OEM and aftermarket.
The OEM segment is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period. OEMs are developing advanced spark plugs that are both extremely efficient and compact as a result of rising consumer demand for vehicles with dependable ignition systems that operate in harsh situations. In the next years, increased demand for contemporary spark plugs will increase market sales.
The aftermarket segment is expected to witness a higher CAGR. Focusing on repairs and maintenance of current and second-hand vehicles creates a lucrative case for the aftermarket segment in the spark plug market. Also, spark plug manufacturers consider this as an opportunity and have been introducing high-performance spark plugs more powerful than OEM spark plugs to gain traction.