The global automotive switches market is expected to grow at a CAGR of around 3.2% from 2020 to 2027 and expected to reach the market value of around US$ 17.5 Bn by 2027.
Automotive switches are one of the most important components in a vehicle. Switches regulate the overall electrical equipment installed in a vehicle. Automotive switches are essential for controlling the lighting and overall operation of a vehicle. Switches are also used in engine start-up and stop functions, as well as in various vehicle operations. Growing demand for heavy duty as well as light passenger vehicles, rising penetration of electronics in vehicles manufactured around the world, rising preferences for electric vehicles, increasing demand for safety systems and comfort in vehicles are some of the impactful factors that will likely boost the growth of the automotive switches market globally. On the other hand, rising vehicle production in developing economies, as well as an increase in the number of partnerships and acquisitions, will provide abundant opportunities for the automotive switches market during the forecast period.
Volatility in raw material prices, as well as the incorporation of touch screen panels, are likely to stymie the growth of the automotive switches market during the forecasted period. The introduction of gesture recognition systems in vehicles will be the most significant challenge to market growth.
Rising demand for automotive switches in commercial vehicles
Commercial vehicles are extremely useful in assisting rising urbanization and industrialization, particularly in developing nations around the world. The market is primarily driven by factors such as an increase in demand for electric and hybrid vehicles. The trend toward reducing vehicle overall weight is also increasing demand for switches and relays for commercial vehicles, which improves vehicle fuel efficiency. However, there are many small local players in the market who provide switches and relays for commercial vehicles and are becoming a growing concern for the major players and the industry. While electronic switching components are widely used in passenger vehicle electrical systems, commercial vehicle manufacturers are installing an increasing number of automotive switches to provide comfortable, convenient, and safe settings inside a bus, truck, van, and other vehicles. Companies such as Carling Technologies have introduced a number of automotive switches to meet the growing demand for convenient and user-friendly automotive switches. Carling Technologies, a manufacturer of switches and circuit breakers, introduced the CSW automotive switch series in September 2019.
Growing integration of electronic systems in vehicles
Mechanical switches have been used to operate the majority of the functions/applications in a vehicle over the last few decades. OEMs have begun to replace mechanical switches with electrical switches in recent years. With the growing demand for more convenient and intelligent operation of various functions in an automobile, many manufacturers are incorporating more electronics into their vehicles. They are more responsive, faster to operate, and less expensive than mechanical switches. In passenger cars and light and heavy commercial vehicles, the use of electronics provides superior comfort, connectivity, efficiency, and safety. Over time, electronics are expected to account for a significant portion of the overall cost of automobiles.
The global automotive switches market is segmented as vehicle type, product, and application. By vehicle type, the market is segmented as PCV, LCV, HCV, two wheelers. By product, the market is segmented as push button, rocker switches, rotary switches, toggle switches, multi-function switches, and others. By application, the market is segregated as indicator system switches, HVAC, EMS switches, electronic system switches, and others.
Multifunctional switches account for the dominant share of the global automotive switches market in terms of product. This is due to an increase in the demand for steering wheels. Combination or multi-function switches can perform a variety of functions, such as wiper system, lighting system, cruise control, and others, expanding their market opportunity in luxury vehicles.
Asia Pacific holds the major market share for the automotive switches market
The Asia-Pacific region is the most appealing for the automotive switches market. The Asia-Pacific region is experiencing a significant increase in demand for automobiles, which is driving the market for automotive switches. Another driver driving the automotive switches market in this region is the adoption of cutting-edge technology. Because of the low cost of production, the growing demand for LCV and HCV vehicles is also propelling the growth of the automotive switches market. The presence of developing countries such as India and China is also increasing demand for automotive switches because these countries have a high demand for automobiles.
North America and Europe is anticipated to grow at a steady pace over the forecast period for automotive switches market
The market for automotive switches in North America and Europe is expected to grow steadily over the forecast period. When compared to the European market, North American automotive switches are expected to grow at a faster rate during the forecast period. The reason for this is the recent economic meltdown, which has had a significant impact on the European market's economic stability. The automotive market in North America is dominated by comfort and luxury. There is a high demand for luxury automobiles in North America, which drives the market for automotive switches. In the North American market, automatic switches are more popular than manual switches.
Europe holds a sizable market share in the automotive switches market. The region's growing demand for modern mobility solutions that provide enhanced safety and comfort features in newly developed luxury, passenger, and commercial vehicles will drive market growth. The increasing production of light commercial vehicles in the UK will increase growth opportunities for automotive switch market players. These vehicles are now outfitted with a variety of advanced features, such as infotainment and electronic system switches, which will drive up demand for automotive switches in the region.
The competitive landscape of the automotive switches market includes information about each competitor. Company overview, financials, revenue generated, market potential, investment in R&D, new market initiatives, regional presence, company strengths and weaknesses, product launch, product width and breadth, application dominance are all included. The data points presented above are solely related to the companies' focus on the automotive switches market.
The prominent players of the global automotive switches market involve Delphi, Robert Bosch GmbH, Continental AG, ZF Friedrichshafen AG, Alps Alpine Co., Ltd., Panasonic Corporation, TRW Automotive Holdings Corp., AmerisourceBergen Corporation., and among others
Market By Vehicle Type
Market By Product
Market By Application
Indicator System Switches
Electronic System Switches
Automotive switches market is expected to reach a market value of around US$ 17.5 Bn by 2027.
The automotive switches market is expected to grow at a CAGR of around 3.2% from 2020 to 2027.
Based on product, multi-function switches segment is the leading segment in the overall market.
Growing integration of electronic systems in vehicles is one of the prominent factors that drive the demand for automotive switches market
Delphi, Robert Bosch GmbH, Continental AG, ZF Friedrichshafen AG, Alps Alpine Co., Ltd., Panasonic Corporation, TRW Automotive Holdings Corp., AmerisourceBergen Corporation., and among others.
Asia Pacific is anticipated to grab the highest market share in the regional market
North America is expected to be the fastest growing market in the forthcoming years