SPARK PLUGS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Spark Plugs Market Size and Trends

The Spark Plugs Market is estimated to be valued at USD 3.52 Bn in 2024 and is expected to reach USD 4.89 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 4.8% from 2024 to 2031.

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The spark plug market is expected to witness moderate growth over the forecast period. The demand for spark plugs is driven by the growing vehicle parc across the world. However, the emergence of electric vehicles is expected to hinder the growth of the spark plug market as electric vehicles do not require spark plugs for ignition. Nonetheless, the vast fleet of gasoline-powered vehicles worldwide will continue to demand replacement of spark plugs, which will drive the market growth during the forecast period. The adoption of electric vehicles is also expected to grow gradually giving sufficient time for the spark plug market to grow.

Global Growth in Automotive Industry

The global automotive industry has been witnessing steady growth over the past few years. Both developed as well as developing countries are observing higher vehicle production and sales numbers. This growing vehicle parc is creating upward pressure on the demand for various automotive parts and components. Spark plugs are an integral part of any combustion engine vehicle and play a crucial role in engine ignition and performance. As more vehicles hit the roads every year across regions, the requirement for spark plug replacement also rises proportionately. Original equipment manufacturers as well as aftermarket players are recognizing this trend and accordingly scaling up their spark plug manufacturing and distribution networks.

Countries with large automobile manufacturing bases like China, the U.S., Germany, Japan, etc. have been at the forefront of this automotive expansion. Their spark plug needs are growing the fastest given the massive number of new vehicles added each year to domestic car parks. Emerging markets too have picked up pace in terms of both passenger car and commercial vehicle production. Nations in South America, Middle-East, Eastern Europe, Southeast Asia, and Africa are witnessing double digit annual growth in new vehicle registrations. This has opened up untapped potential for spark plug sellers who are now directing investment and distribution focus towards these high growth territories. Overall, the worldwide rising sale of cars, trucks, buses, and other motorized modes of transport provides a tailwind for the global spark plug market.

Government emission norms are getting tighter across the world with each passing year in order to curb pollution levels from vehicle exhaust. Regulatory authorities are putting consistent pressure on automakers to adopt cleaner engine technologies and comply with stringent emission standards. In response to this, vehicle manufacturers are focusing on engine optimization through modifications such as improved fuel injection systems, advanced ignition controls and upgraded spark plug designs. They are collaborating with plug manufacturers to co-develop next generation iridium, platinum and other alloy based spark plugs with properties like high resistance to heat and corrosion. Such upgraded plugs ensure superior engine efficiency, performance and emission treatment capability.

For instance, countries like the U.S. and Japan already follow Euro 6 or equivalent rigorous emission standards. Other major markets like China and India have also significantly raised the compliance bar over the past 5-10 years through the implementation of BS-VI, China 6 norms. Meeting these regulations involves periodic improvements to spark plug design and composition.