Global Automotive Spark and Glow Plugs Market to Witness Moderate Growth Due to Increasing Vehicle Production and Strict Emission Norms
Global automotive spark and glow plugs market is estimated to be valued at US$ 8.4 Bn in 2024, exhibiting a CAGR of 1.9% over the forecast period (2024-2031). Increasing vehicle production across the globe especially in emerging economies such as India, China, Brazil, and others is one of the major factors driving the growth of the automotive spark and glow plugs market. Furthermore, stringent government regulations regarding vehicular emissions are also fuelling the demand for advanced ignition systems and components including spark and glow plugs.
Market Dynamics:
The growth of the global automotive spark and glow plugs market is determined by two key drivers - increasing vehicle production and stringent emission norms. Firstly, with rising disposable income and improving economic conditions, automobile production has witnessed significant rise globally. Developing regions with large population bases such as Asia Pacific have emerged as major automotive hubs. Growing vehicle has led to increasing demand for ignition plugs. Secondly, various governments and regulatory bodies have enforced stringent emission standards to control air pollution from vehicles. Emission norms such as Euro 6/VI and Bharat Stage VI have compelled automakers to adopt advanced ignition and combustion technologies for improved fuel efficiency and lower emissions.
Increasing Adoption of Diesel Vehicles is Driving the Demand for Spark Plugs
The growing demand for diesel vehicles across regions like Europe and Asia Pacific is a major driver for the automotive spark and glow plugs market. Diesel engines require spark plugs to initiate combustion in cylinders. With diesel emerging as a preferred fuel option due to its higher fuel efficiency than petrol, the sales of diesel cars has increased substantially. In May 2022, according to agency estimates, the share of diesel vehicles in new passenger vehicle sales was over 50% in major European countries last year. This growing preference for diesel automobiles directly increases the need for spark plugs in the automotive industry. Spark plug manufacturers are leveraging this trend to expand their business in the diesel spark plug segment.
Dependency on Fossil Fuels Hampers the Growth of Electric Vehicles
The automotive industry is witnessing the rapid adoption of electric vehicles due to environmental concerns associated with fossil fuel-powered vehicles. EVs do not require spark plugs or glow plugs as they are based on electric powertrains. Growing EV penetration presents a challenge for manufacturers dependent on combustion engine parts business. Though EVs currently have low market share, their sales are rising rapidly each year. Analysts expect EVs to dominate new vehicle sales in coming decades which can significantly hurt demand for spark plugs and glow plugs in long run.
Emergence of Hybrid Powertrains Provides New Application Areas
Hybrid electric vehicles that combine a combustion engine and electric motor are becoming increasingly popular with consumers. Unlike fully electric cars, hybrid electric vehicles (HEVs)s still require spark plugs for their internal combustion engines. The rising HEV market presents new growth prospects for spark plug manufacturers. It allows them to leverage their ignition expertise in hybrid auto powertrains. Leading plug makers are designing special ignition solutions optimized for mild hybrid and plug-in hybrid vehicle applications. Spark plug demand from hybrids is projected to partially offset future losses from all-electric vehicle uptake.
Adoption of Mild Hybrid Systems Spurs Growth Opportunities in Micro Hybrid Segments
Mild hybrid vehicles use technologies like start-stop ignition which turns off the engine at idle and restarts it using the starter motor. This improves fuel efficiency but needs robust ignition components to handle frequent engine stop-starts. Micro hybrid systems deployed in large commercial fleet vehicles also utilize advanced spark plug designs. Their uptake in commercial transport sector generates consistent demand. Several plug makers are focusing on these micro hybrid segments with specialized product ranges. As more automakers integrate mild hybridization across their portfolios, the associated demand from these hybrid drivetrains will act as a new revenue stream.
Link: https://www.coherentmarketinsights.com/market-insight/spark-plug-and-glow-plug-market-1474
Key Developments:
In July 2023, Denso Corporation and NGK Spark Plug Co., Ltd. have initiated discussions about transferring Denso's ceramic product lines, including spark plugs, O2 sensors, and air-fuel ratio sensors, to NGK Spark Plug Co., Ltd.
In June 2023, VM Motori, a Stellantis Group company, has unveiled a hydrogen (H2) version of its 2.2L engine. This engine delivers 62 kW of power and a peak torque of 270 Nm, featuring upgraded components such as common rails, pistons, spark plugs, ignition coil, and a pressure regulator.
In June 2022, NGK Spark Plug Co., Ltd. has signed a basic agreement with International Metalworking Companies BV (IMC) to initiate discussions on a capital and business alliance within the machine tools industry. As a result of this agreement, NGK expanded its facilities across Europe.
Key Player:
NGK Spark Plug Co., Ltd., Denso Corporation, Robert Bosch GmbH, Federal-Mogul Corporation (Tenneco), BorgWarner Inc., Autolite (FRAM Group), Delphi Technologies, ACDelco (General Motors), Valeo, and Magneti Marelli
