Automotive Electrical Products Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2031 - By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa)

As the world grapples with the second wave of COVID-19, the global automotive electrical products market is experiencing a noticeable slowdown. Growth is expected to remain modest but steady until the situation stabilizes. Despite this, stringent emission safety standards and technological innovations, such as e-mobility, are driving the expansion of the automotive electrical products market. Enhanced vehicular safety systems are also boosting the use of automotive electrical products. Features like lane assist systems and adaptive cruise control, which help prevent accidents, now make up a significant portion of overall vehicular costs. Additionally, the rising adoption of infotainment systems for recreational purposes is further enhancing the market's growth prospects.

Automotive Electrical Products Market Trends

Deepening Electric Vehicle Penetration

The demand for electric vehicles (EVs) has been on the rise, with global sales showing consistent growth. Although the pandemic has temporarily hindered this progress, the future for EVs remains bright due to increasing environmental sustainability concerns. Major automobile manufacturers, including General Motors, Volvo, and Volkswagen, are rolling out hybrid vehicles, expanding the scope of the automotive electrical products market. Sales of various electrical products such as batteries, connectors, light equipment, alternators, starters, ignition systems, and infotainment gadgets are witnessing substantial growth due to these trends.

Technological Advancements

Numerous technological advancements are revolutionizing the global automotive industry. Governments worldwide are pushing for complete automotive electrification as part of their sustainable development goals. Vehicle manufacturers are tackling challenges like high costs, limited battery life, and inadequate charging infrastructure to promote EV adoption. These efforts are expected to drive significant growth in the automotive electrical products market.

For example, Lordstown Motor Corps, an American start-up, has developed an all-electric pickup truck named EnduranceTM. This vehicle features four hub electric motors suitable for four-wheel drives and can travel over 250 miles on a single charge. Similarly, ChargeX, a German startup, offers the Aqueduct charging solution, which includes four charging modules with a capacity of up to 22 kilowatts. This system is flexible, recognizing the charging needs of each car and adjusting the charge input and speed accordingly.

High Growth Potential for Automotive Connectors

Among all automotive electrical products, connectors are expected to register notable growth in the coming years. This segment is predicted to achieve a multi-billion dollar valuation. Increased automotive production to meet rising consumer demand has accelerated the uptake of connectors. Several manufacturers have successfully entered the automotive electrical products market with their connector portfolios.

ODU Connectors, for instance, offers a wide range of automotive connectors and cable assemblies, providing solutions for air conditioner compressors and cable assemblies for EVs. Panasonic Corporation has also made significant strides in this area. The company launched mass production of the CF1 Board to the FPC Connector series, eliminating the need for wire harnesses previously required for connecting LED headlamps to the main engine. Panasonic's CW1 connector, designed for 125°C heat resistance applications, is another notable offering.

Regional Outlook of the Automotive Electrical Products Market

North America

North America is expected to lead the global automotive electrical products market, driven by the booming EV industry. Numerous startups offering EV automotive electrical products and solutions have emerged in the region. Sales of plug-in electric vehicles (PEVs) have shown impressive growth, and although there was a moderate decline during the COVID-19 crisis, the trend is anticipated to continue upward due to the reduced reliance on conventional fossil-fuel cars. With a significant portion of the population expected to own EVs, companies like Intvo, Udelv, and Lordstown Motors are enhancing their presence in the North American market. Government regulations promoting EV adoption are also boosting sales of automotive electrical products.

COVID-19 Impact on the Automotive Electrical Products Market

As industries prepare for the second wave of COVID-19, steps are being taken to mitigate potential supply chain disruptions. Despite the pandemic's recessionary impacts, the automotive electrical products market is expected to remain resilient, primarily driven by sustained EV sales. The number of electric cars is projected to increase significantly, providing momentum for the automotive electrical products market. Conventional automotive manufacturers are enforcing strict social distancing protocols, allowing for the resumption of manufacturing operations. Although the automotive market experienced a slump, it is anticipated to rebound in the near future.

In China, the automotive industry is showing signs of recovery. Since the onset of the pandemic, Chinese automotive sales have increased, demonstrating the industry's resilience. These trends suggest a positive outlook for the automotive electrical products market.

Prominent Players in the Automotive Electrical Products Market

The global automotive electrical products market is characterized by the presence of numerous vendors. Prominent players include Altera (Intel Corporation), BBB Industries Ltd., Broadcom Ltd., Continental AG, DENSO Corporation, Hella GmbH & Co. Kgaa, Hitachi Automotive Systems Ltd., and Infineon Technologies AG. These companies focus on technological innovations, new product launches, collaborations, acquisitions, and expanding existing production capacities to maintain their market positions. Their primary focus is on emerging economies, where the automotive and related industries are rapidly growing.

Analysts’ Viewpoint

Manufacturers in the automotive electrical products market are likely to find lucrative growth opportunities in the electric vehicles segment. Increasing environmental concerns are prompting governments to switch to cleaner alternatives, driving the market's growth.

Key Segments of the Global Automotive Electrical Products Market

The global automotive electrical products market is segmented into three categories: product, vehicle, and region.

Product

• Light Equipment
• Automotive Batteries
• Automotive Connectors
• Alternators & Starters
• Ignition Systems & Parts
• Others

Vehicle

• Passenger Vehicles
• Light Commercial Vehicles
• Heavy Commercial Vehicles

Region

• North America
• Latin America
• Europe
• South Asia
• East Asia
• Oceania
• Middle East Africa

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