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Automotive Ignition Coil Market

Automotive Ignition Coil Market By Product Type (Can-Type Ignition Coil, Electronic Distributor Coil, Double Spark Coil and Pencil Ignition Coil), Vehicle Type (Passenger Cars, LCV, HCV), Sales Channel (Original Equipment Manufacturers, Aftermarket) & Region - Forecast to 2021 - 2031

Automotive Ignition Coil Market By Product Type (Can-Type Ignition Coil, Electronic Distributor Coil, Double Spark Coil and Pencil Ignition Coil), Vehicle Type (Passenger Cars, LCV, HCV), Sales Channel (Original Equipment Manufacturers, Aftermarket) & Region - Forecast to 2021 - 2031

Automotive Ignition Coil Market - Analysis, Outlook, Growth, Trends, Forecasts

Automotive Ignition Coil Market Snapshot

[210 Pages Report]  The global automotive ignition coil market is estimated to reach a valuation of US$ 2.6 Bn in 2021. Higher production of passenger vehicles will continue driving sales in the market. As per Future Market Insights (FMI) analysis, the automotive ignition coil market size is expected to surpass US$ 3.8 Bn in the next five years. Between 2021 and 2031, the market has been forecast to register 4.4% CAGR.

According to the study, automotive ignition coil sales represented 25% of overall automotive ignition systems market in 2020. Demand for automotive ignition coil is likely to soar as integration of dual spark ignition coil surges in compact and mid-size passenger cars.

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Details

Estimated Automotive Ignition Coil Market Size in 2021

US$ 2.6 Bn

Automotive Ignition Coil Market Growth Rate (Value)

~4.4% CAGR

Top Players Market Share (2021)

30%

2016-2020 Automotive Ignition Coil Market Outlook in Comparison to 2021-2031 Growth Forecast

FMI projects the global automotive ignition coil market to expand at a moderate 4.4% CAGR between 2021 and 2031, in comparison to the CAGR of 0.1% registered between 2016 and 2020.

Increasing production of passenger cars across India, China, Germany, and Japan will fuel the demand for automotive ignition coil. Also, need to improve engine efficiency and demand for light-weight cars are encouraging automakers to develop modern dual spark ignition coils.

As pencil ignition coil and dual spark ignition coil offer optimum performance and high fuel efficiency, their integration in in passenger cars, especially in compact-sized cars, will rise.

In response to this, Future Market Insights estimates the global automotive ignition coil sales to reach US$ 2.6 Bn by the end of 2021. The market will register year-on-year growth of 3.5% between 2020 and 2021.

Sales of automotive ignition coils however might decline with growing adoption of electric vehicles (EV) across the globe. Stringent regulations imposed by government to curb carbon footprints are accelerating the production of plug-in hybrid and electric vehicles. This is expected to dampen the sales prospects for the automotive ignition coil market in the future.

Will Elevated Passenger Car Production Aid the Sales of Automotive Ignition Coils?

Rising automobiles sales worldwide and increase in vehicle production are positively affecting the sales of automotive ignition coils. Despite the unstable economic condition, the global automotive industry remained steady, thanks to surging vehicle production in emerging economies.

Sales of passenger cars in India, China, and Japan are increasing as compared to developed economies. According to India Brand Equity Foundation, in 2020, India was the fifth-largest auto market, with nearly 3.49 million units’ vehicles sold in the passenger and commercial vehicles segments.

Urbanization, per capita income growth, and improving living standards will result in higher automotive production in emerging countries, in turn fuelling the demand for ignition coils. During the projection period, fleet on road is also expected to rise at a moderate rate, providing an impetus for the growth in the global automotive ignition coil market.

How Will Booming EV Sales Affect Automotive Ignition Coil Demand?

Growing environmental sustainability concern is encouraging automotive manufacturers to incorporate several changes in the manufacturing of passenger and commercial vehicles.

As a result, light weight technologies are acquiring immense popularity among automakers in order to curb the carbon emissions. Hence, adoption of electric vehicles (EV) and plug-in hybrids is increasing, especially across China, the U.S., and Germany. Also, higher fuel efficiency can be achieved by reducing the weight of vehicle, which has resulted in higher adoption of electric vehicles.

Countries such as India, China, and Germany are imposing strict policies to curb the emission in order to achieve fuel economy. This regulations are encouraging the production of electric vehicles. These trends are expected to have adverse impact on automotive ignition coil market.

What is the Impact of the COVID-19 Crisis on Automotive Ignition Coil Market?

The unprecedented outbreak of COVID-19 restricted the sales of automotive ignition coils as the automotive industry witnessed a slight setback in 2020. However, with the recommencement of automotive production in FQ-2020, sales of passenger and commercial vehicles improved, in turn fuelling the demand for automotive ignition coils.

Despite a slight setback, global sales of all vehicles recorded in 2020 was 77.9 million units, as per International Organization of Motor Vehicle Manufacturers. Among this, passenger cars sales reached 53.5 million units in 2020, while around 24.3 million commercial vehicles were sold in 2020 across the globe.

Some of the leading automotive ignition coil manufacturers are recuperating with the loss occurred due to the outbreak of COVID-19 by collaborating and entering in long-term partnerships with OEMs. Through this, they also intend to cater the rising demand for improved fuel efficiency in passenger cars among consumers.

Country-wise Analysis

What is Driving U.S. Automotive Ignition Coil Market?

The U.S. is expected to spearhead the growth of North America automotive ignition coil market in 2021. Sales of automotive ignition coils in U.S. are surging on the back of increasing production of passenger cars and higher focus on reducing carbon emission.

According to the Two Fuel Economy Programs, in order to reduce the carbon footprints and decrease the pollution, the government is encouraging automakers to manufacturer vehicles of compact size and with lower need for fuel in the vehicles.

As these compact cars with greater fuel efficiency need a smooth spark, adoption of double spark coil is accelerating. On the back of this, demand for automotive ignition coil is expected to grow in the U.S. over the forthcoming years.

Another factor driving the sales of automotive ignition coils in the U.S. includes the strong presence of leading automakers in the country. However, higher sales of plug-in hybrid and battery electric vehicles might hamper growth in the market to an extent.

What is the Germany Automotive Ignition Coil Market Outlook?

Germany is home to one of the largest automotive industries in the world. With surging production of passenger cars, adoption of double spark coil and pencil ignition coil has increased since the FQ-20.

As per Verband der Automoilindustrie, in March 2021, production of passenger cars increased by 31%, with 378,669 cars manufactured in Germany. As the production of cars is increasing, automakers are extensively adopting ignition coil to improve the engine efficiency and reduce pollution.

As double spark coil provides optimum level of combustion and high performance with enhanced fuel efficiency and vibration. Besides higher uptake of double spark coils, German manufacturers have exhibited increasing inclination for product launches.

For instance, recently in 2017, NGK Spark Plug Europe announced the launch of five new ignition coils or recent models from Peugeot-Citroën, General Motors, Range Rover and Ford to its aftermarket range.

Will China Automotive Ignition Coil Market Continue Dominating East Asia?

As per International Trade Administration, China is projected to remain the world’s largest vehicle market in terms of annual sales and manufacturing output, with domestic automotive production reaching 35 million vehicles by 2025.

With over 21.44 million passenger cars sold in 2019, sales of mid-size and compact passenger car are expected to increase by the end of 2031. On account of increasing passenger car export and import, adoption of ignition coil is expected to burgeon over the years.

The onset of the novel COVID-19 dampened the sales prospects of automotive ignition coil as sales of automotive vehicles declined in the FQ-20. However, with resumption in manufacturing activities, sales of automotive passenger cars are expected to increase which in turn will improve the adoption of automotive ignition coil across China.

As per FMI, China is expected to emerge as the most lucrative market in East Asia during the forecast period.

Category-wise Insights

Why is Pencil Automotive Ignition Coil Demand Increasing?

As per Future Market Insights, in terms of product type, the pencil ignition coils are expected to remain highly sought-after among end-users. The segment is expected to account for over 33% of global automotive ignition coil market share.

Demand for pencil ignition coil is increasing with the growing adoption of compact and mid-size passenger cars. Leading automotive giants such as Chrysler, Toyota, and other have showcased increasing the adoption of pencil ignition coil.

Pencil ignition coil offers electrical, mechanical, and thermal isolation between the magnetic core, which improves the magnetic field in the automotive engine. This helps in improving overall vehicular performance.

Automotive Ignition Coil Application to Remain High in Passenger Cars

In terms of vehicle type, the passenger car segment is expected to reach a valuation of US$ 2.9 Bn during the forecast period. As per FMI, sales of automotive ignition coil in passenger cars are expected to increase at 4.8% CAGR through 2031.

Increasing production of compact and mid-size passenger cars is surging the demand for automotive ignition coils. As per FMI, over 3/4th of global automotive ignition coil sales will be accounted by passenger cars in the coming years.

Why are Original Equipment Manufacturers (OEMs) Most Preferred Sales Channel?

OEMs will account for more than 90% of automotive ignition coil sales through 2031. Automotive companies prefer original equipment to improve the efficiency of engine and the vehicle.

Manufacturing of double spark coil and pencil ignition coil is expected to remain high among OEMs to support the surging demand from automotive companies to downsize the engine and improve fuel efficiency.

Hence, key players are entering into definitive agreements and long-term contracts with OEMs for business consolidation. This will also help the market players to reduce the production costs and increase profit margins.

Competitive Landscape

Leading players operating in the automotive ignition coil market are adopting expansion strategies such as mergers and collaborations to expand their global presence. They are also collaborating with OEMs to develop strategic partnerships and gain competitive edge.

Meanwhile, some of the players are introducing new products and entering in long-term business contracts with OEMs for increasing their profit margins. As per FMI, top 5 players in the automotive ignition coil market will account for 30% of total market share.

Scope of Report

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

US$ Bn for Value

Key Regions Covered

North America, Latin America, Europe, East Asia, South Asia, Oceania and MEA

Key Countries Covered

United States, Canada, Brazil, Mexico, Germany, UK, France, Italy, Spain, Nordic, Russia, Poland, China, India, Thailand, Indonesia, Australia and New Zealand, Japan, GCC countries, North Africa, South Africa, others.

Key Market Segments Covered

Product Type, Vehicle Type, Sales Channel, and Region

Key Companies Profiled

Pricing

Available upon Request

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Automotive Ignition Coil Market by Category

Product Type:

  • Can-Type Ignition Coil
  • Electronic Distributor Coil
  • Double Spark Coil
  • Pencil Ignition Coil
  • Ignition Coil Rail
  • Others

Vehicle Type:

  • Passenger Cars
  • LCV
  • HCV

Sales Channel:

  • Original Equipment Manufacturers (OEM)
  • Aftermarket

Region:

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • Asia Pacific excluding Japan
  • Middle East & Africa
  • Japan

Key Questions Answered in the Report

What is the current value of the global automotive ignition coil market?

The global automotive ignition coil market is expected to reach a valuation of US$ 2.6 Bn in 2021.
The global automotive ignition coil market grew at a 0.1% CAGR between 2016 and 2020.
Increasing production of electric vehicles and growing demand for mid-size and compact cars supporting the demand for pencil ignition coils will increase the sales of automotive ignition coil.
Top 5 automotive ignition coil producers are expected to hold around 30% of the total market share in 2021.
The U.S., India, Germany, and China are the top countries driving demand for automotive ignition coil.
Demand for automotive ignition coil in Europe is projected to rise at 3% CAGR during the forecast period of 2021 and 2031.
North America automotive ignition coil market is projected to grow at a 3.1% CAGR over the next ten years.
Japan and South Korea are expected to account for 14% of global automotive ignition coil sales in 2021.

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