Consumer demand and new regulations are heavily influencing expansion and marketability of novelties in Automotive switches industry. Increasing preference for vehicle with an integrated interior electronics model is catalyzing the overall market growth. This trend of having technology content in today’s cars provide lucrative business space to Automotive switches market as switches being an integral part of electronics infrastructure increases the general functionality of the vehicle. Modern day automobiles which are emended with a variety of electronics system such as electric steering, headlight control, HVAC, window heated seats etc. are all monitored by upgraded Automotive switcheses. Automotive switches market is slated to attain a massive revenue record of over USD 40 billion by 2024, with a CAGR projection of Global shipment rising at 5% over the period of 2016-2024- states Global Market Insights, Inc.
Global automobile production rate has drastically increased (22%) in the last six years, which has proportionally left an impact on the Automotive switches industry overall. The technological imperative has led to the developments in autonomous cars to that level that with each passing day the need for human interventions are getting eliminated and the dependency on Automotive switcheses are escalating. Furthermore, growing consumer interest on green alternatives such as hybrid and electric cars owing to its fuel efficiency will increase Automotive switches market demand in the years ahead. It is estimated that increasing automobile production rate will cater the shipments to reach 850 million units by 2024.
China Automotive Switch Market Share, By Product, 2016
Automobile electrification complexity has increased by many folds with the integration of advanced technologies. Electric cars are equipped with high voltage systems that range from 100 to 600 volts. Cut-off switches that are capable of deactivating the system during an emergency are now being integrated into the electronics module of advanced automobile. Panel mounted Automotive switches industry is continuously evolving to provide an uplifted user experience. Improved functionality, high flexible modularity, and customized human interface are some of the important features that allow panel mount to be one of the most preferred technologies for the manufacturers. Other than panel mount, touchpad and touch screen panels based Automotive switches market are also expected to cover a considerable share of the overall industry. Integration of smartphone functionality has provided the lucrative business space to touch panels and touch pads. With more number of OEMs getting interested in integrated touch-based panels for operations which include rear view camera, receiving calls as well as GPS navigation, this market will continue to witness an upward swing in its growth curve in the coming years. These unique benefits of touch pads and gesture recognition models have resulted in a downturn of knobs and button type based Automotive switches industry. For instance, concept cars including Vision Future Interaction, VW, BMW etc. have already replaced knobs and buttons with all-inclusive touch screen and touch pads.
Automotive switches market from engine management applications is anticipated to grow at an annual rate of more than 4% over 2016-2024. Spreading awareness of automobile safety while driving has favored the market growth for engine management applications. Anti- lock pressure, traction control, clutch release, and parking brake are some components that are incorporated in safety engine management application.
Passenger and Commercial vehicles are the basic two bifurcations of Automotive switches industry based on end use industries. Out of the two, passenger vehicles accounted for a dominating share of around 70 % of the total industry. Button switch preferences are high in both the segments since the deployment corresponds to electronic system model which enables better engine operation, enhanced user driving experience, and added safety features. Regionally, China has major grounds in establishing Automotive switches market. China is recorded to be the largest manufacturer of passenger vehicle in 2016, accounting for almost 34% of the global production. This huge production base in the country will have a direct impact on the regional Automotive switches market as it has escalated the demand for hi-tech vehicle components. Europe Automotive switches industry will also benefit in the years ahead from the huge adoption of advanced electronics system incorporation by OEMs.
Automotive switches market is highly characterized by research activities in developing novel, cost-effective technologies to achieve fail-safe accuracy for its incorporation into vehicles. Some of the Prominent industry participants who are investing heavily for the enhancement of the market include Continental, Delphi, Omron, Hella, and Tokai Rika.