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

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 COVID-19 pandemic enters its second stage, the global automotive electrical products market is anticipated to experience a slowdown, with growth remaining modest yet steady until the latter half of 2021. However, stringent regulations on emission safety standards and technological advancements, such as e-mobility, are expected to drive the expansion of the automotive electrical products market size. Enhanced vehicular safety is also augmenting the usage of automotive electrical products, with systems like lane assist and adaptive cruise control becoming highly prevalent. These systems now comprise nearly three-tenths of overall vehicular costs. Additionally, the adoption of infotainment systems for recreational purposes is further boosting the growth prospects of the global automotive electrical products market.

Automotive Electrical Products Market Trends

Deepening Electric Vehicle Penetration Surging Demand:

Recent years have seen a significant increase in global electric vehicle (EV) sales, representing a steady rise despite temporary stalls due to the pandemic. The future for EVs remains promising, driven by growing environmental sustainability concerns. Notable automobile companies such as General Motors, Volvo, and Volkswagen are introducing hybrid vehicles, which is likely to enhance the scope of the automotive electrical products market. It is expected that a substantial portion of automotive sales in major markets will be electric in the coming years, further propelling the demand for various electrical products including batteries, connectors, light equipment, alternators & starters, ignition systems & parts, and infotainment gadgets.

Burgeoning Technological Advancements Aiding Market Growth:

The global automotive industry has witnessed numerous technological advancements, disrupting traditional practices and paving the way for innovative solutions. Governments worldwide are striving to achieve complete automotive electrification as part of their sustainable development initiatives. Vehicle manufacturers are overcoming obstacles such as high costs, limited battery life, and inadequate charging infrastructure to encourage the uptake of EVs. These advancements bode well for the future growth of the automotive electrical products market.

Key Technological Developments:
• Lordstown Motor Corps: This American start-up has developed an all-electric pickup truck named Endurance™, featuring four hub electric motors suitable for four-wheel drives and a capacity to travel over 250 miles on a single charge.
• ChargeX: A German startup, ChargeX markets the Aqueduct charging solution, which includes four charging modules with a capacity of up to 22 kilowatts. This system is flexible and recognizes the charging requirements of each car, regulating charge input and speed accordingly.

High Growth Potential for Automotive Connectors:

Amongst all automotive electrical products, connectors are expected to register significant growth over the coming years. A multi-billion dollar valuation is predicted for this segment, driven by the increasing production of vehicles to meet rising consumer demand. Numerous manufacturers have successfully penetrated the automotive electrical products market through their connector portfolios.

Notable Manufacturers and Innovations:
• ODU Connectors: ODU offers a wide range of automotive connectors and cable assemblies, including solutions for air conditioner compressors and cable assembly for EVs.
• Panasonic Corporation: In recent developments, Panasonic launched the CF1 Board to the FPC Connector series, eliminating the need for wire harnesses for connecting LED headlamps to the main engine. It also markets the CW1 connector for high-temperature applications.

Regional Outlook of Automotive Electrical Products Market

North America:

North America is poised to dominate the global automotive electrical products market, attributed to the burgeoning EV industry. Over recent years, numerous startups offering EV automotive electrical products and solutions have emerged. Despite moderate declines amid the COVID-19 crisis, EV sales are anticipated to continue their upward trajectory, owing to reduced dependence on conventional fossil-fuel cars. Consequently, companies such as Intvo, Udelv, and Lordstown Motors have significantly enhanced their presence across the North American market. Moreover, government regulations encouraging EV uptake are boosting sales of electrical products in this region.

Europe:

The European automotive electrical products market is also witnessing significant growth, driven by stringent emission regulations and increasing EV adoption. Major European automobile manufacturers are investing heavily in the development and production of EVs, further augmenting the demand for automotive electrical products.

Asia-Pacific:

In the Asia-Pacific region, countries such as China and India are experiencing rapid growth in the automotive electrical products market. The growing adoption of EVs and government initiatives promoting sustainable transportation are key factors driving market growth in this region.

COVID-19 Impact on Automotive Electrical Products Market

As the world braces for the second wave of COVID-19, industries are taking steps to mitigate possible supply chain disruptions. The automotive electrical products market is likely to survive the recessionary impacts of the pandemic, driven primarily by sustained sales of EVs. The number of electric cars is expected to continue rising, providing traction to the progress of the automotive electrical products market during the pandemic.

Conventional automotive manufacturers are enforcing strict social distancing protocols on-site, permitting the resumption of manufacturing operations. While the automotive market may experience a temporary slump, a rebound is anticipated in the near future. China's automotive sales have already shown signs of recovery, proving the industry's resilience since the pandemic's onset. These trends point toward a positive outlook for the automotive electrical products market.

Automotive Electrical Products Market: Prominent Players

The global automotive electrical products market features numerous vendors, including:
• Altera (Intel Corporation)
• BBB Industries Ltd.
• Broadcom Ltd.
• Continental AG
• DENSO Corporation
• Hella GmbH & Co. Kgaa
• Hitachi Automotive Systems Ltd.
• Infineon Technologies AG

These players rely on technological innovations, new product launches, collaborations, acquisitions, and expansion of existing production capacities to stay competitive. Emerging economies are a primary focus, attributed to rapidly flourishing automotive and associated industries in these regions.

Analysts’ Viewpoint

Prominent manufacturers in the automotive electrical products market are likely to find lucrative growth opportunities across the electric vehicles segment, driven by increasing environmental concerns and government initiatives promoting cleaner alternatives.

Key Segments of Global Automotive Electrical Products Market

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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