Automotive Switches Market Size, Share, Competitive Landscape and Trend Analysis Report by Type, Design, Vehicle Type and Sales Channel : Global Opportunity Analysis and Industry Forecast, 2020-2027

Automotive Switches Market Statistics - 2027

The global automotive switches market valued $28,656.1 million in 2019 and is projected to reach $43,269.2 million in 2027, registering a CAGR of 7.6%.    

The global automotive industry has experienced tremendous transformation in the past few years. The ever-growing demand for passenger safety and comfort is making the vehicle manufacturers focus incessantly on forming new design experiences by enabling efficient incorporation of new technologies and processes. The dramatic change from the usage of mechanical parts to electronic parts is anticipated to fortify the demand for automotive switches up to a great degree over the forecast timeframe.

Automotive switches are one of the basic components of a vehicle. They regulate the entire electrical equipment installed in an automobile. Automotive switches play a crucial role in managing the automotive lighting and nearly all the working inside an automotive. They are also used for engine start & stop applications and several other automobile functions. Globally, increasing technological upgrades and rising demand for installing car accessories are expected to boost the growth of the automotive switches market over the forecast period.

The automotive switches market is segmented into type, design, vehicle type, sales channel, and region. Based on type, it is further divided into ignition switches, HVAC switches, steering wheel switches, window switches, overhead console switches, seat control switches, door switches, hazard switches, multi-purpose switches, and others. Based on design, it is classified into rocker switches, rotary switches, toggle switches, push switches, and other switches. Depending on the vehicle type, it is fragmented into passenger cars, light commercial vehicles, and heavy commercial vehicles. Based on sales channel, it is bifurcated into original equipment manufacturers and aftermarket. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Key players operating in the global automotive switches market include C&K Switches, Eaton Corporation PLC, INENSY, Johnson Electric Holdings Limited, Leopold Kostal GmbH & Co. Kg, Marquardt GmbH, Preh GmbH, Tokai Rika Co Ltd., Toyodenso Co., Ltd., Valeo, and ZF Friedrichshafen AG.

Growing demand for automotive switches in commercial vehicles

Commercial vehicles are immensely useful in supporting the rising urbanization and industrialization, especially across developing nations across the world. According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), the global sales of commercial vehicles stood at 26,693,300 vehicles in 2019 and 24,372,388 in 2020. The sales of commercial vehicles were down by just 8.69% in 2020 in contrast with a sharp decline of 15.89% in the passenger car segment, thereby indicating a strong demand for commercial vehicles across the globe. While electronic switching components are widely used for the electrical systems of passenger vehicles, commercial vehicle manufacturers are installing a rising number of automotive switches to offer comfortable, convenient, and safe settings inside a bus, truck, van, and others. To respond to the rising demand for convenient and user-friendly automotive switches, companies, such as Carling Technologies, have launched several automotive switches in the market. Carling Technologies, a switch and circuit breaker manufacturer, launched the CSW automotive switch series in September 2019. The product features a three-position lever, multi-position rotary, and momentary pushbutton functions that are well suited for a variety of commercial vehicles. 

OEMs are strategically integrating electronics for enhancing user functionality and appeal. Electronic component manufacturers are witnessing a rise in demand for cable assemblies, switches, connectors, and other electronic technologies to offer increased safety and comfort in commercial vehicles. Therefore, the increasing number of automotive switches being fitted in a commercial vehicle is expected to propel the growth of the global automotive switches market over the forecast timeframe.

Rising demand for automatic automotive switches

Automotive switches are one of the most important components in an automotive. They control the entire electrical equipment installed in an automotive. They are crucial in controlling various functioning of an automotive such as lights, engine start/stop, mirror controls, and others. While these functions can be done by manual automotive switches, automatic switches are gaining immense popularity across the globe, owing to the added convenience that they allow as they function appropriately, without any human intervention. Such switches reduce the distraction of driver and offer an enhanced safety feature. 

Automatic switches operate in accordance to the response sent by different sensors. They are generally installed in luxury passenger cars and other high-end automotive. When the light switch is set to auto, the headlamps are automatically turned on according to the low ambient light conditions, for example, when the car crosses a tunnel sunset, or during rain/snow. Similarly, automatic switches enhance the convenience of driving an automotive by helping achieve the auto dimming mirror action possible. In auto or self-dimming mirror technology, a front-looking sensor senses low immediate surrounding light from headlights behind the car and guides the rear-view sensor to check for glare. The mirrors dim on their own in accordance to how sharp the glare is, and it clears automatically in case the glare is not detected by the sensors. This technology is immensely useful at night and helps save road mishaps. Luxury car manufacturers, such as Audi, BMW, Mercedes, Ford, Jaguar Land Rover, and others, equip their cars with several automatic automotive switches to enhance the driving experience and safety of the passengers. Therefore, the rising demand for automatic automotive switches is expected to drive the growth of the global automotive switch market over the forecast timeframe.   

Use of haptics and voice control technologies

The security of drivers has always been the main concern for car manufacturers across the globe. Attributed to numerous car accidents occurring every year, incorporating technologies into a car ensures the safety of passengers. Therefore, the automotive industry is constantly working to find means for improving passengers’ safety. One such technology that can reduce the distraction of drivers from infotainment screens and operating different automotive switches is haptic technology. This technology relates to the perception of touch, and is rapidly being implemented by the automotive industry as a means to offer the drivers a more intuitive informed driving experience. Big car manufacturers are aggressively working to integrate haptic technology into their cars. For instance, it is available in the all new-generation Audi cars globally. Audi calls it Multimedia Interface (MMI) Touch Response where the central touchscreen feeds back to the touch to deliver haptic feedback, with a unique sound with every single touch. 

Another technology that is gaining traction in the automotive sector is the in-car voice control. This technology reduces the distractions that come while driving and just requires the voice commands from the driver to actuate several functions in a car, thus eliminating the requirement for the driver to divert his/her attention away from the road. This technology has been adopted by numerous players worldwide, for example, Mercedes, BMW, Ford, and Toyota.

The above-mentioned technologies are anticipated to hinder the growth of the global automotive switches market as they reduce the number of automotive switches installed in an automobile.

Growing implementation of electronic systems in vehicles

Over the last few decades, mechanical switches were used to operate majority of the functions/applications in a vehicle. Nowadays, the OEMs have started replacing mechanical switches to electrical. With the rising demand for more convenient and smart operability of different functions in an automobile, numerous manufacturers are installing more electronics in their vehicles. They are more responsive, fast in operation, and more economical than mechanical switches. The use of electronics offers superior comfort, connectivity, efficiency, and safety in passenger cars and light & heavy commercial vehicles. Over the years, electronics is anticipated to account for a major portion of the overall cost of cars. 

Electronic or electromechanical switches used in today’s automobiles, such as rocker, toggle, push-button, and others, that are generally found in every 12-volt electrical system in an automotive, handling various operations from turning lights on to controlling critical systems. With the rising popularity of automotive applications, the required performance of switching devices is also changing at a faster rate. Cutting-edge power devices with built-in intelligence features, for instance, safety and running automatic diagnostics for an automobile are rapidly leading to the adoption of technologically-advanced automotive switches. Therefore, the rising incorporation of electronics in automobiles is anticipated to propel the growth of the automotive switches market over the forecast timeframe. 

COVID-19 Impact Analysis 

• The COVID-19 impact on the automotive switches market is unpredictable and is expected to remain in force till the second quarter of 2021. 
• The COVID-19 outbreak forced governments across the globe to implement strict lockdowns and made social distancing mandatory to contain the spread of the virus. Consequently, several organizations started work from home programs as safety measures. This led to sudden fall in demand for automobiles across the world. 
• Moreover, nationwide lockdowns disrupted the supply-chain as several manufacturing facilities across the globe had to partially or fully shut down their operations.
• The adverse impacts of the COVID-19 pandemic resulted in huge supply-demand issues globally.

Key Benefits For Stakeholders

• This study presents the analytical depiction of the global automotive switches market analysis along with the current trends and future estimations to depict imminent investment pockets.
• The overall automotive switches market opportunity is determined by understanding profitable trends to gain a stronger foothold.
• The report presents information related to the key drivers, restraints, and opportunities of the global automotive switches market with a detailed impact analysis.
• The current automotive switches market is quantitatively analyzed from 2019 to 2027 to benchmark the financial competency.
• Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.

Key Market Segments

By Type

• Ignition Switches
• HVAC Switches
• Steering Wheel Switches
• Window Switches
• Overhead Console Switches
• Seat Control Switches
• Door Switches
• Hazard Switches
• Multi-purpose Switches
• Others

By Design

• Rocker Switches
• Rotary Switches
• Toggle Switches
• Push Switches
• Other Switches

By Vehicle Type

• Passenger Cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles

By Sales Channel

• Original Equipment Manufacturers
• Aftermarket

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Rest of Europe
• Asia-Pacific
  • China 
  • Japan 
  • India 
  • South Korea
  • ASEAN 
  • Rest of Asia-Pacific
• LAMEA
  • Latin America
  • Middle East
  • Africa

KEY PLAYERS

• C&K Switches
• Eaton Corporation PLC
• INENSY
• Johnson Electric Holdings Limited
• Leopold Kostal GmbH & Co. Kg
• Marquardt GmbH
• Preh GmbH
• Tokai Rika Co Ltd.
• Toyodenso Co., Ltd.
• Valeo
• ZF Friedrichshafen AG

  Automotive Switches Market Report Highlights

Aspects	Details
By TYPE	Ignition switches HVAC switches Steering wheel switches Window switches Overhead console switches Seat control switches Door switches Hazard switches Multi-purpose switches Others
By DESIGN	Rocker switches Rotary switches Toggle switches Push switches Other switches
By VEHICLE TYPE	Passenger Cars Light Commercial Vehicles Heavy Commercial Vehicles
By SALES CHANNEL	Original Equipment Manufacturers Aftermarket
By Region	North America  (U.S., Canada, Mexico) Europe  (France, Germany, Italy, Spain, UK, Russia, Rest of Europe) Asia-Pacific  (China, Japan, India, South Korea, Australia, Thailand, Malaysia, Indonesia, Rest of Asia-Pacific) LAMEA  (Brazil, South Africa, Saudi Arabia, UAE, Argentina, Rest of LAMEA)
Key Market Players	JOHNSON ELECTRIC HOLDINGS LIMITED, C&K SWITCHES, TOKAI RIKA CO., LTD., VALEO, ZF FRIEDRICHSHAFEN AG, LEOPOLD KOSTAL GmbH & CO. KG, .INENSY (INDUSTRIAL ENGINEERING SYNDICATE), .MARQUARDT GmbH, PREH GmbH, TOYODENSO CO., LTD., .EATON CORPORATION PLC

Analyst Review

The global automotive switches market is expected to witness significant growth due to the rising demand for automotive switches to be fitted in automobiles to enhance the safety, comfort, and convenience of the passengers and the driver. Automotive switches are fitted for different functions such as cruise control, lights control, wipers control, HVAC control, and several others.

Growing demand for automotive switches in commercial vehicles and rising demand for automatic automotive switches are expected to drive the automotive switches market growth over the forecast period. However, the rising use of haptics and the fluctuating price of raw materials used in making automotive switches are anticipated to hamper the growth of the market during the forecast period. Moreover, growing implementation of electronic systems in vehicles and innovations in automotive switches are expected to offer lucrative opportunities for the market in future.

Automotive switches of different types, for instance, toggle, rocker, push-button, rotary, and others are commonly found across all the 12-volt electrical systems, enabling and simplifying the function of turning lights on to controlling critical systems. The growing demand for safety systems in the automobile sector has resulted in the rising adoption of safety switches and sensors across all vehicle types globally. The growing concern for safety and the shifting of the global automobile industry toward the usage of enhanced technologies are the main driving factors for the growth of the global automotive switches market. Furthermore, the ever-changing consumer preferences for the installation of car accessories have forced automotive manufacturers to provide superior safety and comfort features in their automobiles.

One of the dominant trends in the automotive industry is the increasing use of electronics in vehicles, which is expected to drive the market growth over the forecast period. The growing consumer demand for superior driving experience and product offerings by OEMs to offer more safety, comfort, higher performance, and stability is projected to propel the market growth over the years. It has resulted in the intensification of the demand for electromechanical switches across the globe.

The increasing demand for automotive switches that can enhance the experience of infotainment is a major driver that is expected to fuel the use of microelectronics in automobiles. In addition, rising initiatives by nations across the globe to reduce accidents and lessen road causalities are expected to boost the demand for automotive switches and sensors that offer superior capabilities.

Among the analyzed regions, Asia-Pacific is the highest revenue contributor, followed by Europe, North America, and LAMEA. On the basis of forecast analysis, Asia-Pacific is expected to maintain its lead during the forecast period, owing to the growing automotive industry in the region and the presence of countries, such as China and India, which are the global production hubs for automotive components.
 

Author Name(s) : Mayank Halmare| Himanshu Joshi | Lalit Janardhan Katare

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