Spark Plugs Market Will Grow at Highest Pace Owing To Rising Automotive Industry
The spark plugs market has been growing at a steady pace owing to factors such as rising vehicles production and overall growth of the automotive industry globally. Spark plugs are components used in internal combustion engines that ignite the air-fuel mixture in each cylinder by producing an electric spark, ensuring proper combustion. They help in smooth functioning of engines by providing high voltage spark to ignite the compressed air-fuel mixture in the combustion chamber at exactly the right moment.
The Global spark plugs market is estimated to be valued at US$ 3.52 Bn in 2024 and is expected to exhibit a CAGR of 4.8% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the spark plugs market are DENSO Corporation, Robert Bosch LLC, Tenneco Inc., Niterra, BorgWarner Inc., General Motors, Valeo, MAGNETI MARELLI PARTS & SERVICES, Tenneco, ABRO Industries, Carborundum Universal Limited and Burg Germany GmbH. These players are focused on adopting various organic and inorganic growth strategies such as new product launches, mergers & acquisitions and capacity expansions to strengthen their foothold in the global market.
The Spark Plugs Market Demand is expected to rise owing to increasing vehicle parc globally. According to International Organization of Motor Vehicle Manufacturers, over 94 million vehicles were produced globally in 2021 indicating rising vehicle production. This will positively influence the demand for spark plugs.
Technological advancements are influencing the spark plug designs. Key players are focused on developing advanced spark plug designs with enhanced performance, durability and ignition timing. For instance, iridium alloy spark plugs have emerged as a popular design owing to advantages such as longer service life and ability to withstand high temperatures compared to conventional copper and silver alloy spark plugs.
Market Trends
Growing demand for electric vehicles: With increasing focus on electric vehicles to curb emissions, sales of electric vehicles are rising significantly. This could hamper the demand of Spark Plugs Market Size and Trends used in conventional gasoline and diesel vehicles.
Adoption of laser ignition technology: Laser ignition uses a laser to ignite the combustion chamber instead of a traditional spark plug eliminating the need for high-voltage spark. Some OEMs are evaluating this technology for future vehicles.
Market Opportunities
Aftermarket opportunities: The rising vehicle parc globally has opened vast aftermarket opportunities for spark plug replacement. This presents an avenue for component manufacturers to target the aftermarket segment.
Growing two/three-wheeler market: Emerging markets across Asia Pacific and LATAM are expected to drive the sales of 2/3 wheelers owing to rising rural incomes. This presents an opportunity for spark plug manufacturers to tap into this growing market.
Impact of Covid-19 on Spark Plugs Market
The Covid-19 pandemic heavily impacted the spark plugs market globally. During the initial lockdown phases, with declining sales across automotive and manufacturing industries, demand for spark plugs reduced significantly. Manufacturing facilities were closed down temporarily due to labour shortages stemming from lockdowns. Supply chain disruptions led to delays and shortages of raw materials needed for spark plug production. However, as lockdowns eased in various regions from mid-2020, the automotive industry started recovering gradually. With rising vehicle sales and production levels returning to near-normal, demand for spark plugs also rebounded steadily post pandemic. Still, supply chain bottlenecks and raw material shortages continue to pose challenges for spark plug manufacturers. Going forward, mass vaccination drives and relaxed mobility norms are expected to aid further market recovery. Nonetheless, any future Covid waves can impact sales again depending on the severity of lockdowns imposed. Manufacturers need to focus on building resilient supply networks and alternative sourcing strategies to deal with such crises.
Regions where Spark Plugs Market is concentrated in terms of Value
The spark plugs market sees high value concentration in regions with large automotive manufacturing bases such as North America and Europe. In North America, the US spark plugs market accounts for over 40% of the total regional value, driven by extensive vehicle production across US automakers and suppliers. Similarly in Europe, Germany leads the way with the highest spark plug consumption supported by Germany-based OEMs like Volkswagen, BMW and Daimler. Other major value pockets include China and Japan owing to their strong automotive export-oriented economies. Going forward, developing Asian countries like India are expected to emerge as attractive high growth markets as automobile sales pick up with rising incomes.
Fastest Growing Region for Spark Plugs Market
The Asia Pacific region is poised to witness the fastest growth in the spark plugs market during the forecast period. Countries like India and ASEAN nations are projected to drive the overall Asia Pacific market expansion. This is primarily attributed to increasing vehicle ownership, rising disposable incomes, lower automobile penetration compared to developed markets, and ongoing government support for automotive manufacturing. Furthermore, expansion of global OEM production footprints in the region through setting up local assembly plants will augment spark plug demand. Chinese automakers expanding abroad and spreading manufacturing reach within the country are additional factors augmenting the APAC spark plug industry. Countries in Southeast Asia with major automotive hubs such as Thailand, Indonesia and Malaysia will see accelerated spark plug consumption.
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About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
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