Global Automotive Solenoid Market to Register a Value CAGR of 3.8%
According to a study, the market is expected to witness rising demand with the increasing automotive production and growing awareness for comfortable options. These two factors are projected to drive the global automotive solenoid market.
The estimated value of the automotive solenoid market in 2018 is $8,668.5m, which is expected to expand at a CAGR of 3.8% and reach $11,663.0m by the end of 2026. In addition, the Automotive Solenoid market is projected to create incremental $ opportunity worth $2,994.5m during the forecast period.
Automotive Solenoid Market Dynamics
Growing advancements in passenger transportation options and rising demand for comfortable options in vehicles are the factors projected to drive the automotive solenoid market over the forecast period. Moreover, rising automotive production across the region is also expected to drive the automotive solenoid market over the forecast period.
The growth of the automotive production in key regions, such as SEA & Pacific China and MEA, is estimated to fuel the demand for auto-components, such as automotive solenoid over the forthcoming years. Furthermore, with increase in disposable income, the middle-class population is becoming more attracted towards vehicle safety and comfort in the global market. Moreover, increasing production of two wheelers, specifically in Asia, is estimated to fuel demand for automotive solenoid over the forecast period
The global automotive industry is expected to witness a satisfactory growth of CAGR 3 – 3.5% over the stipulated period, and it is estimated to be comparatively high in emerging economies, such as India, China, and Brazil this steady increase is estimated to boost the sales of automotive solenoid in the global market.
This growth of the automotive industry can be attributed to the increasing urbanization and stable economic conditions in these regions, which in turn, will augment the growth of the automotive solenoids market. Another, key driver of the automotive solenoid market is consumer demand and interest.
Consumers spending on vehicle has increased and they are becoming more aware of specifications and prefer more on-board automatic systems integrated vehicles with better fuel economy. Thereby, reinforcing the automotive industry and simultaneously contributing towards the growth of the automotive solenoid over the forecast period.
Automotive Solenoid Market Forecast
The global automotive solenoid market is estimated to experience a growth rate of 1.3X during the forecast period. The global automotive solenoid market is estimated to grow in correlation with the automotive and two wheelers production throughout the forecast period
By region, North America followed by Europe and China are projected to dominate in the global automotive solenoid market over the forecast period. Moreover, China, followed by SEA & Pacific region, is estimated to remain the most opportunistic region in the automotive solenoid market. In terms of value, China is projected to create incremental $ opportunity worth $703.0m in the global Automotive Solenoid market during the forecast period.
By application type, the engine management system segment is projected to dominate with a value $2,862.0m in 2018. However, the powertrain system segment is projected to account for 29.4% of the market value share in the global automotive solenoid market during the forecast period. In terms of growth, HVAC control & cooling system segment are projected to grow with modest growth rate during the latter half of the forecast period in the global automotive solenoid market.
By sales channel, the OEM segment is projected to dominate the global automotive solenoid market with year-over-year growth of 3.9% in 2018. Additionally, the aftermarket segment is projected to account for more than 5.9% share in the global automotive solenoid market. The potential for automotive solenoid aftermarket is expected to remain relatively low owing to low replacement rate of automotive solenoids in the global market.
By vehicle type, the passenger cars segment is projected to dominate the global automotive solenoid market over the forecast period. In terms of volume, the demand for automotive solenoid for passenger cars is projected to reach up to ~778.3 million units by the end of 2026. Under the passenger cars segment, the automotive solenoid market has also been categorized into compact, midsized, luxury and SUV sub-segments.
The midsized segment is projected to hold more than one fourth of the market value share throughout the forecast period in the global automotive solenoid market. The two wheelers segment is estimated to grow with a prominent CAGR in the global automotive solenoid market over the forecast period.
