The global automotive switch market is expected to grow at a CAGR of 8.45% to reach USD 39 billion by the year 2023. Automobile switches have become an important indicator of a vehicle's quality. Buyers across all segments expect a certain quality of switch in their automobiles. This trend is prevalent even in the economical vehicles in Asia-Pacific region. Countries, like China in Asia-Pacific have levied heavy taxes on automobiles, making them expensive as compared to their original value. Subsequently, the expectations of the customers rise even in the budget car segment. Defective switches can become a big problem for the automobile manufacturers and their reputation. In 2016, Napino Group firm Vishnu Vaibhav Industry, an auto components maker, has tied up with ZF TRW Global Body Control Systems (BCS) Germany Company to supply switches for the automotive manufacturers in India.
The reduction of fuel consumption in the vehicles has always been a challenging factor for an automaker and a buyer. All the governments across the globe follow stringent regulations to improve the fuel efficiency in vehicles. According to the CAFE, the average fuel efficiency of a passenger car had increased from 34.8 miles per gallon to 35.4 miles per gallon during 2015-2016. CAFE has been consistently changing the fuel efficiency standards based on the average percentage level of CO2 emissions from the vehicles around the globe. To meet the fuel efficiency standards, automakers started focusing more on the improvement of engine systems.
Governments across the globe have taken the initiative to propagate alternate energy vehicles (green) in the light of growing automotive emissions and the depletion of combustion sources. As a long-term solution for greenhouse emissions from automobiles, governments have forced the automotive manufacturers into promoting vehicles of green fuels. The demand for alternative, more energy-efficient forms of mobility is increasingly focused towards electro mobility. Drivetrain electrification, especially in fully electric vehicles, has the advantages of higher energy efficiency and zero tailpipe emissions. Thereby, the advent of a broad suite of microcontrollers, power semiconductors, switches, and sensors for the pure electric vehicle segment will help to drive the growth of the market for automotive switches.
The market for automotive switches has segmented by regions into North America, Europe, Asia-Pacific, South America, and Africa & Middle-East. Growing demand for interactive infotainment systems and a growing market for electric vehicles are some of the major factors propelling the market for automotive switches globally. In 2016, the market for automotive switches was high in the Asia-Pacific region, with India, China and Japan growing as major automotive hubs supplying to the western carmakers.
Key Developments in the Market
March 2018: The growth of electric cars heralds not only promises a main technology switch but also promises enormous disruption to today's auto giants as Tesla and a group of powerful Chinese rivals take over the fast lane
February 2018: The Multi-Switch Detection Interface: A Cure for Many BCM Ailments
Major Players - BOSCH, CONTINENTAL, DELPHI AUTOMOTIVE, TRW AUTOMOTIVE, ZF FRIEDRICHSHAFEN, amongst others
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