July 23, 2024

Increasing Vehicle Production to boost the growth of Automotive Ignition Coil Market

The global Automotive Ignition Coil Market is estimated to be valued at US$ 10.32 Bn in 2023 and is expected to exhibit a CAGR of 4.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
The automotive ignition coil is an inductive ignition device that transforms the battery’s low voltage into thousands of volts for the spark plug in an internal combustion engine. It consists of a coil winding that receives a low voltage from the vehicle’s ignition system and outputs a high voltage pulse through a center terminal and high voltage distributor wire to the spark plug. Advancements in ignition systems and coil materials have led to longer coil life, instant-on capability, and the ability to ignite lean air-fuel mixtures at high engine speeds. Coils made from modern magnetic materials are smaller and more efficient while virtually eliminating radio frequency interference. These enhancements have improved engine performance and fuel efficiency.

Market key trends:
One of the key trends in the automotive ignition coil market is the increased adoption of permanent magnet ignition coils. Conventional ignition coils use electromagnet which requires more current and induces voltage only when energized. However, permanent magnet ignition coils have inherent magnetic field due to permanent magnet and require lesser current to induce high voltage in secondary winding. They offer advantages such as lower power consumption, higher efficiency, increased durability and are suitable for downsized engines.
Another trend gaining traction is the development of programmable ignition coils. Programmable coils can be programmed according to engine specifications to generate optimum performance. Original equipment manufacturers and automakers are increasingly collaborating with ignition coil manufacturers to develop customized and intelligent programmable coils tailored for specific engine types to enhance ignition timing control and improve fuel efficiency.
Porter’s Analysis
Threat of new entrants: The automotive ignition coil market requires high Research and development investments for new technology. This poses barriers for new companies to enter the market.
Bargaining power of buyers: Buyers have moderate bargaining power due to standardized ignition coil products and availability of various ignition coil manufacturers.
Bargaining power of suppliers: Suppliers have moderate bargaining power as raw materials for ignition coil production are commodity chemicals and production process is standardized.
Threat of new substitutes: There are no cost-effective substitutes for ignition coils currently. Alternate technologies like solid state ignition modules are still in nascent stages of commercialization.
Competitive rivalry: The automotive ignition coil market is highly competitive due to presence of global established players.

Key Takeaways
The global automotive ignition coil market is expected to witness high growth, exhibiting CAGR of 4.4% over the forecast period, due to increasing demand for passenger and commercial vehicles.

Regional analysis
Asia Pacific dominates the global automotive ignition coil market and is expected to grow at the fastest rate during the forecast period. Countries like China, Japan and India are major auto markets driving the demand for ignition coils in the region. Growing vehicle production to meet domestic demand is fueling market growth in Asia Pacific.

Key players
Key players operating in the automotive ignition coil market are BorgWarner Inc., DENSO Corporation, Diamond Electric MFG, Eldor Corporation S.p.A., HELLA GmbH & Co. KGaA (Faurecia SE), Hitachi Ltd., Mitsubishi Electric Corporation, NGK Spark Plug Co. Ltd., Robert Bosch GmbH Standard Motor Products Inc., Aptiv PLC and Valeo.