The Spark Plugs and Glow Plugs market accounted for USD 30 Billion in 2020 and is expected to reach USD 40 Billion by 2026, projecting a CAGR of 6% during the forecast period.
The COVID-19 pandemic had a negative impact on the market. With the very low record in sales of both new and used vehicles, the demand for peripherals like spark plugs and glow plugs was completely reduced. With the social distancing norms and stringent lockdown worldwide, the production was very low or none in few regions. This slowed down the market economy.
However, with the increased need for personal and individual mobility, both new and aftermarket sales are set to improve drastically, consequently improving the market economics after the pandemic. The expected increase in demand for heavy materials transport is bound to improve new and aftermarket sales of spark plugs and glow plugs.
Key Highlights
- Spark plugs and glow plugs are an integral part of gasoline and diesel ignition systems. Despite a slight decline in a global vehicle production number in 2019, the demand for spark and glow plugs is anticipated to continue till the forecast period, as the aftermarket channel has been consistently active in the firm’s sales.
- One of the major factors driving the growth of the market studied is the increasing demand and sales of commercial vehicles (owing to the rise in the e-commerce sector, resulting in growth in the logistics industry and construction sector). However, factors, such as growing penetration and demand for electric vehicles, as well as functional issues, may hinder the growth of the market studied.
- Platinum and Iridium-based spark plugs are the widely used varieties of which iridium-based cold type spark plugs are majorly used in high-performance engines. On the other hand, the demand for factory fitted glow plugs has been observing a decline in the sales of sedans, owing to the transformation to down-sized gasoline engines from conventional diesel engines.
- Some of the major companies that dominate the market studied are NGK Spark Plug Co. Ltd, Robert Bosch GmbH, Denso Corp., and BorgWarner, among others.
Key Market Trends
Increasing Demand For Electric Vehicles Hindering the Growth of the Market
The electric vehicle market has been witnessing healthy growth in recent years, with about 1.1 million units of battery electric vehicles (BEVs) sold during the first half of 2019, representing a 46% increase from the previous year. This spike in sales is the result of an increase in the regulatory norms by various organizations and governments to control emission levels and to propagate zero-emission vehicles.
Due to this, automakers have been continuously working and focusing to increase their expenditure on the R&D of electric vehicles, which, in turn, has been aiding the OEMs to market electric vehicles in the future.
This strategy had a strong impact on people, as there was a considerable change in the purchase pattern from conventional IC engine vehicles to electric vehicles. The change has not decreased the sales of IC engine vehicles but has rather created a promising market for electric vehicles in the recent times, as well as during the forecast period.
Governments across the world have been pushing the EV envelope to reduce the rising pollution from fuel-powered vehicles.
- For instance, France and the United Kingdom have set a deadline for the automakers to go fully electric by 2040.
- China, which had sold half a million EVs in 2016, has set out its own roadmap to completely make its transportation electric by 2030.
- Last year, Germany, which is home to major automakers, such as Volkswagen, BMW, and Mercedes, decided to ban IC engines by 2030.
The premium carmakers, like JLR and Volvo, have also decided to electrify all their vehicles. In addition, about 200 new EV model launches had been announced in 2019.
With so much movement towards electrification of automobile and transport industry worldwide, the spark plugs and glow plugs market is bound to take a plunge in the near future.
Asia-Pacific and Europe to Witness Significant share during the Forecast Period
According to Eurostat, about 75% of inland cargo transports within the European Union, which translates to about 1,750 billion metric ton-kilometer (t km), takes place by road. In some European countries, this percentage goes as high as 90%, or more.
As a result, the demand for commercial vehicles and subsequently the glow plugs from OEM and aftermarket channels has been continually increasing in the region, owing to the growing logistics industry, as well as the increasing usage of light commercial vehicles, such as vans (for ride-hailing services).
Thus, the demand for lightweight vehicle components to integrate into light commercial vehicles is expected to rise significantly during the forecast period.
With the regulations mandating the LCVs to stay within the stipulated weight limit, it has become critical for the OEMs to focus on making LCVs with lighter materials. As the e-commerce industry continues to witness growth across Europe, the demand for a more advanced distribution network is increasing.
Apart from Europe, the Asia-Pacific region has also been experiencing a boom in the sales of commercial vehicles, owing to the growing e-commerce resulting in the growth of the logistics, construction, and mining industries.
Thus, based on the aforementioned developments, the demand for glow plugs is expected to increase in the future.
Competitive Landscape
The spark plugs and Glow plugs market is dominated by several players, such as DENSO Corporation, NGK Spark Plug Co. Ltd, Robert Bosch GmbH, Tenneco Inc., BorgWarner Inc., WEICHAI POWER CO. LTD. , AC Delco Corporation. These companies have been expanding their business by new innovative auto parts so that they can have an edge over their competitors.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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