The 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:
An ignition coil is a device which generates high voltage to spark a spark plug in internal combustion engine. The high voltage generated by ignition coil provides the spark necessary to ignite the air-fuel mixture in cylinders. It transforms the battery's 12 volts to the 20,000-50,000 volts needed for ignition in today's gasoline and diesel engines. Advances in engineering helps reduce emissions and improves fuel economy.

Market key trends:
One of the key trends fueling the growth of automotive ignition coil market is rising vehicle production around the world. According to OICA, the global vehicle production increased from around 95 million units in 2018 to over 95.1 million units in 2021. The growing automotive industry is expected to lead to increased demand for automotive ignition coils. Moreover, transition towards more electronic ignition systems as opposed to distributor-based ignition systems in modern vehicles has further augmented the growth of automotive ignition coil market. Technological advancements to meet stringent emission regulations have also led to developments such as smart coil-on-plug ignition systems which provide improvements in fuel efficiency and low emissions. Innovation and advanced features incorporated in ignition coils are projected to drive the growth of automotive ignition coil market over the forecast period.

Porter’s Analysis

Threat of new entrants: The automotive ignition coil market requires large investments for research and development which makes it difficult for new players to enter the market. Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitute products. Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to presence of multiple component suppliers. Threat of new substitutes: Threat of new substitutes is low as ignition coils are integral components for automobiles. Competitive rivalry: Intense completion among existing players to develop efficient and durable ignition coils.

SWOT Analysis

Strengths: Growing automotive industry and String emission norms are driving the demand for ignition coils. Weaknesses: High investment requirement and presence of low-cost alternatives. Opportunities: Increasing sales of gasoline-powered vehicles and Developing markets offer huge growth potential. Threats: Rising raw material prices and Shift towards electric vehicles poses threat to ignition coil manufacturers.

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 vehicle production. Asia Pacific dominates the global market and is expected to grow at the fastest rate during the forecast period. China holds the largest share in the region.

Regional analysis

Asia Pacific dominates the global automotive ignition coil market. China, India, and Japan are the major contributors to the region's growth. Increasing vehicle production in China and India is driving the market. North America and Europe hold significant shares in the global market due to presence of major automobile companies such as General Motors and Volkswagen.

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.
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