The Automotive Glow Plugs market was valued at USD 3. 93 billion in 2020 and is anticipated to reach USD 5. 06 billion by 2026, at a CAGR of more than 4% during the forecast period (2021 - 2026).
New York, June 16, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Automotive Glow Plugs Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06095515/?utm_source=GNW
The COVID-19 pandemic, has hit the autmotive glow plug market more quickly and severely. It started as a domestic supply crisis in China, thereby rapidly turning into the biggest ever drop in global aftermarket demand, approaching a 20% drop in the parts and components industry. Major companies in the aftermarket business shifted their aim from production recovery plans to protecting employees, cost savings, and safeguarding liquidity.
Glow plugs are an integral part of diesel ignition systems. Despite a slight decline in a global vehicle production number in 2019, the demand for glow plugs is anticipated to continue till the forecast period, as the aftermarket channel has been consistently active in the firm’s sales.
According to Eurostat, about 75% of inland cargo transports within the European Union, which translates to about 1,750 billion metric ton-kilometers (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).
Several developing economies, such as ASEAN countries, are witnessing a significant number of diesel engine-powered vehicle sales. For instance, in the ASEAN market, top-selling passenger vehicles and pick-up trucks are powered by diesel engines. Ford Ranger was among the top-selling passenger vehicles in the ASEAN market in 2020.
Key Market Trends
High Demand for Commercial Vehicles Across the World
Commercial vehicles are witnessing high demand across the world, with high-capacity utilization and profitability driving the momentum for fleet renewal and expansion activities. Strong and sustained freight demand across the world and the growth of the e-commerce industry are propelling the operators to purchase new commercial vehicles. The overall macroeconomic environment has been favorable, with robust utilization and profitability across operators boosting fleet renewals and expansions at an accelerated pace.
The demand for pickup trucks is also picked growth since the past few years, especially in North America and Europe, due to the growing preference for multi-purpose utility and better comforts among buyers. Witnessing an accelerated growth in the segment, automakers, in recent years, have started introducing new vehicle models with enhanced performance and efficiency. For instance, in June 2020, Ford unveiled the 2021 F-150 pickup truck, including a hybrid version that has new features, like a segment-first hands-free highway driving system, 12-inch screens, and over-the-air updates. The new pickup truck is also claimed to have better fuel efficiency and performance.
The commercial vehicle market witnessed a decline in 2020, which was primarily attributed to the COVID-19 pandemic and associated lockdown that halted vehicle production and sales activities in the majority ofthe countries. However, the demand for commercial vehicles is likely to resume its growth post FY21. Before COVID-19 hit, the sales of commercial vehicles were growing across the world. For instance, in 2018 and 2019, global commercial vehicle sales were increased by 8.01% and 0.19%, respectively, when compared to the previous year.
Furthermore, the rising concerns about environmental pollution are encouraging the governing bodies to take steps to curb emissions occurring from commercial vehicles. This is likely to drive the demand for glow plugs that helps in efficient fuel combustion and enhances vehicle fuel efficiency.
Asia-Pacific is expected to lead the Market
China is of the largest markets for automotive vehicles worldwide. From 2008 to 2019, the share of China in global vehicle production experienced a two-fold increase from 13% to 28% in 2019. Meanwhile, vehicle sales in China went up significantly, and the annual growth rate varied over the same period, reaching a peak of 45% in 2009, but it has been experiencing a contraction since 2018. Although the Chinese automobile market shrank by only 1.9% in 2020, with economic stimulus softening the blow of the coronavirus.
Major companies in the country market are investing in increasing their production capacities. For instance, in April 2021, FAW Jiefang Automotive Co. Ltd (FAW Jiefang) started the construction of its commercial vehicle manufacturing site in the city of Guanghan in Sichuan Province. The 552,000 sq. m facility will be a commercial vehicle manufacturing site with an annual production capacity of 100,000 units. With an investment of CNY 1.6 billion, the first phase has a planned annual capacity of 50,000 units. The J6-series models are anticipated to be manufactured during the initial operation period of the site. ?
Automotive is one of the core sectors of the Indian economy and, to a great extent, serves as one of the leading industries in the country. The Government of India implemented BS-VI norms for automobiles to be sold after April 1, 2020. The glow plug manufacturers are launching the latest products to meet the regulatory norms to stay ahead of their peers and gain market share. For instance, in February 2020, NGK Spark Plugs India Private Limited launched a new range of BS-6 Ready and BS-6 compliant glow plugs for diesel vehicles in the country. The company is a leading supplier of spark plugs, glow plugs, and oxygen sensors to leading 2-wheeler and 4-wheeler OEMs in India. In the retail sector, NGK India has a strong pan-India presence, with approximately 200 plus distributors selling NGK high-quality products to retailers and mechanics catering to the 2-wheeler, 3-wheeler, and 4-wheeler segments.
The market for automotive glow plugs is slightly consolidated, with the presence of major global players in the market. The glow plugs market is dominated by several players, such as DENSO Corporation, NGK Spark Plug Co. Ltd, Robert Bosch GmbH, BorgWarner ., and Tenneco Inc . These companies have been expanding their business with new innovative auto parts so that they can have the edge over their competitors.
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