The expanding automotive sector worldwide is anticipated to provide lucrative growth opportunities to automotive switch market. The adoption of automotive switches will be primarily driven by their growing use in modern vehicles to support a range of integrated functionalities including in-vehicle infotainment systems, driver assistance, Bluetooth, and telematics.
Based on the vehicle type, the market is segmented into PCV, HCV, LCV, and two wheelers. It is estimated that LCV segment will witness a CAGR of 1.6% during the forecast timeframe. This can be attributed to growing integration of advanced technologies and features in vehicles for enhanced safety and comfort.
The automotive sector has witnessed robust innovations in vehicle fleet management systems in recent times. Technologies such as vehicle tracking, onboard remote assistance, and telematics are being increasingly deployed into LCVs. This trend will certainly boost the adoption different electrical and power switches for easy and efficient functioning of these on-board systems.
Emerging technologies such as internet of things (IoT) and artificial intelligence (AI) are disrupting the auto industry. Future vehicles, particularly LCVs, are anticipated to be powered by connected car and vehicle-to-anything (V2X) communication technologies. The aforementioned trends indicate prosperous opportunities for automotive switch manufactures in the coming years.
Automotive switch industry share is bifurcated into push-button, rotary switches, rocker switches, multi-function switches, and toggle switches. Rocker switches product segment captured more than 21% revenue share in 2019 and is projected to experience increased adoption in the forthcoming years. Rocker switches find extensive application in LCVs on account of excellent capability to handle large currents.
Another notable feature of rocker switches is that they can be illuminated to indicate the on and off status. This makes them best-suited for vehicles dashboard applications such as lights and other auxiliary functions. Furthermore, their high current handling capacity makes them preferable for operation of different circuits via a single control switch such as heated seats, window defoggers, and power door locks.
Considering the applications spectrum, the market can be classified into indicator system switches, EMS switches, electronic system switches, and HVAC. Electronic system switches segment is estimated to record a CAGR of 3.2% during the study period owing to growing consumer inclination towards the integration of automotive electronics components.
Surging automotive production has increased the deployment of electronic systems such as engine management, infotainment, telematics, ignition, and radio. Moreover, the rapidly emerging trend of electric mobility and strong demand advanced electronic systems for driving electric and hybrid vehicles will propel the demand for electronic systems switches.
In terms of the regional landscape, Middle East & Africa will witness growth at a healthy CAGR of 3.5% through the forecast timeframe. This can be attributed to increasing consumer attraction towards premium sports and luxury cars. In addition, robust development in the regional auto spare parts market in recent years will fuel the MEA industry demand.