Market Trends in Global Spark Plug Market
The rapid urbanization and the rise in the affluent middle class population are the driving factors behind the increasing sales of the automotive vehicles across the globe which is further believed to intensify the demand for spark plugs. Moreover, the market is witnessing the launch of various advanced spark plugs. The advancement in the spark plugs such as v-grooved and u-shaped core nose spark plugs improve the performance and ignitability. In addition to that, the growing adoption and increasing awareness regarding spark plugs among the consumers is indicating towards the promising growth for the development of spark plug market in the years ahead. The other credible factors that are boosting the growth of the spark plug market are increasing disposable income of the population, growth in automotive production, especially the passenger cars and increasing rate of vehicle consumption around the world. According to a recent study conducted by Research Nester, the increasing awareness about the quality of spark plugs is believed to add value to the spark plug market by expanding at a CAGR of 5.7% over the period 2017-2024. The global spark plug market accounted for USD 6,012.9 Million in 2016 and is predicted to reach USD 9,267.2 Million by the end of 2024.
Growth Highlights based upon Regional Platform during 2016-2024
The global spark plug market is segmented by regions into North America, Latin America, Europe, Asia-Pacific and Middle East and Africa. Among these regions, the Asia Pacific spark plug market accounted for the highest market share of 58.7% in 2016 and is slated to account for a leading share by crossing 60% in the terms of revenue by 2024. This growth is anticipated to be fostered by the high production of automotive vehicles in the region. Besides, rising affluent middle class population coupled with increasing sale of passenger cars is also expected to impel the growth of spark plug market in the Asia Pacific region. China, Japan and India have the prominent markets in the region.
Further, the Europe spark plug market accounted for 18.2% of market share in 2016, closely trailed by North America. The U.K. & Germany are the major contributors behind the growth of the spark plug market in Europe where U.K. spark plug market is expected to achieve Y-o-Y growth rate of 6.4% in 2024. Followed by Europe, North America spark plug market is driven by the United States that accounted for the highest market share in the region and is believed to grow with highest CAGR over the forecast period. The U.S. spark plug market is driven by high penetration of passenger car vehicles and is anticipated to achieve a Y-o-Y growth rate of 5.4% in 2024. According to OICA, the U.S. accounted for the second largest vehicle market in the term of sales in the worldwide motor vehicle production in 2017. Apart from this, various spark plug players has established their presence in the market. This factor is envisioned to bolster the growth of U.S. spark plug market.
Market Segmentation Synopsis
By Product Type
Global spark plug market is segmented on the basis of product type into cold spark plug and hot spark plug. Hot spark plug segment occupied the largest share of more than 65% during 2016 and is believed to grow positively in upcoming years. Further, the evolving trend of the adoption of high performance vehicles is anticipated to drive the growth of the cold spark plug segment during the forecast period.
By Electrode Material
The global spark plug market is segmented by electrode material into copper, iridium, platinum and other material, out of which, the iridium segment is anticipated to have the largest market share by the end of 2024 followed by its dominance in the market during 2016. Further, the second largest sub-segment under the electrode material segmentation is platinum segment, closely trailed by the copper segment. The copper spark plug segment is projected to achieve Y-o-Y growth rate of 5.4% in 2024
The global spark plug market is segmented by application into automotive, marine, industrial and others, out of which, the automotive segment dominated the global spark plug market with highest market share in 2016 and is anticipated to have the largest share by crossing USD 8,100 Million by the end of 2024. This can be attributed to the increasing production and consumption of the vehicles along with growing automotive aftermarket spending across the globe.
By Distribution Channel
The global market of spark plugs is divided by distribution channel into OEM and Aftermarket. Among these segments, the aftermarket spark plug segment is projected to showcase highest CAGR growth over the forecast period and is expected to remain biggest market that would open avenues for new and existing players. After-sale services such as selling automotive parts and other services are generating huge revenues for the automotive component manufacturing companies. Additionally, manufacturers are continuously focusing on the aftermarket as it accounts for high margin business profits.
The study further analysis the Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX (Belgium, Netherlands, Luxembourg), NORDIC (Norway, Denmark, Sweden, Finland), Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa).
Market Drivers & Challenges
The global spark plug market is thriving on the back of rising production and sales of automotive vehicles. According to OICA, there were more than 73 Million passenger cars that were sold during 2017 around the world. The increasing middle class population in developing regions has raised the worldwide demand and sales of automotive vehicles which is paving the way for the growth of the global spark plug market.
Further, global automotive industry is booming on the account of urbanization, increasing disposable income combined with development and introduction of advanced spark plugs. It is believed to help the consumers by increasing the fuel efficiency of their automobiles. In addition to that, stringent government regulations are forcing the spark plug manufacturers to develop advanced and efficient spark plugs to reduce the harmful pollutants affecting the environment. These factors are envisioned to strengthen the global spark plug market over the forecast period.
Additionally, the growing trend of environment friendly spark plugs so as to lower the emissions is also believed to aid the global spark plug market to grow in near future.
The presence of local manufacturers in many regions, availability of low cost and low quality spark plugs by local vendors are some of the reasons hampering the growth of the spark plug market. Further, the adoption of electric vehicles in developing and developed nations is believed to slow down the growth rate of spark plug market in the years ahead.
Some of the affluent industry leaders in the global spark plug market are Federal-Mogul Corporation, Denso Corporation, Robert Bosch GmbH, ACDelco, Weichai Power Co.Ltd., Megenti Marelli S.p.A., NGK Spark Plug Co. Ltd., Valeo, MSD Performance, HELLA GmbH & Co. KGaA.
Federal-Mogul Corporation, a global leading supplier and original equipment manufacturer of components for light trucks, automobiles, heavy duty trucks, farm & construction vehicles and industrial products is aggressively focusing to expand its product portfolio through offering new products.
Moreover, other key and niche players are working towards the expansion of product portfolio along with investing in high quality R&D to develop highly engineered and advanced automotive products in order to gain competitive edge in the global spark plug market.
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