May 22, 2024

Spark Plugs Market Set For Growth Driven By Automotive Electrification Is In Trends By Rising Demand For Vehicles

It consists of electrodes housed within an insulated conducting frame that connects to the engine’s ignition system. Spark plugs are essential engine components in gasoline-powered/petrol vehicles, lawnmowers, equipment, and more. They facilitate combustion of fuel in the engine cylinders by creating an electric spark that ignites compressed fuel and air mixtures. Advancements in spark plug designs aim to reduce emissions, improve fuel economy and engine performance. The global spark plug market is projected to gain significant demand from the rapidly expanding automotive industry and uptake of electrified vehicles.

The Global Spark Plugs Market is estimated to be valued at US$ 3.52 Bn in 2024 and is expected to exhibit a CAGR of 4.8% over the forecast period 2024 to 2031.

Key Takeaways
Key players operating in the Spark Plugs Market are DENSO Corporation, Robert Bosch LLC, Tenneco Inc., Niterra, BorgWarner Inc., General Motors, Valeo, MAGNETI MARELLI PARTS & SERVICES, Tenneco, ABRO Industries, Carborundum Universal Limited and Burg Germany GmbH.

The growing demand for vehicles and expansion of automotive industry globally is driving the spark plugs market. Rapid urbanization and rising disposable incomes are contributing to increased vehicle ownership particularly in developing economies. Spark plug manufacturers are capitalizing on these trends by improving product quality and expanding their operational footprints.

Key players in the Spark Plug Market Size are focusing on global expansion through partnerships, mergers and acquisitions to solidify their presence. For instance, in 2021, ACDelco partnered with CEAT to strengthen its distribution network and product availability across India. Manufacturers are also targeting electric vehicle and hybrid technology advancements to widen their addressable markets.

Market Key Trends
One of the key trends in the spark plug market is the shift towards advanced iridium alloys and multi-electrode designs to enhance ignition performance and reduce emissions. Iridium alloy spark plugs last significantly longer than conventional copper or platinum spark plugs. They also provide better combustion control and minimize engine misfires. Major players are innovating new multi-electrode configurations and advanced materials to optimize cold starts, fuel efficiency and engine outputs. This is expected to support the ongoing electrification of vehicles and adoption of spark plug technology in hybrid powertrains.

Porter’s Analysis
The threat of new entrants in the spark plugs market is moderate as entrants require heavy capital, technological and manufacturing expertise. However, high chances for disruption make the threat moderately high.

Bargaining power of buyers is high as buyers have a wide range of established players to choose from. The switching cost is low as plugs can be easily changed.

Bargaining power of suppliers is moderate as raw materials required are easily available.

Threat of new substitutes is low as there are limited substitutes for spark plugs. Spark plug technology has been in use for decades with no major disruptions.

Competitive rivalry is intense as players compete on technology, innovation, brand, quality and pricing.

Geographical Regions
In terms of value, North America currently holds the largest share in the spark plugs market followed by Europe and Asia Pacific. This is owing to strong automotive production and sales in the USA and Canada. However, Asia Pacific region is expected to witness the fastest growth rate during the forecast period due to rapid growth of the automotive industry in China and India. Other emerging economies in Southeast Asia and Latin America are also contributing to the rising demand.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it