Company Acquisitions and Technological Advancements by Market Players such as Alps Alpine Co. Ltd. and STMicroelectronics to Foster the Growth of the Global Automotive Switch market

Automotive switches are one of the primary components of a vehicle that regulate all electrical equipment that are installed in an automobile. These switches play a vital role in managing the vehicle lighting and almost all the working inside an automotive. Automotive switches are also used for engine start and stop applications, and various other automobile functions. These switches are also used in the dashboards and interior components of the vehicles mainly in light commercial vehicles, passenger cars, and heavy commercial vehicles. The increasing technological upgrades and the growing demand for installing car accessories across the globe are expected to propel the growth of the automotive switch market in the coming future.

COVID-19 Impact on Automotive Switch market

The outbreak of COVID-19 across the globe has moderately impacted the global automotive switch market growth. The global reduction in automotive sales due to restrictions and lockdowns during the pandemic period has drastically impacted the sales of automotive switches across the globe. The disturbance in international supply chains during the pandemic for transportation of essential components utilized in automotive switches, such as semiconductors has also affected the automotive switch market size.

However, various businesses across the world are undergoing the need for digital management of their operations during the pandemic period. The rising need for implementation of advanced technologies such as industrial internet of things (IIOT) that enables real-time monitoring of electronics devices’ manufacturing process are expected to have a progressive impact on the automotive switch market share during the unprecedented times.

Automotive Switch market Trends and Developments

The companies operating in the global industry are adopting several growth strategies and business tactics such as partnerships, collaboration, business expansion, and product launches to obtain a leading position in the global industry, which is predicted to drive the global automotive switch market growth in the upcoming years.

For instance, in April 2019, Standard Motor Products, Inc., a manufacturer & distributor of automotive parts in the automotive aftermarket industry, completed the acquisition of Pollak business of an automotive part manufacturer, Stoneridge, Inc. for around USD 40 million. With this acquisition, the company is aiming to expand its business facilities in MA, Canton, El Paso, Juarez, TX, and Mexico while distributing a broad range of engine management products including sensors, automotive switches, and connectors.

In July 2019, Alps Alpine Co., Ltd., a leading manufacturer of electronic components, developed an SPVQ8 Series detector automotive switch for usage in detecting the opening & closing of hoods, side doors, and other vehicle doors. The SPVQ8 Series detector switch has an optimized terminal shape, which is achieved using high-precision die stamping and manufacturing technology. This has reduced the overall thickness by 25%, thereby contributing to lighter, thinner customer equipment.

In September 2021, STMicroelectronics, the leading electronics and semiconductor manufacturer, announced the launch of a new generation of automotive intelligent switches, the ‘VN9D5D20FN’ and ‘VN9D30Q100F,’ which are the first on the market with digital current sensing. The automotive switches are designed for high-side connection in applications powered from a 12V battery, the drivers are intended to simplify the hardware & software design of electronic control units (ECUs) and improve system reliability.

Forecast Analysis of Global Market

The global automotive switch market is projected to witness an exponential growth during the forecast period, owing to the increasing production vehicle and its sales in the developing countries such as India, China, Vietnam, and others. Besides, the rapid technological advancements and growth in infrastructure in the emerging economies have led to rise in the demand for vehicles, which is thereby predicted to boost the automotive switch market growth by 2028. Conversely, the replacement of automotive switches with novel technologies is expected to hamper the market growth in the projected timeframe.

The increasing utilization of electronics components in the automobile around the world and the growing demand for more convenient & smart operability of different functions in an automobile are the significant factors and automotive switch market trends estimated to bolster the growth of the global market in the coming future. According to a latest report published by Research Dive, the global automotive switch market is expected to garner $13,602.4 million during the forecast period (2021-2028). Regionally, the Asia-Pacific region is estimated to observe the rapid growth by 2028, owing to the rapid urbanization and rising demand for mobility in the developing markets such as China and India, with increased per capita income of the population in the region.

The key players functioning in the global market include Robert Bosch GmbH, Tokai Rika Co. Ltd, Alps Electric Co. Ltd, Continental AG, Omron Corp., HELLA GmbH & Co. KGaA, ZF Friedrichshafen AG., Eaton Corporation PLC, Leopold Kostal GmbH & Co. Kg, and Johnson Electric Holdings Limited.