|
Forecast Period
|
2024-2028
|
|
Market Size (2022)
|
USD 51.47 billion
|
|
CAGR (2023-2028)
|
4.02%
|
|
Fastest Growing Segment
|
OEM
|
|
Largest Market
|
Asia Pacific
|
Market Overview
The Global Automotive
Starter and Alternator Market was valued at USD 51.47 billion in 2022 and is growing
at a CAGR of 4.02% during the forecast period. The growth of global automobile
production is poised to have a positive impact on the global automobile starter
and alternator market. Furthermore, the increasing global car sales present
favorable growth prospects for the automotive starter and alternator market.
Additionally, the pace of urbanization and the rise in disposable income
contribute to the expansion of the automotive industry, which is expected to
accelerate market growth.
Key Market Drivers
Increasing
Demand for Electric and Hybrid Vehicles
The global market for
automotive starters and alternators has experienced a significant shift in
recent years, driven by the growing demand for electric and hybrid vehicles.
This shift can be attributed to various factors, including environmental
concerns, government regulations, and advancements in battery technology.
One of the primary
catalysts for this market is the increasing awareness of the environmental
impact associated with traditional internal combustion engine (ICE) vehicles.
With the rising concerns over air pollution and climate change, governments
worldwide are implementing more stringent emissions standards and providing
incentives for electric and hybrid vehicles. Consequently, there is a strong
market demand for vehicles with reduced emissions, and automakers are heavily
investing in electric and hybrid technology.
Electric vehicles (EVs)
and hybrid electric vehicles (HEVs) heavily rely on electric power, which
places greater emphasis on the electrical systems of these vehicles. This
includes the crucial components of the starter and alternator, which are
essential for their proper functioning. As the production of EVs and HEVs
continues to grow, there is a corresponding increase in the demand for
high-performance starters and alternators.
Furthermore, advancements
in battery technology have enabled electric vehicles to achieve longer ranges
and faster charging times. These improvements have significantly enhanced the
appeal of EVs to consumers, resulting in a surge in their adoption. However,
the increased reliance on batteries also places additional demands on the
electrical systems, necessitating more robust starters and alternators to meet
the vehicle's power requirements.
In summary, the escalating
demand for electric and hybrid vehicles is a major driving force behind the
global automotive starter and alternator market. As the automotive industry
undergoes a transformation towards more sustainable transportation solutions, the
need for reliable and efficient electrical systems will continue to grow,
offering significant opportunities for manufacturers in this market.
Vehicle
Electrification and Advanced Electrical Systems
Another key driver of the
global automotive starter and alternator market is the growing trend towards
vehicle electrification and the integration of advanced electrical systems in
modern vehicles. This trend is reshaping the automotive industry and creating
new opportunities for manufacturers of starters and alternators.
Modern vehicles are
increasingly adopting electrification, incorporating a wide range of electronic
features and systems. These include advanced infotainment systems,
driver-assistance technologies, electric power steering, and more. All of these
systems rely on a robust electrical system to operate effectively.
Consequently, automakers are demanding more powerful and efficient starters and
alternators to meet the rising electrical load.
Furthermore, the
development of mild-hybrid and full-hybrid systems in traditional internal
combustion engine (ICE) vehicles further drives the demand for advanced
electrical components. These hybrid systems require specialized starters and
alternators to manage the energy flow between the internal combustion engine
and the electric motor, enhancing fuel efficiency and reducing emissions.
Moreover, the automotive
industry is rapidly advancing towards autonomous vehicles, which heavily rely
on sophisticated electronic components and sensors. These autonomous vehicles
necessitate highly reliable electrical systems, including starters and
alternators, to ensure safe and uninterrupted operation.
The demand for advanced
electrical systems extends beyond passenger vehicles alone. Commercial
vehicles, such as trucks and buses, are also embracing electrification and
advanced electrical systems to comply with stringent emissions regulations and
reduce operating costs. This expanding market segment presents additional
growth opportunities for manufacturers of starters and alternators.
In conclusion, the
increasing trend towards vehicle electrification and the integration of
advanced electrical systems in both passenger and commercial vehicles are
significant driving forces behind the global automotive starter and alternator
market. As vehicles become more dependent on electrical power, the demand for
high-performance starters and alternators will continue to grow, creating a
lucrative market for innovation and technological advancements.
Automotive
Industry Expansion in Emerging Markets
The global automotive
starter and alternator market is also influenced by the growth of the
automotive industry in emerging markets. As these economies expand, their
demand for automobiles increases, creating new prospects for starter and
alternator manufacturers.
Emerging markets like
China, India, Brazil, and Southeast Asian countries have witnessed rapid
urbanization and a rising middle class with higher disposable income.
Consequently, there is a surge in the demand for personal vehicles, including
passenger cars and motorcycles. To cater to this demand, automakers are heavily
investing in expanding their production and distribution networks in these
regions.
In emerging markets, many
consumers are first-time car buyers who often choose more affordable vehicles
with gasoline or diesel engines. This creates a significant market for
traditional starter and alternator systems, alongside the demand for electric
and hybrid vehicles. As the automotive industry in these regions matures, the
need for reliable and cost-effective starters and alternators will continue to
grow.
Furthermore, government
initiatives in emerging markets aimed at promoting domestic automotive
manufacturing and reducing dependence on imports have spurred the growth of the
automotive industry. These initiatives often come with regulations that mandate
vehicles to meet specific standards, including emissions and safety, further
driving the demand for advanced starter and alternator systems.
Moreover, the expansion of
commercial vehicle fleets in emerging markets, driven by increased economic
activities and logistics demands, contributes to the growth of the starter and
alternator market. These vehicles heavily rely on reliable electrical systems
to ensure efficient business operations.
To summarize, the
expansion of the automotive industry in emerging markets significantly drives
the global automotive starter and alternator market. As these economies
continue to grow and consumers seek affordable and reliable transportation
options, the demand for starter and alternator systems will remain robust,
offering ample opportunities for manufacturers in the industry.
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Key Market Challenges
Technological
Advancements and Electrification
One of the key challenges
confronting the global automotive starter and alternator market is the rapid
pace of technological advancements and the electrification of vehicles. While
these trends also bring forth opportunities, they simultaneously present
significant challenges that manufacturers must address.
As the automotive industry
transitions towards electric and hybrid vehicles, the demand for conventional
starter and alternator systems in internal combustion engine (ICE) vehicles is
anticipated to decline. This shift may result in overcapacity and reduced
profitability for manufacturers specializing in traditional systems. Adapting
to this transformation necessitates substantial investments in research and development
to pivot towards the production of advanced electrical systems compatible with
electric powertrains.
Furthermore, the
complexity of modern electrical systems in vehicles, driven by the integration
of advanced features like infotainment, driver-assistance systems, and
autonomous driving technologies, poses a challenge. These systems impose higher
demands on starters and alternators, necessitating greater efficiency and
durability. Manufacturers must consistently innovate to keep up with these technological
advancements, which can be both expensive and time-consuming.
Additionally, the
automotive industry is exploring alternative technologies such as fuel cells
and advanced energy storage solutions, which have the potential to further
disrupt the starter and alternator market. If these technologies gain momentum,
it could potentially diminish the need for traditional electrical systems
altogether, compelling manufacturers to adapt or diversify their product
offerings.
Increasing
Regulatory Pressure and Emissions Standards
One of the key challenges
facing the global automotive starter and alternator market is the escalating
regulatory pressure and stringent emissions standards enforced by governments
worldwide. As nations strive to decrease greenhouse gas emissions and combat
climate change, automakers bear an increasing responsibility to develop cleaner
and more fuel-efficient vehicles.
Emissions standards
frequently necessitate automakers to reduce the carbon footprint of their vehicles,
which can have an impact on the design and functionality of starter and
alternator systems. For instance, the shift towards electric and hybrid
vehicles requires a different approach to power generation and distribution,
rendering traditional alternator systems less applicable. Manufacturers must
navigate a complex regulatory landscape to ensure compliance with ever-evolving
emissions requirements.
Furthermore, emissions
regulations vary across regions, posing challenges for global manufacturers
striving to produce standardized products for worldwide use. This divergence
can result in heightened manufacturing costs and logistical complexities as
companies adapt their products to meet different regional standards.
The automotive industry
also faces pressure to embrace eco-friendly manufacturing practices, including
reducing the environmental impact of the production process itself. This
challenge extends to the materials employed in starter and alternator
manufacturing, compelling manufacturers to explore sustainable and recyclable
alternatives.
Supply
Chain Disruptions and Raw Material Shortages
The global automotive
starter and alternator market has experienced supply chain disruptions and raw
material shortages in recent years, posing significant challenges to production
capacity, lead times, and costs.
One key factor
contributing to these disruptions is the global nature of automotive
manufacturing. Starters and alternators rely on components sourced from
multiple countries, making the supply chain vulnerable to natural disasters,
political conflicts, and global health crises like the COVID-19 pandemic.
Moreover, the automotive
industry heavily relies on raw materials such as rare earth elements, copper,
and aluminum, whose price fluctuations and availability can directly impact
production costs and profitability. The ethical and environmental concerns
surrounding the sourcing of these materials further complicate the supply
chain.
To tackle these
challenges, manufacturers must prioritize supply chain resilience by
diversifying their supplier base and developing contingency plans. Exploring
alternative materials and manufacturing processes that reduce dependency on
scarce or volatile raw materials can also help mitigate the impact of shortages
and price fluctuations.
In conclusion, the global
automotive starter and alternator market must address technological
advancements, increasing regulatory pressure, and supply chain disruptions.
Overcoming these challenges necessitates continuous innovation, adaptability,
and a proactive approach to ensure long-term sustainability and competitiveness
in the industry.
Key Market Trends
Electrification
and Hybridization Driving Starter and Alternator Innovations
The global automotive
starter and alternator market is currently experiencing significant
transformation driven by the ongoing shift towards vehicle electrification and
hybridization. As the automotive industry moves towards more sustainable and
environmentally friendly solutions, the demand for traditional internal
combustion engine (ICE) starters and alternators is evolving.
One of the key trends in
this market is the development of advanced starters and alternators
specifically designed for electric and hybrid vehicles (EVs and HEVs). Electric
vehicles, in particular, require specialized components to meet the unique
requirements of electric propulsion systems. These components must be capable
of delivering high torque output and rapid engagement to ensure smooth and
efficient operation. Manufacturers are investing in research and development to
generate innovative solutions, such as integrated starter-generators, which
combine the functions of both the starter and alternator in a single unit. This
approach reduces weight, enhances efficiency, and contributes to the overall
performance of electric vehicles.
Furthermore, with the
increasing popularity of mild-hybrid systems, there is a growing demand for
48-volt alternators and starters. These systems offer improved fuel efficiency
and reduced emissions by enabling features like regenerative braking and engine
start-stop functionality. As governments worldwide tighten emissions
regulations, automakers are integrating mild-hybrid technology into their
vehicle fleets, which further drives the demand for advanced starters and
alternators.
Lightweight
and High-Efficiency Components
Another notable trend in
the global automotive starter and alternator market is the growing emphasis on
lightweight and high-efficiency components. This trend is driven by the
automotive industry's relentless pursuit of fuel efficiency and reduced emissions.
Automakers are striving to minimize vehicle weight to enhance fuel economy and
meet stringent emissions standards. Consequently, manufacturers of starter and
alternator are developing lightweight materials and designs to meet these
demands.
Innovations in materials
such as high-strength alloys and composite materials are being utilized to
reduce the weight of starter and alternator components without compromising
their durability or performance. Lightweight starters and alternators not only
enhance vehicle efficiency but also contribute to improved handling and overall
driving experience.
Furthermore, the focus on
high-efficiency components is crucial to minimize energy losses and enhance
overall vehicle performance. Advanced alternators are being designed with
improved voltage regulation, ensuring a stable power supply to the vehicle's
electrical systems. On the other hand, high-efficiency starters reduce the load
on the battery and facilitate quicker engine starts, which is particularly
significant for modern vehicles equipped with start-stop systems.
Segmental Insights
Product Insights
The Alternator segment holds a significant market
share in the Global Automotive Starter and Alternator Market. As the automotive
industry shifts towards electrification and hybridization, significant changes
are being witnessed in the alternator segment. In traditional internal
combustion engine (ICE) vehicles, alternators play a crucial role in charging
the battery and powering electrical systems. However, in electric and hybrid
vehicles (EVs and HEVs), alternators are being replaced or complemented by
generators or regenerative braking systems. To adapt to this evolving
landscape, alternator manufacturers must focus on developing specialized
alternators for hybrid systems and exploring new opportunities in the EV
market, such as supplying components for auxiliary systems.
Fuel efficiency and reduced emissions remain top
priorities for automakers worldwide. There is a growing demand for
high-efficiency alternators that can convert more mechanical energy into
electrical power with minimal losses. Manufacturers can capitalize on this
trend by producing advanced alternators that contribute to improved fuel
economy and reduced environmental impact.
Weight reduction is a critical aspect of enhancing
vehicle efficiency. Alternator manufacturers have an opportunity to develop
lightweight components using advanced materials such as composites and
high-strength alloys. Lightweight alternators not only contribute to better
fuel efficiency but also enhance handling and overall vehicle performance.
With modern vehicles equipped with increasingly
sophisticated electronics, including advanced driver assistance systems (ADAS)
and infotainment, there is room for innovation in the alternator industry.
Manufacturers can focus on developing smart alternators equipped with sensors
and adaptive control systems. These smart alternators can efficiently supply
power to various vehicle systems, adapting to changing electrical demands and
contributing to the reliability and performance of advanced features.
Vehicle Type Insights
The Passenger Vehicle segment holds a significant
market share in the Global Automotive Starter and Alternator Market. The
passenger vehicle segment is undergoing a rapid shift towards electrification,
encompassing hybrid, plug-in hybrid (PHEV), and fully electric vehicles (EVs).
This emerging trend presents both challenges and opportunities for starter and
alternator manufacturers. While traditional starters have diminished relevance
in EVs, there is a high demand for advanced alternators and integrated
starter-generators (ISGs). Manufacturers must adapt their production processes
to supply components for electric powertrains and develop efficient,
high-output alternators suitable for hybrid vehicles.
The prevalence of start-stop technology, which
temporarily shuts off the engine when the vehicle is stationary to conserve
fuel, has become widespread in many passenger vehicles. Manufacturers of
starters and alternators have the opportunity to provide robust and reliable
start-stop systems, including high-efficiency starters capable of withstanding
frequent stop-start cycles.
The passenger vehicle segment places significant
emphasis on reducing vehicle weight and improving fuel efficiency. Starter and
alternator manufacturers can contribute to this endeavor by developing
lightweight components using advanced materials. These components not only
reduce overall vehicle weight but also enhance efficiency and performance.
With the integration of increasingly sophisticated
ADAS and connectivity features, modern passenger vehicles rely on a stable and
efficient electrical system. Starter and alternator manufacturers can drive
innovation by producing smart alternators with adaptive voltage regulation,
ensuring a consistent power supply for these advanced systems.
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Regional Insights
The Asia Pacific region is
expected to dominate the market during the forecast period. The Asia-Pacific
region is home to some of the world's fastest-growing automotive markets,
including China and India. These countries have witnessed rapid urbanization,
rising disposable incomes, and the emergence of a growing middle class, all of
which have resulted in a surge in automobile demand. Consequently, there exists
a significant opportunity for automotive starter and alternator manufacturers
to tap into these emerging markets.
Several global automotive
manufacturers have established manufacturing and assembly plants in countries
across the Asia-Pacific region, with a particular focus on China. This has led
to the development of a robust supply chain ecosystem and a high demand for
starter and alternator components in the region. Localizing production not only
helps reduce costs but also ensures a steady market for these components.
Governments throughout the
Asia-Pacific region are increasingly emphasizing the promotion of electric
vehicles (EVs) to address pollution and energy concerns. Consequently, there is
a growing demand for specialized starter and alternator components tailored
specifically for EVs and hybrid vehicles. Manufacturers that can provide
cutting-edge solutions for electrified powertrains stand to benefit
significantly.
Furthermore, many
countries in the Asia-Pacific region are tightening emissions regulations,
which is driving the adoption of advanced starter and alternator technologies.
There is a demand for high-efficiency components that can reduce fuel
consumption and emissions, thereby creating opportunities for manufacturers to
offer eco-friendly solutions.
The Asia-Pacific
aftermarket for automotive starter and alternator components is substantial. As
the vehicle parc in the region continues to expand, there is a steady demand
for replacement parts and maintenance services. Manufacturers can capitalize on
this demand by offering reliable and high-quality aftermarket products.
Recent
Developments
- In November 2018, Bosch unveiled innovative automotive
system ICs, which are application-specific integrated circuits designed to
perform dedicated functions. Bosch provides system ICs for various
applications, including alternator electronics, engine management, airbags, and
transmission control systems.
Key Market
Players
- Hella KGAA Hueck & Co.
- Lucas Electrical
- Hitachi Automotive Systems, Ltd.
- ASIMCO Technologies Ltd.
- Mitsubishi Electric Corporation
- Valeo SA
- Mitsuba Corporation
- Controlled Power Technologies Ltd.
- Denso Corporation
- Robert Bosch
|
By
Product
|
By Vehicle Type
|
By Sales Channel
|
By
Region
|
|
|
- Passenger Vehicle
- Light Commercial Vehicle
- Heavy Commercial Vehicle
|
|
- North
America
- Europe
- South America
- Middle
East & Africa
- Asia
Pacific
|
Report
Scope:
In this report, the Global
Automotive Starter and Alternator Market has been segmented into the following
categories, in addition to the industry trends which have also been detailed
below:
- Global Automotive Starter and
Alternator Market, By Product:
o Starter
Motor
o Alternator
- Global Automotive Starter and
Alternator Market, By Vehicle Type:
o Passenger
Vehicle
o Light
Commercial Vehicle
o Heavy
Commercial Vehicle
- Global Automotive Starter and Alternator Market, By Sales Channel:
o OEM
o Aftermarket
- Global Automotive Starter and Alternator Market, By
Region:
o
North America
§ United
States
§ Canada
§ Mexico
o Europe
§ France
§ United Kingdom
§ Italy
§ Germany
§ Spain
o
Asia-Pacific
§ China
§ India
§ Japan
§ Australia
§ South
Korea
o
South America
§ Brazil
§ Argentina
§ Colombia
o
Middle East & Africa
§ South
Africa
§ Saudi
Arabia
§ UAE
Competitive
Landscape
Company
Profiles: Detailed analysis of the major companies present in
the Global Automotive Starter and Alternator Market.
Available
Customizations:
Global Automotive Starter
and Alternator Market report with the given market data, Tech Sci
Research offers customizations according to a company's specific needs. The
following customization options are available for the report:
Company
Information
- Detailed
analysis and profiling of additional market players (up to five).
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