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The automotive fuse market size is forecast to increase by USD 5.21 billion at a CAGR of 4.5% between 2023 and 2028. The market is witnessing significant growth due to the increasing demand for electric vehicles (EVs) and hybrid electric vehicles (HEVs) in the automotive sector. The requirement to safeguard the expensive components of these light-duty chargeable vehicles is driving the market's growth. Furthermore, the development of fuses exclusively for EVs and HEVs is a notable trend in the market. However, the lack of infrastructure in potential markets poses a challenge to the market's growth. The electric car market's expansion, particularly in the context of battery electric vehicles (BEVs), is a key factor fueling the demand for automotive fuses. These fuses are crucial in protecting the battery materials and other vital components of EVs and HEVs from damage, ensuring the overall safety and efficiency of these vehicles.
The market is experiencing significant growth due to the increasing trend of electrification in the automobile industry. With the rise of electric and hybrid cars, there is a growing demand for fuse units that can effectively manage the power distribution in these vehicles. Fuel prices and environmental concerns are major factors driving the adoption of electric vehicles (EVs) and hybrid electric vehicles (HEVs), thereby boosting the demand for the market. Safety and comfort features are essential in modern vehicles, and fuses play a crucial role in ensuring their proper functioning. Major automakers, including General Motors, are investing heavily in the EV industry, and the implementation of programs like the Zero Emission Vehicles Program, further propels the market growth.
Furthermore, the engineering of EVs and HEVs requires specialized fuse units to manage the complex power systems. The market is expected to grow further as battery materials continue to improve, and EVs become more mainstream.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The passenger vehicle segment is estimated to witness significant growth during the forecast period. The market is experiencing significant growth, particularly in the passenger vehicles segment. This growth can be attributed to the increasing sales of passenger cars, especially in the entry-level segment, which is driving market expansion. For instance, new car registrations in Europe rose by approximately 17.8% between June 2022 and June 2023. Furthermore, the demand for larger utility vehicles, including sport-utility vehicles (SUVs), crossovers, and multipurpose vehicles (MPVs), is also contributing to the market's growth. Additionally, the increasing functionalities and applications of automotive fuses in passenger vehicles are fueling market growth. In the context of the automobile industry, environmental concerns and the rise of electric vehicles (EVs) in the EV industry are also impacting the market.
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The passenger vehicle segment was valued at USD 10.29 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market in the APAC region is experiencing substantial growth due to the increasing production and sales of electric vehicles (EVs) in countries such as China and Japan. China is currently the leading market for EVs, with a significant number of units sold, while Japan follows closely. Emerging markets like South Korea, India, and Hong Kong are also expected to become strong contenders in the EV industry during the forecast period. This growth can be attributed to the presence of major automobile manufacturers in these countries, including General Motors, who are investing heavily in EV technology. The rising environmental concerns and increasing fuel prices have further accelerated the adoption of EVs, leading to an increase in the demand for related components such as batteries, power inverters, and motors.
Consequently, the demand for automotive fuses, which are essential for the proper functioning of these components, is also expected to grow significantly in the APAC region.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The requirement of fuses to safeguard expensive components of EVs and HEVs is the key driver of the market. The automotive industry is witnessing significant advancements with the increasing adoption of electrification in Electric Vehicles (EVs) and Hybrid Electric Vehicles (HEVs). Product developments in these vehicles are focused on enhancing their range and performance.
However, ensuring the proper functioning of expensive components, such as electric motors and batteries, is equally important. Automotive fuse units play a crucial role in safeguarding these components from power surges and faults. With the growing trend of electrification, the demand for automotive fuses is increasing, and the selection process is becoming more complex. The rising popularity of Battery Electric Vehicles (BEVs) and HEVs necessitates the design of high-power, high-speed, and long-range fuse systems to meet the demands of the OEMs in this sector.
Development of fuses exclusively for EVs and HEVs is the upcoming trend in the market. The market is witnessing significant growth due to the increasing electrification of vehicles, particularly in the electric and hybrid car segments. Fuse units play a crucial role in ensuring safety, comfort features, and the efficient functioning of various electrical systems in these vehicles. Various fuse manufacturers, such as Eaton, have developed specialized fuses for electric and hybrid vehicles (EVs and HEVs) to protect sensitive equipment, including high voltage, high capacity batteries, power conversion equipment, contactors, cabling, and auxiliary circuits. Eaton Bussmann fuses, for instance, offer protection at 135% of the rated current, addressing a wide range of overcurrent conditions without causing damage through cycling fatigue.
Furthermore, these advanced fuses require 48% less space and weigh 50% less than traditional fuses, making them an ideal choice for the compact design requirements of EVs and HEVs. Furthermore, they boast an 11% higher voltage rating than the Japanese Automotive Standards Organization (JASO) D622 specification, eliminating the need for circuit redesign as battery systems are optimized for high voltages.
Lack of infrastructure in potential markets is a key challenge affecting the market growth. The market is significantly influenced by the electrification trend in the automotive industry, with a focus on electric and hybrid cars. The need for safety and comfort features in these vehicles increases the demand for fuse units to ensure the proper functioning of various electrical systems.
However, the sales of automotive fuses are contingent upon the infrastructure development for electric vehicles (EVs). The lack of accessible charging stations is a major challenge for EV owners, limiting their ability to refuel as conventionally-powered vehicle owners can. This issue is particularly prevalent in emerging markets such as India, where the absence of a comprehensive charging network hinders the widespread adoption of EVs. Therefore, the development of a strong charging infrastructure is essential to facilitate the growth of the market.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AEM Components USA Inc. - The company offers automotive fuses such as AirMatrix wire in air fuses and SolidMatrix solid body fuses.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is experiencing significant growth due to the increasing demand for electrification in the automobile industry. With the rise of electric and hybrid cars, the need for advanced electronics, infotainment systems, safety features, and power systems in vehicles has increased. Fuse units play a crucial role in protecting these electrical components from damage caused by power surges. The electric vehicle (EV) industry's growth is driven by factors such as fuel prices, environmental concerns, and government initiatives for zero-emission vehicles and FAME scheme. Major automakers are investing heavily in the development of light-duty chargeable electric vehicles, both battery electric and hybrid electric.
Furthermore, the EV sector's expansion is leading to an increased demand for automotive fuses. Macroeconomic factors, such as the middle-class population's growing purchasing power, are also contributing to the market's growth. Raw material prices and engineering advancements are major factors influencing the market's competitive landscape. As the middle-class population grows, the transition from internal combustion engines to electric cars in fleet power system is becoming essential for a sustainable energy future. The power system's complexity in electric and hybrid vehicles requires the use of multiple fuses to protect various components. The automotive sector's shift towards electrification is expected to continue, leading to significant growth opportunities for the market.
Market Scope |
|
Report Coverage |
Details |
Page number |
136 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.5% |
Market growth 2024-2028 |
USD 5.21 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.23 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 39% |
Key countries |
China, US, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AEM Components USA Inc., Blue Sea Systems, Dongguan Better Electronics Technology Co. Ltd., Eaton Corp. Plc, ETA Elektrotechnische Apparate GmbH, Fuzetec Technology Co. Ltd., GLOSO TECH Inc., Halfords Group Plc, Littelfuse Inc., Mersen Corporate Services SAS, MTA Spa, ON Semiconductor Corp., OptiFuse, Pacific Engineering Corp., Protectron Electromech Pvt. Ltd., Rainbow Power Co. Ltd., SCHURTER Holding AG, Sensata Technologies Inc., SIBA GmbH, and Ultra Wiring Connectivity System Ltd. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Vehicle Type
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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