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The global automotive alternator market size is estimated to grow by USD 3.29 billion between 2022 and 2027 accelerating at a CAGR of 6.08%. The market's expansion hinges on several factors, notably the escalating integration of electronic components in vehicles, the uptake of either new or upgraded emission standards, and the strategic shift in production to countries offering lower costs. These dynamics collectively propel the automotive industry forward, fostering innovations in vehicle technology, emission control mechanisms, and cost-effective manufacturing strategies. As electronic systems become more integral to vehicle functionalities, the market responds by enhancing electronic component accessibility and efficiency. Likewise, the pursuit of environmentally friendly practices via stricter emission standards drives advancements in eco-conscious vehicle designs. Lastly, the strategic relocation of production facilities to cost-efficient regions contributes significantly to maintaining market competitiveness and optimizing production expenses.
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This report extensively covers market segmentation by type (IC engine vehicles and hybrid & electric vehicles), application (passenger cars, LCVs, and M & HCVs), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The Market is a diverse landscape driven by various factors such as Vehicle Type, including IC Engine Vehicles, Hybrid and Electric Vehicles, Passenger Cars, and Commercial Vehicles. As the automotive industry progresses towards sustainability and addresses environmental concerns, the demand for efficient electrical components like rectifier circuits, stators, and output diodes is on the rise. In the realm of Electric vehicles and Hybrid powertrain systems, alternators play a crucial role in ensuring optimal performance while adhering to emission norms. They are integral components of electrical systems, working in conjunction with the engine and battery to power various vehicle functionalities. The market also sees influences from economic conditions impacting Automotive players and Automotive manufacturing industries, fostering joint ventures and strategic alliances. Technological advancements have led to the development of three-phase generators and innovative diode trios that enhance the efficiency of alternators in modern automobiles.
The IC engine vehicles segment was valued at USD 5.91 billion in 2017 and continued to grow until 2021. An internal combustion engine vehicle (ICEV) is a vehicle that is powered by a regular internal combustion engine (ICE). Since the demand and production of vehicles are high in APAC, the demand for ICEVs and advanced technologies is also high. The drastic shift in the income of the middle class and rapid urbanization are driving the demand for vehicles.
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The rising focus of consumers and companies on adopting low-emission and fuel-efficient vehicles has also brought HEVs into the limelight and increased their penetration rate. Moreover, constant government support in the form of grants and subsidies to companies and incentives to consumers has helped in increasing the adoption rate of HEVs. For instance, France, the UK, California, and the US have declared that they will stop the sales of ICE vehicles by 2040.
The global passenger car market is constantly undergoing changes in terms of technological development. Technological upgrades are primarily driven by the dynamic nature of emission regulations, fuel efficiency standards, safety standards, and the pressure to decrease production costs. Vehicle makers are focusing on adopting 48V electrical systems to meet the technological advances of automotive electronics used within passenger cars. For instance, Kia Motors launched a diesel 48V mild hybrid powertrain called EcoDynamics+.
LCVs are commercial carriers used for transporting goods over short distances, especially within cities and between cities. The compact nature of these vehicles allows easier maneuvering within city limits. LCVs are mainly used by parcel delivery companies, goods transport companies, and passenger transport agencies. 48V electrical systems are increasingly being adopted within LCVs to power the onboard electronics. Valeo, Continental, and Bosch are the major players offering 48V systems to automakers. For instance, in 2019, Fiat Chrysler Automobiles NV launched a 48V mild hybrid on all gas engines for its Ram 1500 trucks.
M and HCVs include vehicles such as food trucks, refuse collection trucks, bulk haulage trucks, and construction, mining, and freight transport vehicles. These vehicles are specifically designed to haul an increased amount of load over longer distances.
APAC is estimated to contribute 56% 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 APAC is mainly characterized as a developing market with a large scope of development in terms of vehicle ownership and technological adoption. The heightened sensitivity toward cost is restricting vehicle makers from adopting advanced automotive technologies, especially within the automotive market in India, China, and Japan. The production of automotive alternators in APAC depends on the production and sales of passenger cars and commercial vehicles and the rising demand for export-oriented production of automotive components. India and China accommodate a large manufacturing industry, mainly organized for export-oriented production. Lower wages, the ready availability of human resources, the availability of raw materials and associated transportation services, and the lower value of local currency further drive the manufacturing industry in these countries.
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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.
MAPCO Autotechnik GmbH - The company offers automotive alternators such as MAPCO 113600, and MAPCO 113601. Through this segment, the company provides automobile parts and accessories such as suspensions, steering, brake, wheel drive, engine, filters, electrics, and other spare parts.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market 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 driven by diverse factors such as the rising demand for Electric vehicles and Hybrid powertrain systems, necessitating efficient Electrical components like Generators, Rectifier circuits, and Stators. The market caters to a wide range of Vehicle Types including IC Engine Vehicles, Passenger Cars, and Commercial Vehicles while addressing sustainability and Environmental concerns through adherence to Emission norms. Challenges lie in adapting to evolving Economic conditions and fostering Joint ventures and Strategic alliances within the Automotive manufacturing industries to meet the demands of Modern automobiles and their intricate Electrical systems and Engines. Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Automakers are moving their manufacturing hubs to countries with cheaper labor, materials, and facilities which drives the market growth. China is a significant market, but trade tensions with North America and Europe are shifting focus to other low-cost countries in Asia.
Moreover, the COVID-19 pandemic has also increased demand for low-cost personal transportation, creating an opportunity for entry-level cars. Shifting production to low-cost countries will reduce costs and allow for lower prices, increasing demand and supporting the growth of automotive components.
Various industries are rapidly developing 3D printing or additive manufacturing technology is a primary trend in the market. The automotive industry is actively contributing to the additive manufacturing industry, accounting for approximately one-eighth of the revenue generated. The potential for additive manufacturing is immense, especially for products with complex designs and low volumes, due to the increasing manufacturing costs.
Furthermore, automotive manufacturers are adopting the latest manufacturing technologies like additive manufacturing to reduce their costs. For instance, SLM Solutions Group partnered with Audi to launch a 3D printing center in Germany. Rolls Royce is also adopting additive manufacturing to increase production rates, with BMW 3D printing 10,000 components for the Rolls Royce Phantom model. As the popularity of additive manufacturing increases, it is expected to attract automotive actuator manufacturers, positively impacting the market during the forecast period.
Windshields and windows are standard in all passenger cars and commercial vehicles, which means that the global market is impacted by overall automobile production and sales which is hindering the market. Since 2018, the automotive market has been experiencing a slump in sales and production, resulting in decreased demand for various automotive components, including alternators. Sales of light vehicles in the US dropped by 3.1% during January-March 2019, and automotive production has been declining in several countries such as Germany, the UK, and China.
Moreover, the slowdown in vehicle sales growth rate in 2019 has led to inventory costs for OEMs, forcing them to reduce or stop production temporarily. This has resulted in unsold passenger vehicles worth around USD 5 billion from various OEMs in India, such as Maruti Suzuki India Ltd., Tata Motors Ltd., Honda Motor Co. Ltd., and Mahindra and Mahindra Ltd. Such factors adversely affect automotive sales and production, reducing the demand for automotive components like alternators and hampering the growth of the global market.
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The 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 growth strategies.
Market Customer Landscape
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments
The Market is experiencing a surge due to several factors. Firstly, the demand for Electric Vehicles (EVs) and Hybrid powertrain systems is escalating, driving the need for high-output automotive alternators. Moreover, the focus on environmental concerns and carbon emissions is pushing automotive players towards sustainable solutions, including green initiatives and long-lasting battery life. Collaborations and joint ventures between Original Equipment Manufacturers (OEMs) are fostering innovation in charging systems and electrical components. Furthermore, advancements in alternating current (AC) power technology, Stator such as three-phase generators and salient pole type alternators, are enhancing efficiency in vehicle electrical machinery. However, challenges like drag on electrical systems and meeting stringent emission norms are areas of concern that the market continues to address through strategic collaborations and modern automobiles designs focused on sustainability.
Moreover, the Market is a critical component of the automotive manufacturing industries worldwide. It caters to various vehicle types, including hybrid and electric vehicles known for their eco-friendly operation. One notable trend is the shift towards high output automotive alternators that can efficiently power modern vehicles' electrical systems. These alternators often feature advanced technologies such as cylindrical rotor type designs and diode trio configurations, ensuring optimal performance and durability. Factors like economic conditions and the rise of e-commerce platforms impact the market dynamics, influencing the demand for conventional product variants and innovative solutions. As vehicles become more sophisticated, with increased reliance on electrical components and advanced instrument panels, the need for reliable voltage regulators and rectifier circuits becomes paramount.
Furthermore, with the growing popularity of off-road vehicles and the emphasis on lightweight cars, alternators are evolving to meet these specific requirements. They play a crucial role in supplying electricity and converting mechanical energy into electrical power, supporting essential functions like emergency vehicles operations and powering interior and exterior lights efficiently. The market's future lies in enhancing product efficacy, addressing challenges like electromagnetism interference, and fostering collaborations to combat issues such as parts cartels. As the automotive industry continues to innovate, the automotive alternator sector remains integral to vehicle functionality and performance.
Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.08% |
Market growth 2023-2027 |
USD 3.29 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.01 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 56% |
Key countries |
US, China, Japan, South Korea, and Germany |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ALANKO GmbH, AS PL Sp. z o.o., BBB Industries LLC, BluePrint Engines, BorgWarner Inc., Cummins Inc., DENSO Corp., Hitachi Ltd., Jumps Auto Industries Ltd., MAHLE GmbH, MAPCO Autotechnik GmbH, Minda Corp. Ltd., Mitsubishi Electric Corp., Motorcar Parts of America Inc., Ningbo Zhongwang Auto Fittings Co. Ltd., Prestolite Electric Inc., Robert Bosch GmbH, Stellantis NV, TVS Motor Co. Ltd., and Valeo SA |
Market dynamics |
Parent market analysis, market growth analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our 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 Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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