Automotive Ignition System Market Size

Automotive Ignition System Market Size

Automotive Ignition System Market size was valued at USD 9.3 billion in 2022 and is estimated to register a CAGR of 7.5% between 2023 and 2032, strongly influenced by the overall production of vehicles worldwide. In 2022, global motor vehicle production reached 85.4 million units, marking a 5.7% increase compared to the production figures of 2021, as reported by the European Automobile Manufacturers' Association. As the global demand for automobiles continues to rise, particularly in emerging markets, the need for ignition systems also increases. Higher vehicle production rates directly contribute to the growth of the ignition system industry.

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Stringent emission regulations will significantly contribute to the increasing automotive ignition system sales worldwide through 2032. Globally, there is a growing emphasis on reducing vehicle emissions to address environmental concerns. For instance, in April 2023, the Environmental Protection Agency unveiled more ambitious proposed standards aimed at further decreasing harmful air pollutant emissions from light-duty and medium-duty vehicles commencing with the model year 2027. This proposal expands upon the EPA's previously established standards for federal greenhouse gas emissions in passenger cars and light trucks spanning model years 2023 through 2026.
 

By capitalizing on advancements in clean car technology, the proposed standards aim to deliver a range of benefits to the American populace, including the reduction of climate pollution, enhancements in public health, and cost savings for drivers through decreased fuel and maintenance expenses. The implementation of these proposed standards is set to occur gradually over the model years 2027 through 2032.

The increasing focus on sustainability and the transition to electric vehicles pose a challenge to conventional automotive ignition systems. EVs don't rely on traditional combustion engines and, therefore, do not require conventional ignition systems. The growth of the electric vehicle market may lead to a decrease in demand for traditional ignition systems, impacting the market negatively.