Steering Wheel Switches Market Size By Product (Push, Seesaw), By Vehicle (PCV, LCV, HCV), By Distribution channel (OEM, Aftermarket) Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2019 – 2025

Steering Wheel Switches Market Size

Steering Wheel Switches Market size valued at USD 2 billion in 2018 and will grow at a CAGR of over 1.4% from 2019 to 2025. The global industry unit shipments are estimated to reach 500 million units by 2025.
 

With the increasing concerns regarding driver safety, new advanced reconfigurable controls are being integrated into steering wheels to reduce drivers’ distraction. To operate different functions from different buttons and to prevent accidents, manufacturers are integrating multi-function steering wheel buttons, offering increased safety through the integration of a limited number of buttons. The automotive industry is going through a rapid transformation with developments in vehicle design and the emergence of electric vehicles, which will create the demand for electromechanical systems and components, augmenting the steering wheel switches market growth.
 

Road safety has become an important area of focus, particularly in developed nations including the U.S. and European countries owing to a large number of fatalities and injuries due to road accidents. According to the National Safety Council, in February 2017, traffic deaths in the U.S. increased by 14.6% in 2015 and 2016, accounting for around 40,200 deaths in 2016. Owing to these concerns, vehicle safety features have become an important area of focus by automotive manufacturers as well as customers, driving steering wheel switches market revenue. The buyers in the U.S. and Canada have high purchasing power and are inclined toward a greater number of safety functions in vehicles, leading manufacturers to implement advanced safety features and driver assistance systems in cars.
 

Steering Wheel Switches Market Analysis

The push steering wheel switches market is valued over 650 million in 2018 and is projected to grow at a CAGR of around 1% over the forecast period. The increasing penetration of electronic systems in economy cars is creating growth prospects for the industry. The aftermarket for push type switches is also expected to show moderate growth as a result of the increased consumer spending on their maintenance to increase the comfort and safety of vehicles. These switches are majorly used for volume control, channel control, vehicle mode control, and radio control.
 

The increasing implementation of advanced entertainment systems in vehicles will drive the demand for seesaw type switches. These switches are integrated into steering wheels to perform several tasks such as audio control and cruise control. Luxury vehicle manufacturers across the globe are particularly implementing seesaw type switches due to their increased functionality and enhanced aesthetic features. The growing demand for luxury vehicles in Europe and the MEA countries including the UK, Germany, Saudi Arabia, and the UAE is expected to drive steering wheel switches market growth over the forecast timeline.
 

The steering wheel switches market in passenger cars will reach over USD 450 million by 2025, growing at a CAGR of around 3%. The deployment of several new technologies in passenger vehicles, such as infotainment systems and ADAS systems, is creating the demand for steering wheel controls and contributing toward industry growth. Automotive manufacturers are developing PCVs that provide enhanced features to increase the safety & comfort of drivers.  The increasing implementation of cruise control buttons on steering wheels of economy cars to manually adjust the speed of the car will influence the demand for these components.
 

The demand for luxury vehicles and sports cars is rising across the globe, providing lucrative opportunities to companies operating in the steering wheel switches market. These cars are integrated with multiple steering wheel switches to increase the functionality of the vehicle. The increased government concerns & regulations across the world that include the provision of safety systems in vehicles are also accelerating the deployment of these solutions in passenger vehicles.
 

Asia Pacific steering wheel switches market holds over 40% revenue share in 2018 due to the lucrative growth in automotive manufacturing in the region. Increasing government policies & initiatives that support the manufacturing sector development in Asian countries including China and India are driving the steering wheel switches market share. For instance, the “Make in India” initiative by the Government of India is developed to accelerate the production of various products in the country, developing the export activities. These initiatives along with easy & cheap labor availability in the region are supporting the penetration of several manufacturing facilities of foreign companies.
 

The presence of several well-established automakers that include Toyota, Honda, Suzuki, Mitsubishi, and Nissan in Japan makes it one of the major markets. These brands are included in the top vehicle manufacturers across the globe, which is the key factor adding up to the rapid growth of the country’s automotive sector. Auto part manufacturers in Japan offer highly specialized product offerings and mainly sell their products to the OEMs across Europe, North America, and China. Tokai Rika is one of the major suppliers of automotive switches in the region.
 

Steering Wheel Switches Market Share

• Valeo
• Tokai Rika
• Delphi Technologies
• Marquardt
• Preh GmbH

are the players involved in the steering wheel switches market growth. These companies have strong relations with OEMs to sell their products directly to them as well as to aftermarket through the network of dealers & distributors. Companies are launching newer products in the market to maintain its customer base. For instance, in June 2019, C& K components announced the launch of its new KSC XA tactile switch, designed for automotive interior and opening applications. These switches are suitable for the steering wheel or gear shift paddle applications.

Companies such as Panasonic are focusing on enhancing its vertical integration operation, i.e., performing in-house painting, molding, and production operations. The company offers push type switches in a variety of sizes and push travel, as well as both self-locking and non-locking styles. Panasonic also focuses on delivering reliable customer performance by providing customized automotive interior designs.
 

Industry Background

The demand for automotive components in the OEM market is generally associated with the number of new vehicles produced in response to consumer demand. The automotive demand is influenced by factors such as interest rate, fuel prices, and credit availability. The components by auto manufacturers are also associated with vehicle production, which is driven by the amount of freight tonnage being transported, industrial production, and the availability of credit & interest rates. Although the OEM demand is associated with the actual automobile production, players operating in the industry have the opportunity to grow faster by penetrating their business with existing customers, as well as in existing markets, gaining new customers, and increasing the presence in global markets.