Market Trends of Automotive Fault Circuit Controller Industry
This section covers the major market trends shaping the Automotive Fault Circuit Controller Market according to our research experts:
Increasing Electronic Components in Automobiles
Safety and security systems such as adaptive cruise control, ant-theft alarm system, lane departure warning, keyless entry, braking systems, and autonomous driving systems help in avoiding fatal accidents as well as provide greater security. Such advanced features are integrated within vehicle using considerable number of electronic components. Further growing awareness regarding eco-friendly mobility has plunged sales of electric vehicles, thereby driving demand for automotive connectors. It is anticipated that over 150 hybrid electric vehicle models are going to be launched during the forecasted period, which creates an immense opportunity for manufacturers of connectors. Regulations also play an important role in shaping the market. The proposed ban on internal combustion engine (ICE) vehicles in different countries led to increasing adoption of electric vehicle. For example, Norway has set 2025 as the target year for ban on ICE vehicles. China has announced ban by 2030. This amplifies the scope of vehicle electrification, thereby increasing the demand for fault circuit controllers market during the forecasted period. Passenger safety is of the utmost importance to the government as well as the companies. Governments all over the world are also focusing on reducing accidents by mandating the use of advanced automobile safety systems such as ABS, airbag systems, warning systems and many more which also is contributing to the fault circuit controller market growth.
United States Is Expected To Lead the Market
The United States continues to be the leader in terms of car volume sales, sold over 4.7 million units in 2019. Different markets have different demands; The United States of America is the leading manufacturer of electric automobiles and safety components. Investment in R&D by OEMs to develop efficient and low-cost systems has helped this market grow. An increase in production standards of manufacturing, sustainable innovation, and excellent technical know-how based in the country will help to strengthen the position of the United States of America to emerge as a leading automotive whiplash protection systems during the forecast period. Going forward, OEMs must be active in achieving the commitment or face the possibility of brand erosion due to being behind in safety advances. Electronic stability systems being incorporated into government safety ratings may alter consumer perception one way or another. However, this was not the case before the pledge as automakers put different levels of importance to systems. With the rise in demand for electric vehicles in the country, the demand for automotive fault circuit controllers is expected to increase in the coming years. With technological advancements the manufacturers are expected to see raise in demand for car exports which intern will increase demand for fault circuit controller. The automobile industry is highly dependent on the Environment Protection Agency (EPA) regulations, owing to the high emissions of the automotive units. The move by the EPA to raise the miles per gallons (mpg) standards to 54.5 mpg by 2025, is helping the market, as the automotive industry concluded that the only way to get to those mileage standards is by manufacturing lightweight vehicles.
Over the past five years, owing to the low production costs in the country, the demand for vehicle production went up drastically. The automotive industry in the United States experienced a sharp drop in demand in March 2020, vehicle sales went down by 38% year-on-year due to impact from COVID-19 pandemic. However, with several initiatives taken by the country to boost the automotive industry, passenger car sales are expected to increase over the forecast period, which, in turn, is expected to drive the demand for automotive fault circuit controllers in the country.
