Market Trends of Automotive Spark Plugs And Glow Plugs Industry
Rise in Commercial Vehicle Sales
Commercial vehicles are witnessing high demand across the world, with high-capacity utilization and profitability driving the momentum for fleet renewal and expansion activities. Strong and sustained freight demand across the world and the growth of the e-commerce industry are propelling operators to purchase new commercial vehicles.
The overall macroeconomic environment is favorable, with robust utilization and profitability across operators boosting fleet renewals and expansions at an accelerated pace.
Increasing demand for commercial vehicles across the world, especially across Europe, Asia-Pacific, and Middle East & Africa, and higher penetration of diesel-powered engines in commercial vehicles when compared to gasoline-powered engines, is primarily driving the growth.For instance,
- In the first half of 2023, the European Union recorded an increase of 11.2% in new van sales, a 20% increase in new truck sales, and a 15% increase in new bus sales compared to Q1 2022 with the relaxation in supply chain issues.
Commercial vehicles witnessed significant growth in the last five years, and the trend is expected to continue during the forecast period. Commercial vehicles include applications in various industries, like construction, goods transportation, manufacturing industry, and various others.
Therefore, the growth of these end-user industries is anticipated to drive the demand for commercial vehicles. It, in turn, is likely to enhance the demand for spark plugs and glow plugs during the forecast period.
Growing mining and construction sector activities among developing and developed nations are expected to contribute significantly to market growth. Further, rapid growth in the transportation and logistics industry, advancements in infrastructure, and increased recreational activities in global trade are anticipated to offer new opportunities for players in the market.
With the development mentioned above across the globe, the demand for commercial vehicles is likely to grow in the coming years.
Asia-Pacific and Europe to Witness Significant share during the Forecast Period
The increasing production and sales of commercial vehicles is anticipated to be the major driving factor for the market during the forecast period. However, the majority of the new passenger cars sold in China are gasoline-powered, owing to which the demand for glow plugs from passenger cars is anticipated to remain slow during the forecast period.
As a result, the demand for commercial vehicles and, subsequently, the glow plugs from OEM and aftermarket channels is continually increasing in the region, owing to the growing logistics industry, as well as the increasing usage of light commercial vehicles, such as vans (for ride-hailing services). Thus, the demand for lightweight vehicle components to integrate into light commercial vehicles is expected to rise significantly during the forecast period.
With the regulations mandating the LCVs to stay within the stipulated weight limit, it became critical for OEMs to focus on making LCVs with lighter materials. As the e-commerce industry continues to witness growth across Europe, the demand for a more advanced distribution network is increasing.
Apart from Europe, the Asia-Pacific region is also experiencing a boom in the sales of commercial vehicles, owing to the growing e-commerce, resulting in the growth of the logistics, construction, and mining industries.
Thus, based on the developments above, the demand for glow plugs is expected to increase in the future.
