Dials and switches have been traditionally the norm for controlling automotive functionalities. However, as automakers gear up for the world of shared mobility and self-driving cars, they are exploring an array of next-gen technologies enabled by smarter computing platforms.
Modern automakers are keen on leveraging the opportunities residing in the expanding horizon of myriad automotive functionalities, particularly in the automotive interiors, which is ultimately complementing the growing emphasis on driver safety. This is in turn laying strong foundation for autonomous driving.
While the rising preference for advanced and sensitive switches is leading to partial or complete replacement of lever-operated switches, the push button or touch pads in former promote ease of operation, greater efficiency, and enhanced aesthetic value of automotive interiors.
Considering the potential developments in automotive multifunction switches, a new research publication of Persistence Market Research (PMR) evaluates key growth influencers associated with the market, emphasizing the latest developments in the competitive landscape of automotive multifunction switches market.
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- TOKAI RIKA CO., LTD.
- Toyodenso Co.,Ltd
- Leopold Kostal GmbH & Co. KG
- Merit Automotive Electronics Systems, S.L.U.
- UNO Minda, N K Minda Group
- Wells Vehicle Electronics
- Danlaw Technologies India Ltd
- COBO SPA
- Fiat Chrysler Automobiles
- LS Automotive
- Nexteer Automotive
The Evolutionary Course of Automotive Multifunction Switches
A majority of design considerations for in-car interior controls have traditionally remained concentrated at basic functionality of a limited number of switches, on a simple dashboard.
However, as automotive design and engineering continue to evolve, delivering a heap of advanced features centered at ‘convenience and comfort’, the aesthetics and user-friendly quotient of in-vehicle controls and switches remain of paramount importance.
Considering that the new-age drivers are viewing advanced automotive electronics as a part of their car interiors, automotive engineers are applying a holistic approach while designing the interface controls.
Developments in the automotive industry, coupled with the key technology advances that can potentially replace the conventional mechanical switches, collectively that the sales of automotive multifunction switches will thrive steadily.
By the end of 2019, the global automotive multifunction switches market is expected to be valued at US$ 3.2 Bn in 2019 and is likely to grow at a CAGR of ~4% during the forecast period.
The staggering adoption of ‘automation’ by automakers in line with growing need for ease of driving, and continual developments complementing modern car infrastructure, are likely to drive the automotive multifunction switches market growth in coming years.
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Impact of Undercurrents on the Automotive Multifunction Switches Market
Evolution of Human-Machine Interface
Automakers are evaluating the use cases of human-machine interface technologies which include gestures, voice controls, and interior-facing cameras in modern automotive interiors. The human-machine interface is amidst an evolution as the sway of touch-screen technology is spilling into the industrial operator interface design.
Advanced Automotive Interiors Gain Traction
Automotive interiors are influenced by futuristic technologies that work towards easing the driving experience, improving the functionalities in automobiles, and pushing the capabilities of future driverless cars. Constant efforts being invested in automotive interior improvements, particularly in luxury cars category, are likely to propel innovations in automotive multifunction switches.
OEM Globalization to Support Market Growth
Increasing vehicle sales are compelling OEMs to focus on expansion, eventually resulting in OEM globalization. As the OEMs initiate innovations, there would be several aftermaths involving the use of newer materials, advanced integrated electronics, telematics, and technologies. These innovations would disrupt the automotive industry substantially.
The longer lifespan of automotive multifunction switches result in lesser chance of their replacement, impacting the aftermarket sales of the product, which could impact the revenue of the overall market at a certain extent. Moreover, it is observed that in certain automobiles, the replacement of complete switch assembly is required even in case of certain dysfunctionalities, resulting in needless expenditure for vehicle owners. This could hinder the overall growth of the market.
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Automotive Multifunction Switches Market: Manufacturers’ Winning Strategies
Expand R&D Facility to Remain Efficient with Technological Advances
As newer technologies invade the automotive sector, automakers opt for high-end, technologically advanced components and controls. In light of this, automotive multifunction switches market competitors aim to expand their R&D facilities, to remain updated with the technological advances that could influence the end user requirements. Strengthening the R&D facility allows market players to expand their product catalogue that incorporate next-gen technologies.
Gain Stronger Global Foothold through Collaborations
Companies providing automotive multifunction switches are considering global expansion of business in terms of the distribution of products. Partnerships and collaborations with distributors and suppliers across other regions, allow competitors to establish their presence in untapped markets. Developing countries that are adopting newer business models such as that of electric automobiles, are garnering the attention of competitors that aim to achieve a stronger global foothold.
Establish Enhanced Engineering and Design Centers
As the automotive industry evolves, automotive multifunction switch providers continue to adopt vital strategies to keep pace with the developments. These strategies involve the expansion of production capacity and establishment of design centers. Emphasis on expanding design and engineering centers banking on their strategy to provide better functional control in future cars, would remain a prominent strategy among leading players.
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Competition Analysis of the Automotive Multifunction Switches Landscape
In May 2019, Tokai Rika, a leading market player entered into the digital key distribution business through a collaboration with Datatec, a vehicle operation management supplier. This collaboration would enable the former to provide a new vehicle operations management system.
In January 2019, Valeo announced its strategic cooperation with Meituan, a China-based leading e-commerce platform for services and the largest on-demand food delivery platform in China. The former would deliver parts and contribute its expertise, including sensors, electric motors, lighting and thermal management, areas.
In July 2018, TOYODENSO Co., Ltd. entered into a licensed agreement with Immersion Corporation for mobility human-machine interface. With this, TOYODENSO was able to utilize Immersion-patented haptics technology for its own mobility solutions.
The global automotive multifunction switches market is moderately concentrated in nature with major and organized players holding about 70% share in the global market in 2018. Among the leading players, TOKAI RIKA CO. LTD. holds prominent share in the global market. Joint ventures and partnerships with an aim to boost sales revenue, remain key strategies that support business growth for automotive multifunction switches market. Alongside, significant focus is centered at improving the manufacturing capabilities to address robust demand for new-aged products. Agreements to enhance their technological divisions, concentrated on embracing new technologies are also considered.
Analyst’s Perspective of the Market
PMR analysts have a positive outlook of the automotive multifunction switches market, on account of the consistent opportunities exhibited by the market. The overall market is likely to gain traction in the future, with major opportunities cited in East Asia. While the market in East Asia remains crucial for manufacturers, Middle East and Africa is expected to emerge as a high-growth market. New entrants can consider these regions for investments pertaining to production and distribution. Improvements in global manufacturing of automobiles are resulting in major improvements in OEM segments, thereby strengthening the automotive multifunction switches market. On the other hand, the aftermarket segment has showcased improvements at slower pace, as the aftersales segment holds a minor share in the overall automotive multifunction switches market. Companies can reap benefits associated with the OEM segment by maintaining stronger relationships with OEM companies and upholding healthy sales footprint in the OEM market. Companies can leverage the rising inclination towards electric cars that is expected to create an unprecedented growth in electric car sales and subsequently offer increased opportunities to supply automotive multifunction switches designed for the segment.
Free Analysis Part 2
The automotive multifunction switches market report provides comprehensive information about the automotive multifunction switches market trends, volume (‘000 Units) & value (US$ Mn) projections, market dynamics, competition landscape, and recent developments regarding the global automotive multifunction switches market for the study period 2019 to 2029.
The global automotive multifunction switches market is expected to reach over US$ 4,732 Mn by the end of the forecast period, registering a CAGR of 4%. According to the analysis, the demand for automotive multifunction switches is expected to continue to increase and gain significant traction in the coming years.
The increasing installation of automotive multifunction switches in e-commerce and 3PLs for retail & general purposes and the growing demand for automotive multifunction switches from the food & beverage industry, are among factors that are expected to reinforce the outlook of the global automotive multifunction switches market.
OEMs Hold a Major Share in Market
On the basis of the vehicle type, the market is categorized into four segments: passenger cars, light commercial vehicles, heavy commercial vehicles, and electric cars. The market is also segmented according to the sales channel, the automotive multifunction switches procured by OE Manufacturers are segmented as OEM and the multifunction switches purchased for the replacement under maintenance are segmented in Aftermarket category.
In terms of value, OEMs are likely to influence a majority of the market and grow with a volume CAGR of 3% during the forecast period. On the other hand, under the by vehicle type segment, the passenger cars sub segment is projected to account for a 72% share in the global market. Even though the electric cars segment is estimated to have a limited share in the global market, it is expected to register a CAGR of 7%. However, the LCV segment is anticipated to maintain a healthy share of 22% in the global automotive multifunction switches market. Strong development in the economies of emerging countries, which include increasing employment and decreasing unemployment rates, is also driving the spending capacity of the end users, and this is also another factor driving the automotive multifunction switches market.
Automotive Industry’s Growth Squarely Influencing Sales of Automotive Multifunction Switches
The automotive market has witnessed rapid growth during the fiscal year of 2017, and ~97 million automobiles were sold in globally. This growth in the sales has contributed to the growth of the automotive multifunction switches market. The booming automobile industry in emerging countries, such as China and India, is also boosting the growth of the automotive multifunction switches market at a significant pace.
Sustained Replacement Rate Boosting Automotive Multifunction Switches in Aftermarket
The usage of automobile vehicles during the recent past has considerably increased, which has substantially reduced the life expectancy of switches. This is expected to create a market for the replacement of automotive multifunction switches in automobiles, which is estimated to boost the aftermarket sales of these switches to a considerable extent.
The established and developed automotive markets of North America and Europe are likely to boost the market of automotive multifunction switches. Moreover, the extensive use of automobile vehicles, which has resulted in an increase in traffic congestion, is making driving a tedious task. Hence, end users are increasingly preferring multifunction switches with effective and robust designs. Moreover, increasing awareness about safety while driving and the importance of multifunction switches are also some of the factors contributing to the growth of the automotive multifunction switches market.
China to Contribute Significantly to Growth of Automotive Multifunction Switches Market
China is anticipated to remain at the forefront in terms of the growth of the automotive multifunction switches market. A significant number of manufacturers are investing in opening their manufacturing facilities in China, and several companies are extensively planning to expand into the East Asia region. This can be attributed to the ease offered by the government of China and business friendly environment created by business regulatory authorities in China. China is anticipated to garner a major share of the market and, at the same time, is expected to create its position as the most influential country in the overall automotive multifunction switch market.
Automotive Multifunction Switches Market – Competitive Landscape
The global automotive multifunction switches market is moderately concentrated where tier-1 and tier - 2 players hold for a dominant share in the global market. On the other hand, small-scale manufacturers and regional players account for a very low share in the global market. Increase in the number of manufacturers is affecting the aftermarket scenario, whereas OEM companies are procuring automotive switches from global brands and from international manufacturing companies. In Europe and North & Latin America, global players are dominating the market, whereas in the Asia Pacific region, local players are trying to establish themselves in the market.
In the recent past, the automotive multifunction switches market has witnessed significant developments from a competitive perspective. Geographic expansions, collaborations, and joint ventures are some of the preferred strategies adopted by key players to sustain and establish themselves in the global automotive multifunction switches market. Major companies are focused on updating their product portfolios.
Prominent players covered in the automotive multifunction switches market report include
- TOKAI RIKA CO., LTD.
- Toyodenso Co., Ltd.
- BCS Automotive Interface Solutions
- Leopold Kostal GmbH & Co. KG
- Merit Automotive Electronics Systems
- UNO Minda
- N K Minda Group
- Wells Vehicle Electronics
- Danlaw Technologies India Ltd.
- COBO SPA
- Fiat Chrysler Automobiles
- Preh GmbH
- LS Automotive
- Nexteer Automotive, among others.
Key Questions Answered in the Automotive Multifunction Switches Market Report
- How has the automotive multifunction switches market evolved over the past five years?
- How is the automotive multifunction switches market expected to take shape in terms of volume and value during the study period?
- What are the prevailing market dynamics in the automotive multifunction switches market?
- What are the competition developments and trends in the automotive multifunction switches market?
- What are the underlying macroeconomic and industry factors impacting the growth of the automotive multifunction switches market?
- Which are the key challenges, opportunities, and improvement factors for players in the automotive multifunction switches market?
- What are the market positioning and key strategies of major manufacturers as per the automotive multifunction switches market taxonomy?
- How is the competition structured in the automotive multifunction switches market and how has it evolved over the past few years?
Automotive Multifunction Switches Market Taxonomy
Light Commercial Vehicles
Heavy Commercial Vehicles
Key Questions Answered in the Report on Outboard Engines Market
- How much revenue will the automotive multifunction switches market generate in the next ten years?
- Which vehicle type contributes to the largest share in the automotive multifunction switches market?
- What are the key factors which would impact the automotive multifunction switches market in the future?
- What are the key challenges faced by automotive multifunction switches market contributors?
- Which region holds significant opportunities for the automotive multifunction switches market?
PMR’s study on automotive multifunction switches market begins with an executive summary that sheds light on the various automotive multifunction switches market aspects covered in the report. The chapter discusses the global automotive multifunction switches market outlook, demand and supply side trends, and showcases the significance of the taking up the study. This chapter includes the recommendations and analysis of the expert analysts at PMR who have formulated the study. The next chapter in the automotive multifunction switches market is the market overview that offers an outlook into the automotive multifunction switches market in terms of the market scope, definition, and limitations. The study includes a unique pricing analysis and value chain analysis. Following this is the market background which includes a detailed understanding of the macro-economic factors impacting the outboard engines market. The automotive multifunction switches market report also studies the significant market dynamics including market drivers, trends, and restraints.
The next section provides an outlook of the global outboard engines market analysis and forecast in terms of both volume and value. The section provides an assessment of key segments in the automotive multifunction switches market on the basis of vehicle type, sales channel, and region. The analysis includes the bifurcation on the basis of these segments. Clients are able to identify promising avenues with the help of this evaluation of the automotive multifunction switches market segments. The inclusion of year-on-year growth projection and basis point share analysis further aids in decision-making.
The next section in the PMR study on the automotive multifunction switches market offers an evaluation of the regional landscape of the market. The regional evaluation allows industry players to make key strategic decisions in terms of geographical expansion and investments. The segment-wise and country-level evaluation of individual regions helps the audience of the automotive multifunction switches study to potential opportunities in key regions pertaining to the market. Backed with year-on-year growth projections, global value and volume share, this section is a significant part of the report on automotive multifunction switches market.
The report on automotive multifunction switches market by PMR offers a unique competitive assessment of the leading market players. This sections provides details of the nature of the automotive multifunction switches market with the help of the market share held by leading and emerging players. The unique dashboard view of the players in the automotive multifunction switches market allows readers to understand the key strategies implemented by individual players and their performance in the market featuring the focus areas of the automotive multifunction switches market players. Additionally, the competitive structure of prominent players in the automotive multifunction switches market is also discussed in the study.