June 13, 2024

Spark Plugs Market is Estimated to Witness High Growth Owing to Advancements in Iridium Technology

Spark plugs are small ignition devices that deliver electric current to spark plugs in internal combustion engines, enabling combustion. They are essential components that help start the engine and keep it running smoothly. Iridium alloy is increasingly being used as the center electrode material in spark plugs as it has a higher melting point and better erosion resistance than other materials. Iridium spark plugs can last longer than conventional copper and platinum spark plugs.

The Global Spark Plugs Market is estimated to be valued at US$ 3.52 Bn in 2024 and is expected to exhibit a CAGR of 4.8% over the forecast period 2024 to 2031.

Key Takeaways
Key players operating in the Spark Plugs Market are DENSO Corporation, Robert Bosch LLC, Tenneco Inc., Niterra, BorgWarner Inc., General Motors, Valeo, MAGNETI MARELLI PARTS & SERVICES, Tenneco, ABRO Industries, Carborundum Universal Limited and Burg Germany GmbH. Replacement of old spark plugs and repair and maintenance needs of vehicles boost the demand for spark plugs. Advancements in iridium alloy plating makes spark plugs more durable and reliable and increases their service life which is a key opportunity in the market. Iridium technology adoption is growing steadily as it offers better performance over conventional spark plugs made of copper and platinum alloys.

Market drivers
Increasing vehicle parc across regions drives the aftermarket demand for spark plugs replacements and maintenance. As vehicles age, their spark plugs need to be replaced more frequently. The average life of a spark plug depends on several factors but typically ranges from 30,000 to 100,000 miles. This generates steady recurrent demand. In addition, stricter emission norms are prompting automakers to enhance ignition and combustion efficiency in vehicles using advanced spark plug technology like iridium spark plugs.

Current challenges in the Spark Plugs industry
The rising adoption of electric vehicles across the globe poses a significant challenge for the Spark Plug Market Size . As EVs do not require internal combustion engines, the demand for spark plugs is reducing steadily. Moreover, many countries are aiming to ban the sale of new gasoline-powered vehicles in the next decade, which will massively impact the spark plugs industry. Additionally, strict emissions norms have compelled automakers to develop advanced ignition systems that require replacing spark plugs less frequently. This poses a replacement demand challenge for market players. The emergence of hybrid vehicles is another impediment as they combine an internal combustion engine and electric motor, which lowers the spark plug replacement rate.

SWOT Analysis
Strength: Spark plug manufacturers have well-established global distribution and supply chain networks to serve automotive OEMs as well as the aftermarket. They also have substantial expertise and experience in spark plug technology.
Weakness: Electric vehicles do not require spark plugs, posing a significant long-term threat. Hybrid vehicles also impact the replacement rate of spark plugs. High competition from local players impacts margins.
Opportunity: Growth in the number of gasoline-powered vehicles in developing markets especially in Asia Pacific presents an opportunity. Frequent replacements required in commercial vehicles also open up an avenue.
Threats: Stringent emissions norms are prompting engines with longer spark plug replacement intervals. Rapid adoption of electric mobility poses a major long-term threat. Rising commodity costs also impact margins.

In terms of value, the spark plugs market is currently concentrated in Asia Pacific and Europe. Asia Pacific accounts for around 35% of the global market led by countries like China, India, and Japan. Growing vehicle parc and frequent replacements in commercial vehicles are driving the Asia Pacific market. Europe is another major region holding over 25% share due to the large number of automobile manufacturers based in Germany.

The Middle East & Africa region is poised to witness the fastest growth during the forecast period in the spark plugs market. This is attributed to rising vehicle sales, expanding aftermarket, and frequent replacement needs in commercial, construction, and mining vehicles. Growing infrastructure projects and industrialization are propelling the demand across Middle Eastern and African countries. Moreover, modest investments by market players to enhance distribution networks will support the regional market.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it