An automotive fuse is a crucial component in a vehicle's
electrical system, as it helps to protect the system from overloading and
potential damage. It is designed to break the circuit and stop the flow of
electricity when there is an overload, short circuit, or other electrical
fault. Automotive fuses come in various types, sizes, and ratings, depending on
the application and requirements of the electrical system.
The automotive fuse market has witnessed significant growth
in recent years, driven by factors such as the increasing demand for electric
and hybrid vehicles, the growing emphasis on vehicle safety, and the need for
reliable and efficient electrical systems in automobiles. Additionally, the
increasing demand for advanced features such as infotainment systems, advanced
driver assistance systems (ADAS), and connected car technologies has also
contributed to the growth of the automotive fuse market.
One of the key drivers of the automotive fuse market is the
increasing demand for electric and hybrid vehicles. As these vehicles rely
heavily on their electrical systems, the need for reliable and efficient fuses
becomes even more critical. Furthermore, the growing emphasis on vehicle safety
has led to the adoption of advanced safety features such as airbags, anti-lock
braking systems (ABS), and electronic stability control (ESC), which also
require reliable and efficient electrical systems with fuses.
In addition, the increasing demand for advanced features
such as infotainment systems, ADAS, and connected car technologies has led to
the integration of more electronics in vehicles. This has further fueled the
demand for automotive fuses, as these electronic systems require protection
from electrical faults and overloads.
However, the automotive fuse market also faces several
challenges, including the increasing complexity of vehicle electrical systems,
which requires specialized knowledge and expertise to design and implement
efficient and reliable fuses. Furthermore, the increasing use of high voltage
electrical systems in electric and hybrid vehicles poses new challenges for
fuse manufacturers, as these systems require fuses that can handle higher
voltages and currents.
Despite these challenges, the automotive fuse market is
expected to continue its growth trajectory in the coming years, driven by the
increasing demand for electric and hybrid vehicles, advanced safety features,
and connected car technologies. With the continued development of more
efficient and reliable fuses, the automotive industry can continue to improve
the performance and safety of its electrical systems, while also meeting the
evolving needs of consumers.
Dynamics of Automotive Fuse Market
Drivers in Automotive
Fuse Market
The automotive fuse market is driven by the increasing use
of high-voltage architecture in electric vehicles. As new vehicles, especially
hybrid electric vehicles (HEVs) and all-electric vehicles (EVs), require higher
voltage electrical systems, the standard 12-V electrical systems are no longer
viable. The advanced driver assistance systems (ADAS) and other devices in
vehicles have added multiple processors, high-current sensors and actuators,
revealing the weaknesses of standard 12-V electrical systems. Hence, most new
hybrid vehicles now include a 48-V system, and standard vehicles with internal
combustion engines are moving in that direction. In addition, the rise in fuel
prices and environmental concerns are accelerating the production of electric
vehicles, leading to a rise in the demand for efficient automotive fuses.
Restraints in
Automotive Fuse Market
However, the volatile prices of raw materials are
restraining the growth of the automotive fuse market. The pricing of the end
product is heavily dependent on the procurement of raw materials. Any
fluctuation in the pricing of raw materials due to economic and political
unrest can impact the pricing of components such as automotive fuses. The
supply of basic raw materials such as steel, plastic, copper, and aluminum has
become unreliable, and their prices are extremely volatile. As a result, longer
lead times and supply chain challenges are inevitable, making it difficult for
players with a global presence to be competitive. The high cost of materials
such as steel, plastic, copper, and aluminum prevents their extensive use in a
vehicle. Therefore, the automotive fuse market is facing challenges due to the
volatility of raw material prices.
Opportunity in
Automotive Fuse Market
Rising Demand for Premium Vehicles
The increasing economic prosperity worldwide has brought
about a shift in consumer lifestyles. This change is particularly evident in
developing countries like China, India, and Brazil, where a surge in global
sales of passenger cars, particularly premium passenger cars worth over USD
25,000, reflects an improved financial status and lifestyle. The high
disposable income of families has led to a change in their preferences and
demands, as well as factors like rising per capita income, better
infrastructure, and increased competition among OEMs to offer advanced
features, all of which have positively impacted the global sales of premium
passenger vehicles. Developed countries like the US, the UK, and Germany have
high consumer purchasing power and can afford premium vehicles. Since the
application of automotive fuse in premium vehicles is higher than in
mid-segment or low-segment vehicles, the demand for automotive fuses is
expected to grow in line with the rising demand for premium automobiles. The
trend toward vehicle electrification is also gaining popularity, which is
anticipated to generate future opportunities for system improvements to reduce
pollutant emissions and dependence on fossil fuels. This, in turn, is expected
to drive the sales of car components, such as automotive fuse boxes, in the
coming years.
Challenges in
Automotive Fuse Market
Connected Smart Junction Box for Autonomous Vehicles
The use of a junction box eliminates the need to run a wire
from every outlet or switch back to the main service panel. Nowadays, junction
boxes are equipped with electronic modules, making it easier to locate and
repair any electrical problems that arise in the system when a junction box is
used for every electrical connection. A junction box is used for every
electrical connection, and it should be inside a protective box that is easy to
find and access. The ongoing electrification of vehicles is impacting all
vehicle systems and providing a compelling reason to overhaul the automotive
power distribution architecture. With the emergence of autonomous cars, the
number of electronics in a vehicle is increasing, leading to a rise in the
demand for smart junction boxes. This trend poses a threat to Tier 1
manufacturers of automotive fuses since the number of fuses required will be
reduced compared to current vehicles.
The segment with a voltage of over 300 V is expected to
experience the highest growth during the forecast period in the automotive fuse
market. Automotive fuses are crucial in safeguarding electrical circuits,
components, and switches in high-voltage vehicles since circuits and components
can suffer severe damage due to overvoltage. Due to the use of high-capacity
batteries in battery electric vehicles (BEVs) and most plug-in hybrid electric
vehicles (PHEVs), the number of battery fuses used is higher in these vehicles.
Some models with over 300 V architecture include the VW Golf PHEV, Tesla Model
S, and Audi A3 PHEV. In October 2021, Eaton launched the EVK Series, a new
range of Bussmann series fuses that satisfy the criteria for use in the most
recent high-powered electrified vehicles with direct current (VDC) ratings up
to 1,000 volts and 600 amps. The market for over 300 V automotive fuses is
anticipated to expand due to an increase in the production and sale of BEVs and
PHEVs, resulting in a surge in the charging management system.
The North American region is expected to contribute
significantly to the growth of the Automotive Fuse Market due to the North
American Free Trade Agreement (NAFTA), which has fostered the growth of the
automotive industry in the region. The US, being a global technological leader,
is the largest automotive market in North America, and it leads the region's
market with the highest sales of passenger cars, LCVs, HCVs, and EVs. The high
disposable income and large customer base in the country fuel the demand for
vehicles, leading to increased manufacturing activities by local automotive
OEMs. The market in the region is expected to witness substantial growth during
the forecast period, primarily due to the higher penetration of advanced
technology and safety features in most vehicles.
In contrast, the Asia-Pacific region is expected to have the
largest share in 2021, with a considerable growth rate over the projection
period, owing to the presence of prominent automobile manufacturers in
countries such as China, India, and Japan. The region's expanding government
efforts are aiding the growth pace of the market. Consumer tastes, legislation,
and technology have evolved, making vehicles more complex. Investments in
connectivity, autonomy, shared transportation, and electrification are expected
to continue to increase. As product complexity increases, manufacturing centers
are investing in becoming more agile while continuing to develop lean
manufacturing concepts.
According to the International Energy Agency, the People's
Republic of China accounted for half of the rise in electric vehicle sales in
2023. China is expected to sell 23.1 million more vehicles than the rest of the
world combined during the forecast period. Several automakers in China are
making changes to match the 2030 carbon peaking aim, and Dongfeng plans to
electrify 100% of its new passenger car models during the forecast period.
In India, a significant shift in consumer demand for
electric vehicles is adding to the market's growth rate during the forecast
period. Several automakers have started investing extensively in various parts
of the business in the last few months to keep up with the growing demand.
The global automotive fuse market has seen significant
developments in recent years, driven by the increasing demand for electric
vehicles and advancements in automotive electronics. Here are some of the
recent developments in the automotive fuse market:
Introduction of New Automotive Fuse Products: Leading
companies in the automotive fuse market such as Littelfuse, Inc., Eaton, and TE
Connectivity have introduced new and innovative automotive fuse products to
cater to the changing demands of the automotive industry. For instance, in
October 2021, Eaton introduced a new line of high-voltage fuses called the EVK
Series, which meets the requirements for use in the latest high-powered
electrified vehicles (EVs) with ratings up to 1,000 volts of direct current
(VDC) and 600 amps.
Increased Focus on Automotive Safety: Automotive safety is a
top priority for automotive manufacturers, and fuses play a critical role in
ensuring safety by protecting electrical circuits, components, and switches
from overvoltage, which can cause severe damage. Manufacturers are focusing on
developing automotive fuses that can withstand high temperatures, vibration,
and shock to enhance safety and reliability.
Integration of Automotive Fuses with Electronics: With
advancements in automotive electronics, automotive fuses are now being
integrated with electronic components such as sensors and control units. This
integration is enabling the development of smarter and more efficient
automotive systems that are better equipped to handle the demands of modern
vehicles.
Dominating Companies in Automotive Fuse Market
- EATON
- LITTELFUSE
- SENSATA Technologies Inc.
- MERSEN S.A.
- SCHURTER GROUP
- OPTIFUSE
- PACIFIC ENGINEERING CORPORATION
- AEM COMPONENTS
- E-T-A
- ON SEMICONDUCTOR
- FUZETEC
- GLOSO TECH
- BLUE SEA SYSTEMS
- SIBA
- SHANGHAI SONGSHAN ELECTRONICS CO.
- SKS ELECTRONICS
- GUANGDONG UCHI ELECTRONICS CO., LTD.
- DONGGUAN TIANRUI ELECTRONICS CO., LTD.
- SLEEK CO., LTD.
- CHE YEN INDUSTRIAL CO., LTD.
- ZHEJIANG XINLI FUSE CO., LTD.
- SHENZHEN DEER ELECTRONIC CO., LTD.
- SOC FUSE TECHNOLOGY
- Panduit Corp.
- Carling Technologies Inc.
- Mouser Electronics Inc.
Recent Developments in Automotive Fuse Market
- In 2020, Littelfuse, a global manufacturer of circuit
protection devices, acquired the circuit protection business of TE
Connectivity, a leading supplier of connectors and sensors. This acquisition
expanded Littelfuse's product offerings in the automotive, industrial, and
telecom markets, including their automotive fuse product line.
- In 2019, Mersen, a global manufacturer of electrical power
products, announced a strategic partnership with Agility, a leading provider of
logistics solutions. This partnership aimed to enhance the supply chain
capabilities of Mersen, including the distribution of their automotive fuse
products.
- In 2018, Eaton, a multinational power management company,
acquired the assets of Tripp Lite's Surge and Power Strip business. This
acquisition added new products and technologies to Eaton's portfolio, including
their automotive fuses and circuit breakers.
- In 2018, Cooper Industries, a manufacturer of electrical
products and tools, acquired Innovative Components Industries, a supplier of
automotive fuses, relays, and switches. This acquisition allowed Cooper
Industries to expand their offerings in the automotive market and strengthen
their position as a leading supplier of electrical components.
- In 2020, Molex, a leading provider of electronic solutions,
announced its acquisition of the Connected Vehicle Solutions division of Laird,
a global technology company. This acquisition enabled Molex to expand its
product portfolio in automotive connectivity and help its customers deliver
advanced features in their vehicles, including connected car and autonomous
driving technologies.
- In 2019, Littelfuse, a global leader in circuit protection,
completed the acquisition of U.S. Sensor Corporation, a manufacturer of
thermistors and probe assemblies used in automotive, medical, and industrial
applications. This acquisition added new products to Littelfuse's portfolio,
strengthening its position in the automotive market.
- In 2019, Sensata Technologies, a global supplier of sensing,
electrical protection, control, and power management solutions, announced a
strategic partnership with Quanergy, a leading provider of LiDAR sensors and
smart sensing solutions. This partnership aimed to develop and commercialize
advanced LiDAR solutions for automotive applications, such as advanced driver
assistance systems (ADAS) and autonomous driving.
- In 2018, Eaton, a global power management company, completed
the acquisition of Souriau-Sunbank Connection Technologies, a leading provider
of electrical interconnect solutions for harsh environments in aerospace,
defense, and industrial markets. This acquisition added new products to Eaton's
portfolio, including connectors for automotive applications.
- In 2018, AEM Components, a global leader in circuit
protection components, announced a strategic partnership with Littelfuse. This
partnership aimed to expand AEM's product distribution and customer base
globally, while also providing Littelfuse access to AEM's expertise in
developing high-reliability fuses and other components.
1.
Research Sources
We at Zettabyte Analytics have a
detailed and related research methodology focussed on estimating the market
size and forecasted value for the given market. Comprehensive research
objectives and scope were obtained through secondary research of the parent and
peer markets. The next step was to validate our research by various market
models and primary research. Both top-down and bottom-up approaches were
employed to estimate the market. In addition to all the research reports, data
triangulation is one of the procedures used to evaluate the market size of
segments and sub-segments.
Research Methodology
1.1. Secondary Research
The secondary research study involves various sources and databases used
to analyze and collect information for the market-oriented survey of a specific
market. We use multiple databases for our exhaustive secondary research, such
as Factiva, Dun & Bradstreet, Bloomberg, Research article, Annual reports,
Press Release, and SEC filings of significant companies. Apart from this, a
dedicated set of teams continuously extracts data of key industry players and
makes an extensive and unique segmentation related to the latest market
development.
1.2. Primary Research
The primary research includes gathering data from specific domain
experts through a detailed questionnaire, emails, telephonic interviews, and
web-based surveys. The primary interviewees for this study include an expert
from the demand and supply side, such as CEOs, VPs, directors, sales heads, and
marketing managers of tire 1,2, and 3 companies across the globe.
1.3. Data Triangulation
The data triangulation is very important for any market study, thus we
at Zettabyte Analytics focus on at least three sources to ensure a high level
of accuracy. The data is triangulated by studying various factors and trends
from both supply and demand side. All the reports published and stored in our
repository follows a detailed process to obtain a reliable insight for our
clients.
1.4. In-House Verification
To validate the segmentation
and verify the data collected, our market expert ensures whether our research
analyst is considering fine distinction before analyzing the market.
1.5. Reporting
In the end,
presenting our research reports complied in a different format for straightforward
valuation such as ppt, pdf, and excel data pack is done.