Europe frontrunner in automotive thermostat market
According to recent published study, the global automotive thermostat market is expected to value at ~$2.2bn by 2019-end, and is estimated to increase at a CAGR of ~3.0% during 2019-2029. The report covers macroeconomics factors, latest trends, influencing factors, key information, forecast factors, and key success factors that are anticipated to drive the growth of the global automotive thermostat market.
The report also discusses potential opportunities in the market across the value chain, along with restraints that are expected to hamper the market growth.
Housed automotive thermostat is expected to remain highly preferred for wide range of vehicles, thereby contributing to major share of the manufacturers’ bottom lines. In terms of geographical outlook, Europe is projected to be a prominent region for the global automotive thermostat market, and is estimated to grow at a CAGR of ~3% during the forecast period.
The German automotive industry has always been a frontrunner in terms of technological advancements. The present market scenario for the automotive component industry in Germany still revolves around ‘innovation’ as a key growth strategy. The automotive thermostat market is significantly driven by the increasing demand for new/enhanced products, both from automakers as well as the replacement market.
For thermostat-controlled cooling systems, the electronic-controlled variant is the more preferred option as it enables shorter warm-up time and lower fuel consumption. This factor is expected to drive the global automotive thermostat market growth during the forecast period.
Crude oil prices have been influencing the auto component market, as when the price of fuel lowers, people tend to drive more miles, which rushes wear on auto components, thereby leading to the need for early replacement of vehicle components. Lower fuel prices also encourage people to buy new vehicles, and this increases the demand for automotive equipment from original equipment manufacturers (OEMs).
Such factors are expected to increase the sales of automotive thermostats. Moreover, over the last few years, the automotive parts and accessories manufacturing industry has undergone comprehensive remodelling, which is leading to the advent of a highly competitive global industry, and subsequently raising the demand for automotive thermostats.
The global automotive thermostat market is anticipated to be consolidated, owing to the limited presence of manufactures at regional as well as international levels. Tier-1 players are focusing on collaborations and strategic expansions to increase their brand positions, and global and regional footprint in the automotive thermostat market.