The market for South East Asia Alternator is forecast to reach $1,268.9 Million by 2025, growing at a CAGR of 5.27% from 2020 to 2025. The alternators are majorly deployed in the automobile for charging the battery and also powers the electrical systems in the vehicle while the engine is running. Hence the growing demand for vehicles owing to the growing urbanization is analysed to boost the market growth rate.
• China is analysed to be the major country in the alternator market for 2019 owing to the large automobile manufacturing base.
• Diesel engine type is analysed to hold highest market share in 2019, due to the high usage of the diesel engines owing to their affordability.
• The growing measures towards urbanization in developing countries is analysed to escalate the market growth rate.
Diesel engine type are analysed to hold highest share in 2019 majorly attributed to the affordability. In the developing economies such as India, Sri Lanka and others countries of South East Asia consisting of low-middle income groups have majority share of consumers interested towards the diesel engines thereby contributing to the share of diesel engines. The significant deployment of alternators in the diesel engines for battery charging is analysed to impact on the growth of the market.
Automobile is the dominant sector in the South East Asia alternator market in 2019. The significant deployment alongside the large automotive manufacturing base in countries such as China, India and so on is analysed to be the major factor attributing to the market share.The significant rise in the expansions for the expansion of the manufacturing capacities is analysed to contribute to the growth of the market. As stated by IBEF has announced that Indian automotive industry is expected to reach $251.4-282.8 billion by 2026. Therefore the growing automotive industry is analysed to boost the market growth rate during the forecast period 2020-2025.
Geography – Segment Analysis
China is dominant country in the South East Asia Alternator market in 2019, this is majorly attributed to the major automobile industry. As stated by World Economic Forum, China has the world’s biggest car market. India is analysed to grow at highest rate during the forecast period majorly attributed to the growing investments in the automotive sector. In December 2019, Morris Garages, a British automobile brand announced its plans to invest $429.25 million into India.The government aims to develop India as a global manufacturing centre and an R&D hub. As stated by IBEF, in February 2019, the Government of India approved the FAME-II scheme with a fund requirement of $1.39 billion for FY20-22.
Drivers – South East Asia Alternatormarket
The growing urbanization in the developing economies such as India, and others is certainly one of the driving factors owing to the increasing demand for vehicles.Mercedes Benz has increased the manufacturing capacity of its Chakan Plant to 20,000 units per year, highest for any luxury car manufacturing in India. These are analysed to boost the market growth rate.
Increasing Vehicle Production
The growing government regulations to promote the manufacturing in the countries alongside the significant deployment of the alternators in the vehicles is analysed to the driving the market. In 2018, Dailmer has announced the expansion of its production plant in Beijing with an investment of $1.89bn. Therefore the growing vehicle production alongside the growing investments is analysed to boost the market growth rate.
Challenges – South East Asia Alternator Market
Increasing demand for Electric vehicles
As the demand for electric vehicle is significantly rising owing to the stringent government regulations on the vehicle emissions is set to hinder the market growth rate for alternators. Adding to this, the growing investments in the electric vehicle is set to further impact on the market growth rate.In November 2018, Mahindra Electric Mobility opened its electric technology manufacturing hub in Bangalore with an investment of $14.25 million to increase its annual manufacturing capacity to 25,000 units.
Product launches, acquisitions, and R&D activities are key strategies adopted by players in the South East Asia Alternatormarket. South East Asia Alternatordriver market is expected to be dominated by major companies such asRobert Bosch GmbH, Denso Corporation, Valeo S.A., Hitachi Automotive, Lucas Electrical, Mitsubishi Corporation, Hella KGaA Hueck & Co., Motor Corporation of America, Control Power Technology, and Mitsuba Corporation among others.
• In May 2019, Denso has announced to mass-produce automotive alternators equipped with newly developed high-efficiency diodes.