KSA Automotive Solenoid Market Outlook to 2030
Region:Middle East
Author(s):Vijay Kumar
Product Code:KROD1066
December 2024
82
About the Report
KSA Automotive Solenoid Market Overview
- In recent years, theKSA Automotive Solenoid market has experienced substantial growth, this is reflected by the global Automotive Solenoid market reached a valuation of USD 4.90 billion in 2023 driven by the increasing demand for advanced automotive technologies. This growth is propelled by the rising adoption of electric and hybrid vehicles, advancements in automotive technology, and the expansion of the automotive manufacturing sector in KSA.
- Key players in the KSA Automotive Solenoid Market include Robert Bosch GmbH, Denso Corporation, Delphi Automotive PLC, Continental AG, and Johnson Electric Holdings Limited. These companies have established a strong presence through continuous innovation, extensive research and development, and strategic partnerships.
- Continental has acquired the mold manufacturing specialist EMT Pchov s.r.o. based in Slovakia in April, 2024, for an undisclosed amount. This acquisition enhances Continental's capabilities in mold making technology for commercial vehicle and specialty tires, allowing for independent production of tire molds. The move is part of Continental's strategy to strengthen its manufacturing portfolio amid global economic uncertainties.
- The dominant cities in the KSA Automotive Solenoid Market include Riyadh and Jeddah. Riyadh's dominance is due to its well-developed infrastructure and status as the capital, while Jeddah benefits from its strategic location as a major port city, facilitating the import and export of automotive components.
KSA Automotive Solenoid Market Segmentation
The KSA Automotive Solenoid Market is segmented by application, vehicle type, and region.
By Application: The market is segmented by application into engine control, fuel and emission control, and HVAC systems. In 2023, Engine Control dominated market share due to the increasing demand for advanced engine management systems that improve vehicle performance and fuel efficiency. The growing trend of downsized turbocharged engines has also driven the demand for Solenoid in engine control applications.
By Vehicle Type: The market is segmented by vehicle type into passenger cars, commercial vehicles, and electric vehicles. In 2023, passenger cars dominated market share due to the high demand for personal transportation and the increasing adoption of advanced automotive technologies. Government incentives for electric and hybrid passenger cars have further boosted this segment.
By Region: The market is segmented by region into North, South, East, and West. In 2023, the northern region, including cities like Riyadh, dominated the market share due to its advanced infrastructure and significant investments in the automotive sector. Riyadh attracts major automotive manufacturers and suppliers, contributing to the region's market dominance.
KSA Automotive Solenoid Market Competitive Landscape
|
Company Name |
Establishment Year |
Headquarters |
|
Robert Bosch GmbH |
1886 |
Gerlingen, Germany |
|
Denso Corporation |
1949 |
Kariya, Japan |
|
Delphi Automotive PLC |
1994 |
Dublin, Ireland |
|
Continental AG |
1871 |
Hanover, Germany |
|
Johnson Electric Holdings Limited |
1959 |
Hong Kong |
- Robert Bosch GmbH: In 2022, Robert Bosch GmbH announced investment of 500 million in Germany to develop components for hydrogen electrolysis. This investment aims to enhance Bosch's capabilities in producing green hydrogen, supporting the transition to sustainable energy solutions and contributing to the decarbonization of various sectors, including transportation and industry
- Denso Corporation: Denso Corporation and Mitsubishi Electric are investing USD 1 billion in Coherent's silicon carbide unit in 2023. Each company will contribute USD 500 million for a 12.5% non-controlling stake. This investment, taking place in Pittsburgh, Pennsylvania, aims to enhance the production of silicon carbide wafers, essential for improving electric vehicle performance and advancing the semiconductor industry.
KSA Automotive Solenoid Market Analysis
KSA Automotive Solenoid Market Growth Drivers
- Expansion of Electric Vehicle (EV) Infrastructure: The expansion of electric vehicle (EV) infrastructure in Saudi Arabia is a significant growth driver for the automotive solenoid market. The Saudi government has launched various initiatives to increase the number of EV charging stations and support the adoption of electric vehicles as part of its Vision 2030 plan. The Public Investment Fund (PIF) and Saudi Electricity Company have established a joint venture, the Electric Vehicle Infrastructure Company (EVIQ), aiming to install over 5,000 fast chargers across more than 1,000 locations by 2030.
- Increase in Electric and Hybrid Vehicles: The growing consumer preference for electric and hybrid vehicles is impacting the market substantially. In 2023, Saudi Arabia imported a total of 779 electric vehicles (EVs), marking a significant increase of 271% from the previous year, when only 210 EVs were imported. Solenoid play a crucial role in the operation of EVs, including battery management systems and regenerative braking, leading to increased demand in this segment.
- Advancements in Automotive Technology: The rapid advancements in automotive technology, such as the development of autonomous vehicles and advanced driver assistance systems (ADAS), have increased the need for sophisticated automotive components, including Solenoid. In 2024, the government invested substantial amount in smart transportation projects, incorporating these advanced technologies, thereby driving the demand for automotive Solenoid.
KSA Automotive Solenoid Market Challenges
- Supply Chain Disruptions: The automotive solenoid market in KSA faces challenges due to supply chain disruptions, primarily caused by geopolitical tensions and global economic uncertainties. In 2024, the industry experienced a shortage of semiconductor chips, a critical component in Solenoid, leading to delays in production and increased costs. This disruption impacted the timely delivery of Solenoid to automotive manufacturers, affecting the overall market growth.
- High Production Costs: The high production costs associated with advanced automotive Solenoid present a significant challenge for market players. The manufacturing of high-precision Solenoid requires sophisticated machinery and skilled labor, leading to increased production expenses. In 2024, the average production cost per solenoid unit rose to USD 150, posing a challenge for manufacturers to maintain competitive pricing while ensuring profitability.
KSA Automotive Solenoid Market Government Initiatives
- National Industrial Development and Logistics Program (NIDLP): Launched in 2023, the NIDLP aims to transform Saudi Arabia into a leading industrial powerhouse. The program focuses on developing the automotive sector by providing financial incentives, infrastructure development, and support for research and development. In 2021, the National Industrial Development and Logistics Program (NIDLP) has invested aggressively in local industry projects, with a total investment of USD 100 billion enhancing the production and demand for automotive Solenoid.
- Saudi Automotive Manufacturing Strategy: In 2024, the government introduced the Saudi Automotive Manufacturing Strategy, which includes tax exemptions and subsidies for automotive manufacturers. The strategy aims to attract foreign investments and establish local manufacturing units, thereby enhancing the domestic production of automotive components, including Solenoid. This initiative is expected to create thousands of new jobs in the automotive sector by 2025.
KSA Automotive Solenoid Market Future Outlook
The KSA Automotive Solenoid Market is poised for remarkable growth, driven by Increased Adoption of Electric Vehicles, Advancements in Autonomous Vehicle Technology, and Expansion of Local Manufacturing Capabilities.
Future Market Trends
- Increased Adoption of Electric Vehicles: By 2028, the KSA Automotive Solenoid Market will be driven by the increased adoption of electric vehicles (EVs). The government's continued support for EV infrastructure and subsidies will accelerate EV sales, necessitating advanced Solenoid for efficient operation. It is projected that EV sales will significantly boosting the demand for Solenoid used in battery management and regenerative braking systems.
- Advancements in Autonomous Vehicle Technology: The future of the KSA Automotive Solenoid Market will be shaped by advancements in autonomous vehicle technology. By 2028, the integration of Solenoid in autonomous driving systems, such as electronic control units and automated braking systems, will become more prevalent. The government plans to invest in smart transportation projects, supporting the development and deployment of autonomous vehicles and driving the demand for sophisticated solenoid technologies.
Scope of the Report
|
By Application |
Engine Control Fuel and Emission Control HVAC Systems |
|
By Vehicle |
Passenger Cars Commercial Vehicles Electric Vehicles |
|
By Region |
North South East West |
Products
Key Target Audience Organizations and Entities Who Can Benefit by Subscribing This Report:
Automotive Manufacturers
Automotive Component Suppliers
Electric Vehicle Manufacturers
Fuel System Manufacturers
HVAC System Manufacturers
Government and Regulatory Bodies (Ministry of Industry and Mineral Resources)
Investments and Venture Capitalist Firms
Research and Development Institutes
Time Period Captured in the Report:
Historical Period: 2018-2023
Base Year: 2023
Forecast Period: 2023-2028
Companies
Players Mentioned in the Report:
Robert Bosch GmbH
Denso Corporation
Delphi Automotive PLC
Continental AG
Johnson Electric Holdings Limited
Mitsubishi Electric Corporation
Hitachi, Ltd.
BorgWarner Inc.
Mahle GmbH
Valeo S.A.
Table of Contents
1. KSA Automotive Solenoid Market Overview
1.1. Definition and Scope
1.2. Market Taxonomy
1.3. Market Growth Rate
1.4. Market Segmentation Overview
2. KSA Automotive Solenoid Market Size (In USD Million)
2.1. Historical Market Size
2.2. Year-On-Year Growth Analysis
2.3. Key Market Developments and Milestones
3. KSA Automotive Solenoid Market Analysis
3.1. Growth Drivers
3.1.1. Increasing Vehicle Production
3.1.2. Rising Demand for Fuel-Efficient Vehicles
3.1.3. Technological Advancements in Automotive Components
3.1.4. Government Initiatives Promoting Automotive Industry
3.2. Market Challenges
3.2.1. Fluctuating Raw Material Prices
3.2.2. Availability of Alternative Technologies
3.2.3. Dependence on Imported Components
3.3. Opportunities
3.3.1. Expansion of Electric Vehicle Market
3.3.2. Growth in Aftermarket Services
3.3.3. Strategic Partnerships and Joint Ventures
3.4. Trends
3.4.1. Integration of Advanced Driver Assistance Systems (ADAS)
3.4.2. Adoption of Lightweight Materials
3.4.3. Increased Focus on Vehicle Electrification
3.5. Government Regulations
3.5.1. Saudi Vision 2030 and Its Impact on Automotive Sector
3.5.2. Emission Standards and Environmental Policies
3.5.3. Import Tariffs and Trade Policies
3.6. SWOT Analysis
3.7. Stakeholder Ecosystem
3.8. Porter’s Five Forces Analysis
3.9. Competitive Landscape
4. KSA Automotive Solenoid Market Segmentation
4.1. By Valve Design (In Value %)
4.1.1. 2-Way Solenoid Valve
4.1.2. 3-Way Solenoid Valve
4.1.3. 4-Way Solenoid Valve
4.1.4. 5-Way Solenoid Valve
4.2. By Application (In Value %)
4.2.1. Engine Control & Cooling System
4.2.2. Fuel & Emission Control
4.2.3. Body Control & Interiors
4.2.4. Safety & Security
4.2.5. HVAC System
4.3. By Function (In Value %)
4.3.1. Fluid Control
4.3.2. Gas Control
4.3.3. Motion Control
4.4. By Vehicle Type (In Value %)
4.4.1. Passenger Vehicles
4.4.2. Light Commercial Vehicles
4.4.3. Heavy Commercial Vehicles
4.5. By Sales Channel (In Value %)
4.5.1. OEMs
4.5.2. Aftermarket
5. KSA Automotive Solenoid Market Competitive Analysis
5.1. Detailed Profiles of Major Companies
5.1.1. Robert Bosch GmbH
5.1.2. Continental AG
5.1.3. DENSO Corporation
5.1.4. Delphi Technologies
5.1.5. Hitachi Ltd.
5.1.6. Mitsubishi Electric Corporation
5.1.7. BorgWarner Inc.
5.1.8. Johnson Electric Holdings Limited
5.1.9. Nidec Corporation
5.1.10. Schaeffler AG
5.1.11. Rheinmetall Automotive AG
5.1.12. ZF Friedrichshafen AG
5.1.13. Mahle GmbH
5.1.14. Valeo SA
5.1.15. Magneti Marelli S.p.A.
5.2. Cross Comparison Parameters (Number of Employees, Headquarters, Inception Year, Revenue, Product Portfolio, R&D Expenditure, Market Share, Regional Presence)
5.3. Market Share Analysis
5.4. Strategic Initiatives
5.5. Mergers and Acquisitions
5.6. Investment Analysis
5.6.1. Venture Capital Funding
5.6.2. Government Grants
5.6.3. Private Equity Investments
6. KSA Automotive Solenoid Market Regulatory Framework
6.1. Automotive Industry Standards
6.2. Compliance Requirements
6.3. Certification Processes
7. KSA Automotive Solenoid Future Market Size (In USD Million)
7.1. Future Market Size Projections
7.2. Key Factors Driving Future Market Growth
8. KSA Automotive Solenoid Future Market Segmentation
8.1. By Valve Design (In Value %)
8.2. By Application (In Value %)
8.3. By Function (In Value %)
8.4. By Vehicle Type (In Value %)
8.5. By Sales Channel (In Value %)
9. KSA Automotive Solenoid Market Analysts’ Recommendations
9.1. Total Addressable Market (TAM), Serviceable Available Market (SAM), and Serviceable Obtainable Market (SOM) Analysis
9.2. Customer Cohort Analysis
9.3. Marketing Initiatives
9.4. White Space Opportunity Analysis
Disclaimer
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Research Methodology
Step 1: Identifying Key Variables
Creating an ecosystem for all major entities in the KSA automotive solenoid market by referring to multiple secondary and proprietary databases. This involves desk research to gather industry-level information, including market trends, key players, and technological advancements.
Step 2: Market Building
Collecting and analyzing statistics on the KSA automotive solenoid market over the years. This includes assessing market penetration by various solenoid types, applications, and service providers to compute the revenue generated. Reviewing service quality metrics to ensure accuracy and reliability of the data points.
Step 3: Validating and Finalizing
Developing market hypotheses and conducting Computer-Assisted Telephone Interviews (CATIs) with industry experts and representatives from major automotive solenoid companies. This process validates the gathered statistics and obtains operational and financial insights directly from the market players.
Step 4: Research Output
Engaging with automotive manufacturers, suppliers, and technology providers to understand product segments, sales data, consumer preferences, and other relevant parameters. This approach supports the validation of statistics derived through a bottom-to-top analysis, ensuring comprehensive and accurate market insights.
Frequently Asked Questions
1. How big is the KSA Automotive Solenoid Market?
In 2023, the KSA automotive solenoid market was valued at USD 4.90 billion in 2023. This growth is driven by increased demand for advanced automotive technologies, including electric and hybrid vehicles, and supportive government policies under Vision 2030.
2. Who are the major players in the KSA Automotive Solenoid Market?
Key players in the KSA automotive solenoid market include Robert Bosch GmbH, Denso Corporation, Delphi Automotive PLC, Continental AG, and Johnson Electric Holdings Limited. These companies lead the market due to their innovative technologies, extensive research and development efforts, and robust distribution networks.
3. What are the growth drivers for the KSA Automotive Solenoid Market?
The growth of the KSA automotive solenoid market is driven by the Vision 2030 initiative, the rise in electric and hybrid vehicle adoption, and advancements in automotive technology. These factors collectively enhance the demand for sophisticated automotive Solenoid.
4. What are the challenges in the KSA Automotive Solenoid Market?
Challenges in the KSA automotive solenoid market include supply chain disruptions, high production costs, and stringent regulatory compliance requirements. These factors can impact production efficiency and market growth.
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