Global Spark Plug Market Expected to See Slight Growth with Anticipated CAGR of +0.6% in Volume from 2023 to 2030

IndexBox has just published a new report: World - Sparking Plugs - Market Analysis, Forecast, Size, Trends and Insights.

The article forecasts a modest increase in the global spark plug market from 2023 to 2030, with a projected CAGR of +0.6% in volume and +2.6% in value terms. Consumption decreased in 2023 but had peaked in 2021. China led in consumption volume, while Germany, Brazil, and China had the highest market value. Production, imports, and exports were also analyzed, with Japan and the United States leading in exports, and the United States being the main importer. Prices varied by country, with Germany having the highest export price and Russia the lowest.

Market Forecast

Market Forecast

Driven by rising demand for spark plug worldwide, the market is expected to start an upward consumption trend over the next seven years. The performance of the market is forecast to increase slightly, with an anticipated CAGR of +0.6% for the period from 2023 to 2030, which is projected to bring the market volume to 3.7B units by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +2.6% for the period from 2023 to 2030, which is projected to bring the market value to $7.3B (in nominal prices) by the end of 2030.

Consumption

Consumption

In 2023, consumption of sparking plugs decreased by -11.1% to 3.6B units, falling for the second year in a row after three years of growth. In general, consumption showed a slight decline. Over the period under review, global consumption hit record highs at 4.5B units in 2021; however, from 2022 to 2023, consumption stood at a somewhat lower figure.

The global spark plug market size shrank modestly to $6B in 2023, standing approx. at the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption, however, continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2020 when the market value increased by 7.4% against the previous year. Global consumption peaked at $6.6B in 2021; however, from 2022 to 2023, consumption stood at a somewhat lower figure.

Consumption By Country

China (830M units) constituted the country with the largest volume of spark plug consumption, accounting for 23% of total volume. Moreover, spark plug consumption in China exceeded the figures recorded by the second-largest consumer, India (365M units), twofold. The United States (316M units) ranked third in terms of total consumption with an 8.8% share.

From 2013 to 2023, the average annual growth rate of volume in China was relatively modest. In the other countries, the average annual rates were as follows: India (-0.2% per year) and the United States (-5.8% per year).

In value terms, Germany ($550M), Brazil ($411M) and China ($399M) constituted the countries with the highest levels of market value in 2023, with a combined 22% share of the global market. India, Mexico, the United States, Russia, Italy, Japan, Indonesia, the United Arab Emirates, Turkey and South Korea lagged somewhat behind, together comprising a further 30%.

Mexico, with a CAGR of +3.0%, recorded the highest growth rate of market size among the main consuming countries over the period under review, while market for the other global leaders experienced more modest paces of growth.

In 2023, the highest levels of spark plug per capita consumption was registered in the United Arab Emirates (13 units per person), followed by Germany (1.3 units per person), Japan (1.2 units per person) and South Korea (1.1 units per person), while the world average per capita consumption of spark plug was estimated at 0.5 units per person.

In the United Arab Emirates, spark plug per capita consumption remained relatively stable over the period from 2013-2023. The remaining consuming countries recorded the following average annual rates of per capita consumption growth: Germany (-4.2% per year) and Japan (-3.8% per year).

Production

Production

Global spark plug production expanded slightly to 5B units in 2023, increasing by 4% compared with 2022 figures. Overall, production, however, showed a slight decrease. The most prominent rate of growth was recorded in 2021 with an increase of 17% against the previous year. Over the period under review, global production attained the peak volume at 5.7B units in 2013; however, from 2014 to 2023, production failed to regain momentum.

In value terms, spark plug production rose to $6.4B in 2023 estimated in export price. Over the period under review, production, however, continues to indicate a perceptible decline. The pace of growth was the most pronounced in 2021 when the production volume increased by 14%. Global production peaked at $7.8B in 2013; however, from 2014 to 2023, production stood at a somewhat lower figure.

Production By Country

The countries with the highest volumes of production in 2023 were China (1.2B units), Japan (1.1B units) and Russia (418M units), together accounting for 55% of global production. The United States, India, Thailand, Mexico, Indonesia, Germany, Turkey, Brazil and the UK lagged somewhat behind, together accounting for a further 31%.

From 2013 to 2023, the biggest increases were recorded for Thailand (with a CAGR of +15.2%), while production for the other global leaders experienced more modest paces of growth.

Imports

Imports

After three years of growth, supplies from abroad of sparking plugs decreased by -22.1% to 1.8B units in 2023. Over the period under review, imports, however, recorded a relatively flat trend pattern. The pace of growth was the most pronounced in 2015 when imports increased by 47% against the previous year. Over the period under review, global imports reached the maximum at 2.3B units in 2022, and then declined remarkably in the following year.

In value terms, spark plug imports rose sharply to $4.1B in 2023. In general, total imports indicated a noticeable increase from 2013 to 2023: its value increased at an average annual rate of +4.5% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2023 figures, imports increased by +47.6% against 2020 indices. The most prominent rate of growth was recorded in 2021 with an increase of 26%. Over the period under review, global imports attained the peak figure in 2023 and are expected to retain growth in the near future.

Imports By Country

The United States represented the main importing country with an import of about 569M units, which amounted to 32% of total imports. It was distantly followed by the United Arab Emirates (142M units), China (88M units), Russia (85M units) and Germany (83M units), together achieving a 22% share of total imports. The following importers - India (75M units), the Netherlands (63M units), Mexico (58M units) and the UK (31M units) - together made up 13% of total imports.

Imports into the United States decreased at an average annual rate of -1.7% from 2013 to 2023. At the same time, India (+18.8%), Russia (+13.0%), the Netherlands (+6.4%), China (+3.0%) and the United Arab Emirates (+1.5%) displayed positive paces of growth. Moreover, India emerged as the fastest-growing importer imported in the world, with a CAGR of +18.8% from 2013-2023. Mexico experienced a relatively flat trend pattern. By contrast, the UK (-3.5%) and Germany (-5.8%) illustrated a downward trend over the same period. From 2013 to 2023, the share of India, Russia and the Netherlands increased by +3.4, +3.3 and +1.6 percentage points, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Germany ($595M), the United States ($510M) and the Netherlands ($452M) appeared to be the countries with the highest levels of imports in 2023, together comprising 38% of global imports.

The Netherlands, with a CAGR of +19.8%, saw the highest growth rate of the value of imports, in terms of the main importing countries over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Import Prices By Country

In 2023, the average spark plug import price amounted to $2.3 per unit, surging by 42% against the previous year. Over the period under review, import price indicated a temperate increase from 2013 to 2023: its price increased at an average annual rate of +4.4% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2023 figures, spark plug import price increased by +62.8% against 2020 indices. The most prominent rate of growth was recorded in 2014 when the average import price increased by 46%. Global import price peaked in 2023 and is likely to see gradual growth in years to come.

There were significant differences in the average prices amongst the major importing countries. In 2023, amid the top importers, the country with the highest price was the Netherlands ($7.2 per unit), while India ($0.4 per unit) was amongst the lowest.

From 2013 to 2023, the most notable rate of growth in terms of prices was attained by the Netherlands (+12.6%), while the other global leaders experienced more modest paces of growth.

Exports

Exports

In 2023, overseas shipments of sparking plugs increased by 4.4% to 3.2B units, rising for the third consecutive year after three years of decline. Overall, exports, however, showed a relatively flat trend pattern. The growth pace was the most rapid in 2021 with an increase of 42%. The global exports peaked at 3.2B units in 2013; afterwards, it flattened through to 2023.

In value terms, spark plug exports amounted to $4.1B in 2023. Over the period under review, total exports indicated a temperate increase from 2013 to 2023: its value increased at an average annual rate of +4.9% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2023 figures, exports increased by +53.3% against 2020 indices. The pace of growth was the most pronounced in 2021 when exports increased by 29%. The global exports peaked in 2023 and are expected to retain growth in the immediate term.

Exports By Country

In 2023, Japan (969M units), distantly followed by the United States (589M units), China (440M units), Russia (405M units) and Thailand (157M units) were the major exporters of sparking plugs, together generating 81% of total exports. Mexico (133M units) and Germany (79M units) followed a long way behind the leaders.

From 2013 to 2023, the most notable rate of growth in terms of shipments, amongst the main exporting countries, was attained by Thailand (with a CAGR of +33.7%), while the other global leaders experienced more modest paces of growth.

In value terms, the largest spark plug supplying countries worldwide were Japan ($929M), Germany ($919M) and the United States ($327M), with a combined 52% share of global exports. Thailand, China, Russia and Mexico lagged somewhat behind, together comprising a further 19%.

Thailand, with a CAGR of +35.9%, recorded the highest growth rate of the value of exports, among the main exporting countries over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Export Prices By Country

In 2023, the average spark plug export price amounted to $1.3 per unit, surging by 7.4% against the previous year. In general, export price indicated a remarkable increase from 2013 to 2023: its price increased at an average annual rate of +5.1% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2023 figures, spark plug export price decreased by -1.2% against 2020 indices. The pace of growth appeared the most rapid in 2019 an increase of 32% against the previous year. The global export price peaked at $1.3 per unit in 2020; afterwards, it flattened through to 2023.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Germany ($12 per unit), while Russia ($0.3 per unit) was amongst the lowest.

From 2013 to 2023, the most notable rate of growth in terms of prices was attained by Germany (+28.6%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform