According to the latest research report titled “Automotive Chargers and USB Data Hubs Market Forecast to 2028 – COVID-19 Impact and Global Analysis,” published by The Insight Partners, the market is expected to reach US$ 196.88 million by 2028, registering a CAGR of 4.1% during 2021–2028.
Surge in Automotive Production to Drive Market Growth during Forecast Period
The automobile sales are reaching new heights owing to the growing popularity of trucks and SUVs as well as with the rising demand for compact sedans. For a handful of automakers, sales rose by double digits, with Tesla's total deliveries more than tripling from the first quarter of last year. Toyota, Hyundai, Nissan, Subaru, and Kia all reported sales increases in the double digits. In 2020, 78 million vehicles will be produced globally. This number reflects a 15 percent decrease from the previous year. In 2020, China, Japan, and Germany were the top automobile and commercial vehicle manufacturers. With such huge vehicle manufacturing volumes, the need for automotive automobile accessories is also rising. The high consumer focus on handy infotainment systems in vehicles and rising popularity of personal devices are boosting the automotive chargers and data USB hubs market growth.
Many countries in the world have set objectives emphasizing on reducing the car emissions. As a part of this, they have begun to promote the production and marketing of electric vehicles as well as related charging infrastructure. In 2017, the US government spent US$ 5 billion for the improvement of electric car infrastructure, including charging stations. Several governments are offering incentives, including cheap or no registration costs, as well as exemptions from import tax, sales tax, and road tax. Furthermore, Norway and Germany are heavily investing in EV sales promotion. Thus, the surge in automotive production, with the growing focus on electric vehicles, is bolstering the automotive chargers and data USB hubs market growth.
North America is known for the highest rate of adoption of advanced technologies due to favorable government policies to boost innovation and strengthen infrastructure capabilities. As a result, any factor affecting performance of industries in the region hinders its economic growth. At present, the US is the world's worst-affected country due to the COVID-19 outbreak, which has led governments to impose several limitations on industrial, commercial, and public activities in the country, to control the spread of infection. The four megatrends of connected, autonomous, electrified and shared driving produce significant technological and business model changes in the automotive sector. Furthermore, OEMs shut down production across North America after an American electric car company was forced to close its manufacturing due to a shelter-in-place order. The ‘Detroit 3' automakers (and other OEMs) followed suit and halted production in the US, Canada, and Mexico. The industry recovered after the first two shocks, and business as usual resumed. This time, though, things are different. Due to unprecedented lockdowns of vehicle operations in industries, corporate sectors, and commercial companies, followed by mobility restrictions, the market for automotive chargers and USB data hubs is currently experiencing a demand shortfall. The need for automotive chargers and USB data hubs is expected to steadily revive following the start of operations, aided by component manufacture. The COVID-19 problem is intensifying. Therefore, the COVID-19 epidemic and its repercussions are wreaking havoc on North America's automotive chargers and USB data hubs market.
Key Findings of Study:
The global automotive chargers and USB data hubs market is segmented into five major regions—North America, Europe, APAC, MEA, and SAM. In 2020, APAC led the market with a substantial revenue share, followed by Europe and North America. The US, Canada, and Mexico are the major economies in North America that have witnessed growth in their automotive industry. The region has the largest vehicle industry due to the presence of many car manufacturers. Increased supply of passenger cars and light commercial vehicles is expected to increase the demand of car accessories. North America is witnessing an exponential rise in the vehicle production in past a few years owing to favorable economic conditions and government initiatives to promote safety while driving and reducing road accidents. These factors have helped in improving the economy and increasing disposable income of consumers. Therefore, with the boosted demand for improved performance and luxury cars in North America, the demand for different USB ports and car chargers will grow in coming years.