The market for automotive windshield washer systems is projected to expand from US$ 6,435.4 million in 2021 to US$ 9,234.3 million by 2028, reflecting a compound annual growth rate (CAGR) of 5.3% during this period.
In a competitive landscape where differentiation is minimal, establishing a sustainable competitive edge is vital for success in the automotive windshield washer system market. Companies can leverage this situation by strategically investing in the development of cost-effective, innovative, and efficient washer systems, which can unlock substantial business opportunities. A notable example is Ford Global Technologies LLC's patented windshield washer system designed for cold weather, introduced in the early 2000s. By consistently focusing on strategic research and development, forming partnerships, and collaborating with stakeholders, companies can create groundbreaking solutions and tap into numerous profitable opportunities in the future.
Recent announcements from Ontario's Premier Doug Ford, along with Monte McNaughton, Minister of Labor, Training and Skills Development, and Vic Fedeli, Minister of Economic Development, Job Creation and Trade, indicate that the Ontario government is set to invest US$9.3 million into 11 training initiatives. These projects aim to equip 2,000 students and job seekers with essential skills for careers in the automotive and advanced components manufacturing sectors. In India, the Production-Linked Incentive (PLI) Auto scheme has garnered investment proposals totaling US$6.04 billion from 20 automotive firms as of February 2022, with expectations of generating an additional production value of US$31.08 billion. Such trends and initiatives are likely to bolster automotive production and elevate the demand for automotive windshield washer systems in the years ahead.
To address the increasing demand for both aftermarket and original equipment manufacturer (OEM) products, automakers are either establishing new manufacturing plants or relocating existing ones to burgeoning automotive markets. As of 2022, there are 301 active automobile manufacturing facilities in Europe producing passenger cars, light commercial vehicles, heavy-duty vehicles, buses, engines, and batteries, as reported by ACEA. Following the migration of European car production to Eastern Europe, Africa has emerged as a promising site for automotive manufacturing and a growing consumer base. Consequently, Stellantis, the fourth-largest automotive manufacturer globally, plans to escalate its investment in automotive parts produced in Morocco from US$600 million to US$3 billion by 2025, according to Deutsche Welle. The expansion of OEM production facilities in these regions is enhancing opportunities for suppliers of windshield washer systems, thereby driving growth in the automotive windshield washer system market.
Effects of the COVID-19 Pandemic on the Automotive Windshield Washer System Market
The COVID-19 pandemic has had a profound impact on the global automotive sector, leading to the shutdown of assembly plants in North America. The production of both passenger and commercial vehicles was halted in the last quarter of 2020, resulting in decreased market revenues for numerous manufacturers in the region. This disruption also affected the production of automotive windshield washer systems. Although the repercussions of the pandemic have been short-lived, the automotive windshield washer system market is expected to rebound and grow over the next three to four years.
The Middle East and Africa (MEA) region saw a notable decline in the production and manufacturing of automotive components, largely due to its reliance on European and Asian countries for various automotive OEMs and aftermarket products. However, South America, bolstered by its automotive manufacturing capabilities in Brazil, experienced a relatively limited impact, despite a slower demand for passenger vehicle sales. The pandemic's effects led to the closure of production facilities, which hindered the growth of the automotive industry and stifled the expansion of the automotive windshield washer system market in the region.
The automotive windshield washer system market is segmented based on components, which include hoses and connectors, nozzles, reservoirs, pumps, and wipers. In 2021, the pumps segment dominated the market share. Additionally, the market is categorized by end-users into commercial vehicles, passenger vehicles, and off-road highway vehicles, with the passenger vehicle segment leading in market share in 2021. Geographically, the market is divided into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM), with the APAC region holding a significant market share in 2021.
The analysis of the automotive windshield washer system market was conducted through both primary and secondary research methodologies. A thorough secondary research process was first carried out, utilizing both internal and external sources to collect qualitative and quantitative data about the market. This approach was crucial in providing a comprehensive overview and forecast of all market segments. Furthermore, primary interviews were conducted with industry experts to validate the data and gain additional analytical insights. Participants in this research included VPs, business development managers, market intelligence managers, national sales managers, and external consultants, such as valuation experts, research analysts, and key opinion leaders specializing in the automotive windshield washer system market.
Key players in the automotive windshield washer system market include Robert Bosch GmbH, Bowles Fluidics, Continental AG, Denso Corporation, Doga, Hella, Kautex, Mergon Group, Mitsuba Corporation, and Trico Products Corporation.