The
stringent emission control regulations and increasing adoption of hybrid
vehicles are two of the major factors responsible for the growth of the start-stop
technology market. In 2015, the market generated revenue of $2,100.2
million, and it is predicted to attain a size of $7,058.0 million by 2022,
progressing at a CAGR of 18.8% during the forecast period (2016–2022).
Start-stop technology automatically turns off the engine, when the vehicle is
about to stop and restarts it again when the driver takes their foot off the
brake in automatic-transmission vehicles or use the clutch in case of manual
transmission.
On
the basis of product, the start-stop technology market is divided into
enhanced starter, direct starter, integrated starter generator (ISG), and
belt-driven alternator starter (BAS). Out of these, during the historical
period (2012–2015), enhanced starters dominated the market in terms of sales
volume and revenue, and these are predicted to maintain their dominance during
the forecast period. This is attributed to their better cost-effectiveness and
fuel-efficiency compared to BAS and direct starters. Due to these benefits, the
demand for enhanced starters is rising, thereby leading to the growth of the
market.
Based
on region, the market is categorized into
Asia-Pacific, Europe, North America, and Rest of the World (RoW). Among these,
during 2012–2015, Europe led the market in terms of sales volume, and it is
projected to continue leading it during 2016–2021. This is ascribed to the high
contribution by the U.K., Germany, France, and Italy to the European start-stop
technology sector, which is dominated by colossal players, such as Continental AG,
Robert Bosch Gmbh, and Denso Corporation.
Furthermore,
the rapid development of the technologies in the automotive sector in European
countries and surging concerns on carbon emission are two of the reasons behind
the growth of the start-stop technology market. In accordance with the
European government’s regulations, the average emission level from new cars
decreased by 160 g/km during 2006–2012, and by 2020 it is expected to reduce to
95 g/km. In addition, the governments of various individual nations are
formulating strict environmental guidelines focusing on reducing the vehicle
emission.
For
instance, the Environmental Protection Agency (EPA) has implemented emission
standards for light trucks and cars. As per EPA’s target for 2016, the permissible
emission from a passenger car could not cross 225 g/mi (gram/mile). Similarly,
in 2016, the allowed combined fuel economy for trucks and cars was 35.5 mpg,
which is further to surge up to 54.5 mpg by 2025 in North America. Due to the
increasing emission from fossil fuel-driven vehicles, the level of air
pollution is rising, resulting in major concerns across the globe.
This,
in turn, has compelled policy makers to come up with an alternative, i.e.
low-emission vehicles. Although, natural gas-based public transit is still
preferred as an alternative to fossil fuel-based public transit, hybrid
vehicles are earning popularity nowadays owing to their zero-carbon dioxide
emission, thus, boosting the progress of the start-stop technology market,
mainly in developed nations. Despite the sluggish economic growth in European
countries, such as France, Sweden, and Norway, hybrid and electric vehicle
sales are expected to be augmented during 2016–2022.
Thus,
the increasing penetration of such vehicles and stringent government
regulations are projected to fuel the growth of the market during the forecast
period.