Automotive Fuse Market Growth Analysis | 2024-2031

Market Insights

The automotive fuse market was estimated at USD 3.0 billion in 2024 and is likely to grow at a CAGR of 10.1% during 2024-2031 to reach USD 6.0 billion in 2031.

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Market Dynamics

Introduction

An automotive fuse is a protective device designed to safeguard vehicle electrical circuits from damage caused by excessive current. It consists of a metal wire or strip that melts and breaks the circuit when the current surpasses its rated limit, preventing potential hazards. They are essential in both ICE vehicles and electric vehicles (EVs) to ensure safe and reliable electrical system operation. Key applications of low-voltage fuses are infotainment systems, lighting systems, HVAC systems, braking and safety systems, propulsion & power systems, and other auxiliaries. Key applications of high-voltage fuses are battery packs, inverters, DC-DC converters, on-board chargers, and electric motor circuits.

There are two types of fuses: high-voltage and low-voltage fuses. High-voltage fuses are used only in EVs, whereas low-voltage fuses are used in both ICEs and EVs. High-voltage EV fuses are specifically designed to handle the increased power levels in electric vehicles, ensuring the vehicle's and its occupants' safety by preventing damage from short circuits or overloads. These fuses are typically housed in fuse boxes or dedicated compartments and can be replaced when blown.

Typically, light vehicles use a 12V electrical system, while medium and heavy commercial vehicles (M&HCVs) operate on a 24V system. To protect these systems, 32V fuses are commonly used. However, with the growing adoption of 48V systems in hybrid and battery electric vehicles, higher voltage fuses, such as 58V or 70V fuses, are now required for effective protection.

Market Drivers

The major factors driving the growth of the automotive fuse market are:

• An increase in automotive production
• Increasing shift towards battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), and plug-in hybrid electric vehicles (PHEVs)
• Stringent safety and emission regulations
• Rising integration of advanced driving assistance systems (ADAS)
• Increase in integration of infotainment systems and IoT-based automotive technologies
• Technological advancements in fuse design

Recent Market JVs and Acquisitions:

A few strategic alliances, including M&As, JVs, etc., have been performed over the past few years:

• In January 2022, Eaton acquired Royal Power Solutions, a manufacturer of high-precision electrical connectivity components used in electric vehicle, energy management, industrial, and mobility markets. Royal Power Solutions also manufactures fuses for the automotive industry. The strategic move will enhance the position of Eaton in the automotive fuse market. 

Segments Analysis

By Propulsion Type

“HEV is expected to be the dominant propulsion type, whereas BEV is expected to experience the fastest growth in the coming years.”

The automotive fuse market is segmented into ICE, BEV, and HEV. The automotive fuses include both types of fuses: low-voltage fuses and high-voltage fuses. ICE requires only low-voltage fuses, whereas HEVs and BEVs require both low- and high-voltage fuses as they operate with two different battery systems. The transition from traditional internal combustion engine (ICE) vehicles to battery electric vehicles (BEVs) is accelerating due to environmental policies, regulatory frameworks, and advancements in battery technology, which are reducing the cost of EVs. As BEV production expands, the need for high-voltage and safety fuses will surge, making BEVs the fastest-growing segment in the automotive fuse market.

By Vehicle Type

“LV is expected to remain the dominant and faster-growing vehicle type of the automotive fuse market during the forecast period.”

The market is segmented into LV and M&HCV. LV is expected to remain the market's dominant and faster-growing vehicle type during the forecast period. LV, including passenger cars, SUVs, and light trucks, represent the majority of vehicles on the road worldwide. This segment accounts for a significant portion of total vehicle sales and is expected to continue dominating the market in the coming years. As a result, the demand for automotive fuses, which are essential components in these vehicles, will be strong and consistent.

By Voltage Type

“Low-voltage fuse will be the dominant voltage type, whereas high-voltage is likely to experience the faster-growing voltage type during the forecast period.”

The market is segmented into low-voltage and high-voltage fuses. Low-voltage fuses will dominate the market due to their widespread use across numerous vehicle systems. High-voltage fuse also holds a significant share of the market, as they are designed to handle significant currents and protect critical high-voltage components, making them more expensive per unit.

By Low-Voltage Application Type

“Braking & Safety system holds the largest market share, whereas propulsion & powers system will be fastest-growing.”

The market is segmented into infotainment system, lighting system, HVAC system, braking & safety system, propulsion & power system, and other auxiliaries. Braking & safety systems are essential in all vehicles, including ICE vehicles, hybrids, and electric vehicles. As a result, the widespread integration of these systems across all vehicle types drives a higher demand for fuses, leading to an increased total volume requirement in the automotive fuse market.

By High-Voltage Application Type

“Battery packs are the largest high-voltage application type of the market.”

The market is segmented into battery pack, inverter, DC-DC converter, on-board charger, and electric motor. The battery pack is the largest application in the automotive high-voltage fuse market. It is driven by its critical role in electric and hybrid vehicles, high cost and technological complexity, and the growing demand for electric mobility.

By Voltage Range Type

“Less than 100V DC is likely to be the dominant voltage range type, whereas, 500 VDC to 1000 VDC is expected to be the fastest-growing voltage range during the forecast period.”

The market is segmented into less than 100 VDC, 100 VDC to 500 VDC, and 500 VDC to 1000 VDC. Less than 100 VDC fuses will dominate the market in the coming years due to their extensive use in low-voltage systems across both ICE and electric vehicles, as well as their cost-effectiveness and standardization.

The 500 VDC to 1000 VDC fuse segment is expected to experience the fastest growth, driven by the rising adoption of high-voltage systems in electric and hybrid vehicles. The demand for faster charging, extended driving ranges, and enhanced performance in these vehicles is fueling the need for 500 VDC to 1000 VDC.

By Fuse Type

“Cartridge fuse is the dominant as well as faster-growing fuse type of the market during the forecast period.”

The market is segmented into blade fuse and cartridge fuse. Cartridge fuse dominate the automotive fuse market due to their critical role in high-value, high-performance systems requiring advanced technology and superior current/voltage protection. Their use in safety-critical applications such as powertrains, electric motors, and battery management systems, along with their complexity and high-quality materials, drives their demand despite their higher cost.

Blade fuses are widely used in common, less complex applications such as lighting, infotainment, and low-voltage circuits. Their affordability, simplicity, and compatibility across all vehicle types make them a standard component in nearly every vehicle on the road.

Regional Insights

“The Asia-Pacific is expected to maintain its leading position over the forecast period.”

The Asia-Pacific region is projected to lead the automotive fuse market, driven by its dominance in global automotive production, especially in the electric and hybrid vehicle segments. Ongoing technological advancements and government regulations promoting electrification and enhanced safety standards will further reinforce the region's leadership throughout the forecast period.

With growing EV adoption, strict regulations, and strong automotive production, Europe remains the second-largest region in the automotive fuse market, following Asia-Pacific.

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Key Players

The market is highly fragmented, with over 100 players across the region. Most of the major players compete in some of the governing factors, including price, service offerings, regional presence, etc. The following are the key players in the automotive fuse market.  

Here is the list of the Top Players (Based on Dominance)

• Littlefuse, Inc.
• Pacific Engineering Corporation (PEC)
• Eaton
• Schurter
• Xi 'an Zhongrong Electric Co., LTD.
• Sensata Technologies, Inc.

Note: The above list does not necessarily include all the top players in the market.

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Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s automotive fuse market realities and future market possibilities for the forecast period of 2024 to 2031. After a continuous interest in our automotive fuse market report from the industry stakeholders, we have tried to further accentuate our research scope to the automotive fuse market to provide the most crystal-clear picture of the market. The report segments and analyses the market in the most detailed manner to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players and those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve.
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

This report studies the market, covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The automotive fuse market is segmented into the following categories.

By Propulsion Type

• ICE
• BEV
• HEV

By Vehicle Type

• LV
• M&HCV

By Voltage Type

• Low-Voltage
• High-Voltage

By Low Voltage Application Type

• Infotainment System
• Lighting System
• HVAC System
• Braking & Safety System
• Propulsion & Power System
• Other Auxiliaries

By High Voltage Application Type

• Battery Pack
• Inverter
• DC-DC Converter
• On-Board Charger
• Electric Motor

By Blade Type

• Blade Fuse
• Cartridge Fuse

By Voltage Range Type

• Less than 100 VDC
• 100 VDC to 500 VDC
• 500 VDC to 1000 VDC

By Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, The UK, Italy, Russia, and Rest of Europe)
• Asia-Pacific (Country Analysis: Japan, China, South Korea, India, and Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Brazil, Argentina, and Others)

Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com