Automotive Wiring Harness Market
Automotive Wiring Harness Market Size, Share & Industry Analysis, By Vehicle Type (Passenger Cars, Commercial Vehicles), By Material Type (Copper, Aluminum, Others), By Application (Engine, Chassis, Cabin, Body & Lighting, HVAC, Dashboard/Cabin, Others), By Region (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa) - Share, Size, Outlook, and Opportunity Analysis, 2024-2031.
Market Overview:
The global Automotive Wiring Harness Market is projected to grow at a CAGR of 6.2% from 2024 to 2031. The market value is expected to increase from USD XX billion in 2024 to USD YY billion by 2031. Asia-Pacific dominates the market, driven by the rapidly growing automotive industry in countries like China and India. Key metrics include increasing vehicle electrification, the rise of electric vehicles (EVs), and the growing demand for advanced driver assistance systems (ADAS).
Market Dynamics:
Market Trend: Shift towards lightweight and high-performance wiring harnesses to improve vehicle efficiency
The automobile wiring harness market is seeing a considerable shift towards lightweight, high-performance materials. As automakers work to increase fuel efficiency and reduce vehicle weight, there is an increasing need for wiring harnesses composed of lightweight materials like aluminium and copper alloys. These materials not only reduce the vehicle's total weight, but they also improve electrical conductivity and thermal resistance. In addition, the sector is seeing a surge in the use of improved insulating materials that provide superior heat, abrasion, and electromagnetic interference protection. This tendency is especially prominent in the electric car market, where effective power distribution and signal transmission are critical. Manufacturers are investing in research and development to create innovative harness designs that can tolerate higher voltages and temperatures while maintaining a compact form factor.
Market Driver: Rapid growth in vehicle electrification and the adoption of advanced automotive technologies
The automotive wire harness market is expanding rapidly, owing mostly to vehicle electrification and increased adoption of innovative automotive technologies. The worldwide electric vehicle industry is predicted to expand at a CAGR of 22.6% between 2021 and 2030, demanding more complicated and advanced wiring harness solutions. Furthermore, the integration of advanced driver assistance systems (ADAS), infotainment systems, and connection features in current automobiles has greatly increased the complexity and amount of wiring harnesses required. For example, a modern luxury automobile can have up to 6 kilometres of wiring, compared to only 1-2 kilometres in a simple model. The automotive electronics industry, which is primarily reliant on wiring harnesses, is expected to reach USD 382.16 billion by 2026, expanding at a 7.3% CAGR. This growing electrical content in automobiles is immediately translating into increased need for innovative wiring harness solutions, boosting market growth.
Market Restraint: Complexity in design and high installation costs pose challenges to market expansion
The growing complexity of automobile wire harness designs, along with high installation costs, pose a substantial barrier to market expansion. As automobiles become more technologically advanced, wiring harness systems get more complex, necessitating specialised design and production techniques. This intricacy not only raises production costs, but also makes installation and maintenance more difficult. For example, wiring harnesses can cost up to 5% of a vehicle's total cost, making them an important concern for automakers. Furthermore, the labour-intensive nature of harness construction and installation raises overall costs, especially in locations with growing labour rates.
Segment Overview:
Passenger cars segment dominates the automotive wiring harness market, driven by increasing vehicle electrification and consumer demand for advanced features
The passenger car category has emerged as the leading force in the automotive wire harness market, owing to the growing trend of vehicle electrification and rising consumer desire for advanced features in personal vehicles. This segment is likely to maintain its leadership position during the forecast period, owing to the increased adoption of electric and hybrid vehicles in the passenger car category.
The electrification trend in passenger automobiles is especially strong, with major automakers promising to electrify entire fleets. For example, Volkswagen Group intends to introduce 70 all-electric vehicles by 2028, demanding sophisticated wire harness systems. The global electric passenger car market is expected to reach YY million units by 2030, expanding at a CAGR of 32.5% between 2021 and 2030.
Furthermore, the incorporation of modern technology into passenger cars, such as self-driving features, linked car technologies, and sophisticated entertainment systems, is increasing demand for more complex wiring harness solutions. For example, the vehicle infotainment market is predicted to reach USD YY billion by 2028, rising at an YY% CAGR between 2021 and 2028. This expansion directly translates into growing demand for innovative wire harnesses capable of supporting these cutting-edge features in passenger vehicles.
Regional Outlook:
Asia-Pacific leads the global automotive wiring harness market, fueled by robust automotive production and increasing EV adoption
The Asia-Pacific region currently dominates the worldwide automotive wire harness market, with China, Japan, and South Korea emerging as important growth drivers. This supremacy is due to the region's strong automotive manufacturing base, rising acceptance of electric vehicles, and increased investment in automotive technologies.
According to Aurorawave Intellects, the Asia-Pacific automotive wire harness market is predicted to develop at a CAGR of 7.5% between 2021 and 2026, exceeding global industry growth rates. This strong growth is aided by the region's leadership in electric vehicle production and uptake. For example, China, the world's largest EV market, saw electric car sales increase by 154% in 2021 to 3.3 million units.
The automobile industry in Asia-Pacific, a key user of wiring harnesses, is rapidly expanding. For example, India's automotive industry is expected to reach USD YY billion by 2031, with a CAGR of 15.5%. This expansion is projected to result in significant demand for automotive wiring harnesses in the region.
Japan and South Korea, famed for their advanced automotive technologies, are also making substantial contributions to industry growth. Japanese automakers are increasingly focussing on hybrid and electric vehicles, with Toyota intending to sell 70% electrified vehicles by 2030. Similarly, South Korea intends to grow its worldwide market share of electric vehicles to 10% by 2025, driving up demand for innovative wire harness systems.
Competitive Intelligence:
The global automotive wire harness market is characterised by fierce rivalry among prominent players, who prioritise technical innovation, product quality, and strategic collaborations. Leading firms are investing extensively in R&D to produce lightweight, high-performance wiring harness solutions that match the changing needs of electric and self-driving vehicles.
Key players are also prioritising environmental activities, with several establishing aggressive goals for using recycled materials and improving product recyclability. For example, a prominent wiring harness manufacturer announced that 30% of its components were recycled in 2020, with ambitions to expand that figure to 50% by 2030.
In terms of market share, the top five competitors account for around 65% of the global market. These companies have a strong global presence and a varied product portfolio that caters to a wide range of vehicles and applications. However, regional firms are gaining headway, particularly in emerging countries, by providing customised solutions and exploiting local manufacturing skills.
The COVID-19 epidemic originally impacted the automobile supply chain, including wiring harness manufacture. However, the business has proven resilient, with many players predicting a robust return in 2021. The epidemic has also expedited key industry trends, including as the transition to electric vehicles and the incorporation of enhanced driver support systems, forcing companies to adjust their product strategy accordingly.
Analyst Opinion:
The automotive wire harness market is expected to increase significantly as automobiles continue to electrify and automotive electrical systems become more complicated. The change to electric and self-driving automobiles poses both obstacles and opportunity for industry participants. Companies that can successfully balance innovation, cost-effectiveness, and sustainability stand to gain a competitive advantage.
One growing trend to keep an eye on is the development of modular wire harness systems, which provide greater flexibility and ease of installation. This method could potentially alleviate the issues associated with complex harness designs and expensive installation costs. Furthermore, the incorporation of smart technologies, such as sensors and diagnostic capabilities, into wiring harnesses is likely to create new opportunities for market growth.
Major Players:
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Yazaki Corporation
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Sumitomo Electric Industries, Ltd.
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Aptiv PLC (formerly Delphi Automotive)
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Leoni AG
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Lear Corporation
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Furukawa Electric Co., Ltd.
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Kromberg & Schubert GmbH & Co. KG
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KYUNGSHIN
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Yura Corporation
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PKC Group (Motherson Group)
Key Developments:
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June 2023: Aptiv PLC announced the acquisition of a software business to expand its expertise in the development of smart wiring solutions for electric vehicles.
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Sumitomo Electric Industries, Ltd. introduced a new range of lightweight wiring harnesses in February 2023, specifically for next-generation electric vehicles.
1. INTRODUCTION
1.1. Market Definitions & Study Assumptions
1.2. Market Research Scope & Segment
1.3. Research Methodology
2. EXECUTIVE SUMMARY
2.1. Market Overview & Insights
2.2. Segment Outlook
2.3. Region Outlook
3. COMPETITIVE INTELLIGENCE
3.1. Companies Financial Position
3.2. Company Benchmarking -- Key Players
3.3. Market Share Analysis -- Key Companies
3.4. Recent Companies Key Activities
3.5. Pricing Analysis
3.6. SWOT Analysis
4. COMPANY PROFILES (Key Companies list by Country) (Premium)
5. COMPANY PROFILES
5.1. Yazaki Corporation
5.2. Sumitomo Electric Industries, Ltd.
5.3. Aptiv PLC
5.4. Leoni AG
5.5. Lear Corporation
5.6. Furukawa Electric Co., Ltd.
5.7. Kromberg & Schubert GmbH & Co. KG
5.8. KYUNGSHIN
5.9. Yura Corporation
5.10. PKC Group (Motherson Group) (*LIST NOT EXHAUSTIVE)
6. MARKET DYNAMICS
6.1. Market Trends
6.1.1. Shift towards lightweight and high-performance wiring harnesses to improve vehicle efficiency
6.1.2. Development of modular wiring harness systems
6.1.3. Integration of smart technologies in wiring harnesses
6.2. Market Drivers
6.2.1. Rapid growth in vehicle electrification and the adoption of advanced automotive technologies
6.2.2. Increasing demand for electric and hybrid vehicles
6.2.3. Growing integration of advanced driver assistance systems (ADAS)
6.3. Market Restraints
6.3.1. Complexity in design and high installation costs pose challenges to market expansion
6.3.2. Supply chain disruptions and raw material price volatility
6.4. Market Opportunities
6.5. Porter's Five Forces Analysis
6.5.1. Threat of New Entrants
6.5.2. Bargaining Power of Buyers/Consumers
6.5.3. Bargaining Power of Suppliers
6.5.4. Threat of Substitute Products
6.5.5. Intensity of Competitive Rivalry
6.6. Supply Chain Analysis
6.7. Value Chain Analysis
6.8. Trade Analysis
6.9. Pricing Analysis
6.10. Regulatory Analysis
6.11. Patent Analysis
6.12. SWOT Analysis
6.13. PESTLE Analysis
7. BY VEHICLE TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
7.1. Passenger Cars
7.1.1. Hatchbacks
7.1.2. Sedans
7.1.3. SUVs/Crossovers
7.2. Commercial Vehicles
7.2.1. Light Commercial Vehicles
7.2.2. Heavy Commercial Vehicles
8. BY MATERIAL TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
8.1. Copper
8.2. Aluminum
8.3. Others
9. BY APPLICATION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
9.1. Engine
9.2. Chassis
9.3. Cabin
9.4. Body & Lighting
9.5. HVAC
9.6. Dashboard/Cabin
9.7. Others
10. REGION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
10.1. North America
10.1.1. United States
10.1.2. Canada
10.1.3. Mexico
10.2. South America
10.2.1. Brazil
10.2.2. Argentina
10.2.3. Rest of South America
10.3. Europe
10.3.1. Germany
10.3.2. United Kingdom
10.3.3. France
10.3.4. Italy
10.3.5. Spain
10.3.6. Russia
10.3.7. Rest of Europe
10.4. Asia-Pacific
10.4.1. China
10.4.2. Japan
10.4.3. India
10.4.4. Australia
10.4.5. South Korea
10.4.6. Rest of Asia-Pacific
10.5. Middle-East
10.5.1. UAE
10.5.2. Saudi Arabia
10.5.3. Turkey
10.5.4. Rest of Middle East
10.6. Africa
10.6.1. South Africa
10.6.2. Egypt
10.6.3. Rest of Africa
*NOTE: All the regions mentioned in the scope will be provided with (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
By Vehicle Type:
- Passenger Cars
- Commercial Vehicles
By Material Type:
- Copper
- Aluminum
- Others
By Application:
- Engine
- Chassis
- Cabin
- Body & Lighting
- HVAC
- Dashboard/Cabin
- Others
By Region:
- North America
- Europe
- Asia-Pacific
- Latin America
- Middle East & Africa
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