The global automotive wiring harness market is projected to grow from USD 47.0 billion in 2021 to USD 57.4 billion by 2026, at a CAGR of 4.1% during the forecast period. There has been a significant increase in vehicle production over the years. However, in 2020, factors like COVID-19, regional disparities, weakness in economy, and lagging vaccination timetables, particularly in poor countries, resulted in the decline in global vehicle production.
However, a strong rebound in global vehicle production with the recovery of major industries across the globe since the middle of last year has helped soften the impact of the pandemic for automotive industry. The global economic recovery is also expected to be fueled by the higher production of vaccines and vaccination rates, allowing businesses to reopen more quickly.
Stringent vehicle emission regulations and increasing concerns over environmental protection have compelled automotive OEMs to look for alternative fuels. Thus, the use of hybrid and electric vehicles has increased in recent years. Electric vehicles do not have a conventional IC engine and transmission system. The replacement of mechanical systems with electrical and electronic systems has increased wiring harnesses in electric vehicles. The growing demand for BEVs would increase high-end electronics in automobiles, thereby increasing the wiring harness installation in electric vehicles. As electronic features control most functions in electric vehicles, the demand for wiring harnesses is expected to rise in the coming years.
Growing consumer demand for environment-friendly products, such as battery and hybrid electric vehicles, requires a high voltage and weight-saving wiring harness system. The electric vehicles are connected with the high voltage battery and motors, requiring a high voltage wiring harness to transfer the high power. The high voltage wiring harness requires shielding to reduce the electromagnetic noise and protect the surrounding electronic devices and signal lines. The electric vehicle requires positive & negative connectors and pipe shielded wiring harnesses for protection and shielding. The electric vehicle requires a larger current, resulting in the enlargement of the cross-sectional area of the wire conductors, which further raises the area’s weight. The weight reduction can be achieved using aluminum wire which works as both shielding and protection. The aluminum is used in most electric vehicle wiring harnesses due to good heat resistance and thermal conductivity and can be molded to any shape.
Electric vehicles require high-speed data transmission due to additional functions and advanced technologies such as the deployment of button-free dashboards. Hence, with the increasing penetration of electric vehicles, there is a subsequent demand for high-speed data transmission, which is expected to fuel the optical fiber wiring harness market in the future.
There is an increase in the penetration of high voltage electronic systems in electric vehicles across the globe owing to the increase in kilometers driven by vehicles and the increase in advanced features in telematics. This has led to the increasing preference for vehicles with more electronic functions that are user-friendly and less complex. For instance, Leoni AG developed the high voltage wiring harness to operate up to 1000V DC with an ambient temperature of around 90 ?C and high voltage power distribution units and components. Many more traditional vehicle functions are being replaced with electronic systems, driving the automotive wiring harness market globally.
Increasing battery electric vehicle sales would have a direct impact on the market for automotive wiring harnesses. New types of wiring harnesses, such as high voltage and optical fiber wires, are also developed specifically for electric and hybrid vehicles. Thus, the increasing adoption of electric vehicles will increase the demand for high voltage wiring harnesses, subsequently expanding the market.
“The metallic segment is expected to lead the material type segment due to the higher demand for electric current transmission.”
The metallic segment is estimated to lead the market, in terms of value, during the forecast period due to the higher demand for high conductivity in wires, which leads to increase the demand for metallic harness. OEMs mostly use copper for manufacturing automotive wiring harnesses due to high conductivity, limited corrosion, high tensile strength, and high data transfer. Despite fluctuations in the prices of copper, which have impacted the profit margins of wiring harness manufacturers in the recent past, metallic materials are still expected to hold a 92% share in the automotive wiring harness market by 2026.
Asia Pacific is projected to be the highest growing regional market
For the market analysis, the Asia Pacific region includes China, India, Japan, Thailand, South Korea, and Rest of Asia Pacific. China is considered the manufacturing hub for the automotive industry. According to the MarketsandMarkets, China and India together produce approximately 25 million vehicles every year. With an increase in production of vehicles, the demand for automotive wiring harnesses is expected to increase.
In addition to high export and import, factors such as increasing Gross Domestic Product (GDP), infrastructure investments, rising per capita income, growing inclination toward comfort and leisure, and government initiatives for FDI have created more opportunities for containerized business, in turn driving the automotive wiring harness market in the Asia Pacific region.
In-depth interviews were conducted with CEOs, marketing directors, other innovation and strategy directors, and executives from various key organizations operating in this market.
- By Company Type: Automotive wiring harness OEM – 80% and End user organization– 20%
- By Designation: C Level - 30%, Directors- 50%, and Others – 20%
- By Region: Asia Pacific - 40%, Europe - 20%, North America –30%, and RoW-10%
Yazaki Corporation (Japan), Sumitomo Electric Industries (Japan), Aptiv PLC (Ireland), Furukawa Electric (Japan), and Leoni AG (Germany) are the prominent players in the automotive wiring harness market.
The study segments the automotive wiring harness market and forecasts the market size based on application (engine harness, chassis wiring harness, body & lighting harness, HVAC harness, dashboard/ cabin harness, battery harness, seat harness, sunroof harness, and door harness), component (connectors, terminals, wires, and others), material type (metallic and optical fiber), transmission type (electrical wiring and data transmission), data transmission harness market by data transfer rate (<150 Mbps, 150 Mbps to 1 Gbps, and >1 Gbps), and region (Asia Pacific, North America, Europe, and the Rest of the World [RoW]).
The study also includes an in-depth competitive analysis of the major automotive wiring harness manufacturers in the market, along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.
Key Benefits of Buying the Report:
The report will help the market leaders/new entrants in this market with the information on the closest approximations of the revenue numbers for the overall automotive wiring harness market and the sub-segments. This report will help stakeholders understand the competitive landscape and gain more insights to better position their businesses and plan suitable go-to-market strategies. The report also helps stakeholders understand the market’s pulse and provides them information on key market drivers, restraints, challenges, and opportunities.