Automotive Wiring Harness Market to Reach US$ 62 Billion by 2028
The global automotive wiring harness market is growing at a high CAGR due to increased investments in automotive production. Additionally, the rising demand for electric vehicles, along with the launch of various advanced features in automobiles are also driving the market forward?
A recent study conducted by the strategic consulting and market research firm BlueWeave Consulting revealed that the automotive wiring harness market was worth USD 46.4 billion in 2021. According to the study, the market is estimated to grow at a CAGR of 4.4%, earning revenue of around USD 62.7 billion by the end of 2028. The global automotive wiring harness market is growing at a high rate because of the expanding automobile production capacity and rising demand for electric vehicles across the globe. Additionally, the launch of various advanced features in automobiles is also pushing the market forward. Furthermore, rapid innovations and significant investment in research and development activities are also providing lucrative growth opportunities to the automotive wiring harness market. However, high chances of corrosion in metallic wiring harnesses may act as a huge restraining factor for the automotive wiring harness market.
Global Automotive Wiring Harness Market - By Component
Based on components, the global automotive wiring harness market is segmented into connectors, wires, terminals, and others. Among these, the wires segment accounts for the largest market share. Wiring harnesses are complex wire structures that require long lengths of wires, which result in the growth of this segment. Usually, ring terminals and spade terminals are used in the automotive wiring harness. On the other hand, connectors also take up a substantial amount of the market share since they serve as a crucial component in interconnecting the wires to relay the electronic signal.
Automotive Wiring Harness Market - By Material Type
Based on material types, the automotive wiring harness market is grouped into metallic, and optical fiber segments. The metallic segment holds the largest market share. This segment is further classified into copper, aluminum, and other materials. Copper and aluminum are some of the most commonly used materials for wiring harnesses due to their higher conductivity and flexibility. Additionally, copper also eliminates corrosion risks. Consequently, most OEMs such as Sumitomo and 3M prefer this material type, which drives its market growth.
Global Automotive Wiring Harness Market - By Transmission Type
Based on transmission types, the global automotive wiring harness market is grouped into data transmission and electrical wiring segments. The electric wiring segment accounted for the largest market share in 2021. The primary purpose of installing wiring harnesses in vehicles is to run electric power throughout the system, which drives the segment’s growth. However, the data transmission segment is also projected to witness the highest CAGR during the forecast period due to the increasing installation of sensors and IoT devices in cars and other vehicles.
Global Automotive Wiring Harness Market - Regional Insights
Geographically, the automotive wiring harness market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle-East & Africa. The Asia-Pacific region accounted for the largest share in the automotive wiring harness market in 2021. As automobile production expands in emerging economies like China, Japan, and India, the automobile wiring harness market has tremendous potential in the Asia Pacific. South Korea is also anticipated to emerge as a potential market due to the presence of leading automobile manufacturers, such as Hyundai and Kia. On the other hand, North America also holds a substantial share in the market due to the high concentration of automobile OEMs, such as Ford, GMC, Tesla, etc.
Impact of COVID-19 on the Global Automotive Wiring Harness Market
The unprecedented COVID-19 pandemic negatively halted the growth of the automotive wiring harness market. As the governments of various countries imposed a lockdown, the manufacturers and OEMs had to immediately pause their operations to prevent the COVID-19 spread. This resulted in a sharp decline in the demand for wiring harnesses in the automobile industry. In addition, wiring harness manufacturers are facing a shortage of components to upgrade their wiring harnesses. Because of limited stocks and production they are finding it difficult to cope with expanding automobile production, which is creating a huge demand and supply gap, thereby, inhibiting the market’s growth.
Global Automotive Wiring Harness Market - Competitive Landscape
The leading players in the global automotive wiring harness market are BorgWarner Inc., THB Group, Yazaki Corporation, Nexans, Aptiv PLC, Jiangsu Kyungshin Electronic Co. Ltd., Sumitomo Electric Industries Ltd., Coroplast Fritz M?ller GmbH & Co., BorgWarner Inc., Fujikura Ltd., Motherson Sumi Systems Ltd, Furukawa Electric Co. Ltd, Delphi Automotive LLP, Samvardhana Motherson Group, Leoni Ag, Qingdao Sanyun Group, PKC Group, Yura Corporation, Lear Corporation, and other prominent players.
The global automotive wiring harness market is highly competitive and concentrated due to the presence of several multinational industry players. Along with launching new products of higher quality and standards, the market players are focusing on expanding their production capacities and business operations in geographies to penetrate untapped markets. Furthermore, the adoption of competitive strategies such as partnerships, mergers, acquisitions, joint ventures, etc., is also prominent in this market.
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The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global automotive wiring harness market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the global automotive wiring harness market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.