The global automotive wiring harness market is projected to grow from USD 48.7 billion in 2023 to USD 59.5 billion by 2030, at a CAGR of 2.9% during the forecast period. The automotive wiring harness market has shown significant growth recently. Top OEMs are investing in the same, which would further drive the demand for high-speed data transmission wiring harnesses. Though the need for electronic features is growing in Europe and North America, Asia Pacific remains the key market.
Market Dynamics
DRIVER: Rise in Advanced Features in Vehicles
The automotive industry is witnessing a growing emphasis on safety and security, driving the demand for driver-assist technologies like Adaptive Cruise Control (ACC), Blind-Spot Detection (BSD), Advanced Front Lighting (AFL), and Lane Keeping Assist (LKA) to incorporate advanced features into vehicles. ACC systems rely on radar and sensors to maintain a safe following distance from the vehicle in front. Advanced parking systems, including 360-degree cameras and proximity sensors, rely on wiring harnesses to transmit data to the vehicle’s infotainment screen or instrument cluster, aiding drivers during parking maneuvers. All these systems require wiring harnesses to transfer data from the sensors to the vehicle’s steering system. Also, the surge in consumer demand for advanced features in vehicles is a significant driving factor behind the growth of the automotive wiring harness market. To meet these expectations, automakers are incorporating intricate electrical and electronic components in modern vehicles, increasing the dependency on wiring harnesses. The rise of electric and hybrid vehicles further amplifies this demand, with specialized wiring harnesses becoming pivotal for battery management, powertrains, and charging infrastructure. Moreover, the increasing integration of the Internet of Things (IoT) in vehicles and the need for customization and adherence to stringent regulations has driven the need for more complex and adaptable wiring solutions. As a result, automotive wiring harnesses are pivotal components in the evolving automotive industry, facilitating the safe and efficient operation of these advanced features, ultimately enhancing the driving experience and safety for consumers.
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OPPORTUNITY: Increase in use of high voltage wiring harnesses and optical fiber cables
The rise in electric and hybrid vehicles has necessitated the adoption of high voltage wiring harnesses to efficiently manage the flow of electrical power within these vehicles. High voltage wiring harnesses are vital for connecting the battery packs, power inverters, and electric motors, enabling the reliable operation of these electrified powertrains. As the market for electric vehicles continues to expand, the demand for specialized high voltage wiring solutions is expected to surge.
High-voltage cables are a significant advancement in power transmission compared to traditional copper wires of the same size. The amount of power a cable can handle is directly linked to its voltage level, meaning higher voltage cables can carry much more power. For instance, a 100 kV cable can transport 100 times the power of a 1 kV cable. Importantly, these high-voltage cables are more powerful, lighter, and robust than their copper counterparts. Their reduced weight aligns with the ongoing trend of making electric vehicles (EVs) lighter. Moreover, their durability makes them an excellent choice for demanding automotive environments.
Europe is anticipated to be the second-largest market in 2023, driven by growing vehicle production and electrification trends.
The European market is expected to exhibit growth in vehicle production in the coming years, increasing the demand for wiring harnesses. Companies such as Aptiv PLC (Ireland), Leoni AG (Germany), and Nexans (France) are key players in the domestic wiring harness market. Germany, France, Spain, the UK, Russia, Italy, and the Rest of Europe have been considered under Europe for market analysis. The European Union (EU) has implemented a range of regulatory mandates to enhance vehicle safety by including advanced driver assistance systems (ADAS) and other safety features. These regulations are strategically designed to reduce accidents and improve overall road safety. The implications of these mandates are particularly noteworthy for the automotive wiring harness market. ADAS and safety features necessitate intricate wiring harnesses to interconnect the sensors, actuators, and control units, enabling these systems to function effectively.
Consequently, there is a growing demand for automotive wiring harnesses in Europe as an increasing number of vehicles are equipped with these advanced features. The growing production of luxury vehicles in Germany and the UK drives the demand for automotive wiring harnesses. Luxury vehicles stand out for their extensive advanced features, including heated and cooled seats, power windows and locks, sunroofs, and cutting-edge safety systems like automatic emergency braking, lane departure warning, and adaptive cruise control. These features necessitate integrated wiring harnesses to establish connections among the various components and systems that enable their functionality. Bentley, Cadillac, Lincoln, Mercedes-Maybach, Porsche, and Rolls-Royce are some luxury cars that will continue driving sales in this region, further driving the need for advanced wiring harness technology. In Europe, the accelerated shift toward electric vehicles, backed by government targets for widespread electrification by 2030, is transforming the automotive wiring harness market. Norway, Finland, Germany, etc., dominate the electric vehicle market, further driving the demand for advanced wiring harnesses. Electric vehicles demand high voltage wiring harnesses to connect critical components like batteries and inverters. Additionally, advanced features in EVs require supplementary harnesses. As a result, the demand for automotive wiring harnesses is poised for substantial growth, driven by the expanding production of EVs and the integration of advanced technologies, presenting business opportunities for manufacturers.
Key Market Players:
Major players operating in the electric powertrain market are Yazaki Corporation (Japan), Sumitomo Electric Industries, Ltd. (Japan), Aptiv PLC (Ireland), Furukawa Electric (Japan), and Leoni AG (Germany).
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