EV cables perform different functions in electric vehicles as they aid in signal transmission and powering up of different electronic and electrical devices. They are also used to set up electrical circuits in electric vehicles and are designed to operate in extreme conditions effectively.
The global EV Cable Market is expected to register significant growth during the forecast period. It is estimated to grow at a CAGR of 26.9% from USD 3.9 billion in 2021 to USD 13.1 billion by 2026.
Market growth can be attributed to the continuously fluctuating oil prices that have increased the demand for fuel-efficient vehicles. Thus, automakers’ focus on introducing electric passenger cars is expected to fuel the growth of the EV cable market. Furthermore, the introduction of stringent emission norms to curb rising pollution is driving the growth of the electric vehicle market hence driving the EV cable market. Growing concerns over environmental pollution have led to the implementation of stringent emission norms and enhanced the demand for fuel-efficient vehicles.
The major market players include Leoni AG (Germany), Huber+ Suhner (Switzerland), Sumitomo Electric Industries., Ltd (Japan), Aptiv (Ireland), Nexans (France).
A Wire is a single conductor of electricity used to transfer current for various applications. An EV cable usually consists of multiple wires (including Live Wires, Neutral Wires and Earth Wires). Together these wires along with an insulation layer and a jacket material are used as part of the EV cable. They are usually made of good conducting materials like Aluminum and Copper. The demand for EV wires increases with rising in sales of EVs. Hence this will lead to the fast-growing demand for EV cables with an increase in demand for electric vehicles. Wires are the base component of EV cables and have a high demand which grows with the demand for EV cables in EVs.
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The high voltage cable market is expected to grow at a fast pace with the growing demand for electric vehicles in the global market. High voltage cables in electric vehicles move power to and from the battery and various systems throughout the electric vehicle. The high voltage electric vehicle cable is used for connecting the charging port and the battery, battery inter wiring, the battery, and the engine and other electrical components to carry the electric current power. High Voltage cables are mostly used for battery applications in electric vehicles. Thus, increase in market demand for high voltage cables in critical application in an EV, the market for high voltage cables would rise.
The Asia Pacific market is estimated to be the largest during the forecast period. The increasing sales of electric vehicles in the region is expected to drive the growth of the market. China is the largest producer of automobiles in the world. Recent infrastructure developments have boosted the electric vehicle markets in China, thereby pushing the demand for efficient fleet solutions for transport. Furthermore, nearly all major OEMs inclined toward electric vehicles have invested in the Chinese market. Also, concerns over ecological imbalance caused by vehicle emissions have increased in the past decade in countries such as India, China, Malaysia, and Thailand. These concerns have forced major vehicle manufacturers to shift their focus toward fuel-efficient vehicles. Hence, Asia Pacific is expected to show incremental growth in the EV cable market during the forecast period.
In Europe, Germany is estimated to be the largest market for EV cables in the European region. Stringent emission regulation standards are implemented in the region to reduce the rising emission levels. Several countries in the region are promoting electric vehicles through significant incentives; hence, the EV cables market will grow. Increasingly severe emission norms governing fuel efficiency and increasing electric vehicle production to control vehicular emissions across the globe are the other major factors helping the EV cable market to grow. The rise in sales of EV cables market is due to growing sales of electric vehicles in Europe and due to the presence of market leaders in the region.
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North America comprises developed countries such as the US and Canada. North America is a regional hub for many renowned OEMs, which are known for delivering quality and high-performance vehicles. The North American EV cable market will grow at a fast rate. US will hold the maximum market share for EV cables in the North American market. Electric vehicle infrastructure providers offer various services that have increased the adoption of electric vehicles in the US. The key driver of the EV cables Market in the US is the faster adoption of electric vehicles. Thus, with the rising in sales of electric vehicles in the US, the market for EV cables is likely to grow. In addition, electric vehicles control the CO2 emissions which would be highly adopted for fuel-efficient vehicles with stringent emission regulations. BEV will have the largest market in North America. Thus, the market for EV cable is likely to grow in the region.
COVID-19 Impact on Electric Vehicle Cable Market:
The outbreak of the COVID-19 pandemic is not expected to affect the extraction of materials such as steel, copper, and aluminium. With trade restrictions in place during the first six months of 2020, raw material extraction was continued by major extractors in China. However, the prices of raw materials such as copper will continue to rise, with the copper price hitting USD 10,000 per ton for the first time in 10 years in May 2021.
The COVID-19 pandemic has had a severe impact on the global automotive industry. This is witnessed in terms of the supply chain disruptions of part exports from China, large-scale manufacturing interruptions across Europe, and closure of assembly plants in the US and other major countries, such as India and Brazil, where the automotive sector highly contributes to the GDP.
