An automotive wiring harness is a detailed assembly of connectors, terminals, and wires that run throughout the vehicle to transfer data and power. The cables are primarily held together by a strong and long-lasting material such as vinyl, conduit, rubber, electrical tape, or an extruded string weave.
The automotive wiring harness market was worth $49.04 billion in 2021 and is expected to be worth $74.46 billion by 2030, growing at a CAGR of 4.75% between 2021 and 2030.
Market drivers
One of the primary factors driving the overall growth of the automotive wiring harness market is the rise in demand for electronic devices. As per Statista, the total number of IoT-connected devices (i.e., Electronic Devices)globally is predicted to reach 30.9 billion units by 2015, a significant increase from the 13.8 billion unit milestone predicted for 2021.
Incorporating the wiring harness in a vehicle provides several advantages, including reduced electrical scarcity, improved fuel efficiency, and improved performance. Furthermore, installing technologically advanced vehicles, such as infotainment and advanced driver assistance systems, is expected to propel the overall market growth during the forecasted 2020-2030.
The continuous increase in demand for electric vehicles (EVs) in developing regions worldwide is expected to accelerate the market within the specified time frame. According to BusinessToday.in, global EV sales in 2020 will increase by nearly 39%, while the total passenger car market will decline by 14%. According to Canalys, approximately 30 million EVs will be sold in 2028.
Market Restraints
The vehicle has several electrical failures, including a battery problem, lights, alternator, non-functional front and rear lights, and ignition failure, which wiring harness issues can sometimes cause. The wiring harness can bend due to rapidly changing environments, such as extreme cold to extremely hot temperatures and rapid temperature changes. These issues can deteriorate the overall wiring harness and significantly reduce its overall lifespan.
Key Opportunity
Due to advanced technologies, vehicles' ever-increasing number of functions is increasing the total number of automotive wiring harnesses produced daily. According to the market, the increase in tax benefits and incentives provided by governments worldwide is also increasing the overall demand for Evs, which will provide numerous opportunities for the market in the future.
Market segmentation
- In terms of material, the "Copper" segment accounted for approximately 68.13% of the total market in 2020. Copper has the highest thermal and electrical conductivity of any metal. Cu wire has the lowest resistance to electrical and thermal conduction compared to aluminum, so it is widely used for wire harnessing in high conductivity applications in automobiles worldwide. In 2020, Chile was the world's leading copper producer, according to Statista, producing approximately 5.7 million metric tonnes of Cu. Peru comes in second, with an estimated copper mine production of nearly 2.2 million metric tonnes in the same year.
- Based on Propulsion, "Electric Vehicles" held the largest market share of approximately 58.21% of the total market and are expected to grow at the fastest rate with a reasonable CAGR during the forecasted period of 2020-2030. Compared to conventional ICE vehicles, the demand for wire harnesses in electric vehicles is approximately three times greater, proliferating this segment's overall growth.
- In 2020, "Passenger Cars" had the largest market share, accounting for approximately 48.23% of the total market. According to Statista, approximately 56 million passenger cars were produced globally in 2019. Passenger-type cars are produced more than any other car type around the world, which necessitates a large number of wiring harnesses, boosting the overall growth of the market in this segment.
- In 2020, the "LV Automotive Harness" segment held the largest share of the wiring harness industry (approximately 75.23%) of the total market. The HV Automotive harness, on the other hand, remained the fastest-growing segment, with a robust CAGR throughout the forecasted time frame.
- According to Applications, the "Chassis harness" segment accounted for approximately 27.18% of the market and will maintain its superiority during the forecasted period. The increasing demand for automotive wiring harnesses in chassis applications such as air brake pumps, frames, suspension systems, and so on has increased dramatically worldwide, fueling this segment's overall growth.
- Based on region, "Asia-Pacific" comprehensively dominated the wiring harness industry, accounting for nearly 61.12% of total revenue from 2020 to 2030, followed by Europe.
China is the world's largest automobile manufacturer. As a result, the market for Automotive Wiring Harness in China is expanding much faster.
Major players
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Yazaki Corporation
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Lear Corporation
- Leoni AG
- Yura Corporation
- Aptiv PLC
- NexansAutoelectricGmbh
- Others
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