How Smart Vehicle Reshaping the Automotive Wire Harness Market?

[Maria Yardena 0]

Market Overview

The global automotive wire harness market was valued at USD 47.1 billion in 2023, which is expected to grow at a CAGR of 3.2% during the forecast period (2024–2030), to reach USD 59.0 billion by 2030. Technological development and increasing production of electric vehicles are also some of the main reasons that contributed to market growth.

The industry for automotive wire harness is presently experiencing the replacement of copper-based wire harnesses with other materials. Several of the R&D initiatives in the automotive market are targeted at decreasing the metal content to attain a lessening in the weight so that the overall vehicle fuel efficacy can be raised.

Copper and steel are presently being substituted by copper-based alloys and aluminum metal. Presently, numerous businesses are substituting copper content in vehicles with copper-based alloys because of their more favourable features. It is seen that doing so decreases the copper weight by nearly 0.8 kg.

Key Insights

·         In 2023, the passenger cars category accounted for 60% industry share, propelled by advanced road infrastructure, connectivity, increasing per-capita incomes, and the rising popularity of SUVs and MPVs, leading to the augmented need for car wiring kits.

·         During the projection period, the commercial vehicles category is estimated to advance at a higher CAGR of 4% because of the addition of advanced electronic modules and connectivity features, including data transfer to smartphones and IoT sync.

·         The low voltage category leads the industry, credited to enhanced electronic features like HMI modules and growing vehicle autonomy, mainly in sedans and SUVs.

·         During the projection period, the high voltage category is projected to witness a higher CAGR, propelled by applications in EVs, including power distribution networks, electric motors, and batteries.

·         Electric vehicles are expected to advance at a higher CAGR of 5% during the projection period, propelled by growing worldwide penetration and the high count of electronic systems in EVs.

·         The copper category leads the industry because of the long-term use of wire harnesses and the advanced need for copper wires.

·         The aluminum category is estimated to advance at a higher CAGR over the projection period, propelled by government guidelines on vehicle weight decrease and pollution control, directing to enhanced vehicle efficiency. 

·         The chassis category holds a 40% revenue share in 2023 due to the high demand for wiring harnesses for numerous components (actuators, sensors, control units) and systems (suspension, braking, steering).

·         APAC held the largest market share at 55% in 2023, driven by high production of EVs and a large consumer base for ICE vehicles in China, India, Japan, and South Korea.

·         The European market is expected to witness the fastest growth with a CAGR of 3.5% from 2024 to 2030, driven by rising vehicle production, presence of major automobile companies, rapid urbanization, and economic growth.

Source: P&S Intelligence