The global automotive wiring harness market was valued at USD 50.09 billion in 2023 and is projected to grow to USD 63.00 billion by 2030, reflecting a Compound Annual Growth Rate (CAGR) of 3.4% from 2024 to 2030. This growth is significantly propelled by the increasing adoption of electric vehicles (EVs), which is further bolstered by consistent government incentives for both manufacturers and consumers, thereby driving demand in the EV segment.
The market's expansion is also attributed to the rising integration of advanced technologies such as vehicle-to-vehicle communication, self-healing systems for electric vehicles, smart battery systems, and intelligent braking and safety systems. Concurrently, the proliferation of autonomous and semi-autonomous vehicles, which heavily rely on components like low-latency communication devices, sensors, cameras, and radar, will escalate the demand for automotive wiring harnesses within the automotive manufacturing sector, presenting numerous growth opportunities. Furthermore, the increasing use of optical fiber in wiring harness production is expected to create new avenues for market players.
The growing emphasis on security and safety in driving is fueling the demand for driver-assisting technologies such as adaptive cruise control, blind spot detection, adaptive front lights, and lane departure warning systems. Additionally, vehicle manufacturers are obligated to adhere to stringent safety norms introduced by authorities worldwide, which is expected to further support market growth. For instance, in July 2022, the European Union implemented new safety measures to reduce commute-related injuries and fatalities by applying general safety regulations. These regulations establish the legal framework for the EU's approval of fully driverless and automated vehicles and introduce advanced driver assistance technologies for both passenger and commercial vehicles.
Key Market Trends & Insights
Regional Dominance (Asia Pacific): In 2023, the Asia Pacific region commanded the automotive wiring harness market with a significant revenue share of 45.8%. The dynamic nature of the automotive industry across Asia Pacific presents extensive opportunities for manufacturers of automotive wiring harnesses to leverage technological advancements and cater to evolving consumer preferences. Consequently, market players are actively prioritizing innovation and product differentiation to effectively meet these changing market demands.
Fastest Growth (U.S.): The automotive wiring harness market in the U.S. is projected for rapid growth, with an anticipated CAGR of 2.1% from 2024 to 2030. This acceleration is largely attributed to the increasing adoption of autonomous vehicles and a growing emphasis on vehicle electrification, both of which are expected to drive substantial investments in advanced wiring harness technologies.
Component Leadership (Terminal Segment): Based on component, the terminal segment held the largest market revenue share of 41.71% in 2023. This dominance is driven by an increasing focus on safety and reliability within automotive electrical systems, which in turn fuels the demand for terminals that offer enhanced thermal management and vibration resistance.
Application Leadership (Chassis Harness Segment): In terms of application, the chassis harness segment led the market with the largest revenue share of 34.64% in 2023. The demand for chassis wiring is propelled by various factors, including regulatory mandates for vehicle safety, rising consumer demand for improved driving dynamics and safety features, and continuous technological advancements in chassis control systems.
EV Segment Leadership (Battery Electric Vehicle - BEV): Within the electric vehicle category, the battery electric vehicle (BEV) segment secured the largest revenue share of 65.78% in 2023. This leadership is a result of evolving consumer preferences, marked by a growing interest in sustainable and futuristic transportation. The appeal of cutting-edge technology and the lower operational costs associated with BEVs are making them particularly attractive to consumers.
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Market Size & Forecast
• 2023 Market Size: USD 50.09 Billion
• 2030 Projected Market Size: USD 63.00 Billion
• CAGR (2024-2030): 3.4%
• Asia Pacific: Largest market in 2023
Key Companies & Market Share Insights
Some of the prominent companies operating in the market include Sumitomo Electric Industries, Ltd., YAZAKI Corporation, LEONI AG, Aptiv PLC, and Furukawa Electric Co., Ltd. These key players are engaging in strategic initiatives such as mergers and acquisitions, partnerships and collaborations, and regional expansion to strengthen their business footprint. Product launching activities are also a key strategy for leading players, particularly those based in North America.
Sumitomo Electric Industries, Ltd. prioritizes research and development, offering cutting-edge solutions like lightweight aluminum harnesses and high-voltage wiring for electric vehicles. Their global presence, supported by a vast network of manufacturing facilities, enables efficient service to automotive manufacturers worldwide.
Furukawa Electric Co., Ltd. provides a comprehensive range of wiring harnesses, including those for conventional vehicles, electric vehicles, and hybrid vehicles, addressing the diverse needs of automotive manufacturers.
Emerging companies in the global market include Kromberg & Schubert GmbH Cable & Wire, Lear Corporation, Tianhai Auto Electronics Group Co., Ltd., and Spark Minda.
Lear Corporation focuses on providing automotive technology to enhance in-vehicle experiences. The company supplies key seat components, complete seat systems, comprehensive electrical connection and distribution systems, and high-voltage power distribution products, including electronic controllers, low-voltage power distribution products, and battery disconnect units, to major automotive manufacturers.
Tianhai Auto Electronics Group Co., Ltd. specializes in designing and manufacturing connection systems, electronic transmission systems, low-carbon intellectual solutions, and intelligent control systems, with a commitment to high-speed, low- and high-voltage wire harnesses for intelligent connected vehicles.
Key Players:
China Auto Electronics Group Limited (THB Group)
Delphi Technologies PLC (Aptiv PLC)
Furukawa Electric Co., Ltd.
Kromberg & Schubert GmbH Cable & Wire
Lear Corporation
LEONI AG
PKC Group
Spark Minda, Ashok Minda Group
Sumitomo Electric Industries, Ltd.
Yazaki Corporation
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