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The Automotive Wiring Harness Market size is forecast to increase by USD 13.15 billion, at a CAGR of 4.83% between 2023 and 2028. The growth of the market is driven by several key factors, including the growing penetration of automotive electronics, which necessitates more sophisticated wiring solutions. Moreover, the automotive industry's shift towards advanced materials for wire harnesses, such as lightweight and durable options like aluminum, contributes significantly to market expansion. Additionally, the rising demand for wire harnesses in the electric vehicle (EV) sector, driven by the global push towards sustainable transportation solutions, further fuels market growth. These trends underscore the increasing importance of wire harnesses in modern automotive design and production, positioning the market for continued expansion in the foreseeable future.
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The market is being driven by the integration of Advanced Front Lighting (AFL), 360-degree cameras, and Proximity sensors in modern vehicles. As the Internet of Things (IoT) permeates the automotive industry, demand for LIN-enabled wiring harnesses is surging. Moreover, growing consumer expectations for advanced technologies like Vehicle-to-vehicle communication and Smart braking & safety systems are shaping market trends. However, challenges such as ensuring compatibility with evolving autonomous vehicles and addressing the complexity of self-healing for electric vehicles pose hurdles for industry players striving for innovation and market competitiveness. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing use of wire harnesses in the EV sector is notably driving market growth. The demand for EVs has grown significantly over the last few years, which is evident from their growing year-over-year sales. The growing sales of all EVs act as a driving force for the market as these vehicles use all-electric powertrains and related systems and components. The EV automotive industry consists of many companies that design, develop, manufacture, and sell various types of vehicles, such as hybrid electric vehicles, plug-in hybrid electric vehicles, and battery electric vehicles. It has experienced significant growth globally, owing to a rise in sales.
For instance, the global number of electric cars by the end of 2021 was about 16.5 million, triple the amount in 2018, according to the International Energy Agency (IEA). Such developments will positively influence the demand for automotive wiring harnesses, which, in turn, will drive the growth of the market during the forecast period.
The advent of 3D printing technology for wiring harness manufacturing is an emerging trend shaping market growth. The advent of 3D printing technology has revolutionized the industrial machinery sector, as 3D printing enables the manufacturer to incorporate any alteration in the design of an object and facilitates mass production. This technology can be used to create connectors, wiring harnesses, terminals, and other industrial machinery components.
Further, 3D printing technology for automotive wiring harness manufacturing reduces the number of components in assemblies, increases the reliability of the final product, and provides the flexibility to incorporate on-demand customization. Owing to these advantages, 3D printing technology is anticipated to gain significant prominence among during the forecast period.
The short lifecycle of wire harnesses is a significant challenge hindering market growth. The short lifecycle of wire harnesses is a major challenge for the global wire harness market. Factors such as dynamic consumer expectations and technological innovations are increasing the pressure on wire harness and automotive electronics manufacturers to offer improved products to automotive OEMs and tier-1 suppliers. The continuous launch of new products increases the need for companies to reduce the cycle time of automotive component production to sustain themselves in the highly competitive market. The aesthetic of automotive wire harnesses includes a multi-disciplinary process with various inputs that result in a final design that is ready for the wire harness manufacturing stage.
Moreover, the wire harness product lifecycle starts at the design stage and proceeds to development, testing, prototyping, manufacturing, and finally a product launched in the automotive industry. The rapid changes in technology will also lead to changes in demand for wire harnesses, resulting in instability in the market, thus becoming a major challenge to the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market analysis and report also include key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Aptiv Plc - The company offers automotive wiring harness such as metri pack connectors, GT 150 connectors, and micro pack connectors to help create strong and creative connection systems that optimise the overall electrical systems performance and cost.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is propelled by the integration of cutting-edge technologies such as Advanced Front Lighting (AFL) and 360-degree cameras, necessitating sophisticated wiring solutions. With the rise of Proximity sensors and Internet of Things (IoT) in vehicles, the demand for high-quality wiring harnesses is increasing to accommodate seamless connectivity, sensor signals, speed sensors and sensor integration. Manufacturers leverage LIN technology to enhance communication between various automobile components and ensure optimal vehicle performance. As the automotive industry embraces advanced technologies like vehicle-to-vehicle communication and autonomous vehicles, the need for robust wiring harnesses grows, facilitating the integration of smart battery systems, self-healing for electric vehicles, and smart braking & safety systems to meet evolving consumer demands for safer and smarter automobiles.
The passenger vehicles segment is estimated to witness significant growth during the forecast period. Advanced automotive systems are used extensively in passenger vehicles, which are fitted in engines, chassis, brakes, transmission, steering, and other systems. Such systems require wiring harnesses for the transfer of data and signals from the sensors to the control unit. The high usage of electronic components in PVs makes the segment an important contributor to the market.
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The passenger vehicles segment was the largest and was valued at USD 32.97 billion in 2018. The growing penetration of hybrid powertrains and safety systems in passenger vehicles is fueling the consumption of wiring harnesses per vehicle. In addition, the growing fitment of level 2 (partial automation) and level 3 (conditional) automation technologies in passenger vehicles is further driving the use of wiring harnesses per vehicle, thereby propelling the growth of the passenger vehicles segment of the market during the forecast period.
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APAC is estimated to contribute 56% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional market trends and analysis and drivers that shape the market during the forecast period. M and HCVs are large commercial vehicles that are fitted with large powertrains. M and HCVs include city delivery trucks, bucket trucks, single-axle trucks, rack trucks, haul trucks, cement trucks, and truck tractors. Manufacturers of M and HCVs are focusing on increasing the penetration rate of driver-assisted steering systems in their vehicles. This is prominent in developed automotive markets that have stringent regulations, well-laid road infrastructure, and traffic sense. The high penetration of powerful powertrains and advanced safety systems in the M and HCVs sold in developed markets contributes to the revenue generation of the segment. This is attributed to the high integration of systems that involve data transfer, which requires wiring harnesses.
In addition, in the emerging APAC markets, such as India, Indonesia, and others, the M and HCV OEMs are rapidly progressing toward equipping their vehicles with systems such as ABS, electrically adjustable outside rear-view mirrors, HVAC systems, auto-dimming mirrors, and others. This is further expected to increase the demand for wiring harnesses in this segment of vehicles, which would contribute to the growth of the regional market during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
The market is experiencing rapid growth, driven by the demand for advanced driver assistance technologies like Adaptive Cruise Control (ACC), Blind-Spot Detection (BSD), and Lane Keeping Assist (LKA). As vehicles become more technologically advanced, the need for robust wiring solutions is paramount. Manufacturers are leveraging innovations like Ethernet, FlexRay, and Media Oriented Systems Transport to accommodate the increasing complexity of electrical systems in modern automobiles. Additionally, the market sees a rising adoption of Optical fiber cables and materials like Aluminum for lightweighting purposes. With the emergence of hybrid and electric cars (BEVs, HEVs, PHEVs), the demand for high-voltage wiring harnesses and safety solutions continues to soar, presenting significant growth opportunities for players in the automotive wiring harness industry.
Market Scope |
|
Report Coverage |
Details |
Page number |
179 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.83% |
Market growth 2024-2028 |
USD 13.15 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.51 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 56% |
Key countries |
US, China, Japan, South Korea, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aptiv Plc, Assembly Solutions Ltd., Coroplast Fritz Muller GmbH and Co. KG, Cypress Holdings Ltd. dba Cypress Industries, DRAXLMAIER Group, Eugen Forschner GmbH, Fujikura Ltd., Furukawa Electric Co. Ltd., Kromberg and Schubert Automotive GmbH and Co. KG, Lear Corp., Leoni AG, Minda Corp. Ltd., Nexans SA, Precision Cable Assemblies, Prysmian Spa, Samvardhana Motherson International Ltd., Sumitomo Corp., Tianhai Auto Electronics Group Co. Ltd., Yazaki Corp., and YURA Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Vehicle Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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