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The cable assembly market is estimated to grow at a CAGR of 6.53% between 2022 and 2027. The size of the market is forecast to increase by USD 72 billion. The growth of the market depends on several factors, including the increasing demand for EVs, the rising investments in upgrading telecommunication infrastructure, and the increased popularity of fiber optics.
This report extensively covers market segmentation by application (automotive, consumer electronics, telecom and datacom, industrial, and others), product (application-specific, rectangular, RF, circular, and others), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing demand for EVs is notably driving the market growth, although factors such as the availability of counterfeit and grey-market products may impede the market growth. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The increasing demand for EVs is the key factor driving the global cable accessories market growth. Cable assemblies are used in many onboard systems in vehicles, such as battery and power supply, ignition systems, steering systems, braking systems, interior and exterior lighting, and safety and security. Also, the number of electronic components, such as rear camera systems, navigation systems, and mobile and Bluetooth connections, is also increasing in vehicles. Globally, the automotive industry is growing at a steady pace, which is driven by countries in APAC, while the global EV (electric vehicle) market is growing at a much faster pace.
The growing focus on promoting environmental sustainability and the depletion of fossil fuel reserves has increased the sales of EVs in the last few years. The sales of EVs have rapidly grown over the last ten years, especially in countries such as the US, Germany, China, the UK, and the Netherlands, due to technological advances, which have reduced the cost of batteries and improved the efficiency of EVs. The low prices and the availability of subsidies for EVs will increase their sales during the forecast period.
The growth in data centers will fuel the global cable assembly market growth. Globally, the demand for data centers is rising, primarily due to the exponential growth of data volumes generated by enterprises and individual consumers. The generation of massive volumes of data has compelled several companies to build their own data centers or opt for colocation data centers to serve their customers. In addition, the increasing use of cloud computing is driving the demand for data centers.
Various firms are investing in and launching new data centers. The launch of new data centers, along with investments in future facilities, will create demand for cable assemblies, as they potentially reduce both cost and power consumption in data centers. The number of data centers is increasing, and hence, cable assembly manufacturers are offering products that can be used in data centers. For instance, TE Connectivity offers the Mini-SAS HD cable assembly that can be used in data centers. Therefore, the increasing number of data centers will drive the growth of the market.
The availability of counterfeit and grey-market products is a major challenge to the global cable assembly market growth. Over the past decade, several local and global vendors have been offering cable assemblies. China alone has more than 1,000 manufacturing plants that produce wiring and cable assemblies. These companies offer cable assemblies of different quality based on the application. End-user industries that focus on producing high-quality products procure high-quality cable assemblies offered by established vendors.
With the increase in the supply of cable assemblies and low product differentiation, several local vendors manufacture low-quality products that are unbranded or illegally use the brand names of prominent vendors. Low-cost products imported from developing countries can be inferior in quality. The availability of such counterfeit products affects the sales of global vendors and hampers their reputation. Moreover, the common availability of raw materials, the wide variety of products available, huge demand from the aftermarket, and low initial investments have increased the availability of counterfeit products, which is a challenge for the growth of the market.
Our analysis of the Life Cycle of the market indicates a movement from the innovator’s stage to the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries including the US, China, Japan, India, and Germany. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Cable Assembly Market Customer Landscape
Vendors 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
3M - The company offers cable assemblies such as industrial camera cable assemblies, MDR and SDR cable assemblies, and molded-on cable assemblies.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including :
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the application-specific segment will be significant during the forecast period. The demand for application-specific cable assemblies will increase moderately during the forecast period. Application-specific cable assemblies are designed for very specific uses and are custom-made. These cable assemblies are majorly used in automotive, medical, telecommunication, military and defense, and other industries.
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The application-specific segment showed a gradual increase in market share from USD 42.60 billion in 2017 and continued to grow by 2021. Application-specific cable assemblies are used in places where normal cable assemblies cannot be used. For instance, application-specific cable assemblies are used in defence/military vehicles that are made to suit harsh environments and extreme climatic conditions. The demand for application-specific cable assemblies is expected to increase from the defence sector to cater to the need for custom designs and specific characteristics. The complex design of electric and electronic equipment will also increase the demand for application-specific cable assemblies. However, the introduction of advanced cable assemblies, which are suitable for multiple applications, will reduce the demand for application-specific cable assemblies during the forecast period. Furthermore, our report provides a brief analysis of the historical and forecast market share and their segments along with the reasons for growth from 2017 to 2027.
The growth of this segment is primarily attributed to the increasing adoption of Cable Assemblies, which is driven by an increase in the global demand for the Cable Assembly Industry.
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APAC is projected to contribute 59% by 2023. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The cable assembly market in APAC will grow rapidly during the forecast period. Countries such as China, Japan, South Korea, and India will drive the growth of the market in this region. OEMs from industries such as automotive, consumer electronics, telecom, and manufacturing are the major buyers of cable assemblies. These buyers will boost the demand for cable assemblies in this region during the forecast period.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. The outbreak of COVID-19 led to a decline in the demand for cable assemblies in APAC. The 2020 COVID-19 outbreak adversely affected the growth of the cable assembly market in APAC. However, in the last quarter of 2020, numerous APAC countries removed restrictions on various business operations following the initiation of mass COVID-19 vaccination drives. Vendors were then able to resume their business, as usual, following mandatory COVID-19 social distancing guidelines and limiting non-essential visitors to their premises. With the easing of the lockdowns, manufacturing units were reopened, which boosted the demand for cable assemblies. Cable assemblies are used in a wide variety of applications in motor vehicles, including headlights, gearboxes, and doors. Thus the resumption of operations in the regional automotive industry will positively impact the growth of the cable assembly market in APAC during the forecast period.
Our report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by product, application, and region.
Cable Assembly Market Scope |
|
Report Coverage |
Details |
Page number |
182 |
Base year |
2022 |
Historical year |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.53% |
Market growth 2023-2027 |
USD 72 billion |
Market structure |
Fragmented |
YoY growth (%) |
6.14 |
Regional analysis |
APAC, Europe, North America, the Middle East and Africa, and South America |
Performing market contribution |
APAC at 59% |
Key consumer countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
Key companies profiled |
3M Co., Amphenol Corp., Aptiv, BizLink Holding Inc, Cablecraft Motion Controls LLC, Carlisle Companies Inc., Carrio Cabling Corp., Copartner Tech Corp., Corning Inc., Fischer Connectors Holding SA, Japan Aviation Electronics Industry Ltd., Koch Industries Inc., Minnesota Wire & Cable Co., Nexans SA, NKT AS, Prysmian Spa, RF Industries Ltd., Samtec Inc., Smiths Group Plc, TE Connectivity Ltd., and W. L. Gore & Associates Inc. |
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, and 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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
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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