Enjoy complimentary customisation on priority with our Enterprise License!
The wire harness market size is estimated to increase by USD 40.52 billion and grow at a CAGR of 6.2% between 2022 and 2027. The market's expansion relies on various factors, including the upsurge in automotive sales, driven by growing consumer demand and economic factors. Additionally, stringent regulations concerning road safety and emission control drive innovation in automotive technologies, fostering the market growth. Moreover, investments in telecommunication infrastructure, particularly for 5G deployment, create opportunities for market expansion by enhancing connectivity and enabling advanced vehicle-to-vehicle communication. Our report provides a comprehensive analysis of the market, encompassing historical data from 2017 to 2021 and an in-depth examination of the current market landscape.
Market Forecast 2023-2027
To learn more about this report, Request Free Sample
The Wire Harness Market is experiencing rapid growth driven by advancements in automotive technology. Wire harnesses play a critical role in connecting electrical and electronic components in vehicles, facilitating the operation of advanced features such as Advanced Front Lighting (AFL), Parking Systems, and Infotainment Screens. As smart vehicles become increasingly prevalent, there is a growing demand for wire harnesses capable of high-speed data transmission and integration with Internet of Things (IoT) devices. Safety features like Adaptive Cruise Control (ACC) and Blind Spot Detection (BSD) rely on reliable wiring systems for optimal performance. Additionally, the rise of Electric and Hybrid vehicles necessitates robust wire harnesses for battery management and powertrain connectivity. 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. Moreover, the infotainment screen and instrument cluster utilize high-speed data transmission, contributing to the growth of the global wire harness market.
The market is poised for significant growth driven by technological advancements, cost optimization, and the increasing demand in the automotive sector. As car demand rises globally, production rates and the establishment of new manufacturing plants escalate. This growth is fueled by the rapid advancement and upgrading of existing equipment, facilitating increased adoption. Notably, developing countries like China and India contribute substantially to market expansion, driven by economic growth and rising income levels. Government initiatives, such as bans on old vehicles to reduce pollution, further boost demand. Wire harnesses play a crucial role in automobiles, including electric and hybrid vehicles, supporting various electronic features like Advanced Front Lighting, parking systems, and infotainment screens. As the automotive industry evolves, the wire harness market is set to thrive, catering to the increasing demand for electrical and electronic components in modern vehicles.
3D printing technology can be used to create connectors, wire harnesses, terminals, and other industrial machinery components. It is expected that 3D-printed parts will soon eliminate the need for traditional cables and wire assemblies. Moreover, 3D printing for harness manufacturing reduces the number of components in assemblies, increases final product reliability, and offers the flexibility to incorporate custom combinations on demand.
Moreover, 3D printing is the latest manufacturing method in which an object is created with desired materials by laying it out layer by layer. Major electrical component suppliers, such as Molex, Aptiv, and TE Connectivity, are now using this technology for a variety of prototyping applications, such as electrical connectors. Advances in 3D printing technology are expected to fuel the growth of the global market during the forecast period.
Factors such as dynamic consumer expectations and technological innovation increase the pressure on automotive electronics and wire harness manufacturers to deliver innovative products to OEMs and tier-1 suppliers. Continuous launch of new products increases the need to reduce car production cycle times to maintain leadership in the competitive market.
Moreover, the entire automotive value chain is affected by the short lifespan of vehicles and automotive electronic components. Rapid changes in technology will also lead to changes in demand, causing inconsistencies in the market, thus becoming a major challenge that impedes the growth of the market during the forecast period.
This report extensively covers market segmentation by application (automotive, telecom, medical, and industrial and others), material (PVC, vinyl, thermoplastic elastomer, polyurethane, and polyethylene), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
The automotive segment will account for a major share of the market's growth during the forecast period.?The wire harness is one of the indispensable parts in the automotive sector for signal transmission in electronic applications. Devices such as speakers, (GPS), advanced automatic controls, and anti-lock braking systems (ABS) use sets of wire harnesses to transmit electrical energy or signals from one point to another. Therefore, the growth of the automotive industry will be the main driving factor for the growth of the market.
Get a Customised Report as per your requirements for FREE!
The automotive segment was valued at USD 42.09 billion in 2017 and continued to grow until 2021.? Communication, entertainment, and wireless instrumentation devices such as GPS, Bluetooth, Wi-Fi, adaptive cruise control, and electronic control are increasingly being applied in modern cars, promoting demand to test the reliability and accuracy of these devices. Furthermore, the increasing use of electronic components for passenger comfort and function has led to an exponential increase in demand in the automotive industry. Hence, these factors are expected to fuel the growth of the segment during the forecast period.
Based on material, the market has been segmented into PVC, vinyl, thermoplastic elastomer, polyurethane, and polyethylene. The PVC segment will account for the largest share of this segment. PVC is a thermoplastic substance. Although naturally flexible and hard, manufacturers can modify materials to achieve the desired level of flexibility and strength by adding plasticizers, stabilizers, and fillers. PVC is a durable material with a lifespan of more than 30 years, with the addition of ultraviolet (UV) stabilizers. Owing to PVC's self-extinguishing properties, certain types of PVC wire can be used in plenum chambers. Power cables, handset cords, and automotive cables are other PVC cable applications. Hence, the increasing use of PVC harnesses for various applications will drive the growth of the global market in the PVC segment during the forecast period.
For more insights on the market share of various regions View PDF Sample now!
North America is estimated to contribute 47% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. Automotive sales in the US have been shooting up due to the easy credit, low gas prices, and growing demand. Moreover, the falling unemployment rate has further boosted the demand for cars in the country. Furthermore, the medical device industry in the US is mainly composed of small and medium-sized companies. The medical device sector is based on several industries, such as microelectronics, telecommunications, instrumentation, biotechnology, and software development.
Furthermore, Mexico is another major medical device manufacturing destination in the region. The growth of the domestic medical device manufacturing sector will be driven by factors such as a skilled workforce, proximity and accessibility to the US, as well as a globally competitive salary structure. Canada, which imports most of the medical equipment, produces only about one-fifth of the total market. Therefore, the strong growth in auto sales and medical device manufacturing capacity of the region is expected to drive the demand for harnesses in the region during the forecast period.
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.
Amphenol Corp.: The company offers wire harnesses such as cluster jumper cables and complex harnesses through its subsidiary Amphenol DC Electronics.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
BorgWarner Inc., Coroplast Fritz Muller GmbH and Co. KG, Cypress Holdings Ltd. dba Cypress Industries, Fujikura Co. Ltd., Furukawa Electric Co. Ltd., Koch Industries Inc., Kromberg and Schubert Automotive GmbH and Co. KG, Kyungshin Co. Ltd, Lear Corp., Leoni AG, Methode Electronics Inc., Minda Corp. Ltd., Samvardhana Motherson International Ltd., Nexans SA, Prysmian Spa, Sumitomo Electric Industries Ltd., Tianhai Auto Electronics Group Co. Ltd., Yazaki Corp., and YURA Corp.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is experiencing significant growth due to increasing demand for safety and security features in vehicles. Advanced technologies like Adaptive Cruise Control (ACC), Blind Spot Detection (BSD), and Lane Keeping Assist (LKA) require sophisticated electrical and electronic components. This drives the demand for wire harnesses, which play a crucial role in transmitting power and data in vehicles. With the rise of electric and hybrid vehicles, the market sees a surge in demand for high-voltage wiring harnesses, battery management systems, and powertrains. Additionally, the expansion of urbanization and the geriatric population further propel market growth, with wire harnesses being essential components in various applications, including medical equipment, renewable energy systems, and robotic technologies. As customer requirements evolve, the wire harness market continues to innovate, ensuring robust wiring systems for diverse applications while addressing electrification and CO2 emission challenges. Similarly, Smart TVs offer advanced features for entertainment. Solar panels and wind turbines provide renewable energy. Automation and computer-controlled machine tools enhance efficiency. Wireless technologies reduce CO2 emissions.
Moreover, the market is witnessing significant growth fueled by the increasing demand for advanced electronic features in vehicles, including electric and hybrid electric vehicles (EVs and HEVs). Wire harnesses play a crucial role in facilitating the integration of electronic components such as radar, sensors, and infotainment systems. With the rise of electric vehicles, there is a growing need for charging infrastructure and high-speed data transmission capabilities, driving the adoption of fiber optic technology and Ethernet networks. Copper wiring harnesses remain essential for electrical power transmission, although alternatives like aluminum and optical fiber cables are gaining traction. The market extends beyond automotive applications to include aerospace, defense, medical equipment, commercial refrigeration, and renewable energy sectors, highlighting its diverse and expanding scope in modern technology and industrial sectors.
Wire Harness Market Scope |
|
Report Coverage |
Details |
Page number |
179 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.2% |
Market growth 2023-2027 |
USD 40.52 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.21 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 47% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amphenol Corp., BorgWarner Inc., Coroplast Fritz Muller GmbH and Co. KG, Cypress Holdings Ltd. dba Cypress Industries, Fujikura Co. Ltd., Furukawa Electric Co. Ltd., Koch Industries Inc., Kromberg and Schubert Automotive GmbH and Co. KG, Kyungshin Co. Ltd, Lear Corp., Leoni AG, Methode Electronics Inc., Minda Corp. Ltd., Samvardhana Motherson International Ltd., Nexans SA, Prysmian Spa, Sumitomo Electric Industries Ltd., Tianhai Auto Electronics Group Co. Ltd., Yazaki Corp., and YURA Corp. |
Market dynamics |
Parent market analysis, Market forecasting, 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 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 market research 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 Application
7 Market Segmentation by Material
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.