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The wire harness market size is estimated to grow at a CAGR of 6.2% between 2022 and 2027. The market size is forecast to increase by USD 40.52 billion. The growth of the market depends on several factors such as increasing automotive sales, stringent regulations surrounding road safety and emission control, and investments in telecommunication infrastructure. Our report examines historic data from 2017 to 2021, besides analyzing the current market scenario.
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.
Wire Harness Market Forecast 2023-2027
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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. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
Technological advances, along with cost and weight optimization, will drive demand for wire harnesses in the automotive sector. The demand for cars has been growing for decades, and with this raised demand, the rate of production and the construction of new manufacturing plants around the world has increased. The market is witnessing rapid advancement and upgrading of existing equipment, which is expected to increase the adoption of wire harnesses.
Moreover, a significant portion of the growth comes from developing countries like China and India. The rapid growth of economic activity and rising income levels of people in these countries has boosted the demand for low and middle-price passenger cars in the middle-income group. The government enacted a ban on old vehicles to reduce pollution levels. Hence, with the increase in automobile sales, the demand for wire harnesses will also increase as it is an integral part of automobiles, which will further boost the growth of the global wire harness market during the forecast period.
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 wire harness 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 for wire harnesses, causing inconsistencies in the market, thus becoming a major challenge that impedes the growth of the wire harness market during the forecast period.
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 wire harness market.
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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 the demand for wire harnesses 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 wire harness market in the PVC segment during the forecast period.
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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.
In 2020, the wire harness market in North America witnessed a temporary decline owing to the outbreak of COVID-19. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown restrictions. The regional wire harness market witnessed recovery with the boost in commercial operations, such as the resumption of industrial activities in automotive, telecom, medical, and other sectors. Therefore, the rising operations in the end-user industries in the future will drive the growth of the market in North America 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 wire harness 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.
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Wire Harness Market Scope |
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Report Coverage |
Details |
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Page number |
179 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.2% |
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Market growth 2023-2027 |
USD 40.52 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
5.21 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 47% |
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Key countries |
US, China, Japan, India, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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. |
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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 forecast period. |
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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
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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