Automotive wiring harness market

Global automotive wiring harness market was valued for US$ 53.58 Mn in 2022 and is expected to exhibit a CAGR of 7.7% during the forecast period. Automotive wiring harness is an organized set of component that includes connectors, wires, and terminals that run throughout the vehicle, which transmit signals with regards to speed, internal temperature, and power to the respective automotive component and electric power to the automotive component. This automotive harness combines many electronic and electrical devices into a single system.

In addition, automotive wiring harnesses are used in motorbikes, utility vehicles, commercial vehicles, and cars. Automotive wiring harnesses are designed according to the electrical and geometrical requirements of the vehicle and are embedded in automotive vehicles. Wiring harnesses are embedded in the dashboard, windows, and electrical components of automotive vehicles.

Global Automotive Wiring Harness Market - Driver

• Growing Integration of Electronic Devices Into Vehicles: In the last few years, many electronic devices have been integrated into vehicles to provide enhanced features. For instance, automotive car manufacturers have been offering advanced automotive features such as sunroof, touch infotainment system, airbags, and tire pressure monitoring system. Moreover, employing safety features in automotive cars enhances the security of passengers in the vehicle, which has positively impacted the growth of the automotive wiring harness market. In addition, factors such as increasing disposable income and initiatives taken by various governments for boosting product manufacturing in their countries, such as ‘Make in India initiative’ in India, are driving the growth of global automotive wiring harness market.

• Increasing Demand Of Electric Vehicles: An exponential rise in demand for electric vehicles (EVs) has emerged as a dynamic driver for the global automotive wiring harness market growth. As traditional internal combustion engines make way for electric propulsion systems, the need for specialized wiring solutions has surged. The demand for cleaner and greener transportation solutions is directly proportional to the need for high-voltage wiring harnesses. The electric drivetrain of an EV is composed of a high-voltage battery, inverters, and motors. To ensure seamless integration of electric powertrain, battery management system of high-voltage wiring harnesses is used.                       

Global Automotive Wiring Harness Market - Opportunity

• Environment Friendly and Sustainable Solutions: Wiring harness is mainly made from copper. Copper makes vehicles heavier and occupies space. Aluminum is a sustainable option, as it makes the harness lightweight and also increases fuel efficiency & performance and reduces emissions in the process. New product innovations in aluminum wiring harnesses can provide lucrative opportunities for the market players. With increasing emphasis on sustainability, there is an opportunity to innovate in the automotive wiring harness market by developing eco-friendly materials and manufacturing processes. Wiring harnesses made from recycled or bio-based materials are designed for efficient end-of-life recycling and could appeal to environmentally conscious manufacturers and consumers alike. New product innovations in this can create lots of opportunities.

Figure 1: Global Automotive Wiring Harness Market Share (%), By Region, 2022

Global Automotive Wiring Harness Market - Restraint

• High Capital Investment: In an extreme weather condition, the wiring harness system of a vehicle may get affected due to an overheating issue. This may result in a replacement of the entire wiring harness system, which is very expensive and expected to hamper the growth of the global automotive wiring harness market over the forecast period.                   

• Rising Cost Of Raw Materials: The cost of materials used in wiring harness such as copper, aluminium, and high performance insulating materials can fluctuate, based on the market conditions and availability. As demand for these materials increases due to the growth of the automotive industry, manufacturers may face challenges in managing material costs which can impact the overall profitability.

Global Automotive Wiring Harness Market - Impact of COVID-19

• The pandemic disrupted global supply chains, leading to shortages of critical components required for automotive wiring harnesses. This affected manufacturing and production schedules. Many automotive manufacturers temporarily halted production or operated at reduced capacity during lockdowns and supply chain disruptions. This resulted in decreased demand for wiring harnesses. Economic uncertainty, job losses, and decreased consumer confidence resulted in reduced demand for new vehicles. As a result, the market for automotive wiring harnesses faced a slump.
• Delayed Vehicle Launches: Several automotive companies postponed the launch of new vehicle models due to pandemic-related uncertainties, which affected the demand for wiring harnesses designed for these models.
• The COVID-19 pandemic had a significant impact on the global automotive wiring harness market. Several countries across the globe such as India, Italy, the U.K., and others imposed nationwide lockdown in 2020. Many European countries such as Germany, Spain, and the U.K. also faced the second wave of the COVID-19.
• Lockdowns across several countries has negatively impacted the sales of automotive vehicles, which decreased the demand for  wiring harnesses. For instance, according to Coherent Market Insights, in 2020, automotive sales in European countries such as Spain and Italy decreased drastically by 32.6% and 27.5% respectively, due to coronavirus lockdown and other restrictions in 2020.

Global Automotive Wiring Harness Market - Competitive Scenario

Key players operating in the global automotive wiring harness market are Sumitomo Electric Industries, Ltd, Lear Corporation, Leoni AG, Motherson Group, Yazaki Corporation, Aptiv PLC, Furukawa Electric Co, Delphi Automotive LLP, Furukawa Electric Co. Ltd, Nexans Autoelectric, Yura Corporation, THB Group, BorgWarner, Inc, Nexans Autoelectric GmbH, and AmWINS Group Inc.

Global Automotive Wiring Harness Market - Recent Developments

Major companies in the market are involved in mergers and acquisitions, in order to gain a competitive edge in the market.

• In September 2022, Lear, a global automotivetechnology leader in Seating and E-Systems, has been announced as a supplier of electrification technologies like Battery Disconnect Units (BDU), Intercell Connect Boards (ICB) and Wire Harnesses for General Motors Co., an American multinational automotive manufacturing company.
• In December 2022, Spark Minda, an India-based manufacturing company, added its 28th wiring harness plant in Pune, India of about 1.90 lakh square feet.

Figure 2: Global Automotive Wiring Harness Market (US$ Mn) Analysis and Forecast, By Material Type 2022

Global Automotive Wiring Harness Market - Regional Analysis

• Asia Pacific is expected to hold a dominant position in the global automotive wiring harness market in 2030. Asia Pacific region dominated the global automotive wiring harness market in 2022, accounting for 34.0% share in terms of volume, followed by Europe and North America.
• North America has a well-established automotive industry, with major manufacturers and suppliers based in the United States, Canada, and Mexico. This robust automotive presence drives the demand for wiring harnesses.
• Emphasis on Electric Vehicles: There is a growing emphasis on electric vehicles (EVs) in North America, with several automakers investing in EV production. EVs require sophisticated wiring harnesses to accommodate their electrical systems.
• Europe is home to some of the world's leading automotive manufacturers, including Germany-based companies like Volkswagen, BMW, and Mercedes-Benz. These manufacturers have a strong presence in the luxury and high-performance vehicle segments, which require high-quality wiring harnesses.
• European automakers prioritize the integration of advanced technologies, including advanced driver-assistance systems (ADAS) and infotainment systems. This drives the demand for complex and advanced wiring harnesses. Europe has seen significant growth in the electric vehicle market, driven by environmental concerns and government incentives. Electric vehicles rely on intricate wiring harnesses to support their electric powertrains and battery systems.
• Asia Pacific is expected to show the highest growth rate over the forecast period, owing to the increasing sales of luxury cars in countries such as India and China. For instance, according to China Internet Information Center is a state-run web portal of the People's Republic of China report published in 2020, a total of 2.53 billion luxury vehicles were sold in China, which showed growth of 14.7% from 2019. Sales of luxury car brands such as Lamborghini and Maserati increased in China in year 2019.
• Further, as China is the world’s largest vehicle manufacturer operating in China, are focusing on the adoption of lightweight materials for wiring harnesses. Thus, automotive wiring harness market is expected to grow in Asia Pacific region                     

Global Automotive Wiring Harness Market - Segmentation

Global automotive wiring harness market is classified into following segments: component, material type, propulsion system, and region.

• Based on the material type, metallic wiring segment is estimated to dominate the market over the forecast period. Metallic wiring, often made of materials like copper or aluminum, is known for its excellent electrical conductivity. This factor is crucial in automotive applications, where reliable electrical connections are essential for various vehicle functions, from lighting to engine control systems. Metallic wiring is highly reliable, as it can consistently conduct electrical signals without significant resistance or signal loss. This is particularly important in automotive systems, where the reliability of electrical connections can impact safety and performance. Metallic wiring materials are generally fire-resistant and have a high melting point due to which demand of metallic wiring is growing.
• Global automotive wiring harness market was valued at US$ 53.6 Mn in 2022, and is expected to reach US$ 96.1 Mn by 2030, exhibiting a CAGR of 7.7% between 2023 and 2030.

Detailed Segmentation

• Global Automotive Wiring Harness Market, By Component:
  • Connectors
  • Wires
    • General Wires
    • Heat Resistant Wires
    • Shielded Wires
    • Tubed Wires
  • Terminals
• Global Automotive Wiring Harness Market, By Material Type:
  • Metallic Wiring
    • Copper
    • Aluminum
  • Optical Wiring
    • Glass Optical fiber
    • Plastic Optical fiber
• Global Automotive Wiring Harness Market, By Propulsion System:
  • IC Engine Vehicles
  • Electric Vehicles
    • Plug-In Hybrid Electric Vehicle (PHEV)
    • Hybrid Electric Vehicle (HEV)
    • Battery Electric Vehicle
• Global Automotive Wiring Harness Market, By Region:
  • North America
    • By Component
      • Connectors
      • Wires
        • General Wires
        • Heat Resistant Wires
        • Shielded Wires
        • Tubed Wires
      • Terminals
    • By Material Type
      • Metallic Wiring
        • Copper
        • Aluminum
      • Optical Wiring
        • Glass Optical fiber
        • Plastic Optical fiber
    • By Propulsion System
      • IC Engine Vehicles
      • Electric Vehicles
        • Plug-In Hybrid Electric Vehicle (PHEV)
        • Hybrid Electric Vehicle (HEV)
        • Battery Electric Vehicle
    • By Country:
      • U.S.
      • Canada
  • Europe
    • By Component
      • Connectors
      • Wires
        • General Wires
        • Heat Resistant Wires
        • Shielded Wires
        • Tubed Wires
      • Terminals
    • By Material Type
      • Metallic Wiring
        • Copper
        • Aluminum
      • Optical Wiring
        • Glass Optical fiber
        • Plastic Optical fiber
    • By Propulsion System
      • IC Engine Vehicles
      • Electric Vehicles
        • Plug-In Hybrid Electric Vehicle (PHEV)
        • Hybrid Electric Vehicle (HEV)
        • Battery Electric Vehicle
    • By Country:
      • Germany
      • Italy
      • U.K.
      • France
      • Russia
      • Rest of Europe
  • Asia Pacific
    • By Component
      • Connectors
      • Wires
        • General Wires
        • Heat Resistant Wires
        • Shielded Wires
        • Tubed Wires
      • Terminals
    • By Material Type
      • Metallic Wiring
        • Copper
        • Aluminum
      • Optical Wiring
        • Glass Optical fiber
        • Plastic Optical fiber
    • By Propulsion System
      • IC Engine Vehicles
      • Electric Vehicles
        • Plug-In Hybrid Electric Vehicle (PHEV)
        • Hybrid Electric Vehicle (HEV)
        • Battery Electric Vehicle
    • By Country:
      • China
      • India
      • Japan
      • Australia
      • South Korea
      • ASEAN
      • Rest of Asia Pacific
  • Latin America
    • By Component
      • Connectors
      • Wires
        • General Wires
        • Heat Resistant Wires
        • Shielded Wires
        • Tubed Wires
      • Terminals
    • By Material Type
      • Metallic Wiring
        • Copper
        • Aluminum
      • Optical Wiring
        • Glass Optical fiber
        • Plastic Optical fiber
    • By Propulsion System
      • IC Engine Vehicles
      • Electric Vehicles
        • Plug-In Hybrid Electric Vehicle (PHEV)
        • Hybrid Electric Vehicle (HEV)
        • Battery Electric Vehicle
    • By Country:
      • Brazil
      • Mexico
      • Argentina
      • Rest of Latin America
  • Middle East & Africa
    • By Component
      • Connectors
      • Wires
        • General Wires
        • Heat Resistant Wires
        • Shielded Wires
        • Tubed Wires
      • Terminals
  • By Material Type
    • Metallic Wiring
      • Copper
      • Aluminum
    • Optical Wiring
      • Glass Optical fiber
      • Plastic Optical fiber
  • By Propulsion System
    • IC Engine Vehicles
    • Electric Vehicles
      • Plug-In Hybrid Electric Vehicle (PHEV)
      • Hybrid Electric Vehicle (HEV)
      • Battery Electric Vehicle
  • By Country:
    • GCC Countries
    • South Africa
    • Rest of Middle East & Africa