The “Global Automotive Wire and Cable Materials Market, by Material Type (Polyvinyl Chloride (PVC), Polypropylene (PP), Cross-linked Polyethylene (XLPE), Thermoplastic Polyurethane (TPU), Polyphenylene Ether (PPE), and Others (Fluoropolymers, Polyurethane, Neoprene, Ethylene Propylene Rubber, and Co-polyester Elastomer)), by Vehicle Type (Passenger vehicle segment is further sub-segmented into (Compact Cars, Sub-compact Cars, Mid-size Cars, Sedan, Luxury Cars, and Vans), LCV, and HCV) and by Region (North America, Latin America, Europe, Asia Pacific, Middle East & Africa) - Global Forecast to 2027”,
is expected to grow at a CAGR of 6.4% during the forecasted period (2019-2027), as highlighted in a report published by .
Automotive wire is wrapped in a thermoplastic PVC insulation, which is a smooth, pull-through wire loom and conduit, tough enough to resist and grease, acid, oil, and temperature of around 80o
C. The wire used inside these insulation is usually made of copper though aluminum is also used for certain purposes. An automotive wiring harness is a collection of wires with minimum 8-12 circuits. Most automotive components are given DC power, in order to work properly. Different colors are used for insulation and jacketing of the wire, in order to identify, manage, and repair the wires.
The global automotive wire and cable materials market was valued at US$ 4,424.4 Mn in 2018 and is expected to grow at a CAGR of 6.4% during the forecasted period (2019-2027)
Growing adoption of high-end electronics and safety features is expected to drive growth of the global automotive wire and cable materials market during the forecast period
Governments in various countries have mandated the incorporation of certain safety features such as electronic stability control and anti-lock braking control in automobiles. Incorporation such features are expected to boost the demand for automotive wire and cable materials during the forecast period. Moreover, increasing demand for high-end electronic safety features in automobiles, especially in passenger cars along with reduction in costs and enhanced reliability of these systems are expected to drive the market growth during the forecast period.
Increasing in-vehicle wiring applications is expected to offer significant growth opportunity
In-vehicle communications between devices such as switches and actuators were achieved through point to point wiring techniques. However, this system led to certain complications such as reduction in fuel efficiency, inefficient distribution of sensors or input data to numerous discreet data channels. This glitch was encountered with introduction of vehicle networking where conventional data transfer strategies were replaced by control strategies. Initially, it was adopted for high-end vehicles and later it was integrated into economy-class vehicles. Increasing demand for specialty cables and wires has increased due to increasing applications such as bearing grease wire, wheel speed sensor cable, databus, fuse link, battery cable, gas tank wire, sliding door sensor cable, frontal air bag wire, seatbelt pretension wire, etc.
Growing environmental concerns regarding recycling and disposal of cables wires are expected to restrain the global automotive wire and cable materials market during the forecast period
PVC is the most commonly used material for jacketing and insulation of copper wires and cables in automotive industry. However, PVC is not a biodegradable material and its burning can release highly toxic dioxins, eventually contaminating land and water bodies. Numerous automotive manufacturers are focused on developing reliable substitute for PVC that can offer similar performance with environment-friendly features. Europe-based automakers have started implementing this idea with BMW adopting
PVC-free materials for its products including wires, trims, dashboards, etc. This, in turn, is expected to hinder the market growth over the forecast period.
- Manufacturing of lighter vehicles is a major trend in the market
Key manufacturers in the market are focused on reducing wires cross-cross section/miniaturization, in order to reduce vehicle weight and improve fuel efficiency. Lightweight vehicles have shown better performance than conventional vehicles, which is expected to be major trend in the market during the forecast period.
- Strategic partnership key players to enhance profitability
Key companies in the market are focused on strategic partnerships, in order to gain competitive edge in the market. For instance,
- In December 2015, Delphi Automotive PLC acquired HellermannTyton Group, a global manufacturer of cable management solutions, in order to strengthen its position in the automotive electrical architecture market
- In April 2014, J-Power Systems Corporation became a wholly-owned subsidiary of Sumitomo Electric Industries, Ltd. after it acquired the remaining 50% stake in J-Power Systems Corporation from Hitachi Metals, Ltd.
Key companies operating in the global automotive wire and cable materials market are ACOME, Allied Wire & Cable Inc., Coficab Tunisie SA, Coroplast Fritz Muller GmbH & Co. KG, Delphi Automotive PLC, Draka Holdings B.V., Lear Corporation., Leoni AG, Sumitomo Electric Industries, Ltd., and Yazaki Corporation.
- Key companies in the market are focused on capacity expansion, in order to enhance market presence. For instance, in April 2016, ACOME set up a new plant in Tangier, Morocco, with a total investment of US$ 28.3 Mn, to increase production capacity and strengthen its global manufacturing capacity.
- Key players in the market involved joint venture, in order to gain competitive edge in the market. For instance, in 2015, Yazaki Corporation and Siemens VDO Automotive AG announced the launch of three joint ventures dedicated to development of integrated electrical/electronic systems. One of the JVs is located in the U.S., while the other two are in Germany.
- By Material Type
- Polyvinyl Chloride (PVC)
- Polypropylene (PP)
- Cross-linked Polyethylene (XLPE)
- Thermoplastic Polyurethane (TPU)
- Polyphenylene Ether (PPE)
- Others (Fluoropolymers, Polyurethane, Neoprene, Ethylene Propylene Rubber, and Co-polyester Elastomer)
- By Vehicle Type
- Passenger Vehicles
- Compact Cars
- Sub-compact Cars
- Mid-size Cars
- Luxury Cars
- By Region
- North America
- Latin America
- Asia Pacific
- Middle East & Africa