Automotive Wire Harness Market Research Report: By Vehicle Type (Passenger Car, Commercial), Voltage (Low Voltage, High Voltage), Propulsion (ICE, EV), Material Type (Copper, Aluminum), Application (Chassis, Engine, Body, HVAC, Speed Sensors) – Global Industry Analysis and Growth Forecast to 2030

Automotive Wire Harness Market Overview

The global automotive wire harness market was valued at $42.8 billion in 2019, which is expected to grow at a CAGR of 4.7% during the forecast period (2020–2030). The growing technological advancements and rising manufacturing of electric vehicles (EV) are some of the most-prominent factors leading to the growth of the market. Additionally, the integration of advanced features, such as high-voltage wiring harness systems in EVs and lightweight harness systems, coupled with the rise in the demand for autonomous passenger cars and light trucks, is projected to aid in the growth of the market during the forecast period.

However, the current COVID-19 pandemic has negatively impacted the market for automotive wire harnesses. Countries affected by COVID-19 around the world are implementing social distancing to curb the transmission of the virus. This, in turn, has derailed the growth of various sectors, including the automotive industry, as the shutting down of vehicle and auto parts manufacturing facilities disrupted the supply chain. However, by this time, many countries have lifted the lockdown and reopened the manufacturing and distribution facilities, which, in turn, is expected to have a positive impact on the growth of the market in the coming years.

Commercial Vehicle Category Is Expected to Witness Higher Growth Rate till 2030

Based on vehicle type, in terms of CAGR, commercial vehicles are expected to dominate the market during the forecast period. The growth is attributed to the rising integration of advanced electronic modules and connectivity features, which include data transfer to smartphones and sync with internet of things (IoT) devices, in the vehicles.

ICE Category Is Expected To Witness Significant Growth in Coming Years

Based on propulsion, the internal combustion engine (ICE) category held the larger market share in 2019, and it is expected to maintain its dominance in the forecast period. This is because compared to electric vehicles (EVs), more ICE-based automobiles are manufactured. Additionally, they are being rapidly integrated with vehicle-to-vehicle (V2V) and vehicle-to-vehicle (V2V) connectivity, as well as self-driving functionalities. Therefore, the importance of wire harnesses for transferring electricity and data among a vast array of electronic sensors and systems is high in ICE vehicles.

Speed Sensors To Witness Fastest Growth during Forecast Period

Based on application, speed sensors are expected to register the highest CAGR over the forecast period. The availability of a broad range of customized speed sensors and rising global vehicle sales are some of the major factors driving the advance of this category.

Low Voltage (LV) Category To Dominate Automotive Wire Harness Market

Based on voltage, the LV category held the larger market share during the historical period (2014–2019), and is expected to maintain the leading position during the forecast period. This is primarily owing to the increasing number of advanced electronic features, such as human–machine interface (HMI) modules, and increasing level of autonomy in passenger cars, especially in the sedan and sports utility vehicle (SUV) categories.

Higher Demand for Copper Wires Led to Domination of Copper Category

The copper category dominated the market during the historical period, under the material type segment, and it is expected to retain its dominance in the coming years. This would primarily be due to the rising demand for copper-wire harnesses, as copper has been the material of choice for wires for a long time.

Asia-Pacific (APAC) To Hold Largest Market Share owing to Large-Scale Production of EVs

The APAC region is expected to hold the largest market share over the forecast period, owing to the growing production of EVs, coupled with the large consumer base for ICE-based vehicles. Essentially, the rising demand for passenger and commercial vehicles in China, India, Japan, and South Korea leads to the huge automotive production volume, which, in turn, drives the regional market.

The LAMEA region is expected to witness the highest growth rate during the forecast period, owing to the rising production of vehicles in Mexico and other regional countries.

Growing Demand for Lightweight Wire Harnesses

The automotive wire harness market is currently witnessing the substitution of copper-based wire harnesses with other materials. Many of the research and development (R&D) initiatives in the automotive industry are aimed at reducing the metal content for achieving a reduction in the weight, so that the overall vehicle fuel efficiency can be raised. Copper and steel are currently being replaced by copper-based alloys and aluminum metal. Currently, various companies are replacing copper content in the vehicle with copper-based alloys due to their more favorable features. It is seen that doing so reduces the copper weight by nearly 0.8 kg.

For ensuring optimum performance of the vehicles and correct functioning of all the installed electronic systems and devices, original equipment manufacturers (OEMs) are currently focusing on developing advanced automotive wire harnesses. New technologies concerning environment protection and in-vehicle comfort are being deployed in new vehicles, especially passenger cars. For instance, eco-friendly wire harness solutions, such as high-voltage wire harness systems, for both hybrid and plug-in vehicles (battery and plug-in hybrid), for optimizing the overall vehicle performance, are being used globally. In addition, OEMs are undertaking R&D to improve the wire harness production process and reduce the weight of the overall wire harness network in a vehicle, due to the increasing demand for lightweight harnesses from automakers.

Rise in Demand for EVs Driving Requirement for Wire Harnesses

The EV market has been growing exponentially over the last few years. Therefore, the increasing sales of EVs, especially battery electric vehicles (BEV), in China, the U.S., Japan, and Germany, are leading to a high demand for wire harness products. EVs consist of a greater number of wire harnesses, as they have more electrical units and electronic components than ICE-based vehicles. Moreover, apart from electricity transmission, these wires are required for the transmission of high volumes of data, due to which harnesses are more important for an EV compared to an ICE-based automobile.

Adoption of Advanced Features in Vehicles Depends on Wire Harnesses

The growing integration of advanced features in ICE-based vehicles, especially passenger cars, is driving the demand for wiring harnesses. Particularly, the increasing demand for advanced driver-assistance systems (ADAS), which include speed sensors, radar sensors, and light detection and ranging (LiDAR) sensors; autonomous driving systems, connectivity features, and various other smart features is leading to the rising demand for wire harnessing in automobiles. These features enhance the passenger experience, which is the key reason for their increasing integration in the first place.

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Market Players Are Engaging in Strategic Developments to Gain Competitive Edge

The global automotive wire harness market is consolidated in nature, with the top two players being Yazaki Corp. and Sumitomo Electric Industries Ltd. In recent years, players in the market have been actively involved themselves in product launches and facility expansions to stay ahead in the competition.

• In November 2019, Yazaki Corp. announced that it has expanded its wire harness business into a complete portfolio of EV components. The products offered now also include current sensors, arc suppressors, connection systems, and DC/AC converters.
• In July 2019, Tesla Inc. revealed its new wiring harness architecture that enables more robotic automation in the manufacturing process and uses lesser material for its upcoming cars like Model Y and Tesla pickup trucks. Additionally, the company is engaged in extensive R&D to produce more-advanced wiring harness structures, to bring down the wiring weight in vehicles.

Key Players in Global Automotive Wire Harness Industry Include:

Automotive Wire Harness Market Size Breakdown by Segments

The automotive wire harness market report offers comprehensive market segmentation analysis along with market estimation for the period 2014-2030.

Based on Vehicle Type

• Passenger car
• Commercial

Based on Voltage

• Low voltage
• High voltage

Based on Propulsion

• ICE
• EV

Based on Material Type

• Copper
• Aluminum

Based on Application

• Chassis
• Engine
• Body
• HVAC
• Speed Sensors

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • Russia
  • France
  • Italy
  • Czech Republic
  • Spain
• Asia-Pacific (APAC)
  • China
  • India
  • Japan
  • Thailand
  • South Korea
• Latin America, Middle East, and Africa (LAMEA)
  • Brazil
  • Mexico
  • Argentina
  • Iran
  • South Africa