Automotive Wire Harness Market to Reach a Value of $59.3 Billion by 2030
- Published: March 2021
Automotive wire harnesses are witnessing increasing integration, especially in autonomous vehicles, as these vehicles require proper electrical and electronic systems for transferring power and data. Hence, the increasing penetration of these vehicles is increasing the need for complex wire harness structures, which is leading to the rising prices of such components and overall vehicles. As a result, the global automotive wire harness market is projected to reach $59.3 billion by 2030, with a CAGR of 4.7% during the forecast period (2020–2030).
The outbreak of COVID-19 has led to the slow growth of the automotive wire harness industry. As per government rules and regulations, many industries, including the automotive sector, were forced to terminate or scale down their operations, which has had a negative impact on the growth of the automotive wire harness market.
Commercial Vehicle Category is Expected to Witness Faster Growth During the Forecast Period
Based on vehicle type, the automotive wire harness market is bifurcated into passenger car and commercial vehicle. Of these, the commercial vehicle bifurcation is expected to witness the higher CAGR during the forecast period, owing to the rising demand for the import and export of goods, to cater to the growing population, which is propelling the manufacturing of such automobiles.
Further, based on propulsion, the automotive wire harness market is categorized into internal combustion engine (ICE) and electric vehicles (EV). Of these, the ICE category generated the higher revenue in 2019, primarily due to the increasing integration of electronic features, such as speed sensors and heat sensors, in order to enhance passengers’ safety, and connectivity features.
Base on voltage, the low voltage (LV) category held the dominating market share during the historical period (2014–2019), and it is expected to retain its dominance in the coming years. The higher usage of conventional electronic systems, which require current transfer at low voltages, is a key factor driving the growth of this category.
Geographically, Asia-Pacific (APAC) held the largest share in the automotive wire harness market, in terms of value, in 2019. This was majorly due to the huge production volumes of vehicles in all categories in countries such as China, India, Japan, and South Korea. Moreover, the massive sale of electric vehicles in both the plug-in and hybrid categories in China and Japan further supports wire harness adoption in the region.
Industry Players Are Focusing on Facility Expansions for Higher Production Output
Automotive wire harness market players are actively involved in the establishment of new production plants and facility expansion to enhance their market presence. For instance, in September 2019, Motherson PKC Harness Systems, a subsidiary of MSSL, announced that it is building a new production facility at the Rakez Al Hamra Industrial Zone in the U.A.E. The facility will produce wire harnesses, rearview mirrors, and injection-molding products.
Similarly, in January 2019, Furukawa Electric Co. Ltd. announced its plans to quadruple its production capacity of lightweight aluminum wire harnesses in Vietnam in the next three years. This development is intended to meet the increasing demand for automotive parts that support fuel efficiency. The company had planned to spend about $32 million to construct the plant in Ho Chi Minh City, Vietnam, and start operations in September 2020, as a unit of Furukawa Automotive Parts (Vietnam) Inc.
Some of the major players operating in the global automotive wire harness market are Yazaki Corp. Sumitomo Electric Industries Ltd., Aptiv Plc, LEONI AG, Lear Corp., Furukawa Electric Co. Ltd., Motherson Sumi Systems Ltd. (MSSL), Fujikura Ltd., DRÄXLMAIER Group, and Kromberg & Schubert Automotive GmbH & Co. KG.