Automotive Wiring Harness Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Automotive Wiring Harness Market is segmented by Application Type (Ignition System, Charging System, Drivetrain and Powertrain System, Infotainment System and Dashboard, Vehicle Control and Safety System, and Body and Cabin Wiring Harness), by Wire Type (Copper and Aluminum), by Vehicle Type (Passenger Cars and Commercial Vehicles), and Geography (North America, Europe, Asia-Pacific, and Rest of the world). The report offers market size and forecasts in value (USD Billion) for all the above segments.

Market Snapshot

Automotive Wiring Harness Market Overview
Study Period: 2018-2027
Base Year: 2021
Fastest Growing Market: North America
Largest Market: Asia Pacific
CAGR: >4.19 %

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Market Overview

The automotive wiring harness market accounted for USD 33.58 billion in 2020, and it is expected to reach USD 43.72 billion by 2026, projecting a CAGR of over 4.19 % during the forecast period.

The COVID-19 outbreak has had a swift and severe impact on the globally integrated automotive industry. The shutdown of production lines of many OEMs has indirectly affected the automotive wiring harness market. However, with the gradual removal of lockdowns in several countries, the demand for vehicles has slightly increased, which is expected to propel the market forward in the coming years.

However, post-pandemic, due to the global consumer preference of individual transport, increasing demand for autonomous vehicles, and safety, the future prospect for the market is definitely hopeful. With the COVID-19 pandemic affecting the global transport economy, more automated vehicles are going to be introduced in order to overcome the economic slowdown and stabilize the revenue. This opens the tremendous potential for revenue and employment generation in this market.

The growing emphasis on safety solutions, expanding demand and usage of hybrid and electric vehicles, and increasing electrification of vehicles are some of the primary driving factors for the market's growth. However, challenges such as reliability and durability may limit the market's growth. With the continual rise in accidents caused by automation faults, both customers and governments are exhibiting an increased interest in advanced safety features and are working on enhancing their vehicle's safety systems, which is expected to drive the wire harness market.

Scope of the Report

The automotive wiring harness market is segmented by Application Type, Wire Type, Vehicle Type, and Geography.

By Application Type, the market is segmented as Ignition System, Charging System, Drivetrain, and Powertrain System, Infotainment System, and Vehicle Control And Safety System.

By Wire Type, the market is segmented as Copper and Aluminum.

Based on Vehicle Type, the market is segmented as Passenger Cars and Commercial Vehicles. 

and By Geography, the market is segmented as North America, Europe, Asia-Pacific, and the Rest of the world.

Application Type
Ignition System
Charging System
Drivetrain and Powertrain System
Infotainment System and Dashboard
Vehicle Control and Safety Systems
Body and Cabin Wiring Harness
Wire Type
Copper
Aluminum
Vehicle Type
Passenger Cars
Commercial Vehicles
Geography
North America
United States
Canada
Rest of North America
Europe
Germany
United Kingdom
France
Russia
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Rest of Asia-Pacific
Rest of the World
South America
Middle-East and Africa

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Key Market Trends

Increasing Electric Vehicles are Driving the Market

In 2020, global plug-in electric car sales increased by 39% year on year to 3.1 million units. In 2020, China and Europe sold 1.3 million electric vehicles, four times the number sold in the United States. In the United States, electric vehicle sales accounted for only 2.4 percent of all new automobile sales. By the end of 2026, yearly sales of battery-electric passenger cars are expected to surpass 7 million. By the end of 2026, it is estimated to contribute around 15% of total vehicle sales.

In recent years, the electric car market has shown significant growth rates. EV sales are increased by double digits in several European countries in 2020. In 2020, the European region accounted for about 43% of worldwide electric vehicle sales, up from 26% in 2019. This surge in sales is primarily owing to increased regulatory norms imposed by various organizations and governments in order to limit emissions and promote zero-emission automobiles.

The rise in the number of electric vehicles is still majorly driven by the policy environment. The ten leading countries in electric vehicle adoption such as China, the United States, Norway, Germany, Japan, the United Kingdom, France, Sweden, Canada, and the Netherlands have a range of policies in place to promote the uptake of electric vehicles. As more electric vehicles come on road, the wiring harness market is also expected to witness growth owing to the fact that wiring harness is more used in electric vehicles than conventional fossil fuel vehicles.

trend_1

Asia-Pacific to Dominate The Market

Asia-Pacific region is expected to have a majority share in the automotive wiring harness market. Rising disposable income along with an increase in GDP in the Asia Pacific is driving the market. 

For many years, China has been the world's largest vehicle manufacturer. China accounts for more than 30% of global automobile production. This capability surpasses that of the European Union, the United States, and Japan put together. China is also the world's biggest producer and seller of electric automobiles. The automotive wiring harness market in China is expected to increase significantly during the forecast period, owing to rising electrification in conventional vehicles and rising adoption rates of electric vehicles. Growing government regulations improving electric vehicles adoption and robust expansion adopted by OEMs and suppliers in the region to accommodate rising demand from the automotive industry in China are expected to create a positive outlook for market growth.

Other important countries in the region are India and South Korea. India is a lucrative market for automotive wiring harness market manufacturing companies as the government has allowed 100% foreign equity investment for automobile sector. Additionally, number of new vehicle registrations per year is increasing in India, which is serving as a positive growth environment for automotive wiring harness manufacturing companies.

The South Korean government has set high goals for its electric vehicle industry over the next ten years, and the country is making heavy investments in both the vehicles and in the infrastructure necessary to support them. The expanding automobile sector, along with the elevating levels of electrification of vehicles, anticipated to augment the wiring harness market.

trend_2

Competitive Landscape

Some of the major players dominating the market are Furukawa Electric, Borg Warner Inc., Motherson Group, Leoni AG, and Lear Corporation. The market concentration can be considered to be medium-level competitive.

Different wiring harness manufacturers are prominent in different control systems of vehicles. Leoni AG group specializes in wires, wiring systems, and optical fibers for the automotive market. Leoni generates about 45% of its sales only in the EMEA region. In order to gain a considerable edge over other players in the market, many companies are forming partnerships to bring the latest features to their products. For instance, 

  • In October 2020, Hunan Tian Hai Electric Co. Ltd, a subsidiary of Tian Hai Group, announced that it successfully reached a new agreement with BAIC to produce wiring harnesses for the BAIC C53 and C62 series models with an order amount of CNY 57.8 million. 

Recent Developments

  • In October 2021, Leoni has officially established its fourth production plant in Serbia. The company has invested over 50 million EUR in building and equipment for its new wiring harness production facility.
  • In September 2021, Leoni has officially established its fourth production plant in Serbia. The company has invested over 50 million EUR in building and equipment for its new production facility.
  • In July 2021, Yazaki India Private Limited, a subsidiary of Yazaki Corporation Japan, has proposed setting up a wire harnessing manufacturing plant in Manipur, India.
  • In January 2021, Morocco Ministry of Industry, Trade and Green and Digital Economy announced that it has signed two memoranda of understanding (MoU) for the creation of four factories in the automotive sector with a total investment of MAD 912 million, generating 8,300 jobs. These investments are related to the construction of new industrial units for the production of cable harnesses by the two Japanese groups Yazaki and Sumitomo.
  • In September 2020, Furukawa Automotive Systems Inc. established a new company in Vietnam as a production base for the Japanese and North American markets and to increase wire harness production capacity. This move is intended to meet the growing demand for wire harnesses equipped with aluminum wires (aluminum wire harnesses) designed to address the need for lighter vehicles among Japanese automobile manufacturers.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Application Type

      1. 5.1.1 Ignition System

      2. 5.1.2 Charging System

      3. 5.1.3 Drivetrain and Powertrain System

      4. 5.1.4 Infotainment System and Dashboard

      5. 5.1.5 Vehicle Control and Safety Systems

      6. 5.1.6 Body and Cabin Wiring Harness

    2. 5.2 Wire Type

      1. 5.2.1 Copper

      2. 5.2.2 Aluminum

    3. 5.3 Vehicle Type

      1. 5.3.1 Passenger Cars

      2. 5.3.2 Commercial Vehicles

    4. 5.4 Geography

      1. 5.4.1 North America

        1. 5.4.1.1 United States

        2. 5.4.1.2 Canada

        3. 5.4.1.3 Rest of North America

      2. 5.4.2 Europe

        1. 5.4.2.1 Germany

        2. 5.4.2.2 United Kingdom

        3. 5.4.2.3 France

        4. 5.4.2.4 Russia

        5. 5.4.2.5 Spain

        6. 5.4.2.6 Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. 5.4.3.1 China

        2. 5.4.3.2 Japan

        3. 5.4.3.3 India

        4. 5.4.3.4 South Korea

        5. 5.4.3.5 Rest of Asia-Pacific

      4. 5.4.4 Rest of the World

        1. 5.4.4.1 South America

        2. 5.4.4.2 Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles*

      1. 6.2.1 LEONI AG

      2. 6.2.2 Yazaki Corporation

      3. 6.2.3 Aptiv PLC

      4. 6.2.4 Sumitomo Electric Industries Ltd

      5. 6.2.5 Lear Corporation

      6. 6.2.6 Motherson Sumi Systems Ltd

      7. 6.2.7 Furukawa Electric Co. Ltd

      8. 6.2.8 Fujikura Ltd

      9. 6.2.9 Coroplast Fritz Müller GmbH & Co.

      10. 6.2.10 Jiangsu Kyungshin Electronic Co. Ltd

      11. 6.2.11 Nexans

      12. 6.2.12 THB Group

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Frequently Asked Questions

The Automotive Wiring Harness Market market is studied from 2018 - 2026.

The Automotive Wiring Harness Market is growing at a CAGR of >4.19% over the next 5 years.

The Automotive Wiring Harness Market is valued at 34 Billion USD in 2018.

The Automotive Wiring Harness Market is valued at 44 Billion USD in 2026.

North America is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

Leoni AG, Lear Corporation, Yazaki Corporation, Sumitomo Electric Industries, Ltd., Aptiv PLC are the major companies operating in Automotive Wiring Harness Market.

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