|Study Period:||2018 - 2026|
|Fastest Growing Market:||North America|
|Largest Market:||Asia Pacific|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The automotive wiring harness market accounted for USD 36 billion in 2020, and it is expected to reach USD 52 billion by 2026, projecting a CAGR of over 6% during the forecast period.
With the COVID-19 pandemic, the shutdown of production lines of many OEMs has indirectly affected the automotive wiring harness market. Although the research of different technologies and schematics could be completed remotely, fabrication of these devices and harnesses required different facilities. However, with the development facilities closed due to the lockdown and social distancing norms, the production was halted.
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.
Wire harnesses are compactly bundled wires and data circuits that function as the central structure of a vehicle. To ensure safety and basic functions (such as going, turning, and stopping), as well as providing comfort and convenience, automobiles are equipped with various electronics and electrical systems, which operate using control signals running on electrical power supplied from the battery. The wire harness is the channel for the transmission of these signals and electrical power.
Some of the major factors driving the growth of the market are the growing emphasis on safety solutions, rising demand and usage of hybrid and electric vehicles, and increasing electrification of vehicles. However, factors such as reliability and durability issues may hinder the growth of the market. With the consistent rise in accidents due to automation errors, both the consumers and government are showing high interest in advanced safety features and are focusing on improving the safety systems of their vehicles, which in turn, is expected to boost the wiring harness market.
Scope of the Report
The automotive wiring harness market is segmented by application type (ignition system, charging system, drivetrain and powertrain system, infotainment system, and vehicle control and safety system), wire type (copper and aluminum), vehicle type (passenger cars and commercial vehicles), and geography (North America, Europe, Asia-Pacific, South America, and Africa). The report offers the market size of and forecasts for the automotive wiring harness market in value (USD billion) for the above segments.
|Drivetrain and Powertrain System|
|Vehicle Control and Safety System|
Key Market Trends
Increasing Electric Vehicles are Driving the Market
Connectors, terminals, and wires in the powertrain system of a vehicle are typically observed across a battery, engine control units, and motors connected in the driveline/transmission system.
With the increasing demand for high-performance vehicles, the operating voltage across the above-mentioned powertrain components increased from handling 48V to 800V. Therefore, the demand for high voltage connectors, robust terminals, and strong wire insulation increased in the electrification of the powertrain system of a vehicle.
To be in line with increasing automotive trends, the manufacturers are consistently working on improving automotive high voltage connectors, in terms of miniature designing and connection with a reliable locking mechanism, along with an increase in their power handling capabilities.
With the rising electrification in the powertrain system, due to the increasing demand for electric and hybrid vehicles in the automotive industry across the globe, the demand for high voltage wiring harnesses is likely to increase in the powertrain systems of the vehicles during the forecast period.
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Government Safety Regulations are Driving the Market
The governments of the United States, China, France, and Germany have already implemented laws and regulations for vehicular emission and have commanded the automobile manufacturers to use advanced technologies for combatting the high emission levels in vehicles. The emission level majorly depends on the overall weight of the car.
Aluminum is used for vehicle electrification to reduce the overall weight of the vehicle, which leads to enhancement in fuel economy and reduces CO2 emissions. The lightweight property of aluminum is making it more demanding than copper. Along with the large cross-section wires for power cables, where aluminum conductors are already in use, the intermediate aluminum cable cross-section of 2.5 square mm to 6.0 square mm gives enhanced potential for vehicle implementation to achieve weight-saving targets.
With the growing concerns regarding driver and passenger safety and the safety of pedestrians, automobile manufacturers are becoming obligated to equip even their entry-level vehicles with numerous safety and driver-assistance systems. This, in turn, is creating demand for advanced driver safety systems, such as forward collision warning systems, blind-spot detection, and lane departure warning system, among others.
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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.
BorgWarner Inc., in October 2020, announced that it completed its acquisition of Delphi Technologies. The combination of BorgWarner and Delphi Technologies is expected to strengthen BorgWarner’s electronics and power electronics products, capabilities, and scale, creating a leader in electrified propulsion systems that BorgWarner believes is well-positioned to take advantage of future propulsion migration.
Motherson Sumi Systems Limited, in September 2020, entered into an agreement to acquire US-based Stoneridge Inc.’s wiring harness business for USD 65.7 million. The acquired business has a turnover of approx. USD 300 million.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Application Type
5.1.1 Ignition System
5.1.2 Charging System
5.1.3 Drivetrain and Powertrain System
5.1.4 Infotainment System
5.1.5 Vehicle Control and Safety System
5.2 Wire Type
5.3 Vehicle Type
5.3.1 Passenger Cars
5.3.2 Commercial Vehicles
5.4.1 North America
22.214.171.124 United States
126.96.36.199 Rest of North America
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
220.127.116.11 South Korea
18.104.22.168 Rest of Asia-Pacific
5.4.4 Rest of the World
22.214.171.124 South America
126.96.36.199 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 LEONI AG
6.2.2 Yazaki Corporation
6.2.3 Aptiv PLC
6.2.4 Sumitomo Electric Industries Ltd
6.2.5 Lear Corporation
6.2.6 Samvardhana Motherson Group
6.2.7 Furukawa Electric Co. Ltd
6.2.8 Fujikura Ltd
6.2.9 Coroplast Fritz Müller GmbH & Co.
6.2.10 Jiangsu Kyungshin Electronic Co. Ltd
6.2.12 THB Group
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Automotive Wiring Harness Market market is studied from 2018 - 2026.
What is the growth rate of Automotive Wiring Harness Market?
The Automotive Wiring Harness Market is growing at a CAGR of >6% over the next 5 years.
What is Automotive Wiring Harness Market size in 2018?
The Automotive Wiring Harness Market is valued at 36 Billion USD in 2018.
What is Automotive Wiring Harness Market size in 2026?
The Automotive Wiring Harness Market is valued at 52 Billion USD in 2026.
Which region has highest growth rate in Automotive Wiring Harness Market?
North America is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Automotive Wiring Harness Market?
Asia Pacific holds highest share in 2020.
Who are the key players in Automotive Wiring Harness Market?
Leoni AG, Lear Corporation, Motherson Sumi Systems, Furukawa Electric Co. Ltd, BorgWarner Inc. are the major companies operating in Automotive Wiring Harness Market.