Market Size of Automotive Wiring Harness Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 4.22 % |
| Fastest Growing Market | North America |
| Largest Market | Asia-Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Automotive Wiring Harness Market Analysis
The automotive wiring harness Market size was USD 37.03 billion in 2022 and is expected to reach USD 47.46 billion by 2028, registering a CAGR of 4.22% during the forecast period.
The COVID-19 outbreak swiftly and severely impacted the globally integrated automotive industry. The shutdown of many OEM production lines indirectly affected the automotive wiring harness market. However, with the removal of lockdown guidelines in several countries, the demand for vehicles slightly increased, which is expected to propel the market growth forward in the coming years. For instance, passenger vehicle sales in 2022 reached 57.49 million units, up from 56.44 million in 2021. Thus, wiring harness companies also increased their manufacturing investments in 2022 to address the increased demand for wiring harness products due to growing automotive sales resulting from the post-COVID-19 pandemic recovery. For instance
- July 2022: Sumitomo Wiring Systems Ltd inaugurated a new manufacturing facility for automobile wiring harness products at Royal Group Phnom Penh Special Economic Zone in Cambodia.
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.
The rising sales of electric vehicles also provide a major impetus to the growth of the automotive wiring industry since wiring harnesses are a major component of wiring systems used to control almost all the critical functions of an electric vehicle.
The continual rise in accidents caused by automation faults has led customers and governments to exhibit increased interest in advanced safety features. They are working on enhancing their vehicle's safety systems, which is expected to drive the wire harness market. The adoption of navigation and infotainment systems has become standard features in most cars worldwide.
Over the long term, increasing investments in R&D by major industry players and a rise in sales of electric and hybrid vehicles, as well as rising demand for connectivity features in automobiles, will create demand in the automotive wiring harness industry with a surge in sales of automotive wiring harness systems.
The Asia-Pacific region is expected to dominate the market during the forecast period. With the upliftment of lockdown and restrictions, the increased demand for vehicles is expected to be observed, which is anticipated to further aid in the growth of the automotive wiring harness market across the region. Moreover, various initiatives have been undertaken by different governments worldwide to promote the adoption of electric vehicles.
