According to a recent report published by Allied Market Research, titled, “Automotive Wiring Harness Market by Material, Propulsion, Vehicle Type, Voltage, and Application: Global Opportunity Analysis and Industry Forecast, 2021–2030,” the global automotive wiring harness market was valued at $47,618.0 million in 2020, and is projected to reach $73,713.8 million by 2030, registering a CAGR of 4.6% from 2021 to 2030.
Asia-Pacific is expected to dominate the automotive wiring harness market due to growth in demand for premium cars, increased disposable income in countries such as India & China, as well as rise in adoption of electric vehicles in the region. The surge in adoption of electric vehicles is supported by government initiatives to offer benefits on purchase of electric vehicles. Moreover, integration of advanced features in vehicles requires wiring harness, which is expected to act as growth driver for the market.
Electric vehicles operate on electric power, while reducing maintenance costs, and carbon emissions. Various countries across the world promote the use of electric vehicles to reduce the adoption of traditional gasoline fuel based vehicles and decrease their carbon footprint. Electric vehicles are integrated with high voltage wiring harnesses. The growth in demand for electric vehicles is expected to accelerate the demand for high voltage wiring harnesses to handle complex electric vehicle systems.
Based on material, the automotive wiring harness market is segregated into copper, aluminum, and others. In 2020, copper dominated the global market. The high demand for copper based wiring harness is driven by electrification of vehicles and rise in demand for larger vehicles, such as SUVs, and full-sized vans. Copper based wiring harnesses have experienced significant growth from developing countries such as China, South Asia, and South America.
The significant factors that impact the growth of the automotive wiring harness market include increased adoption of electric vehicles, development of vehicles with advanced safety features, and technological advancements. Moreover, high maintenance cost is expected to hinder the market growth. Development of autonomous vehicles and proactive government regulations are expected to offer growth opportunities during the forecast period.
COVID-19 Impact Analysis
The impact of the COVID-19 pandemic has resulted in supply-chain disruptions causing delay in manufacturing of vehicles. Several automobile manufacturers faced shortage of components related to wiring harnesses that further resulted in delay in production of vehicles. For instance, in 2020, in South Korea, Hyundai suspended operations at Ulsan complex due to lack of parts.
The COVID-19 pandemic and associated lockdowns resulted in a significant drop in global car sales. However, there was a rise experienced in the sale of electric vehicles. Europe experienced growth in sale of electric vehicles owing to increased purchase incentives in Germany, continued declines in battery costs, and technology transition initiated by fleet operators in order to meet the emissions standards set for 2020.
With the uplifting of lockdown restrictions, increased demand for vehicles is expected to be observed, which is anticipated to further aid in the growth of automotive wiring harness market. Moreover, various initiatives have been undertaken by different governments across the world to promote adoption of electric vehicles.
Key Findings Of The Study
- By material, the aluminum segment is anticipated to exhibit significant growth in the near future.
- By propulsion, the electric vehicles segment is anticipated to exhibit significant growth in the near future.
- By vehicle type, the two wheeler segment is anticipated to exhibit significant growth in the near future.
- By voltage, the high voltage automotive wiring harness segment is anticipated to exhibit significant growth in the near future.
- By application, the dashboard and cabin segment is anticipated to exhibit significant growth in the near future.
- By region, LAMEA is anticipated to register the highest CAGR during the forecast period.
Key players operating in the global automotive wiring harness market include Aptiv PLC, FujiKura Ltd., Furukawa Electric Co., Ltd., Lear Corporation, Leoni AG, Nexans Autoelectric Gmbh, Samvardhana Motherson Group, Sumitomo Electric Industries, Ltd., Yazaki Corporation and Yura Corporation.