The anticipated size of the global automotive wires market in 2022 was USD 4,823.2 million and is estimated to be USD 4,937 million in 2023. Rise in demand for the global automotive market for the rise in sales of vehicles such as passenger cars and commercial vehicles is thus raising the market demand. Future Market Insights has mentioned in its reports that the automotive wires market will expand at a CAGR of 6.03% between 2023 and 2033, totaling around USD 8,868.7 million by 2033.
Rise in the volume of manual work that is convoluted in the manufacturing of automotive wire has been controlled. Requirements of present and future applications, with the inclusion of miniature electronic components, processed parameter monitoring, demands of detailed process documentation, and the growth in wages, etc. Wiring harnesses have been cognate into safety-critical systems as a result of electrification and autonomous vehicles.
Provision of transparent, reproducible, and understandable processes are the key to fulfilling better quality and safety requirements, in consideration that wire harness manufacturing is now automated to a dominant extent possible, where 90% of the work is nowadays still done by hand.
| Attributes | Details |
|---|---|
| Projected Forecast Value (2022) | USD 4823.2 million |
| Projected Forecast Value (2023) | USD 4937 million |
| Projected Forecast Value (2033) | USD 8,868.7 million |
| Growth rate | 6.03% CAGR |
| Forecast period | 2023 to 2033 |
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Global automotive wires market grew at a CAGR of 4.78% between 2018 and 2022. Growth forecasts remain optimistic, with the market predicted to exhibit a CAGR of 6.03% between 2023 and 2033.
Sales in the market will pick up by 4.5% between 2020 and 2021.
Growing preference for lightweight passenger cars to reduce carbon emissions is expected to augment the demand for automotive wire connectors and automotive wire harnesses.
Stringent regulations imposed to reduce carbon emissions from vehicles, manufacturers will focus on the production of aluminum-based automotive wires to reduce the overall weight of the vehicle. Increasing emphasis on improving automotive wire standards will create opportunities for the growth of the market.
Increasing popularity of autonomous vehicles, electric cars, and hybrid cars will continue propelling sales of automotive wires. These vehicles require superior connectivity to ensure the safety of passengers, which is expected to create a conducive environment for the growth of the automotive wires market over the assessment period.
Development of Stringent Automotive Wires is Considered a Major Driver
Minimizing various wiring complications regarding specifications and sizes, the ISO has developed stringent automotive wire, which includes aluminum conductors. New ISO standards specify the performance, dimensions, characteristics, and test procedures for aluminum wires used in vehicles.
Demand for fuel-efficient and lightweight vehicles continues to grow so will the sales in the aluminum wires market. Wires have low specific gravity and reduce the overall costs of wiring, owing to these benefits, their applications in the automotive sector are expected to increase over the coming years.
Low conductor strength of aluminum in comparison with copper had limited their applications in the past, as wires used in engine compartments are subjected to strong vibrations. Manufacturers are developing high-strength aluminum alloys that have strength higher than copper so that they can be used in engine compartments.
Creation of lucrative opportunities for OEMs and automotive component manufacturers by creating a favorable environment for sales of aluminum automotive wires where such developments are expected to continue fuelling sales of automotive wires, opines FMI.
Principal Consultant
Emergence of Connected Vehicles is in Demand
Emerging trend of autonomous and ‘connected’ vehicles is anticipated to have a direct impact on the sales of automotive wires. Development of electronic features for drivers' comfort, safety, and communications are significant contributor to demand for automotive wires as this trend is expected to continue over the forecast period.
Term 'connected cars' refers to the use of onboard mobile network interfaces that allow vehicles to exchange information about operations, location, maintenance requirements, road conditions, and other data as these connections support the car and the mobile device's internet usage where some models of cars manufactured over the last few years come embedded with SIM cards.
Concept of connected cars and autonomous cars heavily relies on an array of onboard sensors, radar, light detection and ranging (lidar), processors, and cameras. In addition to this, data inputs from other vehicles and external information sources such as signs, roadways, and parking structure form are all crucial elements of autonomous vehicles.
Driverless and partially autonomous cars require reliability when it comes to sensor operations and safety. Components are connected to the vehicle's body through automotive wires. With ongoing improvements in onboard power and communication networks in autonomous vehicles, manufacturers are launching automotive wires that can comply with such complex systems.
Such developments are expected to provide impetus to the growth of the automotive wires market in the forthcoming years.
Expansion of Automotive Wires Markets will Tend to Boost the Demand
North America is considered to be one of the most lucrative markets for automotive wires market with a market share of 28.9% whereas the United States is estimated to account for 17.4% of the market share.
Demand for automotive wires in the USA is expected to continue rising, owing to the expansion of the automotive industry and increasing sales of autonomous vehicles in the coming years. FMI says demand for automotive wires in North America is projected to grow at a 4.7% CAGR during the forecasted period.
The United States is one of the largest automotive markets across the globe. Presence of leading automotive manufacturers such as General Motors, Ford, Buick, Chevrolet, and Tesla is expected to bode well for the automotive wires market in the USA
Growth in Demand for E-mobility is Expected to Raise the Sales in Germany
Demand for automotive wires is projected to surge at a 4.98% CAGR, with Germany emerging as a lucrative pocket over the forecast period. Germany is recognized in the world for its outstanding automotive industry and superior automotive engineering, which makes it a leading automotive wires market in Europe.
Growing demand for e-mobility in Germany is also expected to propel sales of automotive wires. Presence of premium brand automakers such as Audi, BMW, Mercedes, and Porsche as these vehicles are exported to various countries including the USA, China, India, and others, creating lucrative growth prospects for OEMs operating in the automotive wires market in Germany.
Rapid Urbanization in the Country, Leading to the Migration of Citizens from Small Towns and Provinces to Cities has Risen the Sales
China is said to hold a market share of 8.78% in this region.
Increasing production of autonomous vehicles in China, demand for automotive wires is expected to surge at a steady pace over the assessment period. China is expected to account for a dominant share in the East Asia automotive wires market as per FMI.
Rapid urbanization in the country, coupled with the migration of citizens from small towns and provinces to cities has resulted in increasing sales of passenger vehicles as this trend is anticipated to continue over the forthcoming years, augmenting the growth of the automotive wires market.
Easy availability of raw materials such as copper and aluminum, and the robust presence of automotive components and OEMs in China will place it as an attractive automotive wires market over the assessment period.
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Sales for Copper is Considered to be High in this Market Region
Sales of copper automotive wires are expected to rise at a remarkable rate over the assessment period. Copper is widely used in automotive wires due to its high conductivity, ductility, and reliability. Copper is said to hold a market share of 3.2%
Applications of small gauge wires are increasing to support technological developments. in the automotive sector. Manufacture fuel-efficient vehicles, OEMs are aiming to reduce gauge size to reduce the overall weight of vehicles due to copper’s inherent properties, it can be used efficiently in thinner gauge applications as compared to aluminum.
Copper is easier to manufacture and assemble into packaged wiring applications and has small-bundle sizing capabilities. It also eliminated corrosion and termination issues, which in turn makes it one of the most preferred materials for automotive wires. FMI projects demand for copper automotive wires to remain high in the forthcoming years owing to these factors.
Electric Vehicles are Said to hold a Dominant Share in the Market
Growth in the market of electric vehicles is said to grow at a CAGR of 5.1%
Applications of automotive wires in the electric vehicles segment are anticipated to gain traction over the forecast period. Stringent regulations regarding carbon emissions in various countries are resulting in increased sales of electric vehicles as this trend is expected to bode well for the automotive wires market.
Production of electric and hybrid vehicles is expected to be driven by subsidies offered by government bodies to support the green initiative and reduce carbon emissions as these vehicles comprise a high content of electric and electronic systems as compared to conventional vehicles, resulting in higher sales of automotive wires.
Manufacturers operating in the automotive wires market are focusing on cable requirements for electric vehicles. Low-tension electrical wiring is used for starting, charging, signaling, lighting, and instrument panel circuits in electric vehicles. Sales of automotive wires, therefore, are projected to continue rising in the electric vehicles segment.
Chassis and Safety are Said to Hold a Lucrative Position in the Market
Demand for automotive wires for chassis and safety applications in vehicles to anticipated to gain momentum in the forthcoming years. Reduction in the overall weight of vehicles, manufacturers are investing in research and development to deploy automotive wires that can perform more than one operation. Market share of chassis and safety applications holds a share of 2.8%
Development of autonomous vehicles is also expected to drive sales of automotive wires in the chassis and safety segment. Growing demand for fuel-efficient cars that provide an enhanced driving experience will continue pushing sales of automotive wires for chassis and safety applications during the assessment period.
Some of the prominent players in the global market are:
Some of the important developments of the key players in the market are:
| Report Attribute | Details |
|---|---|
| Growth Rate | CAGR of 6.03% from 2023 to 2033 |
| Market value in 2023 | USD 4937 million |
| Market value in 2033 | USD 8868.7 million |
| Base Year for Estimation | 2022 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | USD billion for Value and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered | By Country, By Material Type, By Vehicle Type, By Application |
| Regions Covered | North America; Latin America; Europe; Asia Pacific; Middle East and Africa |
| Key Countries Profiled | United States, Canada, Brazil, Mexico, Rest of Latin America, Germany, United Kingdom, France, Spain, Italy, Rest of Europe, China, Japan, South Korea, Singapore, Thailand, Indonesia, Australia, New Zealand, Rest of Asia Pacific, GCC countries, South Africa, Israel, Rest of MEA |
| Key Companies Profiled | LEONI AG; Sumitomo Electric Industries, Ltd.; Fujikura Ltd.; Delphi Automotive Plc.; PKC Group; Furukawa Electric Co., Ltd; Yazaki Corporation; General Cable; Lear Corporation; Draka (Subsidiary of Prysmian Group); Samvardhana Motherson Group; Allied Wire & Cable, Inc.; Coroplast Fritz Müller GmbH & Co. KG.; Kromberg & Schubert; Acome; Yura Corporation; Kyungshin Corporation |
| Customisation Scope | Available on Request |
The projected CAGR of the tube-feeding formula market by 2033 is 6.03%.
The projected market value by 2033 is USD 8,868.7 million.
The market is estimated to secure a valuation of USD 4,937 million in 2023.
The automotive industry is the key consumer of the automotive wires market.
Yazaki, Sumitomo Electric Industries, and Leoni are the three key players in the market.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Material Type 5.1. Copper 5.1.1. Oxygenic Copper 5.1.2. Pure Copper (Oxygen Free) 5.1.3. Copper Silver (CuAg) 5.1.4. Copper Magnesium (CuMg) 5.1.5. Copper Tin (CuSn) 5.2. Aluminum 5.3. Others 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Vehicle Type 6.1. Conventional Fuel Vehicles 6.1.1. Passenger Vehicle 6.1.2. Commercial Vehicle 6.2. Electric Vehicles 6.3. Hybrid Vehicles 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 7.1. Chassis and Safety 7.1.1. Conventional Chassis 7.1.2. Semi-forward Chassis 7.1.3. Full-forward Chassis 7.2. Body 7.2.1. Facia 7.2.2. Roof 7.2.3. Door & Window 7.2.4. Seat 7.2.5. Interior 7.3. Heating Ventilation & Air-Conditioning (HVAC) 7.3.1. Engine 7.3.2. Sensors 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Europe 8.4. Asia Pacific 8.5. MEA 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Key Countries Market Analysis 15. Market Structure Analysis 16. Competition Analysis 16.1. LEONI AG 16.2. Sumitomo Electric Industries, Ltd. 16.3. Fujikura Ltd. 16.4. Delphi Automotive Plc. 16.5. PKC Group 16.6. Furukawa Electric Co., Ltd 16.7. Yazaki Corporation 16.8. General Cable 16.9. Lear Corporation 16.10. Draka (Subsidiary of Prysmian Group) 16.11. Samvardhana Motherson Group 16.12. Allied Wire & Cable, Inc. 16.13. Coroplast Fritz Müller GmbH & Co. KG. 16.14. Kromberg & Schubert 16.15. Acome 16.16. Yura Corporation 16.17. Kyungshin Corporation 17. Assumptions & Acronyms Used 18. Research Methodology
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Automotive Wires Market
