The automotive wiring harness market size was valued at USD 48.42 billion in 2017, expanding at a CAGR of 6.2%. Increasing integration of electronic devices into vehicles in order to provide enhanced safety features has positively influenced market growth. Employing these systems in a vehicle offers numerous benefits such as improved fuel efficiency, enhanced performance, and low probability of electrical shortage.
Sale of automotive wiring harnesses is directly proportional to increased manufacturing of vehicles. Factors such as rising disposable income, increased government initiatives such as Make in India, and prevailing low labor cost in countries such as China and India have led to increased manufacturing of passenger cars and light commercial vehicles in developing economies. This, in turn, is driving sales of automotive wiring harnesses.
Rising adoption of electric vehicles (EVs) is another significant trend proliferating market growth. This can be attributed to expansion of EV charging infrastructure, increasing fuel prices, favorable changes in government policies, and environmental regulations.
Despite numerous technological advancements in the field of automotive assembly line, manufacturing of wiring harnesses is still carried out either as a labor-intensive task or using semi-automatic machines for selected operations. To overcome this drawback, numerous OEMs in the market are focusing on constructing new manufacturing facilities equipped with automated machines for manufacturing of wiring harnesses in countries with lower labor rates, such as India and Japan.
Automotive wiring harnesses find application in chassis for various components such as fog lamps, headlamps, infotainment systems, fuel flaps, and turn indicators. Therefore, the chassis segment accounted for over 30.0% of the overall market in 2017 and is expected to develop at a considerable growth rate from 2018 to 2025.
The sensors segment is expected to register the highest CAGR of over 8.0% owing to its growing use in technologically-advanced vehicles, which include numerous systems such as safety and security systems, lighting systems, infotainment systems, and battery systems.
The automotive wiring harness market, on the basis of electric vehicle, is divided into battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). The BEVs segment accounted for the largest share in 2017 and is projected to expand at the highest CAGR. This can be ascribed to increased government incentives, expanding charging infrastructure, and decreasing battery prices. Rising adoption of BEVs is expected to boost sales of automotive wiring harnesses from 2018 to 2025. The plug-in hybrid electric vehicles segment is anticipated to grow at a moderate rate over the forecast period.
By component, the market has been segregated into electric wires, terminals, connectors, and others, wherein the others segment includes protectors, grommet, clamps, convoluted tubes, and sheaths. The terminal segment held the largest market share in 2017 and is expected to grow at the highest rate over the forecast period. Proliferating adoption of advanced vehicle technologies such as self-driving vehicles and connected vehicles is a key factor impelling sales of automotive terminals over the forecast period.
Connectors used in wiring harnesses are employed in vehicles that are integrated with advanced safety systems such as airbags, anti-lock braking system (ABS), and vehicle immobilizers. Owing to increasing incidents of vehicle thefts, need for integrating safety systems into vehicles is expected to increase, thus driving demand for connectors.
The light vehicle segment accounted for the largest market share in 2017 and is anticipated to exhibit the highest CAGR during the forecast period. Light vehicles are cost effective and are majorly used for transportation of goods and passengers. The heavy vehicle segment is also expected to grow at a considerable rate from 2018 to 2015. This growth is ascribed to increasing government investments in public transportation, coupled with rising construction and manufacturing facilities in emerging markets.
Asia Pacific accounted for over 40.0% of the overall market in 2017. This can be accredited to increasing road infrastructure activities, coupled with growing automotive manufacturing, especially in developing economies such as China and India. Furthermore, rising demand for enhanced safety and convenience features in mid-segment vehicles and low labor cost are responsible for increasing sales.
The Europe market is projected to exhibit a CAGR exceeding 6.0% over the forecast period. Growing automobile production, innovation in terms of drive technologies, and proliferating adoption of electric vehicles are anticipated to drive demand in Europe. Expanding manufacturing facilities in Middle East and Africa, owing to low-cost labor force, is a crucial factor spurring the regional market.
The market is characterized by strong competition with the presence of major global players such as Aptiv PLC, Sumitomo Electric Industries, Ltd., Yazaki Corporation, Leoni AG, Lear Corporation, and Furukawa Electric Co., Ltd. Increasing technological advancements to sustain competition, coupled with the ability to optimize costs through low-cost labor country sourcing, are expected to emerge as key success factors for OEMs in this industry.
Furthermore, OEMs are focusing on strategic alliances and mergers and acquisitions to expand their industry exposure and manufacturing presence. For instance, in 2017, Motherson Sumi Systems Ltd. acquired PKC Group Plc for approximately USD 665.5 million. This acquisition is expected to strengthen the company’s presence in regions such as Europe, the Americas, and Asia Pacific.
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Attribute |
Details |
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Base year for estimation |
2017 |
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Actual estimates/Historical data |
2014-2016 |
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Forecast period |
2018-2025 |
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Market representation |
Revenue in USD Million and CAGR from 2018 to 2025 |
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Regional scope |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
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Country scope |
U.S., Canada, U.K., Germany, China, India, Japan, Brazil |
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Report coverage |
Revenue forecast, company share, competitive landscape, growth factors, and trends |
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15% free customization scope (equivalent to 5 analyst working days) |
If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization. |
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of latest industry trends in each of the sub-segmentsfrom 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global automotive wiring harness market report based on component, application, electric vehicle, vehicle, and region:
Component Outlook (Revenue, USD Million, 2014 - 2025)
Electric Wires
Connectors
Terminals
Others
Application Outlook (Revenue, USD Million, 2014 - 2025)
Body
Chassis
Engine
HVAC
Sensors
Electric Vehicle Outlook (Revenue, USD Million, 2014 - 2025)
Battery Electric Vehicle (BEV)
Plug-in Hybrid Electric Vehicle (PHEV)
Vehicle Outlook (Revenue, USD Million, 2014 - 2025)
Light Vehicle
Heavy Vehicle
Regional Outlook (Revenue, USD Million, 2014 - 2025)
North America
U.S.
Canada
Europe
U.K.
Germany
Asia Pacific
China
India
Japan
Latin America
Brazil
Middle East & Africa
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