Automotive Wiring Harness Market Segmented By Application Type (Ignition System, Charging System, Drivetrain and Powertrain System, Infotainment System and Dashboard, Others), By Wire Type (Copper and Aluminum), By Vehicle Type (Passenger Cars and Commercial Vehicles), By Regional, Competition Forecast & Opportunities 2018 – 2028F
Published Date: April - 2025 | Publisher: MIR | No of Pages: 320 | Industry: Automotive | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request Customization| Forecast Period | 2024-2028 |
| Market Size (2022) | USD 40 Billion |
| CAGR (2023-2028) | 4.4% |
| Fastest Growing Segment | Copper Wire |
| Largest Market | Asia-Pacific |
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Market Overview
Global Automotive Wiring Harness Market has valued at USD 40 Billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 4.4% through 2028.
The Global Automotive Wiring Harness Market is a corner stone in the automotive industry that supports the complex web of electrical connections that make contemporary vehicles move. With an interwoven matrix of wires, cables, connectors, and terminals, automobile wiring harnesses facilitate the transmission of electrical power and signals across an array of vehicle components seamlessly. This technology constitutes the fundamental circulatory system of vehicles, enabling the communication between important systems like engine management, safety systems, infotainment systems, lighting, and others. The fast-paced technological development of the automotive industry has driven the need for increasingly complex and advanced wiring harness solutions. As cars encompass a wide variety of electronic systems and components, from sophisticated driver assistance systems (ADAS) to electric drives, the contribution of wiring harnesses in the facilitation of efficient communication and power supply has become more crucial than ever. The challenge is left to the manufacturers and suppliers in the market to design harnesses that are capable of addressing the needs of contemporary vehicles under the watch of high quality, durability, and safety requirements. Drivers of Global Automotive Wiring Harness Market growth are the spread of electric and hybrid vehicles, in which complex wiring systems are essential for powering the electric drivetrain, charging infrastructure, and onboard electronics. The growth of autonomous driving capabilities, telematics, and connectivity features has also driven the demand for high-speed data transmission and complex wiring configurations. The dynamics of the market are also affected by the increasing focus on lightweighting, with vehicle manufacturers wanting to increase fuel efficiency and range in electric vehicles. Vehicle manufacturers are putting money into new materials and design methodologies to decrease wiring harness weight and complexity without sacrificing functionality and reliability. Regional differences in the market are fueled by differences in automotive trends, regulation, and consumer attitudes. Developed economies, with high rates of vehicle electrification and strict emission controls, see a strong demand for sophisticated wiring harness solutions. In contrast, emerging markets are seeing a spike in vehicle ownership levels often with a growing desire for fundamental infotainment and connectivity. The shift towards electric and autonomous vehicles requires the creation of high-voltage wiring harnesses capable of meeting the special power and data needs of these new technologies. Additionally, the growth of electric vehicles emphasizes the need for thermal management in wiring systems, providing maximum performance and lifespan. Challenges in the Global Automotive Wiring Harness Market are the balancing act between complexity and cost. As cars receive more electronic functions, wiring harnesses become more complicated, and that could mean manufacturing, assembly, and problem-solving difficulties. The fast-paced nature of the evolving technology also means that manufacturers have to remain flexible and agile to be able to keep up with upcoming industry trends.
Automotive Wiring Harness Market Trends
Rebounding Passenger Car Sales Expected to Outline the Demand Trajectory
The global automotive industry is experiencing a significant rebound in passenger car sales, driven by urbanization, economic expansion, and evolving customer preferences. According to recent data, global passenger car sales witnessed remarkable growth, with new registrations reaching 65.2 million units in 2023, representing an 11.3% increase compared to 58.6 million units in 2022. This surge in sales has created a ripple effect across the automotive supply chain, particularly in the demand for essential components like automotive wiring harness systems, which are crucial for various vehicle functions including engine control, transmission, sensors, and electronic control units.
The increasing emphasis on advanced features and electronics in passenger cars has become a significant driver for automotive wiring harness demand. Automakers are competing to incorporate numerous new-age safety features and electronics such as fast chargers, climate control, ADAS, and other sophisticated systems, necessitating more complex and efficient wiring solutions. This trend is particularly evident in the European market, where passenger car sales demonstrated strong growth in 2023, with countries like Italy, Spain, and France recording annual growth rates of 18.9%, 16.7%, and 16.1% respectively. Additionally, in emerging markets like India, passenger vehicle retail sales reached a milestone of 3.94 million units in FY 2024, marking an 8.45% increase from the previous fiscal year, driven by increased vehicle availability, a strong model mix, and the introduction of new models.
Rising Electric Vehicle Sales to Fuel Wiring Harness Demand
The accelerating adoption of electric vehicles (EVs) worldwide is creating unprecedented demand for specialized EV wiring harness systems. In 2023, global electric car sales surged by approximately 35% compared to 2022, exceeding 14 million units, with battery electric vehicles (BEVs) accounting for 10 million units and plug-in hybrids (PHEVs) contributing 4.2 million units. This rapid growth is supported by declining battery costs, with projections indicating battery pack prices in the United States will decrease to USD 104/kWh in 2025 and further drop to USD 72/kWh in 2030, making EVs more accessible to consumers.
Major automakers are demonstrating strong commitment to electrification through ambitious targets and substantial investments. Toyota aims to introduce 30 BEV models by 2030 and achieve 3.5 million annual electric car sales, while Volkswagen has announced plans for electric vehicle sales to exceed 70% of its European market and 50% of its Chinese and US markets by 2030. These commitments are further supported by strategic investments in manufacturing capabilities, exemplified by Yazaki Corporation's USD 30 million investment in a new manufacturing facility in Morocco in September 2022. The transition to electric vehicles necessitates more sophisticated automotive wiring harness systems capable of handling higher voltages and complex electrical architectures, driving innovation and growth in the automotive wiring harness market
Segmental Insights
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Application Insights
The global Automotive Wiring Harness market is anticipated to experience significant growth in the forthcoming years, driven by technological advancements and rising demand for vehicles worldwide. Innovations in the automobile industry such as autonomous driving and electric vehicles have necessitated more complex and efficient wiring systems, propelling the market for Automotive Wiring Harness. Moreover, the growing emphasis on vehicle safety and fuel efficiency has further bolstered the need for high-quality wiring harnesses. Emerging markets, especially in Asia, exhibit vast potential due to increasing vehicle production and a booming middle-class population. However, the market also faces challenges such as high costs and complex installation processes. Nonetheless, the overall outlook remains positive as the industry navigates these obstacles and continues to innovate in response to evolving market needs.
Wire Type Insights
The global Automotive Wiring Harness market is segmented into several wire types, each with its unique characteristics and applications. Copper wires, due to their excellent conductivity, are widely used. They remain the industry standard for most vehicles, from luxury cars to commercial trucks. Aluminum wires, on the other hand, are gaining traction due to their lightweight properties and lower cost. These are typically found in electric vehicles, where weight reduction is a crucial factor. Then there are optic fiber wires, used in advanced vehicle systems for speedy and interference-free data transmission. Understanding these segments helps in comprehending the market dynamics as the automotive industry continues to evolve.
The global automotive wiring harness market exhibits significant regional variation. In North America, the demand is primarily driven by technological advancements and the high adoption of electric vehicles. Europe, on the other hand, has a robust automotive industry with stringent regulations that push for high-quality wiring harness systems. Asia-Pacific is witnessing rapid growth due to increasing vehicle production in countries like China and India. This region is also becoming an attractive destination for manufacturers due to lower production costs. Meanwhile, Africa and the Middle East show promising potential with the growing automobile sector, albeit from a smaller base.
Recent Developments
- In 2022, Sumitomo Wiring Systems Ltd has opened anew manufacturing facility for automobile wiring harness products at RoyalGroup Phnom Penh Special Economic Zone in Cambodia.
- In 2022, Motherson Sumi Ltd has opened its thirdmanufacturing facility for automotive harness products in Serbia at Požarevac.
Key Market Players
- LEONI AG
- YazakiCorporation
- Aptiv PLC
- SumitomoElectric Industries Ltd
- LearCorporation
- MothersonSumi Systems Ltd
- FurukawaElectric Co. Ltd
- FujikuraLtd
- CoroplastFritz Müller GmbH & Co.
- Nexans
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By Application |
By Wire Type |
By Vehicle Type |
By Region |
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