Global Wiring Harnesses and Connectors for Electric Vehicles Market Grows at a Staggering CAGR of 23.37%

A wiring harness is a logical configuration of wires, terminals, and connections that carry data and electrical power and connect various automotive components. Information and power are transmitted through this vulnerable network. As one of the heaviest and most expensive pieces of a vehicle, wiring harnesses continue to be one of the essential parts. In addition, these are typically modified based on the vehicle's model and specifications; the cable system is designed to maximize the vehicle's model. Typically, the wiring system is separated into high-voltage and low-voltage wire harnesses. Market Dynamics Growing Adoption of Electric Vehicles Drives the Global Market Electric vehicles are an effective solution to climate change because transportation fuels such as gasoline, diesel, and coke are responsible for carbon emissions. For decades, conventional automobiles have been utilized with limited fuel supplies. Daily, oil costs are growing. Major automakers are creating EV lineups to meet demand and produce inexpensive alternatives to internal combustion engine automobiles. Electric vehicles can dramatically reduce greenhouse gas emissions. EV demand is expanding due to consumers' desire for EVs due to their affordability, lower fuel costs, and environmental responsibility. The wire harnesses and connectors market has grown tremendously with the increasing need for electric vehicles. Weight Reduction of Wiring Harnesses and Connectors Creates Tremendous Opportunities In response to the growth in the power of HEVs, PHEVs, and BEVs, an increased current is required, which has resulted in the extension of the wires' cross-sectional area. As a result, the cable weight increase is becoming a problem for EV producers. It is essential to lower the weight of wires to enhance the range of electric vehicles. Therefore, businesses can overcome these challenges by utilizing aluminum wire in bulk. In addition, the aluminum wire for the cable harness shielded by the tube must be flexible for vibration resistance and excellent conductivity of electricity. With the new aluminum material that satisfies both requirements, the weight increase issues caused by bigger copper wires can be overcome. Further, the aluminum wire has a more significant temperature operating range, which makes it ideal for electric vehicles. Regional Analysis  China is the most significant global wiring harnesses and connectors for electric vehicles market shareholder and is expected to grow at a CAGR of 30.23% over the forecast period. China has abundant raw materials required for the fabrication of wiring harnesses. It is the third-largest producer of copper and the second-largest producer of bauxite ore, used to make aluminum. Copper and aluminum are the most common materials for producing electric car wiring harnesses. As more handcrafted automobile components are purchased, domestic manufacturers of wire harnesses have gained extensive experience working with tiny manufacturers. They are spreading their wire harness technology to world-famous automakers through their prompt, dependable services and products. In addition, international wire harness makers are targeting prospective Chinese markets to buy or build owned or joint ventures with local enterprises to promote co-funded automobile facilities and domestic automobiles. Asia-Pacific and Japan are anticipated to exhibit a CAGR of 16.98% over the forecast period. Some regions in Asia-Pacific and Japan are rich in natural mineral reserves. Countries such as India, Australia, New Zealand, and Indonesia have an abundance of aluminum and copper ores required to manufacture wiring harnesses. The wiring harness is 95% hand-made and labor-intensive. Asia-Pacific and Japan are comprised of countries that are still in the process of developing; hence, the labor rates in these regions are quite low. Therefore, makers of wiring harnesses might establish production facilities in the region for increased profitability and market expansion. Numerous nations, including India, Malaysia, Thailand, and Indonesia, require improved infrastructure to adopt electric vehicles rapidly. This has prevented enterprises in the Asia-Pacific and Japan regions from adopting modern production techniques for wiring harnesses. Key Highlights The global wiring harnesses and connectors for electric vehicles market was valued at USD 2.99 billion in 2022. It is estimated to reach USD 79 billion by 2031, growing at a CAGR of 23.37% during the forecast period (2023–2031). Based on vehicle type, the global wiring harnesses and connectors for electric vehicles market is divided into passenger and commercial vehicles. The passenger segment accounts for the largest market share and is anticipated to grow at a CAGR of 22.29% over the forecast period. Based on propulsion type, the global wiring harnesses and connectors for electric vehicles market is bifurcated into BEV, PHEV, and HEV. The BEV segment dominates the global market and is projected to grow at a CAGR of 28.01% over the forecast period. Based on product type, the global wiring harnesses and connectors for electric vehicles market is divided into high voltage and low voltage. The low voltage segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 22.00% during the forecast period. Based on material type, the global wiring harnesses and connectors for electric vehicles market is divided into copper, aluminum, and optical fiber. The copper segment accounts for the highest market share and is estimated to grow at a CAGR of 22.74% over the forecast period. Based on components, the global wiring harnesses and connectors for electric vehicles market is divided into wires, connectors, and others. The wires segment is the largest contributor to the market and is anticipated to exhibit a CAGR of 23.73% over the forecast period. Based on application, the global wiring harnesses and connectors for electric vehicles market is bifurcated into a body harness, high voltage battery harness, dashboard/cabin harness, HVAC harness, and others. The high-voltage battery harness segment owns the market and is predicted to grow at a CAGR of 25.41% over the forecast period. China is the most significant global wiring harnesses and connectors for electric vehicles market shareholder and is expected to grow at a CAGR of 30.23% over the forecast period. Competitive Players The key players in the global wiring harnesses and connectors for electric vehicles market are Sumitomo Corporation, Continental AG, Gebauer & Griller, Fujikura Ltd., Leoni AG, Aptiv PLC, Kromberg & Schubert GmbH, Coroplast Group, SINBON Electronics Co., Ltd., Korea Electric Terminal Co., Ltd., EG Electronics, LS Cable & System Ltd., TE Connectivity, ACOME, and Lear Corporation. Market News In January 2023, Dhoot Transmission, a manufacturer of wiring harnesses, automotive switches, electronic sensors and controllers, connectors and terminals, automotive cables, and power cords for original equipment manufacturers (OEMs), announced plans to establish a new factory in the United Kingdom. In February 2023, Hero Electric joined Dhoot Transmission Pvt Ltd to provide new wire harness solutions. With the cooperation, the company's goods will be supplied with the most recent wire harnesses from Dhoot Transmission, according to a release. Global Wiring Harnesses and Connectors for Electric Vehicles Market: Segmentation By Vehicle Type Passenger Commercial By Propulsion Type BEV PHEV HEV By Product Type Low Voltage High Voltage By Material Type Copper Aluminium Optical Fiber By Component Wires Connectors Others By Applications Body Harness High Voltage Battery Harness Dashboard/Cabin Harness HVAC Harness Others By Regions North America Europe The U.K. China Asia-Pacific and Japan Rest-of-the-World