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.
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.
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.
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.
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.