The global automotive wiring harness market size was valued at USD 48.9 billion in 2021, and it is anticipated to reach USD 72.80 billion by 2030 at a CAGR of 4.52%. The term "automotive wiring harness" refers to an assembly of wires, terminals, and connectors that are used to transport information and electric power across the entirety of a motor vehicle. Automobiles' electrical and dimensional requirements are considered during the design process of automotive wire harness. These harness are then combined to connect various components of the vehicle, including the body, engine, dashboard, and chassis. The automotive wire harness makes the transmission of control signals and electrical power to electronic and electrical equipment in an automobile. It helps to assure both fundamental functionality and better safety.
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An increasing number of people using vehicles as a result of growing disposable incomes
The global population of vehicles is estimated to have passed one billion in 2010, according to car organizations. The rapid growth rates drove this milestone in India and China in that particular financial year. It is possible to relate the rise in sales of automobiles, and more specifically passenger cars, to the consistent increase in the amount of money people have to spend. After the Great Recession, developing economies continued their strong development, which increased the amount of money that consumers had available in their budgets. The urbanization of the world's population is progressing at a rate that is increasing at an exponential rate. Because of this, the average discretionary income of the population that chooses to reside in big cities is also growing, which enables these people to improve the quality of life they lead. As a result, the number of passenger cars being driven on the roads of the world is growing, leading to an increased demand for the manufacturing of passenger cars to meet the ever-increasing requirements. The income prospects of the automotive wiring harness market would be boosted.
Advancements in consumer electronics, voice recognition, and display technology
Automobiles manufactured in today's world come equipped with a significant increase in the number of technological integrations. Many electronic components are essential for an automobile's dashboard, informational and entertainment systems, and head-up display units. Consumers and automobile manufacturers have pressured component suppliers to develop increasingly innovative and integrated products due to the increasing prevalence of electronic systems that perform auxiliary functions. The desire from consumers for technology that is easier to use compels vehicle OEMs to search for the most advanced technology and features available in their industry. The availability of vast quantities of available content for entertainment and sources of information has led to an increase in customer demand for more features to be integrated into vehicles. All of these variables working together would benefit the expansion of the market for automotive wire harness.
Failure rates for wiring harness are steadily increasing
The car has several electrical issues, including battery, light, alternator, front and rear light malfunctions, and ignition problems, which are occasionally caused by wiring harness problems. The wiring harness can occasionally flex due to quickly varying surroundings, such as sudden swings from extremely cold to scorching temperatures. The wiring harness's lifespan can be drastically shortened if these problems aren't addressed.
Growing consumer demand for lightweight harness
As a result of the steadily increasing amounts of pollutants produced by automobiles, regulatory authorities in many locations have enacted strict new emission requirements. The Corporate Average Fuel Economy (CAFE) rule in the United States has established specific requirements for automobile manufacturers. Because of increasingly stringent emission requirements worldwide, original equipment manufacturers (OEMs) have been pushed to lessen the total weight of their products and improve their fuel economy. It has resulted in a reduction in the operational costs associated with transportation. It offers additional benefits, like enhanced mobility, speed, acceleration, and a greater capacity for carrying weight. Because of improvements in fuel efficiency, carbon emissions have decreased, which in turn has reduced the adverse effects that emissions have on the environment. The rising trend of weight reduction and government mandates for emission standards all contribute to an increase in the demand for weight and cost reduction in cars. This desire is further fuelled by an increase in the demand for a decrease in CO2 emissions.
The global automotive wiring harness market is divided into four parts: component, application, vehicle type and region. Further, based on components, the market is divided into electric wires, connectors, terminals, and others, wherein others include convoluted tubes, sheaths, clamps, protectors and grommets. The terminals category holds a significant market share and is expected to increase in the coming years. It is due to the growing use of cutting-edge automotive technologies like linked and autonomous automobiles. It will significantly increase the sales of vehicle terminals in the upcoming years.
The market is divided into engine, body, chassis, HVAC, and sensors based on application. The chassis category has a substantial market share because of its wide range of uses in elements such as infotainment systems, fog lamps, turn indicators, fuel flaps, and headlamps.
The market is divided into commercial vehicles and passenger cars according to vehicle type. The market's largest share belonged to the segment of passenger cars. The increasing sales of passenger automobiles globally directly boosted the market's growth and can be credited with the segment's expansion.
The market is broken down into North America, Europe, Asia-Pacific and LAMEA based on region. The Asia-Pacific region held the largest market share.
The global automotive wiring harness market is broken down into North America, Europe, Asia-Pacific and LAMEA based on region.
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The Asia-Pacific region held more than a fifty-five per cent share, measured in terms of value, of the global market for automotive wire harness in 2021. The market's expansion was helped by increased automobile production in countries such as China, India, and Japan. China was also the primary contributor to the overall sales of automobile wiring harness in the Asia-Pacific region in 2021, accounting for nearly 60 per cent of those sales.
During the forecast period, it is anticipated that China will hold a predominant share of Asia-Pacific's automotive wire harness market. More automobiles are produced in China than on any other planet. As a result, the market for automotive wire harness in China is expected to grow rapidly. Chinese original equipment manufacturers strongly emphasize using lightweight materials for wiring harness. In light of this, manufacturers of wiring harness are increasingly turning to materials such as aluminium. Wiring harness currently employ only a small quantity of aluminium. Consequently, it is anticipated that the region will have the largest share of the market in 2021, amounting to 60.3%.