May 29, 2024
Automotive Wiring Harness Market

Automotive Wiring Harness Market Poised To Harness Rapid Growth By 2030 Owing To Use Of Lightweight Materials

An automotive wiring harness is a complex part that carries power and signal connections between various vehicle components. They are essential for various vehicle functions such as lighting, air conditioning, power windows and other comfort and safety features. Wiring harnesses improve vehicle efficiency by reducing wiring complexity and simplifying circuit management. They help integrate emerging technologies such as electric vehicles, autonomous driving and driver-assistance systems. The increasing demand for safety, comfort and infotainment features in vehicles is driving the need for efficient and reliable wiring harnesses. While wires account for only 3-4% of total vehicle weight, wiring harness malfunction is estimated to cause over 20% of all vehicle electrical failures. This highlights the importance of wiring harnesses and is expected to drive further innovation in the industry. The global automotive wiring harness market is estimated to grow significantly during the forecast period due to increasing vehicle production and emphasis on lowering vehicle weight for improved fuel efficiency.

The Global Automotive Wiring Harness Market Size is estimated to be valued at US$ 65.78 billion in 2024 and is expected to exhibit a CAGR of 8.6% over the forecast period from 2024 to 2030.

Key Takeaways

Key players operating in the automotive wiring harness market are Hikma Pharmaceuticals PLC, Lupus Therapeutics, Dr. Reddy’s Laboratories Ltd., GlaxoSmithKline plc, Amgen Inc., Novartis AG, Sanofi, UCB S.A., ImmuPharma PLC, Bayer AG, Merck & Co., Inc., Aurinia Pharmaceuticals Inc., Pfizer Inc., ADMA Biologics, Inc., AstraZeneca, F.Hoffmann-La Roche Ltd, Bristol-Myers Squibb Company, Teva Pharmaceutical Industries Ltd., Takeda Pharmaceutical Company Limited, and Boehringer Ingelheim International Gmbh.

The growing demand for electric vehicles worldwide is fueling demand for advanced wiring harnesses that can manage high voltages, data transfer and integration of new electric components. Electric vehicles are expected to comprise over 20% of new vehicle sales globally by 2030, creating significant opportunities for wiring harness manufacturers.

Manufacturers are expanding globally to establish production and distribution capabilities closer to major automotive hubs. For instance, Japan’s Yazaki Corporation has a global workforce of over 200,000 across 44 countries. This helps them better serve automakers and gain an advantage over regional and domestic competitors.

Market Key Trends

One of the key trends in the automotive wiring harness market is the use of lightweight materials. Manufacturers are increasingly using materials like thermoplastics and aluminum in place of heavier copper wiring. This helps reduce vehicle weight and improves fuel efficiency without compromising durability or electrical conductivity. Automakers stipulate stringent weight reduction and recyclability targets which wiring harness makers must meet through continuous innovation.

Porter’s Analysis

Threat of new entrants: New players find it difficult to enter the market as automotive wiring harness market requires huge investments and established supplier relationships with automakers.

Bargaining power of buyers: Automakers have significant bargaining power over wiring harness suppliers due to their large purchase volumes and ability to force price reductions.

Bargaining power of suppliers: Wiring harness material suppliers have moderate bargaining power given niche expertise and lack of substitutes but automakers can still source from multiple suppliers to avoid dependence.

Threat of new substitutes: There are no close substitutes for wiring harnesses as they are an integral part of automotive electronics architecture.

Competitive rivalry: The market is highly competitive with focus on quality, innovation and cost reduction given business is awarded through competitive bidding.

Geographical Regions

Asia Pacific region accounts for the largest value share in automotive wiring harness market led by China, Japan and India. This is attributed to presence of leading automakers as well as component suppliers in the region.

North America region is expected to witness fastest growth during the forecast period supported by rebound in vehicle sales coupled with technological advancements in electric and autonomous vehicles requiring more complex wire architectures.

Geographical Regions

Asia Pacific region accounts for the largest value share in automotive wiring harness market led by China, Japan and India. This is attributed to presence of leading automakers as well as component suppliers in the region.

North America region is expected to witness fastest growth during the forecast period supported by rebound in vehicle sales coupled with technological advancements in electric and autonomous vehicles requiring more complex wire architectures.

*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it