Automotive Wiring Harness Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 4.22 % |
| Fastest Growing Market | North America |
| Largest Market | Asia-Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Automotive Wiring Harness Market Analysis
The automotive wiring harness Market size was USD 37.03 billion in 2022 and is expected to reach USD 47.46 billion by 2028, registering a CAGR of 4.22% during the forecast period.
The COVID-19 outbreak swiftly and severely impacted the globally integrated automotive industry. The shutdown of many OEM production lines indirectly affected the automotive wiring harness market. However, with the removal of lockdown guidelines in several countries, the demand for vehicles slightly increased, which is expected to propel the market growth forward in the coming years. For instance, passenger vehicle sales in 2022 reached 57.49 million units, up from 56.44 million in 2021. Thus, wiring harness companies also increased their manufacturing investments in 2022 to address the increased demand for wiring harness products due to growing automotive sales resulting from the post-COVID-19 pandemic recovery. For instance
- July 2022: Sumitomo Wiring Systems Ltd inaugurated a new manufacturing facility for automobile wiring harness products at Royal Group Phnom Penh Special Economic Zone in Cambodia.
The growing emphasis on safety solutions, expanding demand and usage of hybrid and electric vehicles, and increasing electrification of vehicles are some of the primary driving factors for the market's growth. However, challenges such as reliability and durability may limit the market's growth.
The rising sales of electric vehicles also provide a major impetus to the growth of the automotive wiring industry since wiring harnesses are a major component of wiring systems used to control almost all the critical functions of an electric vehicle.
The continual rise in accidents caused by automation faults has led customers and governments to exhibit increased interest in advanced safety features. They are working on enhancing their vehicle's safety systems, which is expected to drive the wire harness market. The adoption of navigation and infotainment systems has become standard features in most cars worldwide.
Over the long term, increasing investments in R&D by major industry players and a rise in sales of electric and hybrid vehicles, as well as rising demand for connectivity features in automobiles, will create demand in the automotive wiring harness industry with a surge in sales of automotive wiring harness systems.
The Asia-Pacific region is expected to dominate the market during the forecast period. With the upliftment of lockdown and restrictions, the increased demand for vehicles is expected to be observed, which is anticipated to further aid in the growth of the automotive wiring harness market across the region. Moreover, various initiatives have been undertaken by different governments worldwide to promote the adoption of electric vehicles.
Automotive Wiring Harness Market Trends
Electric Vehicles are Expected to Drive the Market Growth
Electric vehicles are fast becoming a mainstream part of the automotive industry. They help vehicle owners cut down the operating costs of their vehicles and governments to achieve a clean environment and energy independence along with reduced emission of pollutants and other greenhouse gases as lower oil imports. The increasing environmental concerns and favorable government initiatives are the major factors driving the adoption of electromobility worldwide.
Electric car markets experienced significant growth in 2022, as sales surpassed the 10 million mark. By that year, 14% of all cars sold were electric, representing a five-fold increase from 2020, when less than 5% of new vehicles were electric, and a 55% rise from 2021, when around 9% of new cars purchased were electric.
China once again dominated global electric car sales, accounting for around 60%. With more than half of all-electric cars internationally on the roads located in China, the country has already surpassed its 2025 target for new energy vehicle sales. In Europe, the 2nd greatest market, electric car sales enhanced by over 15 % in 2022, meaning that over one in any five vehicles sold was electric. Electric car sales in the United States doubled by 55 % in 2022, arriving at a sales disclose of 8 %.
With this increasing adoption of electric vehicles worldwide, some wire and cable manufacturers are investing heavily in increasing their production capacity to cater to the rising demands. For instance
In September 2022, Yazaki Corporation opened its fourth manufacturing facility in Morocco at Kenitra near Rabat with an investment of USD 30 million.
With the aforementioned trends and developments, the rising demand for electric vehicles will propel demand in the wiring harness market during the foreseeable future.
Asia-Pacific Region is Expected to Dominate the Target Market
The Asia-Pacific region is expected to have a majority share in the automotive wiring harness market. Rising disposable income and an increase in GDP in the Asia Pacific are driving the market. Ease of manufacturing auto parts, vehicle sales, and growing government regulations improving electric vehicles adoption and robust expansion adopted by OEMs and suppliers in the region to accommodate rising demand from the automotive industry across the Asia-Pacific region is expected to create a positive outlook for market growth during the forecast period.
Growing government regulations improving electric vehicle adoption and robust expansion adopted by OEMs and suppliers in the region to accommodate rising demand from the automotive industry in China are expected to create a positive outlook for market growth. For instance,
- The Chinese market caught up during the first half of 2022. BEVs and PHEVs made up 19% and 5% of the total number of new passenger car registrations that were electric vehicles. This represents an 8% point increase over the market share from the previous year and is four times higher than it will be in 2020. As a result, two years before the target year of 2025, China has already surpassed the 20% EV share target set forth in the 14th Five-Year Plan Energy Saving and Emission Reduction Work Plan.
Other important countries in the region are India and South Korea. India is a lucrative market for automotive wiring harness market manufacturing companies as the government has allowed 100% foreign equity investment in the automobile sector. Additionally, the number of new vehicle registrations per year is increasing in India, serving as a positive growth environment for automotive wiring harness manufacturing companies. India is also home to Motjrson Sumi Ltd, a major manufacturer of automotive wiring harness systems.
As traditional wiring methods are not suitable for upgrading features offered by automakers, the automobile wire harness is growing steadily. Also, installing such wire harness systems enhances the vehicle's fuel efficiency and complies with Indian government fuel usage and emissions laws. Owing to these factors, the sector is expected to grow at a reasonable rate, enhancing the demand in the automotive wiring harness market during the forecast period.
Automotive Wiring Harness Industry Overview
The Automotive Wiring Harness Market is highly consolidated, with global and very few local players dominating the market. Some of the major players in the market are Sumitomo Corporation, Aptiv Plc, Yazaki Corporation, Motherson Group, Leoni AG, and Lear Corporation. The market concentration can be considered to be medium-level competitive.
Different wiring harness manufacturers are prominent in other control systems of vehicles. Leoni AG group specializes in wires, wiring systems, and optical fibers for the automotive market. Leoni generates about 45% of its sales only in the EMEA region. To gain a considerable edge over other players in the market, many companies are forming partnerships to bring the latest features to their products and expand their production capacities.
For instance, in June 2022, Yazaki Corporation announced to set up a pilot production facility in Guatemala at Ayutla in the San Marcos Department. The plant will likely be set up at an investment of USD 10 million, will employ 1,000 people, and is expected to be operational by January 2023.
Automotive Wiring Harness Market Leaders
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Sumitomo Corporation
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Lear Corporation
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Aptiv Plc
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Yazaki Corporation
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Leoni AG
*Disclaimer: Major Players sorted in no particular order
Automotive Wiring Harness Market News
- September 2022: Aptiv Plc signed a definitive agreement to acquire Intercable Automotive Solutions from Intercable Srl for EUR 595 million (USD 600.95 million). Aptiv Plc was to own an 85% stake in Intercable Automotive Solutions post-acquisition. The acquisition will help Aptiv Plc cement its position in the automotive busbars and interconnect solutions segments.
- September 2022: Motherson Sumi Ltd. inaugurated its third manufacturing facility for automotive harness products in Serbia at Požarevac. The plant was to manufacture products exclusively for Daimler Trucks SE and create 1,000 jobs at the site.
- July 2022: Sumitomo Wiring Systems Ltd. inaugurated a new manufacturing facility for automobile wiring harness products at Royal Group Phnom Penh Special Economic Zone in Cambodia.
- May 2022: Leoni AG signed an agreement to sell its automotive cables business to Bangkok-based Stark Corporation Public Company Limited for an undisclosed amount. The businesses generated USD 1.31 billion in revenues for Leoni AG in 2021.
Automotive Wiring Harness Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Market Drivers
- 4.1.1 Growing Automotive Production
- 4.1.2 Growing Demand For Advanced Safety Features
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4.2 Market Restraints
- 4.2.1 Fluctuating Raw Material Prices
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4.3 Industry Attractiveness - Porter's Five Forces Analysis
- 4.3.1 Bargaining Power of Suppliers
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Threat of New Entrants
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Value in USD)
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5.1 By Application Type
- 5.1.1 Ignition System
- 5.1.2 Charging System
- 5.1.3 Drivetrain and Powertrain System
- 5.1.4 Infotainment System and Dashboard
- 5.1.5 Vehicle Control and Safety Systems
- 5.1.6 Body and Cabin Wiring Harness
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5.2 By Wire Type
- 5.2.1 Copper
- 5.2.2 Aluminum
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5.3 By Vehicle Type
- 5.3.1 Passenger Cars
- 5.3.2 Commercial Vehicles
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5.4 By Geography
- 5.4.1 North America
- 5.4.1.1 United States
- 5.4.1.2 Canada
- 5.4.1.3 Rest of North America
- 5.4.2 Europe
- 5.4.2.1 Germany
- 5.4.2.2 United Kingdom
- 5.4.2.3 France
- 5.4.2.4 Russia
- 5.4.2.5 Spain
- 5.4.2.6 Rest of Europe
- 5.4.3 Asia-Pacific
- 5.4.3.1 China
- 5.4.3.2 Japan
- 5.4.3.3 India
- 5.4.3.4 South Korea
- 5.4.3.5 Rest of Asia-Pacific
- 5.4.4 Rest of the World
- 5.4.4.1 South America
- 5.4.4.2 Middle East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Vendor Market Share
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6.2 Company Profiles*
- 6.2.1 LEONI AG
- 6.2.2 Yazaki Corporation
- 6.2.3 Aptiv PLC
- 6.2.4 Sumitomo Electric Industries Ltd.
- 6.2.5 Lear Corporation
- 6.2.6 Motherson Sumi Systems Ltd.
- 6.2.7 Furukawa Electric Co. Ltd.
- 6.2.8 Fujikura Ltd.
- 6.2.9 Coroplast Fritz Müller GmbH & Co.
- 6.2.10 Jiangsu Kyungshin Electronic Co. Ltd.
- 6.2.11 Nexans
- 6.2.12 THB Group
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Rising Adoption Of Connected Vehicles
Automotive Wiring Harness Industry Segmentation
The wiring harness systems are assemblies of electrical cables or wires that transmit electric signals to a vehicle's electrical functions. In short wiring harness can be defined as the complete electrical system of any vehicle.
The automotive wiring harness market is segmented by application type, wire type, vehicle type, and geography. By application type, the market is segmented as ignition systems, charging systems, drivetrain, and powertrain systems, infotainment systems, and vehicle control and safety systems. By wire type, the market is segmented as copper and aluminum. Based on vehicle type, the market is segmented as passenger cars and commercial vehicles. By geography, the market is segmented as North America, Europe, Asia-Pacific, and the Rest of the World.
| By Application Type | Ignition System | |
| Charging System | ||
| Drivetrain and Powertrain System | ||
| Infotainment System and Dashboard | ||
| Vehicle Control and Safety Systems | ||
| Body and Cabin Wiring Harness | ||
| By Wire Type | Copper | |
| Aluminum | ||
| By Vehicle Type | Passenger Cars | |
| Commercial Vehicles | ||
| By Geography | North America | United States |
| Canada | ||
| Rest of North America | ||
| By Geography | Europe | Germany |
| United Kingdom | ||
| France | ||
| Russia | ||
| Spain | ||
| Rest of Europe | ||
| By Geography | Asia-Pacific | China |
| Japan | ||
| India | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| By Geography | Rest of the World | South America |
| Middle East and Africa |
Automotive Wiring Harness Market Research FAQs
What is the current Automotive Wiring Harness Market size?
The Automotive Wiring Harness Market is projected to register a CAGR of 4.22% during the forecast period (2024-2029)
Who are the key players in Automotive Wiring Harness Market?
Sumitomo Corporation, Lear Corporation, Aptiv Plc, Yazaki Corporation and Leoni AG are the major companies operating in the Automotive Wiring Harness Market.
Which is the fastest growing region in Automotive Wiring Harness Market?
North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Automotive Wiring Harness Market?
In 2024, the Asia-Pacific accounts for the largest market share in Automotive Wiring Harness Market.
What years does this Automotive Wiring Harness Market cover?
The report covers the Automotive Wiring Harness Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Automotive Wiring Harness Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the challenges faced by the Automotive Wiring Harness Market?
Key challenges faced by the Global Automotive Wire Harness Market are a) High cost of advanced wiring harnesses b) Need for durability and reliability in harsh conditions c) Fluctuating Raw Material Prices
What are the recent trends in the Automotive Wiring Harness Market?
Recent Trends in the Automotive Wiring Harness Market include a) Integration of advanced materials for weight reduction b) Modular harness designs c) Increased focus on sustainability
Automotive Wiring Harness Industry Report
The global automotive wire harness market is witnessing remarkable growth, fueled by the surge in electric vehicle (EV) demand and the integration of sophisticated safety and infotainment systems in cars. This growth is significantly supported by automotive wiring harness manufacturers who are innovating with lightweight, efficient materials like aluminum and optical fibers to meet the high-speed communication needs of connected and autonomous vehicles. The Asia Pacific region stands out as a major player due to its high vehicle production and EV adoption rates, alongside a keen focus on vehicle safety and connectivity that demands advanced wiring solutions. Despite challenges like fluctuating raw material costs, the wiring harness industry is set for sustained expansion, driven by vehicle electrification, stringent safety norms, and consumer demand for high-tech vehicle features. For detailed insights, Mordor Intelligence™ offers comprehensive analysis and forecasts on market share, size, and revenue growth in the automotive wiring harness sector, available as a free PDF download.
