Automotive Wires Market Size, Market Share, Application Analysis, Regional Outlook, Growth Trends, Key Players, Competitive Strategies and Forecasts, 2022 To 2030

The automotive wires market is anticipated to grow at a compound annual growth rate of 6.5% during the forecast period of 2022 to 2030. The rising incorporation of digital modules into automotive vehicles is anticipated to drive sales, which will enable the automotive wires market. It is anticipated that the level of rivalry among main automotive wire makers would increase as a result of the increased demand for electric vehicles and fuel-efficient automobiles. There are a lot of wires inside of a vehicle, and when all of these cables are extended, they can go on for miles. Wires and cables play a significant role in practically all of the functions that can be found in a car, including the engine, the gearbox, the lights, the braking, the air conditioners, the seat heaters, and the different dashboard functions, such as the speedometer and the fuel metre. The number of situations that call for the use of wires in automobiles has expanded dramatically throughout the course of history thanks to the development of novel technology and the precipitous rise in the expectations of consumers. The demand outlook for the automotive wires industry was negatively impacted as a result of the COVID-19-induced slowdown in automobile sales. However, a rebound in automotive production led to a 4.8% increase in sales in the market between the years 2020 and 2021.

Expected Increase in Vehicle Production to Boost the Market:

The growing desire for enhanced safety, convenience and comfort and the increasing volume of vehicle production is projected to increase the demand for the automotive wiring harness market. Between the years 2022 to 2030, it is anticipated that the dashboard/cabin application would represent the largest volume-based sector of the market for automotive wire. As a result of increasing environmental concerns, rising prices of fossil fuels, and stringent government rules for pollution, the market for automotive wiring is expected to evidence the strongest growth in electrical vehicles. Since electric cars (EVs) utilise a significantly higher number of electronic components than conventional automobiles (CAs), the market for automotive wire is also anticipated to be driven by the growing popularity of EVs. Since the in-house development of wire-manufacturing techniques by automobile manufacturers would be relatively expensive, the production of wire for electric vehicles needs to be handled by companies that specialise in the production of wire and cables.

Emerging Trends in Automobile Industry to Promise Significant Opportunities During the Forecast Period

It is anticipated that a rising preference for lightweight passenger cars as a means of reducing carbon emissions would lead to an increase in demand for automotive wire. In response to rigorous laws set to minimise carbon emissions from automobiles, manufacturers will focus on the production of automotive wires made of aluminium in order to lower the overall weight of the vehicle. This will help meet the requirements of the new regulations. Opportunities for market expansion will present themselves as the level of attention placed on the improvement of automotive wire standards. In addition to this, the rising acceptance of driverless vehicles, electric automobiles, and hybrid cars will continue to drive the market for automotive wires. Because these vehicles need greater connectivity to ensure the safety of passengers, it is anticipated that this will create an atmosphere that is favourable for the expansion of the market for automotive wires during the course of the evaluation period.

It is projected that the emerging trend of autonomous and 'connected' automobiles will have a direct impact on the sales of automotive wires. The need for automotive wires is being driven in large part by the proliferation of electronic systems that improve the convenience, security, and connectivity of vehicles for their occupants. It is anticipated that this pattern will carry on during the time under review. The phrase "connected automobiles" refers to the utilisation of onboard mobile network interfaces that make it possible for motor vehicles to communicate with one another on their operations, locations, maintenance needs, and various other types of data. Internet access on both the automobile and the mobile device is made possible by these connections. During the course of the previous few years, certain types of automobiles have been equipped standardly with SIM card slots. A wide variety of onboard sensors, radar, light detection and ranging (lidar), computers, and cameras are essential to the operation of connected and autonomous vehicles.

Market by Component: Revenue Share of Copper to Significantly Increase During the Forecast Period

With respect to market segmentation by component, it is anticipated that the market share held by copper automotive wires will significantly expand over the course of the evaluation period. Because of its excellent conductivity, ductility, and dependability, copper is frequently utilised in the manufacturing of automotive wires. In order to support the rapid pace of technological advancement in the automobile industry, more and more applications are being found for small gauge wires. In order to produce fuel-efficient vehicles, original equipment manufacturers (OEMs) are working to decrease gauge size in order to lessen the overall weight of vehicles. In comparison to aluminium, the intrinsic characteristics of copper make it more suitable for usage in applications that require thinner gauges of the material. In addition to this, copper is much simpler to produce and install into packaged wiring applications, and it also has the capability of being sized appropriately for small bundles. Additionally, it solved the problems of corrosion and termination, which contributed to its rise to prominence as one of the materials most commonly used for automobile wires.

In addition to this, the cheap availability of raw materials like copper and aluminium, as well as the solid presence of automotive component manufacturers and OEMs in China, will position it as an appealing automotive wires market over the course of the evaluation period. The International Organization for Standardization (ISO) has produced strict automobile wire, which includes aluminium conductors, with the intention of reducing the number of varied wiring issues regarding standards and sizes. The new ISO standards lay out the requirements for the functionality, dimensions, and characteristics of aluminium wires that are used in automobiles, in addition to the procedures for testing them. The market for aluminium wires is expected to witness increased sales as the need for automobiles that are both fuel-efficient and lightweight continues to increase. Because of their low specific gravity, these wires help to bring down the overall expenses of wiring. Because of these advantages, the number of uses for them in the automobile industry is anticipated to rise over the course of the next several years. However, aluminium has poor conductor strength in comparison to copper, which has limited its usage in the past. This is especially problematic for wires that are used in engine compartments, which are frequently subjected to vigorous vibrations. In response to this, producers are working to develop high-strength aluminium alloys that have a strength that is greater than that of copper, so that they can be utilised in the engine compartments of vehicles. Because of this, there is currently a favourable climate for the purchase of aluminium automotive wires, which has resulted in the creation of lucrative prospects for original equipment manufacturers and producers of automotive components.

Market ""by Vehicle Type: Electric Vehicles to be the Fastest Growing Market

Automotive wires in electric vehicles are predicted to register the fastest growth during the forecast period. There has been an increase in the number of sales of electric vehicles as a direct result of strict laws addressing carbon emissions in a number of nations. It is anticipated that this trend will be beneficial for the market for automotive wiring. It is anticipated that the subsidies granted by government entities to assist the green effort and reduce carbon emissions will drive the manufacturing of electric and hybrid vehicles. When compared to traditional vehicles, these automobiles have a greater proportion of electric and electronic components and systems, which has led to an increase in the number of sales of automotive wires. The automotive wires industry's players are concentrating their efforts on meeting the cable requirements of electric automobiles at the moment. In electric vehicles, the circuits that control starting, charging, signalling, lighting, and the instrument panel all make use of low-tension electrical cabling. As a result, it is anticipated that the market for automotive wires will continue its upward trend in the area of electric vehicles.

Market by Applications: Automotive Wires for Chassis and Safety Applications to Lead the Growth

During the forecast period of 2022 to 2030. It is projected that demand for automotive wires for chassis and safety applications in automobiles would pick up steam over the course of the next several years. Automobile manufacturers are spending on research and development to create automotive wires that are capable of performing several functions in order to cut down on the total weight of the vehicles they produce. It is also anticipated that the advent of driverless vehicles will enhance sales of automotive wires in the chassis and safety market category. During the evaluation period, continued upward pressure on sales of automotive wires for chassis and safety applications will be exerted by the growing need for fuel-efficient automobiles that provide drivers with an improved driving experience.

Asia-Pacific to be the Global Leader

It is anticipated that the Asia-Pacific area will be the world's largest market for automobile wire market by the year 2030. The primary factors contributing to the market's expansion in this area are the rising per capita incomes in countries such as India and China, as well as the rising demand for premium automobiles and more technologically advanced features in vehicles. It is anticipated that the market for automotive wires in the North American region will be the second largest market worldwide. It is anticipated that the market for automotive wire would have significant expansion in North America, which is one of the main markets for vehicles in the premium segment. The region is also experiencing a meteoric rise in the demand for additional safety and convenience features in automobiles that fall within the mid-segment price range.

Market to Remain Consolidated with the Dominance of Top Players

The top five competitors in the automotive wire industry, which include Yazaki Corporation, Sumitomo Electric, Aptiv plc, Leoni, and Lear Corporation, account for almost 75% of the total sales of automotive wires in the year 2021. In order to acquire a competitive advantage in the market, key manufacturers of automotive wires are engaging in various business combinations, such as mergers, acquisitions, collaborations, and partnerships, in order to increase their manufacturing facilities. In addition to this, players are investing in research and development in order to improve the products that they have to offer in order to appeal to the expanding pool of consumers.

Historical & Forecast Period

This study report represents analysis of each segment from 2020 to 2030 considering 2021 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2022 to 2030.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Automotive Wires market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Automotive Wires market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Market Segmentation

Material

• Copper
• Oxygenic Copper
• Pure Copper (Oxygen Free)
• Copper Silver (CuAg)
• Copper Magnesium (CuMg)
• Copper Tin (CuSn)
• Aluminum
• Others (Nickel, etc.)

Vehicle

• Conventional Fuel Vehicles
• Passenger Vehicle
• Commercial Vehicle
• Electric Vehicles
• Hybrid Vehicles

Application

• Chassis and Safety
• Conventional Chassis
• Semi-forward Chassis
• Full-forward Chassis
• Body
• Facia
• Roof
• Door & Window
• Seat
• Interior
• Heating Ventilation & Air-Conditioning (HVAC)
• Engine
• Sensors

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Automotive Wires market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2030.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Automotive Wires market?
• Which is the largest regional market for Automotive Wires market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Automotive Wires market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Automotive Wires market worldwide?

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