The automotive wiring harness market accounted for USD 33. 58 billion in 2020, and it is expected to reach USD 43. 72 billion by 2026, projecting a CAGR of over 4. 19 % during the forecast period.
New York, Nov. 03, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Automotive Wiring Harness Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06179110/?utm_source=GNW
The COVID-19 outbreak has had a swift and severe impact on the globally integrated automotive industry. The shutdown of production lines of many OEMs has indirectly affected the automotive wiring harness market. However, with the gradual removal of lockdowns in several countries, the demand for vehicles has slightly increased, which is expected to propel the market forward in the coming years.
However, post-pandemic, due to the global consumer preference of individual transport, increasing demand for autonomous vehicles, and safety, the future prospect for the market is definitely hopeful. With the COVID-19 pandemic affecting the global transport economy, more automated vehicles are going to be introduced in order to overcome the economic slowdown and stabilize the revenue. This opens the tremendous potential for revenue and employment generation in this market.
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. With the continual rise in accidents caused by automation faults, both customers and governments are exhibiting an increased interest in advanced safety features and are working on enhancing their vehicle’s safety systems, which is expected to drive the wire harness market.
Key Market Trends
Increasing Electric Vehicles are Driving the Market
In 2020, global plug-in electric car sales increased by 39% year on year to 3.1 million units. In 2020, China and Europe sold 1.3 million electric vehicles, four times the number sold in the United States. In the United States, electric vehicle sales accounted for only 2.4 percent of all new automobile sales. By the end of 2026, yearly sales of battery-electric passenger cars are expected to surpass 7 million. By the end of 2026, it is estimated to contribute around 15% of total vehicle sales.
In recent years, the electric car market has shown significant growth rates. EV sales are increased by double digits in several European countries in 2020. In 2020, the European region accounted for about 43% of worldwide electric vehicle sales, up from 26% in 2019. This surge in sales is primarily owing to increased regulatory norms imposed by various organizations and governments in order to limit emissions and promote zero-emission automobiles.
The rise in the number of electric vehicles is still majorly driven by the policy environment. The ten leading countries in electric vehicle adoption such as China, the United States, Norway, Germany, Japan, the United Kingdom, France, Sweden, Canada, and the Netherlands have a range of policies in place to promote the uptake of electric vehicles. As more electric vehicles come on road, the wiring harness market is also expected to witness growth owing to the fact that wiring harness is more used in electric vehicles than conventional fossil fuel vehicles.
Asia-Pacific to Dominate The Market
Asia-Pacific region is expected to have a majority share in the automotive wiring harness market. Rising disposable income along with an increase in GDP in the Asia Pacific is driving the market.
For many years, China has been the world’s largest vehicle manufacturer. China accounts for more than 30% of global automobile production. This capability surpasses that of the European Union, the United States, and Japan put together. China is also the world’s biggest producer and seller of electric automobiles. The automotive wiring harness market in China is expected to increase significantly during the forecast period, owing to rising electrification in conventional vehicles and rising adoption rates of electric vehicles. 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 in China are expected to create a positive outlook for market growth.
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 for automobile sector. Additionally, number of new vehicle registrations per year is increasing in India, which is serving as a positive growth environment for automotive wiring harness manufacturing companies.
The South Korean government has set high goals for its electric vehicle industry over the next ten years, and the country is making heavy investments in both the vehicles and in the infrastructure necessary to support them. The expanding automobile sector, along with the elevating levels of electrification of vehicles, anticipated to augment the wiring harness market.
Some of the major players dominating the market are Furukawa Electric, Borg Warner Inc., 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 different 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. In order to gain a considerable edge over other players in the market, many companies are forming partnerships to bring the latest features to their products. For instance,
- In October 2020, Hunan Tian Hai Electric Co. Ltd, a subsidiary of Tian Hai Group, announced that it successfully reached a new agreement with BAIC to produce wiring harnesses for the BAIC C53 and C62 series models with an order amount of CNY 57.8 million.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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