Automotive Wiring Harness Market Report By Component (Electric Wires, Connectors, Terminals, Others), By Application (Body, Roof, Door & Window, Facia, Seat, Engine, Chassis, HVAC, Sensors), By Vehicle Type (Passenger Cars, Commercial Vehicles, LCV HCV), By Propulsion, By Material, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Global Automotive Wiring Harness Market size is expected to be worth around USD 75.6 Billion by 2033, from USD 50.6 Billion in 2023, growing at a CAGR of 4.10% during the forecast period from 2024 to 2033.

The Automotive Wiring Harness Market refers to the comprehensive assembly of electrical cables and wires used in vehicles. These harnesses are designed to streamline the electrical system by bundling wires together, ensuring efficient connectivity and communication within various automotive components.

Essential for transmitting power and signals for functionalities like lighting, engine performance, and entertainment systems, wiring harnesses are pivotal for vehicle operation and safety. As the automotive industry evolves with technological advancements, the demand for more sophisticated wiring harnesses increases, making this market crucial for manufacturers focused on innovation and reliability.

The Automotive Wiring Harness Market is poised for substantial growth, driven by rapid advancements in vehicle technology and connectivity. According to a recent report by the RAC, an estimated 88% of new vehicles, translating to approximately 104 million units, are expected to feature some form of connectivity by 2025.

This surge in connected vehicles underscores the increasing demand for complex automotive wiring harnesses, essential for facilitating seamless communication and operational efficiency among various electronic components within these vehicles.

Furthermore, the Insurance Institute for Highway Safety projects a significant rise in autonomous vehicles, with forecasts indicating that up to 3.5 million self-driving cars will be present on U.S. roads by 2025, escalating to 4.5 million by 2030.

This evolution towards autonomy and connectivity highlights the critical role of automotive wiring harnesses in ensuring the reliability, safety, and performance of next-generation vehicles. As vehicles become more sophisticated, incorporating advanced safety systems, infotainment, and driver-assistance technologies, the complexity and importance of wiring harnesses escalate, demanding higher standards of quality and innovation from manufacturers.

The convergence of these trends presents a compelling opportunity for stakeholders within the Automotive Wiring Harness Market. Manufacturers and suppliers are thus encouraged to invest in research and development, exploring new materials and technologies to meet the evolving demands of the automotive industry.

Key Takeaways

• Market Growth Projection: The Global Automotive Wiring Harness Market is projected to expand significantly, reaching a value of approximately USD 75.6 Billion by 2033, indicating a notable increase from USD 50.6 Billion in 2023, with CAGR of 4.10%
• Component Breakdown: The market is segmented by components, with electric wires, connectors, terminals, and others being key elements. Terminals emerge as the dominant component, capturing a substantial market share of 32.4%.
• Application Segmentation: The Automotive Wiring Harness Market encompasses various applications, including body, roof, door & window, facia, seat, engine, chassis, HVAC, and sensors. Chassis applications dominate the market, accounting for 34.5% of the overall share.
• Vehicle Type Distribution: Passenger cars constitute the majority of the market, holding a dominant share of 58.4%. Commercial vehicles, including both Light Commercial Vehicles (LCVs) and Heavy Commercial Vehicles (HCVs), also contribute to market growth.
• Propulsion Type Analysis: Internal Combustion Engine (IC Engine) vehicles significantly dominate the market with an 82.1% share, while electric vehicles represent a smaller segment.
• Material Composition: Metallic materials, including aluminum, copper, and other metals, hold a commanding share of 72.4%. Additionally, optical fiber materials, such as plastic and glass, play a role in the market.
• Regional Dynamics: The Asia Pacific region emerges as the dominant force in the Automotive Wiring Harness Market, commanding a substantial market share of 47.3%.

Driving Factors

Adoption of New Technologies Drives Market Growth

The Automotive Wiring Harness Market is experiencing significant growth, fueled by the adoption of new technologies in the automotive industry. Innovations such as vehicle lightweighting, enhanced connectivity, and the push towards autonomous driving necessitate advanced wiring harness designs and the use of novel materials.

For instance, the shift from traditional copper to lightweight aluminum wiring harnesses exemplifies this trend, catering to the industry’s demand for efficiency and reduced vehicle weight. Major automakers, including Audi, BMW, Ford, General Motors, Tesla, and Volvo, are at the forefront of integrating vehicle-to-vehicle (V2V) and vehicle-to-everything (V2X) technologies, which require sophisticated wiring solutions to support high-speed data transmission and connectivity.

Growing Complexity in Vehicle Design Amplifies Market Demand

The increasing complexity of vehicle design, marked by the integration of advanced electronics and features such as Advanced Driver Assistance Systems (ADAS), is propelling the Automotive Wiring Harness Market forward. McKinsey’s research underscores that automotive software complexity has quadrupled over the past decade, contributing to a rise in the per vehicle harness content.

Modern vehicles, equipped with a myriad of electronic systems for safety, entertainment, and vehicle management, require intricate wiring harnesses capable of supporting extensive electrical architectures. This growing complexity not only demands more sophisticated wiring solutions but also elevates the importance of wiring harnesses in vehicle design and functionality, further driving market growth.

Shift Towards Electric Vehicles Catalyzes Market Expansion

The shift towards electric vehicles (EVs) represents a pivotal growth driver for the Automotive Wiring Harness Market. A survey by JD Power reveals that as of June 2023, 63% of consumers are considering purchasing an EV, up from 57% in 2021. Additionally, the production of electric vehicles has seen a significant uptick, with approximately 442,000 units manufactured in 2022 alone.

EVs necessitate more complex wiring systems than their internal combustion counterparts, owing to the presence of large battery packs, multiple electric motors, and the need for intricate power management systems. This complexity significantly increases the wiring content per vehicle, underscoring the shift towards EVs as a major catalyst for market growth.

Restraining Factors

Rising Wire Harness Complexity Restrains Market Growth

The escalating complexity of automotive wiring harnesses, driven by the increasing integration of electronics in vehicles, presents significant challenges to market growth. As vehicles become more advanced, incorporating a wide range of electronic systems for connectivity, safety, and efficiency, the wiring harnesses required to interconnect these components also become more complex.

This complexity can lead to potential quality issues, as the risk of faults or failures in the harness increases, potentially impacting vehicle reliability and safety. Manufacturers face the dual challenge of managing this complexity while ensuring high standards of quality and durability, which can restrain growth by increasing production costs and leading to higher warranty claims and recalls.

Volatility in Raw Material Prices Impacts Market Stability

Volatility in the prices of key raw materials, such as copper and aluminum, which are fundamental components of automotive wiring harnesses, poses another significant challenge to the market’s growth. Economic conditions, market demand, and geopolitical factors can lead to fluctuations in these materials’ prices, impacting the cost of production for wiring harness manufacturers.

This volatility can squeeze margins and force manufacturers to adjust pricing strategies, potentially making automotive wiring harnesses more expensive for automakers. The uncertainty associated with raw material costs can hinder strategic planning and investment in the development of new, more advanced wiring harness solutions, ultimately affecting the market’s ability to expand in line with automotive industry innovations.

Component Analysis

Terminals, holding a dominant market share of 32.4%, play a crucial role in the Automotive Wiring Harness Market. This dominance is attributed to terminals’ essential function in ensuring reliable electrical connections within a vehicle’s wiring harness.

They serve as the critical interface points where wires are connected to components, making their quality and performance vital for the overall electrical system’s integrity. The demand for terminals is driven by the increasing electronic complexity of modern vehicles, requiring more connection points to support advanced features like ADAS, infotainment, and electrification.

The other segments, including Electric Wires, Connectors, and Others, contribute significantly to the market’s growth. Electric Wires form the backbone of the wiring harness, transmitting power and signals across the vehicle. Connectors facilitate modular assembly and maintenance of vehicle components, enhancing the system’s flexibility and reliability.

The Others category encompasses protective materials and assembly aids, which are crucial for the durability and performance of wiring harnesses. While terminals dominate due to their critical role in electrical connectivity, the growth and evolution of the other components are closely tied to the advancements in vehicle technology and the increasing integration of electronics in automotive design.

Application Analysis

In the application segment, Chassis wiring harnesses hold the dominant position with a market share of 34.5%. This dominance is supported by the chassis harness’s fundamental role in connecting the vehicle’s critical systems, including the engine, transmission, and wheel sensors, among others. It’s instrumental in ensuring the operational integrity of powertrain, braking, and stability control systems, which are essential for vehicle safety and performance. The increasing complexity of these systems, coupled with the shift towards electrification and autonomous driving technologies, underscores the chassis harness’s importance.

The remaining application segments, such as Body, Roof, Door & Window, Facia, Seat, Engine, HVAC, and Sensors, each serve specific functionalities within the vehicle. For instance, Body wiring harnesses cater to the power distribution and connectivity needs of the vehicle’s interior components, while Engine harnesses focus on the engine management systems.

HVAC and Sensors harnesses are increasingly important with the rise in vehicle automation and the need for climate control. Although the Chassis segment dominates due to its critical role in vehicle functionality, each application segment contributes to the market’s growth by addressing the diverse and evolving electrical and connectivity requirements of modern vehicles.

Vehicle Type Analysis

Passenger Cars emerge as the dominant segment within the Automotive Wiring Harness Market, holding a significant market share of 58.4%. This dominance is attributed to the rising global demand for passenger vehicles, fueled by increasing disposable incomes, urbanization, and a growing preference for private over public transportation, particularly in emerging economies. Passenger cars require sophisticated wiring harness systems to support advanced features like infotainment, navigation, safety systems, and increasingly, electrification, which drives demand in this segment.

Commercial Vehicles, including LCV (Light Commercial Vehicles) and HCV (Heavy Commercial Vehicles), though not as dominant, play a vital role in the market. These vehicles often require more robust wiring harnesses designed to withstand harsher operating conditions, contributing to market diversity and growth opportunities, especially in sectors like logistics and construction.

Propulsion Analysis

IC Engine Vehicles hold the largest market share in propulsion type, at 82.1%. Despite the growing interest in electric vehicles, internal combustion engines remain prevalent due to their widespread adoption, existing infrastructure, and until recently, lower upfront costs. However, the segment faces challenges from environmental regulations and the push towards electrification.

Electric Vehicles (EVs), though currently smaller in market share, are rapidly gaining ground. The shift towards EVs is driven by technological advancements, environmental policies, and changing consumer preferences, indicating significant growth potential for wiring harnesses designed for electric propulsion.

Material Analysis

Metallic Materials, with a market share of 72.4%, are the backbone of automotive wiring harnesses, primarily due to their conductivity, durability, and efficiency in power transmission. Aluminum and Copper are the most commonly used metals, with copper being particularly favored for its superior electrical properties. However, the high cost of copper and the weight of metallic harnesses have led to interest in lighter alternatives.

Optical Fiber segments, including Plastic Optical Fiber and Glass Optical Fiber, though smaller in share, are gaining traction due to their advantages in high-speed data transmission, essential for supporting advanced vehicle technologies and connectivity features. This segment represents a growing area of innovation, offering opportunities for weight reduction and enhanced data handling capabilities in modern vehicles.

Key Market Segments

By Component

• Electric Wires
• Connectors
• Terminals
• Others

By Application

• Body
• Roof
• Door & Window
• Facia
• Seat
• Engine
• Chassis
• HVAC
• Sensors

By Vehicle Type

• Passenger Cars
• Commercial Vehicles
• LCV HCV

By Propulsion

• IC Engine Vehicle
• Electric Vehicle

By Material

• Metallic
  • Aluminum
  • Copper
  • Other Metals
• Optical Fiber
  • Plastic Optical Fiber
  • Glass Optical Fiber

Growth Opportunities

Growing Adoption of Hybrid and Electric Vehicles Offers Growth Opportunity

The rising adoption of Hybrid and Electric Vehicles (HEVs and EVs) presents a significant growth opportunity for the Automotive Wiring Harness Market. HEVs and EVs necessitate more intricate wiring systems than their Internal Combustion Engine (ICE) counterparts, due to the need to manage complex powertrains, battery systems, and electronic controls.

This complexity increases the volume and variety of wiring and connectors required, driving demand within the wiring harness market. As environmental concerns and government policies worldwide push for a shift towards greener transportation, the adoption of HEVs and EVs is expected to rise.

Development of Autonomous Vehicles Offers Important Growth Avenue

The development of Autonomous Vehicles (AVs) marks another important growth avenue for the Automotive Wiring Harness Market. Self-driving technology relies on an array of radars, cameras, and sensors, all of which must be integrated into the vehicle’s system through complex wiring networks. The wiring harness for an autonomous vehicle must support high-speed data transmission and power supply to ensure seamless communication between various components.

This requirement for sophisticated wiring systems to accommodate the advanced technology of AVs opens up new market opportunities. As automotive manufacturers and tech companies invest in autonomous driving research and development, the demand for specialized, high-quality wiring harnesses is set to increase, offering a lucrative expansion pathway for players in the wiring harness market.

Trending Factors

Rising Demand for Smart Wiring Are Trending Factors

The demand for smart or intelligent wiring harnesses is a significant trending factor in the Automotive Wiring Harness Market. These advanced harnesses, equipped with sensors and diagnostic capabilities, are increasingly sought after for their ability to enhance vehicle safety, reliability, and functionality.

By integrating smart wiring systems, manufacturers can offer vehicles that not only self-diagnose issues but also provide real-time data to drivers and maintenance teams, improving the overall driving experience and vehicle upkeep. This trend towards smarter, more connected vehicles is driven by consumer expectations for higher levels of safety and convenience, pushing automotive manufacturers to innovate and expand their offerings in intelligent wiring solutions.

Growth in Luxury and Premium Vehicles Are Trending Factors

The increasing growth in the luxury and premium vehicle segments, especially in emerging markets, presents another trending factor in the Automotive Wiring Harness Market. These vehicles, known for their high levels of comfort, safety, and technology features, require more sophisticated and complex wiring harnesses to accommodate their advanced systems.

The demand for luxury vehicles is rising, fueled by growing disposable incomes and a stronger preference for vehicles equipped with the latest technologies and features. This shift provides a significant opportunity for the wiring harness market, as manufacturers must develop and supply harnesses that meet the elevated standards of the luxury segment, driving innovation and growth within the industry.

Regional Analysis

Asia Pacific Dominates with 47.3% Market Share

Asia Pacific’s dominance in the Automotive Wiring Harness Market is largely attributed to the rapid growth of automotive manufacturing and sales in countries such as China, Japan, India, and South Korea. The region benefits from a strong presence of major automobile manufacturers, coupled with increasing demand for vehicles equipped with advanced technology and safety features.

The region’s market dynamics are influenced by its large consumer base, rising middle-class population, and growing preferences for vehicles with high-end electronics. Additionally, government initiatives towards electric vehicles (EVs) in countries like China and Japan further propel the demand for sophisticated wiring harnesses.

Looking ahead, Asia Pacific is expected to maintain its lead in the Automotive Wiring Harness Market. The region’s commitment to electrification, combined with ongoing technological advancements and increasing vehicle production, suggests a continuing upward trajectory in market share and influence.

North America: A Hub of Innovation and Growth

North America remains a significant player in the market, driven by technological advancements, a high adoption rate of EVs and autonomous vehicles, and stringent safety regulations. The presence of major automotive and tech companies fosters a conducive environment for the development of advanced wiring harness systems.

Europe: Leading in Electrification and Safety Standards

Europe is at the forefront of vehicle electrification and stringent safety and environmental standards, influencing the demand for high-quality automotive wiring harnesses. The region’s focus on reducing emissions and promoting electric mobility continues to drive market growth.

Middle East & Africa: Emerging Opportunities Amidst Urbanization

The Middle East & Africa show potential for growth in the automotive sector, with urbanization and economic development fueling vehicle demand. However, the market for wiring harnesses is still developing, with opportunities linked to infrastructure expansion and industrial investment.

Latin America: Growing Automotive Production and Demand

Latin America’s automotive wiring harness market benefits from growing local vehicle production and increasing demand for passenger cars. Economic stabilization and trade agreements could further enhance the region’s market presence and attract investment in automotive manufacturing

Key Regions and Countries

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

In the Automotive Wiring Harness Market, key players such as Yura Corporation, Lear Corporation, Delphi Automotive LLP, Fujikura Ltd., and Sumitomo Electric Industries, Ltd., alongside others like Samvardhana Motherson Group and Yazaki Corporation, significantly shape the industry’s landscape. These companies are renowned for their market impact, strategic positioning, and innovation in developing sophisticated wiring harness solutions that cater to the evolving needs of the automotive sector. With a focus on quality, reliability, and advanced technology, they have established strong partnerships with major automotive manufacturers worldwide.

Yazaki Corporation and Sumitomo Electric Industries, Ltd., in particular, are noted for their extensive global footprint and capacity to supply a wide range of automotive markets, from passenger cars to commercial vehicles. Lear Corporation and Delphi Automotive LLP stand out for their investment in research and development, driving forward the integration of smart technologies in wiring harnesses. The Samvardhana Motherson Group and SPARK MINDA highlight the industry’s focus on diversification and customization, offering tailored solutions that meet specific manufacturer requirements.

Market Key Players

• Yura Corporation
• Aptiv PLC
• Lear Corporation
• Delphi Automotive LLP
• Fujikura Ltd.
• Sumitomo Electric Industries, Ltd.
• SamvardhanaMotherson Group
• SPARK MINDA
• THB Group
• NexansAutoelectric
• Yazaki Corporation
• PKC Group
• Furukawa Electric Co. Ltd
• Leoni Ag

Recent Developments

• On June 2023, Egypt and Japan’s Sumitomo have commenced the construction of a $100 million car electric-wiring factory in the 10th of Ramadan City. It is part of a larger project that includes the construction of a technical education training center and a research center.
• On March 2022, Skoda has taken several measures to address the challenges, including relocating cable harness production from Ukraine to the Czech Republic and increasing the number of cable harnesses manufactured at its Ukrainian plant.
• In 2022, Morocco had announced new investment deals worth $180 million with five automotive cable suppliers, in an effort to meet the growing demand from electric-vehicle (EV) makers. The investment includes the establishment of new wiring plants and the expansion of existing ones by companies such as Japan’s Yazaki, Sumitomo, U.S. supplier Lear, Germany’s Stahlschmidt, and TE Connectivity.

Report Scope