The automotive wiring harness is an arrangement of wires or cables that is used to transfer information and power in a vehicle. It mechanically supports and electrically connects different components inside a vehicle, allowing transmission of power and information in the vehicle. Wiring harnesses connect various subsystems like lighting, air conditioning, sensors, and others to carry signals and power. They help in reducing the complexity and weight of wiring compared to individual wiring for each electrical component. The increasing electrification of vehicles and introduction of autonomous and connected vehicle technologies has resulted in significant growth in the wire count in vehicles, thereby propelling the demand for high quality wiring harnesses.
The global Automotive Wiring Harness Market is estimated to be valued at US$ 70.2 billion in 2023 and is expected to exhibit a CAGR of 8.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends gaining traction in the automotive wiring harness market is the adoption of thermoplastic polyurethane (TPU) as an insulating material. TPU offers various advantages like high flexibility, abrasion resistance, chemical resistance, and strength. It helps reduce the weight and size of wiring harnesses as compared to conventional materials like PVC or rubber. The versatility and high temperature resistance of TPU makes it suitable for applications in harsh under-hood conditions as well as wire coatings. Leading harness manufacturers are focusing on developing lightweight and multifunctional wiring harnesses by utilizing high-performance polymers like TPU over conventional PVC and rubber insulation in order to meet stringent government regulations regarding fuel efficiency and emissions.
Porter’s Analysis
Threat of new entrants: The automotive wiring harness market requires high investments for R&D and manufacturing facilities. Established players enjoy economies of scale and brand reputation making market entry difficult for new players.
Bargaining power of buyers: Large automotive manufacturers hold strong bargaining power over suppliers as wiring harnesses are indispensable components. Buyers can negotiate on price and demand value-added features.
Bargaining power of suppliers: A few major companies dominate the supply market. Suppliers rely on long-term contracts limiting their bargaining power against dominant automakers.
Threat of new substitutes: There are limited substitutes for wiring harnesses as they play a critical role in vehicle operations. New technologies may pose a long-term threat.
Competitive rivalry: The market has a few global leaders with broad product portfolios. Intense competition on pricing, innovation, and delivery capabilities.
Key Takeaways
The Global Automotive Wiring Harness Market Growth is expected to witness high driven by rising vehicle production and focus on electrification. The global Automotive Wiring Harness Market is estimated to be valued at US$ 70.2 billion in 2023 and is expected to exhibit a CAGR of 8.6% over the forecast period 2023 to 2030.
Regional analysis: Asia Pacific dominates the market led by China, India, and Japan. The region is a manufacturing hub for automakers and accounts for over 50% of global vehicle production. Europe is another major market led by Germany. North America is recovering on the back of demand for light commercial vehicles in the US and Canada.
Key players: Key players operating in the automotive wiring harness market are Yazaki Corporation, Sumitomo Electric Industries, TE Connectivity, Leoni AG, Aptiv PLC, PKC Group, Furukawa Electric Co., Ltd., Lear Corporation and HIROSE Electric Group.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it