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Wire Harness Market to Expand by USD 40.52 Billion (2023-2027) Driven by Rising Automotive Sales and AI Influence on Market Trends - Technavio Report

Global Wire Harness Market 2023-2027

News provided by

Technavio

Sep 04, 2024, 17:20 ET

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NEW YORK, Sept. 4, 2024 /PRNewswire/ -- Report on how AI is redefining market landscape- The global wire harness market size is estimated to grow by USD 40.52 billion from 2023-2027, according to Technavio. The market is estimated to grow at a CAGR of over 6.2% during the forecast period. Increasing automotive sales is driving market growth, with a trend towards increasing use of wire harnesses in EV sector. However, short life cycle of wire harnesses poses a challenge. Key market players include Amphenol Corp., BorgWarner Inc., Coroplast Fritz Muller GmbH and Co. KG, Cypress Holdings Ltd. Dba Cypress Industries, Fujikura Co. Ltd., Furukawa Electric Co. Ltd., Koch Industries Inc., Kromberg and Schubert Automotive GmbH and Co. KG, Kyungshin Co. Ltd, Lear Corp., Leoni AG, Methode Electronics Inc., Minda Corp. Ltd., Samvardhana Motherson International Ltd., Nexans SA, Prysmian Spa, Sumitomo Electric Industries Ltd., Tianhai Auto Electronics Group Co. Ltd., Yazaki Corp., and YURA Corp..

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Technavio has announced its latest market research report titled Global Wire Harness Market 2023-2027
Technavio has announced its latest market research report titled Global Wire Harness Market 2023-2027

Key insights into market evolution with AI-powered analysis. Explore trends, segmentation, and growth drivers- View the snapshot of this report

Wire Harness Market Scope

Report Coverage

Details

Base year

2022

Historic period

2017 - 2021

Forecast period

2023-2027

Growth momentum & CAGR

Accelerate at a CAGR of 6.2%

Market growth 2023-2027

USD 40.52 billion

Market structure

Fragmented

YoY growth 2022-2023 (%)

5.21

Regional analysis

North America, Europe, APAC, South America, and Middle East and Africa

Performing market contribution

North America at 47%

Key countries

US, China, Japan, India, and Germany

Key companies profiled

Amphenol Corp., BorgWarner Inc., Coroplast Fritz Muller GmbH and Co. KG, Cypress Holdings Ltd. Dba Cypress Industries, Fujikura Co. Ltd., Furukawa Electric Co. Ltd., Koch Industries Inc., Kromberg and Schubert Automotive GmbH and Co. KG, Kyungshin Co. Ltd, Lear Corp., Leoni AG, Methode Electronics Inc., Minda Corp. Ltd., Samvardhana Motherson International Ltd., Nexans SA, Prysmian Spa, Sumitomo Electric Industries Ltd., Tianhai Auto Electronics Group Co. Ltd., Yazaki Corp., and YURA Corp.

Market Driver

The electric vehicle (EV) market is experiencing significant growth due to increasing environmental concerns and government initiatives to promote their adoption. Countries such as the US, Germany, China, the Netherlands, and the UK are leading this trend by offering subsidies to manufacturers and buyers. China, for instance, provides subsidies for EV purchases. The growing demand for EVs will subsequently drive the need for wire harnesses, a crucial component in their production. Additionally, emerging economies like India, Brazil, Afghanistan, Iran, and several others, which are expected to contribute 60% of the global GDP by 2030, offer vast opportunities for automobile sales growth. These countries' expanding economies, increasing disposable income, and rapid urbanization are fueling automobile purchasing capacity. As a result, automobile manufacturers are diversifying their product portfolios to cater to various market dynamics, leading to the anticipated growth of the global wire harness market. 

The Wire Harness Market is experiencing significant growth due to increasing trends in various industries. In telecommunications, durable materials like titanium and stainless steel are preferred for producing robust wiring systems. In the health care sector, implantable devices require platinum, silicone, and other biocompatible materials. The geriatric population's growing need for health care services drives the demand for wire harnesses in medical equipment. In the automotive industry, there's a shift towards electrification, leading to an increase in demand for copper wiring harnesses and aluminum. Renewable energy systems, including solar panels and wind turbines, require wire harnesses made of durable materials like rubber and plastic. Smart TVs, robotic technologies, and automation in industries require wire harnesses with flexibility and customization to meet customer requirements. Wireless technologies, radar, sensors, parking systems, infotainment screens, and instrument clusters in electric and hybrid vehicles also rely on advanced wire harnesses. Battery management, powertrains, charging infrastructure, and fiber optic technology are other key areas driving the market growth. Safety and security, electronic features, and CO2 emissions reduction are crucial factors influencing the market trends. 

Request Sample of our comprehensive report now to stay ahead in the AI-driven market evolution!

 Market Challenges

  • The wire harness market faces a significant challenge due to the short life cycle of automotive vehicles and their electronic components. Manufacturers of wire harnesses and automotive electronics must respond to evolving consumer expectations and technological innovations by delivering enhanced products to OEMs and tier-1 suppliers. The continuous introduction of new automotive products necessitates a reduction in production cycle times to remain competitive. The entire automotive industry value chain is impacted by the short lifespan of vehicles and their components. Designing and developing a prototype for an automotive wiring harness takes 5-8 months, followed by 1-2 years of testing for automotive-grade compliance. This process takes approximately 1.5-3 years from prototype to commercial production. Rapid technological advancements also lead to inconsistent market demand for wire harnesses, posing a major challenge to the growth of the global wire harness market during the forecast period.
  • The Wire Harness Market faces several challenges in various industries. In automobiles, twisted pair cables and optical fiber cables are used for Ethernet networks and data transmission in cars, smart vehicles, and electric vehicles (EVs). However, the use of these cables increases the cost due to the rising demand for copper and the complexity of networks like CAN, LIN, and motor management harness. Urbanization leads to an increase in the production of passenger cars and heavy-duty vehicles, requiring more electrical wiring harnesses and insulation materials like vinyl, PVC polyurethane, thermoplastic elastomer, and polyethylene. Galvanic corrosion is a significant challenge in battery packs, power inverters, electric motors, and other electrical components, necessitating the use of appropriate insulation and materials. The aerospace and defense, medical equipment & devices, power and energy, agricultural equipment, elevators and escalators, and military machines industries also rely on wire harnesses for the flow of electricity, adding to the market's complexity. Copper costs and the need for optical fibers in long-distance data transmission are other challenges.

Discover how AI is revolutionizing market trends- Get your access now!

Segment Overview 

This wire harness market report extensively covers market segmentation by

  1. Application 
    • 1.1 Automotive
    • 1.2 Telecom
    • 1.3 Medical
    • 1.4 Industrial and others
  2. Material 
    • 2.1 PVC
    • 2.2 Vinyl
    • 2.3 Thermoplastic elastomer
    • 2.4 Polyurethane
    • 2.5 Polyethylene
  3. Geography 
    • 3.1 North America
    • 3.2 Europe
    • 3.3 APAC
    • 3.4 South America
    • 3.5 Middle East and Africa

1.1 Automotive- The automotive wire harness market is projected to expand at a moderate pace during the forecast period. A wire harness is an essential component in the automotive sector, responsible for transmitting electrical power or signals between various electronic devices. These devices include speakers, global positioning systems (GPS), advanced automated controls, and anti-lock braking systems (ABS). The automotive industry's growth will significantly contribute to the market's expansion. Wire harnesses are utilized in various automotive applications, such as body harnesses for power windows, dashboards, door locks, and interior electrical components, and chassis harnesses for the rear and front of the chassis. Engine harnesses are used in fuel injection systems, speed sensors, cruise control systems, and lock braking systems. The increasing adoption of electronics in automobiles to enhance comfort and safety features has fueled the demand for wire harnesses. Modern vehicles incorporate various electronic systems, such as wireless communication, entertainment, and instrumentation devices like GPS, Bluetooth, Wi-Fi, adaptive cruise control, and electronic control. New cars are also equipped with embedded cellular transmitters for mobile communication and distress signals in emergencies. The sophistication of automotive electronics has significantly increased over the past few decades, leading to an exponential rise in the demand for wire harnesses. Modern vehicles consist of several hidden electronic systems for driver assistance, including tire pressure sensors, collision sensors, cruise control, and keyless entry. These factors are anticipated to drive the growth of the wire harness market during the forecast period.

Download a Sample of our comprehensive report today to discover how AI-driven innovations are reshaping competitive dynamics

Research Analysis

The wire harness market encompasses the design, manufacturing, and installation of complex electrical systems in various industries, including automobiles, aircraft, and smart vehicles. Safety and security are paramount in this market, with wire harnesses ensuring the proper flow of electricity and insulation to prevent short circuits and electrical fires. Electronic features, such as radar, sensors for parking systems and infotainment screens, require intricate wire harnesses for seamless integration. Electric and hybrid vehicles, with their battery management systems and charging infrastructure, also heavily rely on wire harnesses. Fiber optic technology is increasingly being used to enhance data transfer and improve overall performance. Powertrains and instrument clusters also utilize wire harnesses for efficient electrical connections. Overall, wire harnesses play a crucial role in enabling advanced technological features and ensuring the safe and reliable operation of various systems in cars, aircraft, and other smart vehicles.

Market Research Overview

The Wire Harness Market encompasses a diverse range of applications, from passenger cars and heavy-duty vehicles to aircraft, military machines, and renewable energy systems. Safety and security are paramount in this industry, with a focus on electronic features such as radar, sensors, parking systems, and infotainment screens. Electric vehicles (EVs) and hybrid vehicles are driving growth, with an increasing emphasis on battery management, powertrains, charging infrastructure, and motor management harnesses. Fiber optic technology, copper wiring harnesses, aluminum, twisted pair cables, optical fiber cables, Ethernet, and various networks like CAN, LIN, LDS, and Ethernet are essential components. Electric power, battery packs, power inverters, electric motors, and data transmission are also key elements. Copper costs, insulation materials like vinyl, PVC polyurethane, thermoplastic elastomer, and polyethylene, and materials like titanium, stainless steel, platinum, silicone, and geriatric population-focused health care services are also part of the market landscape. Urbanization and the shift towards smart vehicles, smart TVs, and automation are further expanding the market's reach.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

  • Application
    • Automotive
    • Telecom
    • Medical
    • Industrial And Others
  • Material
    • PVC
    • Vinyl
    • Thermoplastic Elastomer
    • Polyurethane
    • Polyethylene
  • Geography
    • North America
    • Europe
    • APAC
    • South America
    • Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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