The worldwide automotive wires market is expected to be worth US$ 4.82 billion in 2022 and US$ 4.93 billion in 2023. The global automotive market’s demand is increasing due to increased sales of vehicles such as passenger automobiles and commercial vehicles. According to Future Market Insights, the automotive wires market will grow at a CAGR of 6.03% between 2023 and 2033, totalling roughly US$ 8.86 billion by 2033.
The volume of manual labour involved in the manufacture of automobile wire has been reduced. Current and future application requirements include the addition of small electronic components, processing parameter monitoring, extensive process documentation needs, wage increase, and so on. Because of electrification and driverless cars, wiring harnesses have been integrated into safety-critical systems.
The provision of visible, repeatable, and intelligible procedures is critical to meeting greater quality and safety criteria; given that, wire harness production is now automated to the greatest extent feasible, with 90% of the labour still done by hand.
What are the key drivers to consider for the Automobile Wires Market?
The ISO has designed strict automotive wire, which contains aluminium conductors, to reduce numerous wiring issues in terms of standards and sizes. New ISO standards define the performance, size, properties, and testing processes for aluminium wires used in automobiles.
As the need for fuel-efficient and lightweight automobiles grows, so will sales in the aluminium wires industry. Wires have low specific gravity and minimise total wiring costs; because of these advantages, their use in the automobile industry is likely to grow in the future years.
Aluminum’s low conductivity compared to copper has previously limited its usage, as wires used in engine compartments are subjected to high vibrations. Manufacturers are creating high-strength aluminium alloys with greater strength than copper for usage in engine compartments.
FMI believes that the creation of attractive prospects for OEMs and automotive component makers by providing a favourable environment for sales of aluminium automotive wires will continue to stimulate sales of automotive wires.
How Will the Increase in Demand for Autonomous Vehicles Affect Automotive Wire Sales?
The emerging trend of autonomous and ‘connected’ vehicles is expected to have a direct influence on automotive wire sales. The development of technological features for the comfort, safety, and communication of drivers is a key contributor to demand for automotive wires, and this trend is likely to continue during the projection period.
The term ‘connected cars’ refers to the use of onboard mobile network interfaces that allow vehicles to exchange information about operations, location, maintenance requirements, road conditions, and other data as these connections support the car and mobile device’s internet usage, and some models of cars manufactured in recent years have SIM cards embedded.
- North America is considered one of the most lucrative markets for the automotive wires market with a market share of 28.9%, whereas the United States is estimated to account for 17.4% of the market share.
- Demand for automotive wires is projected to surge at a 4.98% CAGR, with Germany emerging as a lucrative pocket over the forecast period. Germany is recognized in the world for its outstanding automotive industry and superior automotive engineering, which makes it a leading automotive wires market in Europe.
- China is said to hold a market share of 8.78% in this region. Increasing production of autonomous vehicles in China, demand for automotive wires is expected to surge at a steady pace over the assessment period. China is expected to account for a dominant share in the East Asia automotive wires market as per FMI.
Some of the important developments of the key players in the market are:
- In May 2023,Rabat – Lear Corporation, an American automotive seating and electrical systems manufacturer, announced its plans for converting its Tangier plant into a Connection Systems facility. The movement of such is expected to generate around 150 new job opportunities while further focusing on Lear’s manufacturing footprint in Morocco.
In January 2023, Mouser Electronics, Inc., the authorized global distributor of the newest semiconductors and electronic components, announced a new distribution agreement with Yazaki North America, i.e., considered a leading manufacturer of connectors, wire harnesses, meters, and many other products that are of high-quality were used for automotive purposes.