Automotive Wires Market – By Material, By Vehicle Type, By Propulsion, By Transmission Type, By Application, By End User, By Geography - Opportunity Analysis & Industry Forecast, 2024-2030

Automotive Wires Market Overview:

The Automotive Wires Market size is estimated to reach $6.8 Billion by 2030, growing at a CAGR of 5.7% during the forecast period 2024-2030. The Automotive Wires Market is witnessing robust growth due to growing emphasis on vehicle safety and increase in adoption of electric vehicles globally. The automotive wire market is experiencing significant growth due to rising sales of electric vehicles. This is because wiring harnesses are an essential part of wiring systems that regulate almost every essential operation of an electric vehicle. Increase in use of electrical components in all types of vehicles is projected to drive the automotives wires market globally. 

Automotive wire demand is expected to rise due to the growing trend of lightweight passenger automobiles as a means of reducing carbon emissions. In response to stringent regulations aimed at reducing carbon emissions from automobiles, manufactures will concentrate on producing aluminium automotive wires to reduce the vehicle's overall weight. This is going to help in achieving the new regulations criteria. The rising focus on enhancing the standards for automotive wire will give opportunities for market expansion. For instance, according to US Auto Outlook 2024, light vehicle sales to grow 3.7% above last year’s level, rising to 16.1 million units. Additionally, the demand for automotive wires is expected to rise in parallel with the volume of vehicles being produced and the increasing demand from customers for better comfort, safety, and convenience. 

Automotives Wires Market - Report Coverage:

The “Automotive Wires Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Automotives Wires Market. 

COVID-19 / Ukraine Crisis - Impact Analysis:  

• The COVID-19 pandemic disrupted global supply chains, leading to delays in production and sales of automobiles which led to decrease in automotive wire manufacturing. Governments worldwide imposed lockdowns and restrictions, which led to shut down of mines, factories, and transportation networks, thus disrupting the supply of raw materials such as copper and aluminum, that are used in making automotive wires. 
• The Russia-Ukraine war had a huge impact on the global automotive wires market. Ukraine is a major manufacturer of copper, a material used as an automotive wiring component. The war has led to mining disruptions, which in turn has caused the shortages and increase in prices globally.

Key Takeaways:

Copper wires segment is Leading the Market 

Copper wires segment holds the largest share in the automotive wires market with respect to market segmentation by material. Electrification will be the biggest driver to copper demand for vehicles. Copper is used throughout electric vehicle powertrains, from foils in each cell of the battery to the windings of an electric motor. In total, each electric vehicle can generate over 30kg of additional copper demand. According to a report by IDTechEx, the demand for copper from the automotive industry was just over 3MT in 2023 but is set to increase to 5MT in 2034. Because of its electrical and chemical characteristics, copper is used in every part of the battery. There are lot of tiny cells in the battery, and each one has a copper foil to carry electricity out of the cell. Large copper bars placed throughout the battery also convey the energy from each cell to the high-voltage connections, which in turn power the motor and electronics. Such parts and components with the copper are driving the market growth of copper wires in automotive wires market. 

Passenger Vehicles are Leading the Market  

Passenger Vehicles segment is leading the Automotive Wires Market by Application. The passenger vehicle category is currently holding the largest share in the automotive wires market because of a combination of factors including large production volumes, a wide range of wiring requirements, technological developments, and the increasing adoption of electric vehicles. For instance, according to Global and EU Auto industry 2023 report by The European Automobile Manufacturers' Association (ACEA), European car production grew substantially, reaching nearly 15 million units, marking a significant year-on-year improvement of 12.6%. The growing popularity of electric vehicles (EVs) is also contributing to the growth of the passenger vehicle segment in the automotive wires market. EVs have more complex wiring systems due to the integration of batteries, motors, and charging infrastructure. 

Integration of Smart Systems in Automobiles 

Global demand for automotive wires is primarily driven by the integration of smart systems in automobiles. Modern automobiles have more wires because electronic control units (ECUs) are becoming more and more popular. Each ECU has been connected to a variety of sensors, actuators, and other ECUs through a complex network of connections. Automotive manufacturers are using sophisticated wiring solutions, such as light-weight harnesses, insulated cables and high-temperature-resistant wires to manage the rising number of connections and ensure reliable performance.  For instance, In July 2024, Compal Electronics Inc, a leading contract electronics manufacturer from Taiwan, announced plans to build its first European factory in Poland. The company intends to invest more than $15.4 million to target automotive electronics clients. This strategic move marks Compal's expansion into the European market. The need for complex and more advanced wiring solutions will continue to grow as automobiles become more technologically advanced, fueling the worldwide automotive wires market's expansion. 

Fluctuating cost of materials to hamper the market

The market for automotive wires is significantly impacted by the price fluctuations of raw materials, particularly copper and aluminum. These materials are necessary for making automobile wires, and the market's ability to expand may be severely hindered by their price instability. For instance, vehicle automation requires multiple sensors, as well as additional on-board computers. A standard autonomous system, with 12 cameras, seven Light Detection and Ranging sensors (LiDARs), eight radars and one automated driving control unit, will all depend on copper connections to function safely and reliably. Each sensor and computer contain printed circuit boards, which require approximately 50 – 100g of copper depending on the board’s size. when automation and electrification are combined, the amount of copper required for vehicle production further increases. As of April 2024, copper prices on the London Metal Exchange (LME) were around $9,644 a ton. The rise in cost of copper can significantly reduce profit margins for manufacturers, making it more challenging to compete in the market.

For more details on this report - Request for Sample

Key Market Players: 

Product/Service launches, approvals, patents and events, acquisitions, partnerships, and collaborations are key strategies adopted by players in the Automotive Wires Market. The top 10 companies in this industry are listed below:

1. Aptiv plc
2. Yazaki Corporation
3.  Furukawa Electric Co., Ltd
4. Sumitomo wiring systems
5. Nexans SA
6.  Fujikura Ltd
7. Samvardhana Motherson International Ltd
8.  Leoni AG
9. Lear Corporation 
10. THB Electronics 

Scope of the Report: 

For more Automotive Market reports, please click here