by Automotive wire and cable materials are used in automotive applications to transmit signals and power in vehicles. These products are made up of copper, aluminum and polymers like PVC, TPE, rubber, and neoprene. Some key uses of automotive wires and cables include battery cables to connect the battery, data communication cables for connectivity features, jumper cables to start vehicles with dead batteries, ignition wires to deliver electrical signals to spark plugs and several other applications.
The global Automotive Wire And Cable Materials Market is estimated to be valued at US$ 4930.42 Mn in 2023 and is expected to exhibit a CAGR of 6.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Rising electric vehicle sales driven by stringent emission norms is a key factor driving growth of the automotive wire and cable materials market. Automobiles with electric powertrains require extensive wiring systems to power electric motors and transfer high voltages safely. This is propelling demand for specialized cables made of materials like copper, aluminum and thermoplastic elastomers. For instance, an electric vehicle on average uses double the wiring harness compared to internal combustion engine vehicles.
Another factor fueling the market growth includes increasing adoption of advanced driver assistance systems and infotainment solutions in cars. Vehicles nowadays embed a complex network of data cables to enable connectivity between various electronic control units and support technologies like blind spot monitoring, adaptive cruise control and interactive touchscreens. This rising deployment of electronics and connectivity in automobiles acts as a high impact rendering driver for the concerned market.
Segment Analysis
The global automotive wire and cable materials market is dominated by copper sub segment. Copper is extensively used due to its high electrical conductivity, ductility, strength and resistance to corrosion. Copper wires are able to carry more current than aluminium for the same weight and diameter. They are reliable for withstanding high temperatures inside the engine compartment. Due to these properties, copper accounts for more than 70% of wires used in vehicle manufacturing.
PEST Analysis
Political: Stringent government regulations regarding fuel efficiency and vehicle emissions are prompting automakers to reduce vehicle weight through adoption of lightweight materials like aluminium and copper wires.
Economic: Rising disposable income and demand for premium vehicles is encouraging automakers to focus on electronics and autonomous features which require extensive wiring deployment.
Social: Increasing consumer preference for upgraded connectivity, infotainment and safety features is driving the need for advanced cabling infrastructure within automobiles.
Technological: Manufacturers are investing in R&D to develop lighter, thinner and multi-functional cable designs to enhance electrical performance, simplify assembly and enable features like electric & hybrid vehicles.
Key Takeaways
The global Automotive Wire And Cable Materials Market is expected to witness high growth, exhibiting CAGR of 6.5% over the forecast period, due to increasing vehicle production and electronic content per vehicle. Asia Pacific dominates the market currently owing to presence of emerging economies like China and India with large automobile manufacturing bases and growing middle class.
The Asia Pacific region is expected to continue dominating the automotive wire and cable materials market during the forecast period, growing at a CAGR of over 7%. This can be attributed to rapidly expanding automobile manufacturing clusters and sales in China and India. As disposable incomes rise, demand for personal vehicles is surging across APAC countries which is driving newer vehicle development and greater use of electronics.
Key players operating in the automotive wire and cable materials market include ACOME, Allied Wire & Cable Inc., Coficab Tunisie SA, Coroplast Fritz Muller GmbH & Co. KG, Coroplast Fritz Muller GmbH & Co. KG, Delphi Automotive PLC, Draka Holdings B.V. Lear Corporation, Leoni AG, Sumitomo Electric Industries, Ltd, and Yazaki Corporation. Key players are focusing on developing lightweight compact cable designs, halogen-free insulation materials and higher temperature resistant wires to tap into opportunities in electric mobility.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
