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    Automotive Connectors Market

    ID: MRFR/AM/1745-CR
    111 Pages
    Swapnil Palwe
    April 2023

    Automotive Connectors Market Research Report Information By Connection Type (Wire-to-Wire, Wire-to-Board, Board-to-Board), By System Type (Sealed, Unsealed Connector System), By Application (Body Control & Interiors, Engine Control & Cooling System, Safety and Security System, Others), By Vehicle Type (Passenger Car, Commercial Vehicle) And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) –Market Forecast Till 2032

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    Automotive Connectors Market Research Report - Global Forecast till 2032 Infographic
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    Automotive Connectors Market Summary

    As per Market Research Future Analysis, the Automotive Connectors Market was valued at USD 10.28 billion in 2023 and is projected to grow to USD 20.6 billion by 2032, with a CAGR of 8.0% from 2024 to 2032. Key drivers include the electrification of vehicles and increasing security needs. The market is influenced by advancements in safety features and the rising demand for electric vehicles, which necessitate high-quality connectors. The Asia-Pacific region is expected to dominate the market, with China holding the largest share and India being the fastest-growing market.

    Key Market Trends & Highlights

    The Automotive Connectors Market is witnessing significant growth driven by various factors.

    • Market Size in 2023: USD 10.28 billion.
    • Projected Market Size by 2032: USD 20.6 billion.
    • CAGR from 2024 to 2032: 8.0%.
    • Safety and security segment held over 26.0% market share in 2022.

    Market Size & Forecast

    2023 Market Size USD 10.28 billion
    2024 Market Size USD 11.1 billion
    2032 Market Size USD 20.6 billion

    Major Players

    Key players include E Connectivity (Switzerland), Delphi Automotive (UK), Yazaki Corporation (Japan), Sumitomo Electric (Japan), Amphenol Corporation (US), and Kyocera Corporation (Japan).

    Automotive Connectors Market Trends

      • Increasing safety and security concerns are driving the market growth

    Increasing safety and security concerns and government initiatives to enhance security drive the market CAGR growth. Vehicle security is also a major concern for vehicle manufacturers and governments. The manufacturers are installing advanced security features and investing in dedicated electronic units in the vehicle system, including a power train, braking, and steering. The demand for electric control units has increased in the past few years. Also, increasing security features such as central locking and airbags contributed to the market growth.

    From running GPS to distributing the power, the Automotive Connectors play a crucial role in the vehicle's functioning and many features. Even the slightest malfunctioning in the connectors can lead to big problems; as a result, the automakers are using high-quality connectors, which will drive the market. The rising demand for automotive sectors and increasing per capita income of people are also driving the Automotive Connectors Industry.

    According to the census data, America's motor vehicle manufacturers reported $344.4 billion in automotive industry shipments, $5.7 billion in total capital spending, and $261.7 billion in cost of materials in 2016.

    Additionally, increasing environmental concerns, the demand for electric vehicles is increasing. And to reduce carbon emissions, governments are taking many steps and promoting electric vehicles that will generate opportunities for the market. Demand for automotive wire harnesses and connectors has increased around the world. A plastic optical fiber (POF) replaces automobile copper connections to boost data transfer and design flexibility while reducing overall vehicle weight. Automotive connectors are required for POF to function properly. In addition, memory and data storage interfaces are used in sophisticated automotive systems to support Wi-Fi networks in automated vehicles.

    This and the growing popularity of hybrid automobiles propel the market forward. Adaptive front lighting, cruise control, park assistance, departure warning systems, as well as the use of machine learning in self-driving vehicles are projected to drive the market in the future years. Connector demand has increased as vehicle electrification has increased across all vehicle categories. Furthermore, rising public awareness of environmentally friendly mobility has resulted in a drop in electric vehicle sales and increased Automotive Connectors market revenue.

    The ongoing evolution of automotive technology, particularly in electric and autonomous vehicles, appears to be driving a robust demand for advanced connectors that facilitate enhanced connectivity and efficiency in modern vehicles.

    U.S. Department of Energy

    Automotive Connectors Market Drivers

    Market Growth Projections

    The Global Automotive Connectors Market Industry is projected to experience substantial growth over the coming years. With a market value of 11.1 USD Billion in 2024, it is expected to expand to 26.0 USD Billion by 2035, reflecting a robust compound annual growth rate (CAGR) of 8.03% from 2025 to 2035. This growth trajectory indicates a strong demand for automotive connectors driven by technological advancements and the increasing complexity of vehicle electronics. The market dynamics suggest that as vehicles become more connected and automated, the need for reliable and efficient connectors will continue to rise, shaping the future landscape of the automotive industry.

    Emergence of Autonomous Vehicles

    The emergence of autonomous vehicles is poised to revolutionize the Global Automotive Connectors Market Industry. As the automotive landscape shifts towards automation, the complexity of electronic systems increases, necessitating advanced connectors that can support high data transfer rates and robust communication protocols. The integration of sensors, cameras, and radar systems in autonomous vehicles requires a sophisticated network of connectors to ensure seamless operation. This trend is expected to drive significant growth in the market, as manufacturers seek to develop connectors that can withstand the unique challenges posed by autonomous driving technologies. The future of automotive connectors will likely be closely tied to advancements in vehicle autonomy.

    Expansion of Automotive Electronics

    The expansion of automotive electronics is a crucial factor propelling the Global Automotive Connectors Market Industry. With the increasing integration of infotainment systems, navigation, and telematics, the reliance on connectors has intensified. By 2035, the market is anticipated to reach 26.0 USD Billion, underscoring the importance of connectors in facilitating seamless communication between electronic components. This growth is indicative of a broader trend towards smart vehicles, where connectivity and data exchange are paramount. As automotive manufacturers strive to enhance user experience through advanced electronic features, the demand for reliable and efficient connectors is likely to surge, shaping the future of automotive design.

    Increasing Demand for Electric Vehicles

    The rising demand for electric vehicles (EVs) is a pivotal driver for the Global Automotive Connectors Market Industry. As manufacturers pivot towards electrification, the need for specialized connectors that can handle higher voltages and currents becomes paramount. For instance, the market is projected to reach 11.1 USD Billion in 2024, driven by the integration of advanced electrical systems in EVs. These connectors are essential for battery management systems, charging infrastructure, and power distribution. Consequently, the shift towards EVs not only enhances the demand for automotive connectors but also propels innovation in connector technology, ensuring safety and efficiency in electric mobility.

    Regulatory Standards and Safety Requirements

    Regulatory standards and safety requirements play a significant role in shaping the Global Automotive Connectors Market Industry. Governments worldwide are implementing stringent regulations to enhance vehicle safety and environmental performance. This has led to the adoption of connectors that meet specific safety standards, particularly in electric and hybrid vehicles. For example, connectors must comply with ISO and SAE standards to ensure reliability and performance under various conditions. As these regulations evolve, manufacturers are compelled to innovate and produce connectors that not only meet these requirements but also enhance overall vehicle safety. This trend is likely to drive demand for advanced connector solutions in the automotive sector.

    Growth of Advanced Driver Assistance Systems (ADAS)

    The proliferation of Advanced Driver Assistance Systems (ADAS) significantly influences the Global Automotive Connectors Market Industry. As vehicles become increasingly equipped with features such as adaptive cruise control, lane-keeping assistance, and automated parking, the complexity of electronic systems escalates. This complexity necessitates a robust network of connectors to ensure reliable communication between various components. The market is expected to witness a compound annual growth rate (CAGR) of 8.03% from 2025 to 2035, reflecting the growing integration of ADAS in new vehicle models. The demand for high-performance connectors that can withstand harsh automotive environments is likely to rise, further driving market growth.

    Market Segment Insights

    Automotive Connectors MarketSegment Insights

    Automotive Connectors Connection Type Insights

    The Automotive Connectors Market segmentation, based on connection type includes Wire-to-Wire, Wire-to-Board, and Board-to-Board. The wire-to-board segment is expected to register a CAGR of 6.3% over the forecast period. These transfer commands from electronic devices to PCB and vice versa. The other segment includes board-to-board connectors and is used to connect two or more printed circuit boards. The wire-to-board segment is expected to register a CAGR of 6.3% over the forecast period. These transfer commands from electronic devices to PCB and vice versa. The other segment includes a board to board connectors, which connect two or more printed circuit boards.

    April 2021 TactoTek and Amphenol ICC announced that they were collaborating to develop automotive-grade in-mold connectors for TactoTek IMSE technology. Amphenol ICC will bring new technology products to customers with transformational technologies like TactoTek’s IMSE combined with Amphenol ICC’s automotive-grade MicroSpace connector platform and Duflex crimp technology.

    March 2021 KYOCERA launched 0.4mm-Pitch 8152 series electronic connectors for automotive applications. It conforms to the high-speed transmission standard MIPI D-PHY (2.5 Gbps), PCI Express Gen2 (5Gbps), and Gen3 (8Gbps). The frame is shielded for a robust design and EMI reduction suitable for demanding automotive applications.

    Automotive Connectors System Type Insights

    Based on system type, the Automotive Connectors Market segmentation includes sealed, unsealed connector Systems. The sealed segment will dominate the market during the forecast period. Sealed connectors provide better protection against moisture, dust, and other environmental factors that can lead to corrosion and damage. This is particularly important in the automotive industry where connectors are exposed to harsh conditions such as high temperatures, vibration, and exposure to chemicals. In addition, the increasing demand for electric and hybrid vehicles is also driving the growth of the sealed connector system segment.

    Figure 1: Automotive Connectors Market, by System Type, 2024 & 2032 (USD billion)

    Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

    Automotive Connectors Application Insights

    The Automotive Connectors Market segmentation, based on application includes body control & interiors, engine control & cooling systems, safety, security systems, and others. The safety and security segment dominated the market with a share of over 26.0% in 2022. Advancements in technology have introduced many new safety features in vehicles, such as adaptive cruise control, adaptive front lighting, lane departure warning, and park assistance. Such functions require many sensors, electronic components, and ECUs. Various types of connectors are used to establish reliable connectivity between these components. Moreover, introducing machine learning and V2V communication has enhanced vehicle safety.

    Automotive Connectors Vehicle Type Insights

    Based on vehicle type, the Automotive Connectors Market segmentation includes passenger cars, commercial vehicles. The passenger car segment dominated the market. Increasing sales of cars in developing countries such as India and China is anticipated to boost the market growth. The commercial vehicles segment includes large trucks, buses, and light commercial vehicles. This segment is expected to witness exponential growth by 2025, fueled by increased stringency in safety regulations for commercial vehicles.

    Get more detailed insights about Automotive Connectors Market Research Report - Global Forecast till 2032

    Regional Insights

    By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific Automotive Connectors Market area will dominate this market; this Region is one of the biggest export hubs for different automotive parts due to low-cost labor, availability of raw materials, and advanced manufacturing facilities will boost the market growth in this Region. Moreover, China’s Automotive Connectors market held the largest market share, and the Indian Automotive Connectors market was the fastest-growing market in the Asia-Pacific region.

    Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

    Figure 2: Global Automotive Connectors Market Share By Region 2024 (%)

    Automotive Connectors Market Share By Region 2024

    Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

    Europe's Automotive Connectors market accounts for the second-largest market share due to the advanced driver assistant systems. The European Union has made it mandatory to use safety features in vehicles. Further, the German Automotive Connectors market held the largest market share, and the UK Automotive Connectors market was the fastest-growing market in the European Region.

    North America is expected to grow at the fastest CAGR from 2024 to 2032. This is due to the rise in automobile security needs and the increase in vehicle electrification.

    Key Players and Competitive Insights

    Leading market players are investing heavily in research and development in order to expand their product lines, which will help the automotive connectors market, grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The automotive connectors industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

    Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global Automotive Connectors industry to benefit clients and increase the market sector. In recent years, the Automotive Connectors industry has offered some of the most significant advantages to the automobile industry.

    Major players in the Automotive Connectors market, including E Connectivity (Switzerland), Delphi Automotive (UK), Yazaki Corporation (Japan), Sumitomo Electric (Japan), Japan Aviation Electronics Industry (Japan), Amphenol Corporation (US), Hirose Electric Co., Ltd (Japan), Hu Lane Associates Inc. (Taiwan), Korea Electric Terminal Co. Ltd (South Korea), and Kyocera Corporation (Japan) Increase in electrification in vehicles and others, are attempting to increase market demand by investing in research and development operations.

    Amphenol is one of the largest manufacturers on the planet you've never heard of. Founded in 1932 and headquartered in Connecticut, Amphenol is a Fortune 500 company with over 80,000 employees worldwide. Our products are a key ingredient in the electronic devices you use daily. From the cell phone in your pocket and the car you drive to the network equipment behind your favorite app and website, Amphenol products are everywhere.

    TactoTek and Amphenol ICC collaborated to develop automotive-grade in-mold connectors for TactoTek IMSE technology. Amphenol ICC will bring new technology products to customers with transformational technologies like TactoTek's IMSE combined with Amphenol ICC's automotive-grade MicroSpace connector platform and Duflex crimp technology.

    Kyocera Corporation is a Japanese multinational ceramics and electronics manufacturer headquartered in Kyoto, Japan. It was founded as Kyoto Ceramic Company, Limited in 1959 by Kazuo Inamori and renamed in 1982. KYOCERA launched 0.4mm-Pitch 8152 series electronic connectors for automotive applications. It conforms to the high-speed transmission standard MIPI D-PHY (2.5 Gbps), PCI Express Gen2 (5Gbps), and Gen3 (8Gbps). The frame is shielded for a robust design and EMI reduction suitable for demanding automotive applications.

    Key Companies in the Automotive Connectors Market market include

    Industry Developments

    Nov 2022 Molex Incorporated (Molex), a manufacturer of automotive connector systems, announced the expansion of its Guadalajara, Mexico, site and established a second plant. The company will increase production capacity for parts used in electric vehicles (EVs) to meet rising demand.

    Apr 2022 Aptiv PLC (Aptiv) reported that its smart plant in Anting, Jiading District, Shanghai, is still operating, with roughly 80% of its production capacity through "closed-loop" manufacturing. The connector plant of Aptiv manufactures high-voltage power distribution units, EV chargers, high-voltage charging sockets, high-voltage connectors, special wire harnesses, and automotive electronics like wireless charging and multimedia interfaces to connector system products like plug-ins, seals, terminals, and plastic housings.

    Mar 2022 Morocco's Ministry of Industry and Trade signed eight investment agreements totaling MAD 1.7 billion with international automotive suppliers Yazaki, Sumitomo, Lear, Stahlschmidt, and TE Connectivity, creating nearly 12,000 direct jobs. The eight investment agreements are part of the cabling ecosystem's development of deep integration and move upmarket via the localization of connectors, terminals, cables for electric vehicles, plastic parts, and other precision mechanics and automation trades.

    Future Outlook

    Automotive Connectors Market Future Outlook

    The Automotive Connectors Market is projected to grow at 8.03% CAGR from 2024 to 2035, driven by advancements in electric vehicles, increased connectivity, and stringent safety regulations.

    New opportunities lie in:

    • Invest in R&D for high-performance connectors to support electric vehicle technology.
    • Develop smart connectors with integrated sensors for enhanced vehicle data management.
    • Expand into emerging markets with tailored connector solutions for local automotive manufacturers.

    By 2035, the Automotive Connectors Market is expected to achieve substantial growth, reflecting evolving automotive technologies.

    Market Segmentation

    Automotive connectors Regional Outlook

    • US
    • Canada
    • Germany
    • France
    • UK
    • Italy
    • Spain
    • Rest of Europe
    • China
    • Japan
    • India
    • Australia
    • South Korea
    • Rest of Asia-Pacific
    • Middle East
    • Africa
    • Latin America

    Automotive connectors Application Outlook

    • Body Control & Interiors
    • Engine Control & Cooling System
    • Safety and Security System
    • Others

    Automotive connectors System Type Outlook

    • Sealed
    • Unsealed Connector System

    Automotive connectors Vehicle Type Outlook

    • Passenger Car
    • Commercial Vehicle

    Automotive connectors Connection Type Outlook

    • Wire-to-Wire
    • Wire-to-Board
    • Board-to-Board

    Report Scope

    Attribute/Metric Details
    Market Size 2023 USD 10.28 billion
    Market Size 2024 USD 11.1 billion
    Market Size 2032 USD 20.6 billion
    Compound Annual Growth Rate (CAGR) 8%(2024-2032)
    Base Year 2023
    Market Forecast Period 2024-2032
    Historical Data 2019- 2021
    Market Forecast Units Value (USD Billion)
    Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
    Segments Covered Connection Type, System Type,Application, Vehicle Type, and Region
    Geographies Covered North America, Europe, AsiaPacific, and the Rest of the World
    Countries Covered The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
    Key Companies Profiled  EConnectivity (Switzerland), Delphi Automotive (UK), Yazaki Corporation (Japan), Sumitomo Electric (Japan), Japan Aviation Electronics Industry (Japan), Amphenol Corporation (US), Hirose Electric Co., Ltd (Japan), Hu Lane Associates Inc. (Taiwan), Korea Electric Terminal Co. Ltd (South Korea), and Kyocera Corporation (Japan)
    Key Market Opportunities Increase in electrification in vehicles
    Key Market Dynamics The rise in the security needs in the automobile

    Market Highlights

    Author
    Swapnil Palwe
    Team Lead - Research

    With a technical background as Bachelor's in Mechanical Engineering, with MBA in Operations Management , Swapnil has 6+ years of experience in market research, consulting and analytics with the tasks of data mining, analysis, and project execution. He is the POC for our clients, for their consulting projects running under the Automotive/A&D domain. Swapnil has worked on major projects in verticals such as Aerospace & Defense, Automotive and many other domain projects. He has worked on projects for fortune 500 companies' syndicate and consulting projects along with several government projects.

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    FAQs

    How much is the Automotive Connectors market?

    The Automotive Connectors Market size was valued at USD 9.8 Billion in 2022.

    What is the growth rate of the Automotive Connectors market?

    The global market is projected to grow at a CAGR of 8% during the forecast period, 2024-2032.

    Which Region held the largest market share in the Automotive Connectors market?

    Asia Pacific had the largest share of the global market

    Who are the key players in the Automotive Connectors market?

    The key players in the market are E-Connectivity (Switzerland), Delphi Automotive (UK), Yazaki Corporation (Japan), Sumitomo Electric (Japan), Japan Aviation Electronics Industry (Japan), Amphenol Corporation (US), Hirose Electric Co., Ltd (Japan), Hu Lane Associates Inc. (Taiwan), Korea Electric Terminal Co. Ltd (South Korea), and Kyocera Corporation (Japan).

    Which Connection Type led the Automotive Connectors market?

    The Wire-to-Wire Automotive Connectors category dominated the market in 2022.

    Which Vehicle Type had the largest market share in the Automotive Connectors market?

    The Passenger Carhad the largest share of the global market.

    Automotive Connectors Market Research Report - Global Forecast till 2032 Infographic
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