Automotive Wire Market Overview:
The Automotive Wire Market Size was estimated at 64.21 (USD Billion) in 2022. The Automotive Wire Market Industry is expected to grow from 66.07(USD Billion) in 2023 to 85.36 (USD Billion) by 2032. The Automotive Wire Market CAGR (growth rate) is expected to be around 2.89% during the forecast period (2024 - 2032).
Key Automotive Wire Market Trends Highlighted
Emerging connectivity and autonomous driving technologies are fueling the demand for automotive wire harnesses, which transmit critical signals and power throughout the vehicle. The integration of advanced driver-assistance systems (ADAS) enhances safety and efficiency, driving the need for complex wire harnesses to support these features.Growth in electric and hybrid vehicles presents opportunities for manufacturers to develop specialized wire harnesses that meet the unique requirements of these vehicles. The electrification of powertrains calls for high-voltage, high-temperature resistant wires to safely and reliably transmit power. As electric vehicles become more prevalent, demand for these specialized wire harnesses is expected to rise.Market opportunities are also found in lightweight materials and sustainable practices. Automotive wire manufacturers are exploring the use of advanced materials, such as aluminum and composite fibers, to reduce the weight of wiring harnesses while maintaining performance. Additionally, there is a growing emphasis on eco-friendly production processes and the use of recyclable materials to address environmental concerns.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Wire Market Drivers
Increasing Demand for Electric Vehicles
The global automotive wire market is projected to reach a valuation of USD 85.36 billion by 2032, expanding at a CAGR of 2.89% during the forecast period. This growth can be attributed to the surging demand for electric vehicles (EVs). EVs require a specialized type of wire that can withstand the high temperatures and voltages associated with electric motors. As the adoption of EVs continues to accelerate, so too will the demand for automotive wire.In addition to EVs, the growing popularity of autonomous and semi-autonomous vehicles is also driving demand for automotive wire. These vehicles require a complex network of wires to connect the various sensors, actuators, and other electronic components. As the level of autonomy in vehicles increases, so will the demand for automotive wire. Furthermore, the increasing use of advanced driver-assistance systems (ADAS) is also contributing to the growth of the automotive wire market.ADAS features such as lane departure warning, adaptive cruise control, and automatic emergency braking rely on a network of sensors and wires to function. As ADAS becomes more common, so will the demand for automotive wire.
Rising Production of Passenger Cars
The increasing production of passenger cars is another important driver of growth in the global automotive wire market. The rising population and rapid urbanization in developing countries are also increasing the demand for personal transportation. Therefore, the production of passenger cars is also on the rise. According to OICA, the total global production of passenger cars increased to 77.6 million units in 2021. This is also projected to grow to reach 90 million units by 2025.The rising production of passenger cars will, therefore, also require a significant amount of automotive wire, thus supporting the growth of the global market.
Technological Advancements in the Automotive Industry
Technological advancement in the automotive industry is a major driver for the growth of the market. An increase in the use of lightweight materials in vehicles corresponds to a demand for lightweight wire that is also durable. Powertrain innovations also require modified wiring. The growing phenomena of electric vehicles and the advancements in powertrain technologies, which include hybrid, electric and advanced internal combustion engines, might be a reason for higher demand for some types of automotive wire.In other words, the increased technological advancement in the automotive industry will correspond with an increased demand for automotive wire. Therefore, once the automotive industry further advances, so will the demand for the automotive wire. The Global Automotive Wire Market Industry is projected to grow during the period under consideration. The factors that contribute to the growth of the market include “the increasing demand for electric vehicles, rising production of passenger cars, and advances in technology in the automotive industry.”
Automotive Wire Market Segment Insights:
Automotive Wire Market Wire Type Insights
The global automotive wire market has three types: copper wire, aluminum wire, and hybrid wire. As of 2023, copper wire will account for over 50% of the market share. It is also the most widely used type of automotive wire. Aluminum wire is a lighter and cheaper alternative to copper; thus, it is anticipated that its market share will be expanding in the future. Hybrid wire is a mixture of copper and aluminum wire, which has the advantage of being two different types of wire. The global automotive wire market is fueled by the growing demand for automobiles.The increasing adoption of electric vehicles is also expected to be driving the demand for automotive wire since electric cars require more wiring than their traditional gasoline-powered predecessors. By the end of the forecast period, the value of the market will be committed to reaching USD 85.36 billion. The increasing demand for automobiles is anticipated to be the key driver of growth. Moreover, the growing adoption of electric vehicles, ADAS, and other electronic features in vehicles is also expected to lead to the expansion of the market.The Asia-Pacific region is anticipated to be the leading region, with over 40% of the market share volume in 2023, and the same is anticipated in the future. The growth in this region is expected to be the result of continually increasing demand for automobiles. North America and Europe are also expected to have growing markets since more adoption of ADAS and other electronic features in automobiles.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Wire Market Voltage Range Insights
The voltage range segment in the Global Automotive Wire Market is classified into Low Voltage Wire, Medium Voltage Wire, and High Voltage Wire. In 2023, the Low Voltage Wire segment dominated the market. This segment accounted for over half of the market revenue at 49.33%. This dominance is driven by the upsurging number of low-voltage electrical systems installed in passenger vehicles and light commercial vehicles. The medium wire voltage is realized in heavy-duty vehicles, which include buses and trucks, military vehicles, and construction equipment.This segment is expected to have the most notable growth, as the low-medium voltage gap is the narrowest in the Global Automotive Wire Market. High Voltage Wire applications are mainly in high-performance vehicles, such as sports cars, racing cars, luxury vehicles, and large off-road farming equipment, where this type of automotive wire is irreplaceable. This voltage range segment is also expected to grow in popularity as the demand for electric vehicles continues to rise.
Automotive Wire Market Application Insights
The Global Automotive Wire Market segmentation by application includes Powertrain, Body Electronics, Safety Systems, Comfort and Convenience, and Infotainment. Among these, the Powertrain segment held the largest market share in 2023, and it is projected to continue its dominance throughout the forecast period. The growth of this segment can be attributed to the increasing demand for electric and hybrid vehicles, which require more complex wiring systems. The Body Electronics segment is expected to witness significant growth over the forecast period due to the rising adoption of advanced driver assistance systems (ADAS) and other electronic features in vehicles.The Safety Systems segment is also expected to grow steadily, driven by the increasing regulatory focus on vehicle safety. The Comfort and Convenience and Infotainment segments are expected to grow at a moderate pace, supported by the rising demand for features such as power windows, power seats, and infotainment systems. The Global Automotive Wire Market revenue from the Powertrain segment is projected to reach USD 26.54 billion by 2024, growing at a CAGR of 3.2%. The Body Electronics segment is expected to grow at a CAGR of 3.8%, reaching USD 19.23 billion by 2024.The Safety Systems segment is projected to grow at a CAGR of 4.1%, reaching USD 14.67 billion by 2024. The Comfort and Convenience segment is expected to grow at a CAGR of 2.9%, reaching USD 12.56 billion by 2024. The Infotainment segment is projected to grow at a CAGR of 3.3%, reaching USD 10.37 billion by 2024.
Automotive Wire Market Insulation Type Insights
The insulation Type segment of the Global Automotive Wire Market is expected to grow at a CAGR of 2.89% from 2024 to 2032, with revenue projections reaching USD 85.36 billion by 2032. The diverse range of insulation materials used in automotive wires caters to specific performance requirements in various applications. Polyvinyl Chloride (PVC) holds a dominant position due to its cost-effectiveness, durability, and flame-retardant properties. Polyethylene (PE) offers flexibility and resistance to chemicals, while Cross-Linked Polyethylene (XLPE) provides enhanced thermal stability and insulation resistance.Ethylene Propylene Rubber (EPR) exhibits high-temperature resistance and ozone resistance, and Polyurethane (PUR) provides excellent insulation and abrasion resistance. The selection of insulation type depends on factors such as operating temperature, voltage rating, and environmental conditions, driving market segmentation and customization.
Automotive Wire Market Automotive Grade Insights
The Automotive Wire Market is segmented into Standard Grade and Automotive Grade. The growth of this segment can be attributed to the increasing demand for high-performance wires in automotive applications. Automotive Grade wires are designed to withstand harsh conditions such as high temperatures, vibrations, and chemical exposure. They are also required to meet stringent safety standards. The increasing production of electric vehicles is also driving the demand for Automotive Grade wires. Electric vehicles require more wiring than internal combustion engine vehicles, and the wires must be able to handle the high voltage and current requirements of electric motors.The Standard Grade segment is expected to grow at a CAGR of 2.5% during the forecast period. The growth of this segment can be attributed to the increasing demand for low-cost wires in automotive applications. Standard Grade wires are designed to meet the basic requirements of automotive applications. They are not as durable as Automotive Grade wires, but they are less expensive. The increasing production of low-cost vehicles is driving the demand for Standard Grade wires. Low-cost vehicles require fewer wires than high-end vehicles, and the wires can be of a lower quality.
Automotive Wire Market Regional Insights
The regional segmentation of the Global Automotive Wire Market offers insights into the market's geographical distribution and performance. North America held the largest market share in 2023, with a revenue of 22.54 billion USD. The region's automotive industry is well-established, with major automakers and a strong supply chain. Europe followed closely with a market size of 19.37 billion USD, driven by strict emission regulations and a growing demand for electric vehicles. APAC is expected to witness significant growth over the forecast period, with a CAGR of 3.21%, due to the increasing vehicle production and rising disposable income in emerging countries.South America and MEA are expected to contribute smaller shares to the global market but offer growth opportunities as the automotive industry develops in these regions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Wire Market Key Players and Competitive Insights:
Prominent players in the Automotive Wire Market continue to focus on product and technology innovations through strategic acquisitions and partnerships. Leading players in the automotive wire market are diversifying their investments in extensive research and development activities to expand their product lines and cater to the evolving tastes of manufacturers in the automotive sector. The automotive wire market is predominantly a highly competitive market, with an extensive presence of numerous local and regional players vying for prominence. Key participants in the market rely on their brand value, extensive distribution network, and years of experience to ensure they maintain their competitive edge. They continue to concentrate on developing innovative and novel products, such as lightweight and high-performance wires, to appeal to the growing number of customers interested in fuel efficiency and electrification. Moreover, as these products are innovative and have considerable demand, they are also forming alliances and inflows, leveraging individual expertise and resources for mutual development and future growth. Companies such as Sumitomo Electric Industries, which is one of the foremost names in automotive wires, have a well-established reputation in the industry and offer high-quality automotive wires and cables to meet the needs of their customers worldwide. They operate an international network of manufacturing facilities and sales offices. The company is dedicated to continuous innovation and has joined hands with some of the world’s leading car makers to push the R to the next level to create new products with better performance attributes. The main emphasis of all their activities is to satisfy their customers, and only then will they be able to achieve worldwide recognition. The focus on quality has enabled the company to obtain a position as a trusted supplier in the automotive cable industry. Not so long ago, TE Connectivity, from the Automotive Wire Market major league players company, offered comprehensive automotive wiring solutions and is one of the prominent players in the global automotive wire market space with its diverse offerings. TE Connectivity is also in the league of other prominent players in the Automotive Wire Market, such as Sumitomo Electric Industries. Companies work entirely and consistently, remain focused on their customers and regularly improve the quality of their products. They focus on their academic research and manufacturing areas and relentlessly push new products in the market at a regular frequency to keep their consumers engaged. They are rewarded with invaluable reputable brands and respectable companies as customers. The use of sustainable techniques and compliance with industry standards consistently provide them with a competitive edge throughout the Automotive Wire Market world.
Key Companies in the Automotive Wire Market Include:
Automotive Wire Market Industry Developments
The global automotive wire market size was valued at 58.68 billion U.S. dollars in 2023 and is projected to expand at a compound annual growth rate (CAGR) of 2.89% from 2024 to 2032, reaching 85.36 billion U.S. dollars by the end of the forecast period. Key factors driving market growth include the increasing production of electric vehicles, rising demand for lightweight and fuel-efficient vehicles, and growing adoption of advanced driver assistance systems (ADAS). Asia-Pacific is expected to remain the largest regional market throughout the forecast period due to the presence of major automotive manufacturing hubs such as China, Japan, and South Korea. Major players in the market include Sumitomo Electric Industries Ltd., TE Connectivity Ltd., and Leoni AG. Recent developments include the launch of new products, such as high-voltage wires and cables to support the electrification of vehicles and strategic partnerships between manufacturers and automotive OEMs to enhance product offerings.
Automotive Wire Market Segmentation Insights
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Automotive Wire Market Voltage Range Outlook
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Low Voltage Wire (less than 1000V)
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Medium Voltage Wire (1000V-35kV)
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High Voltage Wire (above 35kV)
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Automotive Wire Market Insulation Type Outlook
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Polyvinyl Chloride (PVC)
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Polyethylene (PE)
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Cross-Linked Polyethylene (XLPE)
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Ethylene Propylene Rubber (EPR)
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Polyurethane (PUR)
| Report Attribute/Metric |
Details |
| Market Size 2022 |
64.21(USD Billion) |
| Market Size 2023 |
66.07(USD Billion) |
| Market Size 2032 |
85.36(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
2.89% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Yazaki Corporation, Molex, Aptiv, Hella KGaA Hueck Co., Sumitomo Electric Industries, Rosenberger, Furukawa Electric, Belden, Nexans, Amphenol, Huber+Suhner AG, Leoni AG, Phoenix Contact, TE Connectivity |
| Segments Covered |
Wire Type, Voltage Range, Application, Insulation Type, Automotive Grade, Regional |
| Key Market Opportunities |
Electric vehicle growth Advanced driver assistance systems Infotainment and connectivity Autonomous driving Lightweight materials |
| Key Market Dynamics |
Rising EV Adoption Stricter Emission Norms Growing Demand for Advanced Driver Assistance Systems Focus on Vehicle Lightweighting Increasing Usage of Advanced Materials |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The global automotive wire market is expected to be worth approximately USD 66.07 billion in 2023.
The global automotive wire market is projected to grow at a CAGR of 2.89% from 2024 to 2032.
The North America region is expected to hold the largest market share in the global automotive wire market in 2023.
The growing demand for electric vehicles and the increasing adoption of advanced driver assistance systems are key factors driving the growth of the global automotive wire market.
Some of the key competitors in the global automotive wire market include Sumitomo Electric Industries Ltd., TE Connectivity Ltd., and Leoni AG.
The global automotive wire market is expected to be worth approximately USD 85.36 billion in 2032.
Automotive wires are used in a variety of applications, including power distribution, signal transmission, and data communication.
There are a variety of different types of automotive wires, including copper wires, aluminum wires, and fiber optic cables.
The global automotive wire market is facing a number of challenges, including rising raw material costs and increasing competition from low-cost manufacturers.
The global automotive wire market is expected to benefit from the growing demand for electric vehicles and the increasing adoption of advanced driver assistance systems.
