Market Trends of Automotive Wiring Harness Industry
Electric Vehicles are Expected to Drive the Market Growth
Electric vehicles are fast becoming a mainstream part of the automotive industry. They help vehicle owners cut down the operating costs of their vehicles and governments to achieve a clean environment and energy independence along with reduced emission of pollutants and other greenhouse gases as lower oil imports. The increasing environmental concerns and favorable government initiatives are the major factors driving the adoption of electromobility worldwide.
Electric car markets experienced significant growth in 2022, as sales surpassed the 10 million mark. By that year, 14% of all cars sold were electric, representing a five-fold increase from 2020, when less than 5% of new vehicles were electric, and a 55% rise from 2021, when around 9% of new cars purchased were electric.
China once again dominated global electric car sales, accounting for around 60%. With more than half of all-electric cars internationally on the roads located in China, the country has already surpassed its 2025 target for new energy vehicle sales. In Europe, the 2nd greatest market, electric car sales enhanced by over 15 % in 2022, meaning that over one in any five vehicles sold was electric. Electric car sales in the United States doubled by 55 % in 2022, arriving at a sales disclose of 8 %.
With this increasing adoption of electric vehicles worldwide, some wire and cable manufacturers are investing heavily in increasing their production capacity to cater to the rising demands. For instance
In September 2022, Yazaki Corporation opened its fourth manufacturing facility in Morocco at Kenitra near Rabat with an investment of USD 30 million.
With the aforementioned trends and developments, the rising demand for electric vehicles will propel demand in the wiring harness market during the foreseeable future.
Asia-Pacific Region is Expected to Dominate the Target Market
The Asia-Pacific region is expected to have a majority share in the automotive wiring harness market. Rising disposable income and an increase in GDP in the Asia Pacific are driving the market. Ease of manufacturing auto parts, vehicle sales, and growing government regulations improving electric vehicles adoption and robust expansion adopted by OEMs and suppliers in the region to accommodate rising demand from the automotive industry across the Asia-Pacific region is expected to create a positive outlook for market growth during the forecast period.
Growing government regulations improving electric vehicle adoption and robust expansion adopted by OEMs and suppliers in the region to accommodate rising demand from the automotive industry in China are expected to create a positive outlook for market growth. For instance,
- The Chinese market caught up during the first half of 2022. BEVs and PHEVs made up 19% and 5% of the total number of new passenger car registrations that were electric vehicles. This represents an 8% point increase over the market share from the previous year and is four times higher than it will be in 2020. As a result, two years before the target year of 2025, China has already surpassed the 20% EV share target set forth in the 14th Five-Year Plan Energy Saving and Emission Reduction Work Plan.
Other important countries in the region are India and South Korea. India is a lucrative market for automotive wiring harness market manufacturing companies as the government has allowed 100% foreign equity investment in the automobile sector. Additionally, the number of new vehicle registrations per year is increasing in India, serving as a positive growth environment for automotive wiring harness manufacturing companies. India is also home to Motjrson Sumi Ltd, a major manufacturer of automotive wiring harness systems.
As traditional wiring methods are not suitable for upgrading features offered by automakers, the automobile wire harness is growing steadily. Also, installing such wire harness systems enhances the vehicle's fuel efficiency and complies with Indian government fuel usage and emissions laws. Owing to these factors, the sector is expected to grow at a reasonable rate, enhancing the demand in the automotive wiring harness market during the forecast period.
