The global automotive cable market is expected to grow at a CAGR of 7% during the forecast period of 2023 to 2030. The automotive business has always been adapting to new trends, new technologies, and in-vehicle developments. In addition, these transitions have been brought about by an increase in the number of safety regulations as well as voluntary environmental promises made by the car sector. Automobiles that are resistant to heat are utilized in practically every application found within a car. Wires and cables are essential components for the operation of an automobile's engine, gearbox, brake system, lights, air conditioners, seat heaters, and several applications located on the dashboard, such as a speedometer and fuel meter. Wires that have been separately insulated and twisted together before being sheathed together to form a cable. New car models and the rapid rise in vehicle numbers are driving the market growth. Regulatory requirements for passenger and commercial anti-lock braking systems are the industry's primary growth variables. Demand for automobiles drives gains. This will happen in India, China, and Brazil, among others. It'll happen in other countries. Electric vehicles are transforming the landscape of automotive control wires.
To accomplish national climate targets set forth in international accords such as the Kyoto Accord and the Paris Accord, to attain energy independence, and to decrease local emissions' health concerns, a number of governments have advocated banning the sale of fossil-fuelled passenger automobiles. So that: As a result, hybrid electric vehicle (HEV) sales are expected to surge soon. As more people migrate to EVs, demand for high-temperature automotive cable materials will rise. EVs use more electronic parts than traditional cars. As electric car (EV) electronics advance, wire and cable systems become more important. This dependence has grown due to vehicle technology. Hybrid EVs and EVs will increase the demand for automotive wire and cable materials. Wire and processes must be updated. Several countries have established tax exemptions and subsidies to enhance the market penetration of electric and hybrid automobiles. The U.S. government provided qualified buyers a $7,500 tax credit until 2013. Electric car owners who paid their taxes regularly received the money. In 2014, the government said it will enhance the maximum tax credit to $10,000 USD at purchase. IEE Whitepaper expects electric vehicles would make up 40% of the U.S. auto market by 2035.
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Technology is crucial to the automotive industry's growth. Technological developments make cars safer, and more user-friendly, and allow the introduction of features that increase their value and usefulness. Digital technology allows automakers to adopt autonomous driving and reduce accident risk. Machine learning and predictive technology have greatly improved the automotive industry's prediction capabilities. Using an augmented reality dashboard, the windshield can display information to the driver. Thanks to micro cameras positioned throughout the automobile, the driver may check for invisible items from the driver's seat. Tire pressure, lane change, and collision sensors prevent accidents. Anti-lock brakes and traction control help drivers maintain vehicle control. All of these qualities and technical developments produce a requirement for automotive wire and cables, which promotes demand for production materials.
OEMs are increasingly using automotive Ethernet for internal and external electrical device connections. Most luxury cars employ automotive Ethernet. Current trends suggest automakers will migrate to Ethernet for vehicle production soon. Hyundai will use automotive Ethernet for infotainment in its upcoming vehicles, and Volkswagen will use it for drive assistance. Ethernet will make wire adoption more difficult in the car industry since it streamlines the wiring arrangement. This should slow market growth.
Multi-core cables dominated the market in terms of revenues in 2021. Multi-core cables are used in the auto industry and all road vehicles since they can carry high voltage. Multi-core wires control electrical instruments and the engine. Multicore wires are easy to install, flexible, and manageable. Most automakers utilize multicore wires for various applications. Increasing electronic or electrical content in vehicles drives the global automotive cable industry. Manufacturers employ lightweight, compact components to make effective, simplified, and personalized cables and cable connectors.
PVC car wire insulation held 58% of 2021 revenue. It's expected to rise 6.7% annually through 2030. PVC is created by polymerizing vinyl with chloride. Its high insulation and resistance to oil, grease, and acids make it excellent for car, truck, trailer, marine, construction, and other electrical connections. Polyethylene shield automotive wire is preferred in gearboxes, engines, brakes, doors, and other vehicle components, driving demand. Polyethylene shield automotive wire is preferred for its corrosion resistance, flexibility, and inexpensive cost. Preference drives demand. Their fore polyethylene coating is predicted to expand fastest from 2023 to 2030. Passenger Vehicles held 78% of the worldwide automotive wire and cable market in 2021.
The original equipment manufacturer segment will have the largest global revenue from 2023 to 2030. Sales of automobile control cables are expanding due to the increased manufacturing of electric vehicles and the use of more reliable and long-lasting car battery cables to charge them. Due to limited life cycles, periodic replacement of brake, clutch, gearbox, and other cables supports aftermarket growth. Due to cable maintenance. The rise in electronic components in cars and the desire for enhanced vehicle safety systems influenced the automotive cable market. The increased use of electrical components in engine and gearbox compartments are expected to increase demand for car cables over the projected period. This is especially common in commercial vehicles, which have many electronic parts and are advancing rapidly.
APAC remains the most dominant market for automotive cable, contributing over 60% of revenue in 2021. Despite Covid-19, China will remain APAC's largest market for automotive cables. China is expected to be the world's largest car market in the medium to long term, which will boost the Asia-Automotive Pacific cable market. OEMs must change their manufacturing footprints, supply networks, and product offerings to suit expanding supply and demand across regions and market segments. China's increasing after-sales industry offers new corporate expansion options. North America and Europe held 30% of the automotive cable market in 2021.
Small- and medium-sized automotive cable manufacturers dominate most of the automotive cable market. Many corporations invest heavily in R&D to develop environmentally-friendly products. Key players have adopted mergers and acquisitions and diversified their product lines. Acitome, Sumitomo Electric, Furukawa Electric, Delphi Automotive, Yazaki, and others are significant Automotive Cable Market companies (Thai Steel Cable Public Co., Ltd., the Minda Corporation Limited, the Kongsberg Automotive ASA., the Suprajit Engineering Ltd., the Ficosa International SA, etc).
