The automotive wires market is anticipated to grow at a compound annual growth rate of 6.5% during the forecast period of 2023 to 2030. Increasing the use of digital modules in cars should boost sales and the automotive wires industry. The desire for electric and fuel-efficient cars is expected to enhance competition among automotive wire makers. When a car's wires are expanded, they can stretch for kilometres. Wires and cables are important for almost all automotive functions, including the engine, transmission, lighting, braking, air conditioning, seat heaters, and dashboard functions like the speedometer and fuel metre. Thanks to new technology and rising consumer expectations, the number of situations requiring wires in cars has grown substantially over time. COVID-19-induced auto sales slowdown hurt automotive wires sector demand outlook. The market grew 4.8% between 2020 and 2021 due to a comeback in vehicle production.
To meet national climate targets under international accords like the Kyoto Accord and the Paris Agreement, to gain energy independence, and to minimise local emissions' health risks, numerous governments have advocated banning the sale of fossil-fuelled passenger automobiles. India, China, Japan, South Korea, Taiwan, Denmark, Sweden, Norway, Germany, France, the Netherlands, Spain, Portugal, and Costa Rica. China is the world's largest vehicle market, while Japan is third. Japan wants a "hydrogen economy" by 2040. However, fossil-fuel vehicles won't disappear soon. Hybrid EV sales are projected to rise. The wire and cable business has no impediments. EVs have expanded wire and cable markets. EVs are the best option for fossil-fuel automobiles in many countries. Britain wants to decrease fossil-fuel cars by 2030. China plans to target 4% EV penetration or 1.12 million EVs in less than five years. India's FAME scheme gives incentives for buying EVs. According to reports, the government may charge fossil fuel vehicles to promote EVs. The government's goal calls for 30% EVs by 2030. The government has issued bids to expand charging infrastructure. Once manufacturers reduce the cost of electric automobiles with better technology, demand will soar. Electrical designers reduce wiring mass to improve cost, safety, and dependability. Proper EV charging infrastructure must also be set up shortly. EV charging infrastructure will benefit wire manufacturers, as it will require more wires.
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Copper automotive wires are expected to gain market share during the evaluation period. Copper is used to making vehicle wires because of its conductivity, ductility, and durability. Small gauge wires are finding additional uses to assist the automotive industry's rapid technological improvement. OEMs are reducing gauge size to save vehicle weight to build fuel-efficient vehicles. Copper's intrinsic properties make it more suitable for thinner gauges than aluminium. Copper is easier to produce, install, and size for small bundles in packaged wiring applications. It eliminated corrosion and termination concerns, making it a popular material for auto wires. Cheap copper and aluminium, as well as the presence of automotive component manufacturers and OEMs in China, will make it an attractive automotive wires market over the evaluation period. ISO has created rigorous car wire using aluminium conductors to reduce wiring regulations and diameters. The new ISO standards define the functionality, size, and features of automotive aluminium wires, as well as testing protocols. As demand for fuel-efficient, lightweight cars rises, the market for aluminium wires should grow. Low-specific gravity cables reduce wiring costs. Due to their benefits, their use in the auto sector is expected to expand in the next years. Aluminium's weak conductivity compared to copper has limited its use. This is especially problematic for engine-compartment wires, which are often vibrated. In response, manufacturers are developing high-strength aluminium alloys stronger than copper for use in automobile engine compartments. Due to this, there is a favourable climate for purchasing aluminium automotive wires, creating profitable opportunities for OEMs and automotive component manufacturers.
Electric car cables are expected to be the fastest growing market during the forecast period of 2023 to 2030. Electric vehicle sales have increased due to stringent carbon emission rules in several countries. This development should benefit automobile wiring. Government subsidies to reduce carbon emissions are expected to encourage the production of electric and hybrid automobiles. These cars feature more electric and electronic components and systems than previous vehicles, which has increased automotive wire sales. The automotive wires sector is focusing on electric car cable needs. Low-tension electrical cabling controls electric vehicle starting, charging, signalling, lighting, and the instrument panel. So, the market for automotive wires is expected to rise in electric vehicles.
The demand for vehicle chassis and safety wires is expected to rise during the forecast period. Automakers are investing in R&D to create multifunctional automotive wires to reduce vehicle weight. Driverless cars are expected to boost sales of chassis and safety automotive wires. During the evaluation phase, demand for fuel-efficient cars that improve driving will push increased sales of chassis and safety automotive wiring.
Asia-Pacific will be the largest auto wire market by 2030. Rising per capita incomes in India and China, as well as the desire for premium automobiles and more technologically advanced features, are driving growth in this market. North America will have the second largest market for automotive wires worldwide. North America, one of the primary premium vehicle markets, is expected to have a large automotive wire market. Mid-priced cars with added safety and convenience features are in high demand.
Yazaki Corporation, Sumitomo Electric, Aptiv plc, Leoni, and Lear Corporation are the top five automotive wire competitors in 2021. Key automotive wire makers are engaging in mergers, acquisitions, collaborations, and partnerships to enhance their manufacturing capabilities and market position. Players are also investing in R&D to better their products for the growing consumer base.
